What is a Builders Warranty Report?
A Builders Warranty Report is a written report prepared by QBM that identifies all defects within a complex and makes recommendations if the defects would be classified as covered by the builder’s warranty.
All States have differing laws on the responsibilities of builders to rectify defective works.
Currently only Queensland has a Government entity that registers builders and insures building owners against builders defects.
QBM undertakes Builders Warranty Reports in Queensland and New South Wales to comply with the legislative requirements of these states.
Builders Warranty Report Queensland
Directions to Builders and Insurance
The Queensland Building Services Authority Act (1991) is the legislation under which builders are licenses and regulated by the QBCC. The regulation extends to ordering builders to rectify defective building work. There is an insurance scheme to fund alternative builders to carry out work where the original builder cannot or will not comply with a valid direction,
Does this apply to your scheme?
Any licensed builder can be required to comply with a direction issued by the QBCC. There are important limitations on the ability to the QBCC to make a direction, and a builder can challenge whether it is a valid direction. The insurance policy is only applicable to buildings having three (3) storeys or less (not including car parks).
How do you make a claim?
An individual owner can process their own claim by lodging the applicable form at the QBCC. If there is a common property aspect to the problem, it’s necessary for all owners to consent to the QBCC dealing with the body corporate claim.
You must act promptly
Normally, the QBCC can’t issue a direction more than six (6) years and three 3) months after the building work was completed or left in an incomplete state (QBSAA, s72(8)). It can extend this time period if there is good reason in the circumstances of a particular case.
It can only give directions in relation to ‘Category One’ defects within (6) Six year and three (3) months of the completion of the building, but must be lodged within 3 months of the defect becoming apparent and ‘Category Two’ defects within six 6) months after the building work was completed or left incomplete.
What is ‘Category One’
- It is faulty or unsatisfactory because it adversely affects the structural performance of a building;
- It adversely affects the health and safety of persons residing in or occupying the building;
- It adversely effects the functional use of the building; or
- It allows water penetration into the building.
What is ‘Category Two’
- If the work does not meet the reasonable standards of construction and finish or is a “settling in period defect” in a new building. (QBCC policy “Rectification of Building Work).
Once the QBCC has a fully completed form, and this involves a reasonable degree of research by the claimant to identify who the builder is and when the work was carried out, the QBCC activates a dispute resolution process
Should my body corporate manager know about this process?
Most body corporate managers will be aware of the processed under the legislation. The STA-registered managers have access to educational updates.
What should the committee do?
- Ensure all owners are aware of these processes
- Act promptly to notify the QBCC of defects in relation to common property
- Take legal advice promptly where there is an unsatisfactory result (the strict time frames for instituting an appeal from a QBCC decision is problematic considering that an EGM is required for approval of legal proceedings).
Builders Warranty Report New South Wales
Home warranty insurance
The Home Warranty Insurance Scheme is established under the Home Building Act 1989 and commenced on 1 May 1997. It is an integral part of the consumer protection package for home owners having building work undertaken.
After new home warranty insurance arrangements for NSW commenced on 1 July 2010 the NSW Self Insurance Corporation trading as NSW Home Warranty Insurance Fund took over as the sole provider of home warranty insurance within NSW.
Home warranty insurance policies issued before the commencement of the new Government underwritten scheme will remain in force, and the insurer that issued the policy will remain on risk for the duration of the period of cover.