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Construction issues resolution in Sydney - Part 2

In the earlier post I described the timeline of the intriguing case of construction issues/defects resolution.

What's obvious:
  1. Nobody is rushing to fix the earlier reported issues
  2. Vendors don't do anything to fix the issues
  3. Strata management doesn't assist in fixing the issues, but forward messages to the executive committee of the owners corporation
  4. Treasurer of the owners corporation Executive Committee is somehow involved in the process and communicates directly to vendor, strata manager and the builder. No visible results though, but just promises of better future.


The owner initiated the following research:
  • Strata rules to see who is responsible for what in terms of building defects
  • Seeking legal advice to set up a plan for further actions against the Vendor and/or the Builder
  • Requesting strata scheme account statement


  1. There is no law for breach of contract. So legally there is no obligation to act as per contract of sale even after it is signed. This is what the lawyer said to the owner. In this case that means the Vendor doesn't necessary have to fix the defects at their own expense in 6 months after the contract completion.
  2. Some of the building defects that were reported as individual unit defects are actually Owners Corporation (OC) responsibility to repair. That means the rectification work should be done on OC expense. Builders are responsible by law to provide warranty and rectify the building defects. However not all of the defects were included by Strata Manager, Vendor and Executive Committee (EC) as OC representatives in the list of OC defects in this case.
  3. EC used some of the OC money from sinking fund to help the Vendor and Builder to rectify some of the defects. No communication on that has been done to the rest of OC. Also no result of defects rectification, but EC constantly says that owners have to be patient and wait.
  4. Questionable expense items on the OC account.
  5. The Builder declines to rectify some of the defects and refers the owner to body corporate. 
Other posts from this story.


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Construction issues resolution in Sydney - part 17

It's been a while since the last post In January 2016 the owner lodged an application to NCAT against owners corporation to fix three major defects: - waterproofing of large windows in the living room and bedroom which led to windows full replacement - bathroom drain fix - planterbox fix The owners corporation didn't come to mediation and tribunal ordered to fix all defects within 2 months (the deadline was 8th July 2016). The owners corporation as usual didn't rush to comply with the order regarding two items: bathroom and planterbox. The windows works started end of April 2016. At the same time owners corporation decided to check whether it's a warranty and original builder should fix the issues. That was also related to the fact that the variation was submitted by the current contractor who started fixing the defect. So the owners corporation stopped all works in the middle and went off for a month to "make decision". The decision was made at the end of J…