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What can you expect as a strata committee going through your defect period in your strata building? A building defect period can be hard work, it is definitely frustrating, and it always appears the odds are against an owners corporation. If not careful, a strata committee can be offered the world and given an atlas.

In a brief discussion with Building Commissioner David Chandler, I stated that the most frustrated I have ever been dealing with defects was having an expert for both sides agree that “although it takes 6 minutes for the hot water to arrive at the taps of the lot, it eventually achieves hot water so they agreed it was not a defect“. Unfortunately, these are the realities on defect management.

What else is there that no one tells a Strata Committee about managing defect periods?

Often, a defect can be cheaper to repair than fight it. That is unfortunately a fact, and when you have several defects that all start a $4000.00 each for a repair and they are not included in your case against a builder or developer as the cost of fighting outweighs the repair bill, this detail is usually left off the brochure.

As someone very experienced in dealing with defects from an investigative building management prospective, I have put together my guide for the best defect management processes.

1 – Your Legal Team – I am yet to meet a strata lawyer I don’t like. The Strata Lawyer business is very competitive and all the lawyers I have worked with have been very good. I do have my recommendations however I feel it is best said that a strata lawyer defending an owners corporation is only as good as the rest of the team. If the team of experts and onsite building management are a strong team, your strata lawyer is able to shine.

2 – Your Building Management – More often than not, unskilled building management let down the team in defect management periods. Most Building Managers are good for day to day scheduling and compliance management of contractors however your defect period requires a building manager on top of their game. If the strata lawyers and experts are to excel, a building manager dealing with defect management needs to be able to determine if something is fit for purpose, is a re-occurring theme throughout a building. They need a good understanding of hydraulics, should be able to understand shear vs flexural changes in beams, what is considered “propagation vs movement”, a more than basic understanding of waterproofing and subsill installation, the complete understanding of a fire system anatomy and so much more… 

3 – Short term appointment of Specialist Building Management –   Strata Committees are beginning to embrace temporary appointments of specialists in building management for defects. For strata buildings contracted to a building management company that may not be as seasoned in defect management, Ad-Hoc Building Management is essential for dealing with expert witnesses and legal team requirements. This is happening more and more as the benefits and cost savings of “ad-hoc specialist building management when you need it” is becoming evident.

4 – The right expert for the job. The term expert is the important part. You cannot declare to be an expert if you are not qualified to do so. If a report is being used for litigation, it must be completed by an actual expert or you are wasting time and money.

5 – Waste of Money – This is the one area that is not discussed enough and better planning can reduce costs dramatically. Experts cost money, lots of money and destructive testing is the unspoken expense that can be costly to repair. 

How to save money during defects?

a) Destructive testing can be a “Eureka” moment or it can be a waste of time, be realistic about destructive testing. It is my experience that “gun ho” destructive testing results is money wasted every time. In many cases, a little more logic, patience and investigation prior to the decision to go down the road of destructive testing leads to the right decisions which will determine if the testing is necessary or not.

b) Pre-dilapidation reporting by specialist building management can usually determine if it is worthwhile undertaking the expensive exercise of an expert witness dilapidation report. The sad truth about dilapidation reporting for many buildings is it can be an immense waste of time and money. Although it is considered non expert, a specialist building management report working with residents and an owners corporation can determine where best your expert witness money is spent.

c) First and foremost, be guided by your strata legal team, not expert witnesses. Strata Lawyers and Strata Managers have a duty to the client and a reputation to uphold for their firm. Expert witnesses will investigate until the money runs out if left to their own devices, your legal team and your strata management are seasoned and know when to pull the plug on a matter. Take their advice.