Major structure fault identified during construction. Builder doesn't even want to see it.

I am in bit of uncomfortable situation with the builder for my under construction IP in NSW.

Scenario:
I involved a private building inspector during frame stage to inspect quality of work. Private inspector sent me a report that lists some major defects with frames. Further down in his report the definition of "major defect" mentions "life threatening" situations.

I got worries and sent that report to builder and asked them to stop further work (such as cladding etc) until the frame defect is fixed. I was assuming builder would thank me for bringing the defect to his attention and would promptly fix the defect.

To my surprise the opposite happened.

Builder senior manager emailed me saying he is not even going to open the external report I sent him. Builder is not obliged to look into any external reports. Builder has their own internal inspectors who check quality of work as per process.

Builder also said, in future if I want any external trade (such as private building inspector) to visit construction site they have to be formally inducted via a process for which I have to pay $1000 (as per contract). External person also has to go through WH&S training after verifying their license etc.
Plus, if owner wants construction to stop for some reason then as per contract owner has to pay $200 per day to builder.

Even after I comply with all above the builder would not look into any external report as the "site is in their control until construction completes."

I approached nsw govt free legal aid and a lawyer who specialized in construction matter advised me that builder has all the rights to ignore any external reports (unless there is a clause in building contract that states otherwise. Unfortunately there is no clause about builder complying with external report). Lawyer advised there will be a warranty period of 3 months after construction is completed during which I can involve any building inspector and then builder has to fix the defects a per law.

It is unfortunate that I can't do anything and let major defects go un-attended in my own property. Once the building is completed it wouldn't be feasible (at least not economical) to identify a defective frame which is hidden behind cladding. Only minor cosmetic defects are the once that can be identified during handover inspection.

I feel the law is not fair. Then they blame developer when it's builder's fault.

 

The builders response seems reasonable. What are the issues?

 

Some written in "Major defects" section of the report are:
- Front porch beams appear low grade with knots and twisting evident, and no visible structural grading to timber. Should be signed off by frame supplier or engineer.
- Stairwell window head alteration should be signed off by frame supplier or engineer.

There are few other medium severity defects such as "Replace broken stud to bedroom 1." etc.

I am not sure how serious those defects are as I am not a construction expert. But I expect builder to at least look at the report.

I understand some defects may be subject to interpretation which can vary from inspector to inspector. I am happy if builder looks at the report and then says as per his standard no repair required.

But problem is the builder refused to even look at the report.

 

Sounds like you should have built this into the contract before entering it, or make the builder agree to an independent inspection and rectification.

Did you have a lawyer review the contract before entering it?

 

Are you using a HIA or MBA contract?

There is generally a clause allowing for inspections including destructive testing. Cost of repair and make good at the builder's cost if proven to be at fault.

Although you may be precluded from reliance upon the inspector's report during construction (as the builder controls the site), you are aware of the areas which you will need to open up upon handover to demonstrate the issues raised. The risk being, that the builder has rectified the issues and you have to wear the repair costs.

You have the details of the private certifier/PCA who has undertaken the inspection for the builder - the PCA is your consultant (even if the builder recommended them) - their details are in the contract or on separate documentation which you have signed. Discuss the issues raised in the report with the private certifier who should put your mind at rest with regards to the matters raised or express these concerns to the builder.

 

Yes I should have. Lesson learned.

From my previous experience with 3 different builders, they never made a fuss about external reports. They always been co-operative and rectified the defects as soon as it was identified.

I assumed it as a standard practice and didn't bother to include this clause in contract.

No. I didn't have the contract reviewed by lawyer.

 

HIA contract.

Any destructive testing post handover wouldn't be cheap and certainly time consuming.

I will try the private certifier. Thanks @Scott No Mates for pointing me in that direction.

 

Did your certifier go on site without the builder knowing?

 

My private inspector took permission from site supervisor who provided him access by unlocking the fence for him.

After the report came through and I asked them to stop work until structural issues are rectified, the matter escalated to senior manager who then used his knowledge of the law to discard the report and also did whatever he could to lawfully discourage me from involving private inspector again for next phases the construction.

 

Did you have the slab stage inspected too?

 

Aren’t you obliged by your bank to not make the next progress payment until that stage is complete and compliant with BCA standards? I could be wrong but I would have thought that you wouldn’t release progress payment until that stage has been completed as per contract and BCA

 

Stage compliance is determined by the Building Surveyor (or whatever they are called in each particular state) for the build, not by the clients building inspector.

 

That is an exhorbitant charge for the 1/2 hour induction (if they in fact carry them out).

Hit the builder up for their SWMS & safety systems for their component of the work and those of all of their contractors.

 

No. But I should have. The result wouldn't be any different though.

 

Can you name the builder? No builder with an ounce of reputation decides not to even look at it

 

PMed.

 

Me too please?

 

PMed

 

You can always look at the up-side with the slab as most will take 28 days to cure and set,if the builder pulls the pin on your contract and just moves onto the next job it will give the slab time to set..