The building defect inspection applies to common property only.
Individual lots are generally not inspected, and any defects within individual lots will generally not be identified in the report.
The scope, and cost of a building defect report can vary significantly between different providers.
Consider the following factors that may influence the cost and level of detail included in a report:
- Whether it is a visual inspection from the common property only
- Whether each lot needs to be accessed
- If the ceiling cavity of each lot is accessed
- Whether the roof and gutters are inspected (e.g. via drone)
- Whether the structural integrity of slabs is tested (e.g. via laser level)
- If fencing and landscaping features (e.g. retaining walls) are included
- If each lot needs to be accessed, is there a master key or do appointments need to be made with each resident
- What about specialist areas of construction which would require their own independent inspector:
- Fire detection and fighting systems
- Fire doors
- Plumbing systems
- Electrical systems
- HVAC/air conditioning systems
- If swimming pools are present and inspected
Setting the scope of the report is extremely important, and each report should be custom-tailored to your development.
Imagine a body corporate with 50 townhouses – it would be possible to spend between $1,500 to $50,000 on defect inspection reports, depending on the amount of detail and specialist contractors required.
It is up to the committee to determine how much inspecting should be done, and where the value for money exists in that range.
Our recommendation on the scope is that the committee should include as a minimum:
- Exterior visual inspection of common property buildings
- Visual inspection of common area roadways, paths, and carparking areas
If the committee is aware of a particular concern about the development (e.g. if there has been a previous roof leak), then it is advisable for the committee to add to the scope. For example, if there has been a roof leak on a relatively new building, consider adding a visual inspection of roofs and gutters.
What happens to the report?
The inspection will result in a written report with any findings. Generally if the inspector identifies any issues which are maintenance issues (and not defects), those will be reported also and clearly marked.
The body corporate has a strict legal obligation to maintain all common property in good condition. If the report identifies building defects in the common property, it is the body corporate committee’s obligation to consider:
- Referring to the builder if the issue is covered by a warranty
- Referring to a product supplier if the issue is with a product or material under warranty
- Engaging a contractor to repair the issue if it is not covered by a warranty
Addressing any defects is really a separate topic, and we have written a general advice guide to body corporate defects to assist our committees to navigate that process. The good news is that there are expert resources available to the committee to assist to manage the rectification of any defects which might be identified.
A building defect report is a body corporate record, so it will be available to potential buyers into your community to discover as they do their due diligence. It is therefore important to document the action taken to address any recommendations in the report, to demonstrate that your body corporate is actively addressing any building issues.
The inspection may also find defects or maintenance items which are the responsibility of lot owners, and not the body corporate. These will generally be marked in the report, and in that case the body corporate should provide that information to the relevant lot owner for their own action.
