New ‘duty of care’ laws makes all participants in building work responsible for fixing building defects!

Passed by the NSW Parliament in early June 2020, the new building laws will have a significant impact on people that own and live in strata buildings and any person involved in property development and construction in NSW.

The new laws apply to both existing buildings built in the last ten years and also to the construction of new buildings going forward.

Those laws will give many owners corporations rights they did not previously have.

Here we explain the Building Defects New Duty of Care Laws and what actions strata managers can take now!

For NSW strata legal, building defects and levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

The cost of fixing the unfolding national building crisis involving building defects including the use of dangerous combustible cladding, could soar past $6.2 billion, according to a new economic analysis.

It is estimated that around 3,461 residential apartment blocks across the country have flammable exterior cladding that’s 170,000 apartments mostly constructed in the last 10 years, the majority of these in NSW.

So, what can you do, whilst the issue is being addressed, to mitigate and minimise your strata blocks risk?  Cladding and the Warranty Period – How can you Minimise your Risk?

For NSW strata legal or levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.

The current NSW home building legislation states that buildings must be at risk of collapse or be uninhabitable to reap the benefit of a full 6 year warranty.

It seems absurd to provide warranties only for defects (major) at this extreme end of the spectrum, which, as is now being acknowledged, should not be occurring at all in a properly regulated building industry.

So, what about all the other defects?

Before your building defects warranty period expires we strongly suggest that the following 3 points be considered: BUILDING DEFECTS – Top 3 Tips Before your Home Warranty Period Expires

Have you or your client recently purchased a new strata home? Do you have a building defect issue (or you’re not sure)? Talk to our building defect experts before your warranty period expires.

For all strata legal and building defects contact us here or call 02 9562 1266 we would be happy to assist.

Over the last few years the Home Building Act has been amended a number of times raising many questions in regards to the building defects rectification process such as:

1. What is the duty to mitigate?
2. What is ‘reasonable access’?
3. When can you refuse the builder and developer access to carry out rectification work?
4. Has the builder already attempted rectification work that has been unsuccessful?

So, what steps can owners corporations take to mitigate the loss Building Defects and the Rectification Process.

It’s a complex area of law and in order to protect the interests of the owners corporation it’s wise to seek legal advice on navigating this process.

For NSW strata legal, building defects or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

On 15 January 2015, the Home Building Amendment Act 2014 changed the terminology and definitions for building defects from structural to “major” and from minor to “in any other case” i.e. non-major.

So, what is the new definition of a major building defect?

In these two recent NSW Civil and Administrative Tribunal (NCAT) Appeal Panel decisions they have considered the definition of major defect and how to establish whether a defect meets this definition, providing some useful guidance on this topic How to Establish a Major Building Defect.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Do you know?

NSW Fair Trading has now provided an additional specialist resource to assist with the implementation of the Strata Building Bond and Inspections Scheme (SBBIS).

You may remember that Strata Building Bond and Inspections Scheme began on 1 January 2018 and applies to:

• Building contracts executed from this date
• Buildings with no written contract
• Building works that commence from this date
• Construction of residential or partially-residential strata properties that are four or more storeys high

Online Portal

The Strata Building Bond and Inspections Scheme is now administered by an online portal.

At any time before the occupation certificate is issued developers can register to use the portal to:

• Enter project details
• Upload documents as they become available, at anytime

PLEASE NOTE: These documents should reflect the completed building just before any occupation certificate is issued (not the start of the build).

 Owners Corporations and Strata Managers

Owners Corporations who are eligible should familiarise themselves with the portal to access information if and when needed. You may also refer to this information specifically developed for owners corporations and strata managers.

For any portal assistance, you may call 13 32 20 (8:30am to 5.00pm, Monday to Friday) or email stratabond@finance.nsw.gov.au or refer to more details online about the Strata Building Bond Scheme here.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Cracked walls and failing waterproof membranes are two of the common issues which owners corporations have to deal with.

Difficulties may arise where, if the owners corporation takes no action, there may be further consequences in terms of damage to other common property, damage to particular lots, and damage to the property of lot owners.

For some owners corporations, the backing of an insurer can be a “life saver” in a situation like this – but what should the owners corporation do if their insurer declines coverage or otherwise refuses to pay for all or part of the damage which the owners corporation (or a lot owner) is seeking to have fixed?

So, what happens when the insurer refuses to pay? Owners Corporations Common Property and Repairs

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Following the tragic fire at the Grenfell Tower in London in 2017 and the fire at the Lacrosse Building in Melbourne in 2014, new laws have been made for buildings with combustible cladding.

Under the Regulation, owners of certain buildings with external combustible cladding are required to register their building with the NSW Government through the simple, user friendly NSW Cladding Registration portal.

To avoid missing the deadline register here now. 

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Earlier this week, the NSW Government announced plans to make new laws to improve the building and construction industry.

The Government intends to introduce laws that will make builders liable for defects in a wider variety of circumstances.

One of the key announcements is the Government’s plan to impose on builders a duty of care to enable owners corporations of commercial and mixed use buildings to take action against builders for defects.

The Government also proposes to: require builders and designers to be registered; require designers and engineers to declare that building plans comply with the Building Code of Australia; and force builders to declare that buildings have been built according to their plans.

There is also a proposal to appoint a Building Commissioner to take over part of NSW Fair Trading’s role in the building and construction industry.

The Government’s announcement comes hard on the heels of the public outcry following the recent problems experienced by owners in Sydney’s Opal Tower.

The announcement acknowledges that there are significant problems in the building and construction industry and indicates that the Government proposes to adopt most of the key recommendations made in the Shergold Weir Report.

With a State election just around the corner, it remains to be seen if anything comes from the Government’s announcement. We will certainly watch on with interest.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

The Supreme Court has recently delivered a very firm warning to all owners corporations and litigants that the Court will not easily grant a litigant permission to use an expert’s report that is prepared very late in the case.

The Court will not assist an owners corporation if it has failed to take steps quickly and efficiently in preparing its experts’ report for use as evidence in a building defect case brought against a builder or developer under the Home Building Act.

In a recent case involving AV Jennings the Supreme Court refused to grant permission for an owners corporation to rely on an expert’s report that was prepared very late in the day Building Defects Experts Reports Case.

For NSW levy collection or strata legal advice please contact us here or call 02 9562 1266, we’re happy to assist.