Builders Warranty Report

The objective of this Report is to provide sufficient information on the condition of the property to allow the client to make informed decisions on maintenance and will provide sufficient detail to issue to the builder for rectification of any structural issues covered in their Builder’s warranty.  The report will also be suitable to issue to the Builder with a claim for rectification works.

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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.

QBM undertakes Builders Warranty Reports in Queensland and New South Wales to comply with the legislative requirements of these states.

What is a Defect?

There are 2 definitions used to identify a defect covered under the Builder’s Warranty.

New South Wales refers to Major and Minor defects, while Queensland specifies Category 1 or 2 defect.

Both have similar meaning in that it is the effect upon the buildings and the usage of those buildings.

Category One Defect

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.

Major Defect

A 2 step process and both criteria must be met
Is the defect in a major element of the building? A major element is a fire safety system, waterproofing or something essential to the building’s stability or structure such as foundations, footings, walls, roofs, beams or columns.
The second step considers the defect’s potential consequences. Will the defect will cause or is likely to cause:
part or all of the building becoming uninhabitable or unable to be used for its intended purpose;
the collapse or destruction of the building or part of it.

You must act promptly

You must lodge a complaint within 3 months of identifying a structural fault. Failure to do so may result in a complete rejection of the claim.

What should the committee do?

Compete a full assessment of the complex and buildings to identify all faults prior to the building being 6 years old
Ensure all owners are aware of these processes
Act promptly to notify the relevant authority of defects in relation to common property
Take legal advice promptly where there is an unsatisfactory result
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