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Serious building defects and disputes   and how to avoid them 3 november 2011
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Serious building defects and disputes and how to avoid them 3 november 2011



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  • 1. Serious  Building  Defects  And  Disputes  -­‐  And  How  To  Avoid  Them  Webinar,  3  November  2011   ©  Copyright  2011  Teys  Lawyers          
  • 2. Responsibility  •  Who’s  responsible?  •  Two  causes  of  defects   1.  Design   2.  Workmanship   ©  Copyright  2011  Teys  Lawyers          
  • 3. Why  Bother?     •  DeterminaMon  of   proper  defendant   •  DeterminaMon  of  cause   of  acMon:   –  Statutory  warranMes   –  Negligence  ©  Copyright  2011  Teys  Lawyers          
  • 4. Case  study  -­‐  Balcony  Leaks  •  Most  common  defect  •  Youtube  –  ‘Building  Blox’   video  by  Ross  Taylor    •  Demonstrates  tension   between  proper  design   and  workmanship   Why  Balconies  Leak   ©  Copyright  2011  Teys  Lawyers          
  • 5. New  Approach  by  TEYS  Lawyers   Engage  with  the   builder  as  an   equal   Early   SeTlement   Framework   Facilitate  open,   full  and  frank   Assist  builder  in   without   finding  a   prejudice   soluMon   discussion  with   builder  ©  Copyright  2011  Teys  Lawyers          
  • 6. New  Approach  by  TEYS  Lawyers  (cont)   PracMcal  soluMon  rather   than  ‘Rolls  Royce’  version   from  ambit  claim   Legal  proceedings  are  an   Once  agreement  is  reached,   implied  (rather  than  explicit)   it  is  recorded  in  a  deed   threat  to  incenMvize  builder   (avoiding  liMgaMon)   to  engage  in  process  ©  Copyright  2011  Teys  Lawyers          
  • 7. Steps  to  New  Approach   Builder  returns  to   site  and  does  minor   Role  of  TEYS   Tone  of  discussions   work  armed  with  a   Lawyers   silicon  gun   Engagement  of   Prototype,   Psychology  of   expert  by  TEYS   Agreement  and   builders   Lawyers   Deed   Expert  then  makes   SensiMvity  to  large   iniMal  contact  with   expert  reports   builder  ©  Copyright  2011  Teys  Lawyers          
  • 8. Case  Study  1   Background   Outcome   OC  approached  TEYS  Lawyers  for  OC  of  over  200  units   leTer  of  demand   TEYS  Lawyers  advised  need  to   Significant  water  penetraMon  issues   determine  defect  (not  describe  it)   Consultant  engaged  and  invited   OC  independently  retained  expert   builder  to  observe  tesMng.   who  described  defect  but  not  cause   RecMficaMon  work  idenMfied  and   esMmated  at  >$5m   Builder  rejected  content  of  report   Builder  conceded  responsibility  and   ciMng  ‘wind-­‐driven’  rain  as  cause   agreed  to  recMfy   Outcome  achieved  in  6  months  –  less   OC  wasted  a  year  in  the  process   than  $10k  in  legal  fees  billed  to  date   ©  Copyright  2011  Teys  Lawyers          
  • 9. Case  Study  2   Background   Outcome  OC  of  over  100  units   OC  approached  TEYS  Lawyers   Consultant  engaged  and  invited   Significant  defects  affecMng  many   builder  to  observe  tesMng.   units  (cost  esMmate  circa  $10m)   RecMficaMon  categorised  as  type  and   cause   Legal  proceedings  commenced  by   Prototypes  for  recMficaMon  devised   another  law  firm  –  claimed  against   and  agreed  with  builder   HOW  policy   TEYS  Lawyers  disconMnued   Builder  aTempted  recMficaMon,   unnecessary  proceedings.    Deeds  of   was  unable  and  engaged  lawyer  to   seTlement  agreed  with  builder  for   defend  claim   recMficaMon  at  his  cost   On-­‐going  legal  spend  on  liMgaMon   OC  spent  a  year  in  the  process   reduced  to  $nil   ©  Copyright  2011  Teys  Lawyers          
  • 10. Join  our  next  webinar  Join  us  for  our  next  webinar  at  4.00pm  on  1  December  2011  ‘Public  Officials  and  Cer6fiers  –  What’s  Their  Fair  Share  of  the  Liability’  Reserve  your  seat  now  at:hTps://  ©  Copyright  2011  Teys  Lawyers          
  • 11. About  The  Presenter   Chris   worked   for   many   years   in   leading   commercial   construcMon   law   pracMces   acMng   for   government,   developers   and   contractors   in   disputes   in   the   building,   transport   infrastructure   and   resources   sectors.   He   has   been   involved   in   all   forms   of   dispute   resoluMon   including  liMgaMon,  arbitraMon  and  alternaMve  dispute  resoluMon  in   a   range   of   jurisdicMons   in   Australia.   In   the   last   few   years,   he   has   brought  his  specialist  construcMon  industry  knowledge  to  the  strata   sector   and   now   only   acts   for   owners   corporaMons   in   a   range   of   disputes  in  various  jurisdicMons.    TEYS   Lawyers   pracMce   naMonally   in   strata   Mtle   law   represenMng   owners   corporaMons,  bodies   corporate   and   apartment   owners.     The   firm’s   pracMce   groups   include   building  defects,  management  rights,  strata  community  disputes,  by-­‐laws  and  rules  and  levy  and  fee  collecMon.  Subscribe   for   their   free   e-­‐newsleTer   StrataSpace   and   find   out   more   about   them   at   ©  Copyright  2011  Teys  Lawyers