The prevalence of strata building defects in New South Wales (NSW) can vary depending on factors such as the age and quality of construction of the buildings, the level of maintenance and upkeep, and the effectiveness of building regulations and oversight. However, reports indicate that building defects are a common issue in strata properties across NSW.
According to data from the NSW government and industry reports, a significant proportion of newly constructed strata buildings in NSW have been found to have defects ranging from minor issues to more serious structural problems. These defects can include issues such as water penetration, defective waterproofing, structural cracking, fire safety non-compliance, and defects in common property areas.
Several high-profile cases of building defects in NSW, such as the Opal Tower and Mascot Towers incidents, have drawn attention to the issue and highlighted the challenges faced by strata owners in addressing defects and ensuring the safety and integrity of their buildings.
Overall, while it is difficult to quantify the exact prevalence of strata building defects in NSW, it is clear that they are a significant and widespread issue that can have serious implications for strata owners, residents, and the broader community. As such, there is a growing focus on improving building standards, regulatory oversight, and mechanisms for addressing defects to prevent future occurrences and protect the interests of strata stakeholders.
Early Intervention
The role of the Building Commissioner in New South Wales (NSW) was first established in 2019 as part of the government's comprehensive efforts to address the challenges and shortcomings in the building and construction industry. Amidst increasing concerns over building defects, safety issues, and consumer protection, the appointment of the Building Commissioner marked a significant milestone in enhancing regulatory oversight and accountability within the sector.
With a mandate to uphold building standards, enforce compliance, and safeguard consumer interests, the Commissioner plays a pivotal role in ensuring the integrity and safety of the built environment across NSW. Since its inception, the Building Commissioner has been actively involved in monitoring and regulating the construction process, conducting inspections, and investigating complaints related to building defects and non-compliance with building regulations. By working closely with developers, builders, industry stakeholders, and regulatory authorities, the Commissioner aims to prevent defective buildings from entering the market and to ensure that all properties meet high standards of quality and safety before occupancy.
Strata Building Bond & Inspections Scheme (SBBIS)
Effective from January 1, 2018, the Strata Building Bond & Inspections Scheme (SBBIS) was implemented to address defects in new apartment buildings four storeys or higher in NSW. This scheme aims to secure funds for rectifying any defects found during inspections, ensuring the quality and safety of strata developments.
Key Components of the SBBIS:
Stage 1 - Building Bond Lodgement
Stage 2 - Appointment of Building Inspector
Stage 3 - Interim Inspection and Report
Stage 4 - Rectification of Defective Work
Stage 5 - Final Inspection and Report
Stage 6 - Agreement on Rectification Cost
Stage 7 - Payment of Building Bond
Stage 8 - Completion of Process
Common Complications with Strata Building Defects
Despite these measures, rectifying strata building defects can indeed be a costly endeavour, often leading to significant pushback from all involved parties. In these situations, it's not uncommon for stakeholders to point fingers and attempt to evade responsibility. Parties may dispute responsibility, funding, and legalities, leading to delays and strained relationships. Common complications include:
Identification: Identifying defects accurately can be challenging, especially if they are concealed or latent. This may require thorough inspections by qualified professionals.
Responsibility: Determining who is responsible for addressing defects can be complex, particularly in shared spaces or common property areas where ownership is collectively held by all owners within the strata scheme.
Funding: Securing adequate funds for rectifying defects can be difficult, especially if the strata scheme does not have sufficient funds in its capital works fund or if owners are unwilling to contribute to rectification costs.
Legalities: Resolving disputes over defects may involve legal proceedings, which can be time-consuming, costly, and adversarial. This may strain relationships between owners and impact the harmony of the strata community.
Coordination: Coordinating rectification works among multiple stakeholders, including owners, strata managers, contractors, and building professionals, can be challenging and may lead to delays or miscommunications.
Quality of Work: Ensuring that rectification works are carried out to a high standard and in compliance with relevant regulations and standards is essential to prevent recurrence of defects and maintain the long-term integrity of the building.
Insurance Coverage: Determining whether defects are covered by insurance policies, such as strata insurance or home warranty insurance, can be complicated and may vary depending on the nature of the defects and the terms of the policies.
Timeliness: Rectifying defects in a timely manner is crucial to prevent further damage or deterioration of the building and to minimize inconvenience to residents. Delays in rectification can exacerbate the situation and lead to additional complications.
What About Buildings Older Than 6 Years?
When defects emerge in buildings older than six years, the owners corporation will need to commission building inspections and expert reports to assess the extent of the issues. This process will also identify any additional responsible parties besides the owners, against whom a potential claim can be filed. Ultimately, the defects must be rectified and owners may need to utilise the capital works fund or raise special levies to cover the costs of any rectification.
In conclusion, managing defects in strata buildings can be a complex and challenging endeavour. Seeking guidance from an experienced strata manager, such as Compass Strata, can prove invaluable in navigating this intricate process. With our expertise and support, you can streamline the defect resolution process, saving both time and money while ensuring the integrity and safety of your property.
