Skip to main content

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.


Popular posts from this blog

About ships in Sydney

Here's the collection of pictures I took so far of different ships that come to Sydney.

01. Queen Mary 2


03. Pacific Jewel

04. Queen Mary 2

05. Crystal Serenity is waiting for you to escape from rainy Sydney

06. Oriana

07. Crystal Serenity in the lights

08. Arcadia

09. Crystal Serenity




13. Celebrity Century

14. Volendam

15. Queen Mary 2 in the lights

16. Diamond Princess


18. Oriana

19. Volendam

20. Diamond Princess

21. Queen Victoria


Energy Market Analysis - Coal Reserves for Decade Ending 2012 and Price Forecast

According to the British Petroleum Statistical Review of World Energy, 2013, global coal reserves declined in the decade ending 2012:

Figure 1. Proved coal reserves.

Proved reserves of coal are generally taken to be those quantities that geological and engineering information indicates with reasonable certainly can be recovered in the future from known deposits under existing economic and operating conditions.

If we look at supply and demand factors in the decline, we can see that:

a) Coal price has grown significantly in the decade ending 20121:

  Figure 2. Prices in US Dollars per tonne.

b) Coal consumption has also grown significantly worldwide2:

Figure 3. Coal consumption by region.

c) The price of substitutes (i.e. Natural Gas) has also grown. Not so in North America though, but if we look at the world trend it is growing3:

Figure 4. Natural gas prices.

Therefore if the rule of supply and demand worked we would see increase in proved reserves for coal, because increase in dem…

How strata owners corporation "solves" problems or Construction issues resolution in Sydney - Part 16

Almost 8 months passed from the time of previous post and here's how the owners corporations activities looked like to "resolve" the defects/problems:

1. Independent inspection report was ordered and completed 1st June 2015. The report confirmed the defects that were known to owners corporation already. It should be noted that in the period between December 2014 and June 2015 the only attempts by owners corporation to resolve the issues were to convince the lot owner that it's the owner's personal responsibility.

Therefore half a year gone with a couple of meetings only, because people were "on holidays", "busy" etc.

2. Between 3rd July 2015 and end of July 2015 the strata manager spent "contacting the builders for quotes". Until owner called the strata manager nothing have happend.

3. By the end of August 2015 all quotes were in place. The meeting of all owners was set up for the 7th October! Because as usual "holidays",…