©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  

Serious  Building  Defects  And  Disputes  -­‐  And  How  To  Avoid  Them  

©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  

Webinar,  3  November  2011  

©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  

Responsibility  

•  Who’s  responsible?  

•  Two  causes  of  defects  

1.  Design  

2.  Workmanship  

©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  

Why  Bother?    

•  DeterminaMon  of  proper  defendant  

•  DeterminaMon  of  cause  of  acMon:  

–  Statutory  warranMes  

– Negligence  

©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  

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                  www.teyslawyers.com.au  

New  Approach  by  TEYS  Lawyers  

Early  SeTlement  Framework  

Engage  with  the  builder  as  an  

equal  

Facilitate  open,  full  and  frank  

without  prejudice  

discussion  with  builder  

Assist  builder  in  finding  a  soluMon  

©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  

New  Approach  by  TEYS  Lawyers  (cont)  

PracMcal  soluMon  rather  than  ‘Rolls  Royce’  version  

from  ambit  claim  

Legal  proceedings  are  an  implied  (rather  than  explicit)  threat  to  incenMvize  builder  

to  engage  in  process  

Once  agreement  is  reached,  it  is  recorded  in  a  deed  (avoiding  liMgaMon)  

©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  

Steps  to  New  Approach  

Builder  returns  to  site  and  does  minor  work  armed  with  a  

silicon  gun  

Engagement  of  expert  by  TEYS  

Lawyers  

Expert  then  makes  iniMal  contact  with  

builder  

SensiMvity  to  large  expert  reports  

Psychology  of  builders  

Tone  of  discussions   Role  of  TEYS  Lawyers  

Prototype,  Agreement  and  

Deed  

©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  

Case  Study  1  

OC  of  over  200  units  

Significant  water  penetraMon  issues  

OC  independently  retained  expert  who  described  defect  but  not  cause  

Builder  rejected  content  of  report  ciMng  ‘wind-­‐driven’  rain  as  cause  

OC  wasted  a  year  in  the  process  

OC  approached  TEYS  Lawyers  for  leTer  of  demand  

TEYS  Lawyers  advised  need  to  determine  defect  (not  describe  it)  

Consultant  engaged  and  invited  builder  to  observe  tesMng.  RecMficaMon  work  idenMfied  and  esMmated  at  >$5m  

Builder  conceded  responsibility  and  agreed  to  recMfy  

Outcome  achieved  in  6  months  –  less  than  $10k  in  legal  fees  billed  to  date  

Background   Outcome  

©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  

Case  Study  2  

OC  of  over  100  units  

Significant  defects  affecMng  many  units  (cost  esMmate  circa  $10m)  

Legal  proceedings  commenced  by  another  law  firm  –  claimed  against  HOW  policy  

Builder  aTempted  recMficaMon,  was  unable  and  engaged  lawyer  to  defend  claim  

OC  spent  a  year  in  the  process  

OC  approached  TEYS  Lawyers  

Consultant  engaged  and  invited  builder  to  observe  tesMng.  RecMficaMon  categorised  as  type  and  cause  

Prototypes  for  recMficaMon  devised  and  agreed  with  builder  

TEYS  Lawyers  disconMnued  unnecessary  proceedings.    Deeds  of  seTlement  agreed  with  builder  for  recMficaMon  at  his  cost  

On-­‐going  legal  spend  on  liMgaMon  reduced  to  $nil  

Background   Outcome  

©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  

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://www3.gotomeeMng.com/register/900340382  

©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  

About  The  Presenter  

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  www.teyslawyers.com.au  

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.