The current landscape of building defects in NSW

Building defects in NSW strata schemes are becoming more complex, more expensive to fix and harder to manage without early legal and expert advice.

In a webinar for UNSW EDGE, Laura Dale, Partner at Chambers Russell Lawyers, outlined the current landscape for owners corporations dealing with waterproofing, fire safety, hydraulic and structural defects. Waterproofing remains one of the most common and costly problems, while fire penetrations, burst pipework, basement cracking and emerging concerns around balustrades can quickly create safety, insurance and compliance issues.

The session emphasised that limitation periods often determine the strength of a defects claim. Under the Home Building Act 1989, non major defects generally carry a two year period and major defects a six year period from the relevant occupation certificate. The Design and Building Practitioners Act 2020 (DBPA) adds a statutory duty of care that can extend beyond builders and developers to designers, subcontractors, suppliers, supervisors and others with substantive control over construction work.

For owners corporations, Dale said the practical challenge is no longer just identifying defects, but choosing the right pathway to manage them. Options may include NSW Fair Trading processes, the Residential Apartment Buildings regime, the Strata Building Bond and Inspection Scheme, decennial insurance, Home Building Compensation Fund insurance or litigation. But the key message was consistent: owners corporations must still meet their duty to maintain and repair common property, while preserving claims and managing DBPA compliance for rectification works.

If this topic interests you, you can learn more and receive a CPD point in Substantive Law here