Page 103 - Build 165

The building contractor was, however, responsible for failing to carry out the work that was completed with due skill and care and for failing to consult with the architects on design issues.
In this case, the subject units had been repaired by installing an overclad system over the original cladding. Although that system had not repaired the damage, it had not exacerbated the damage or caused any new damage to the building either. As a result, not all of the unit owners were entitled to the full repair costs.
Owners could claim wasted costs
Unit owners who owned their properties at the time that the ine ective overclad system was installed were only entitled to claim: ● thewastedcostofinstallingthatsystem ● thecostsofremovingit
● the increased costs of carrying out the nal remedial works at a later date.
In other words, the remedial work was ine ective and a waste of money for those owners but not the reason why they had to repair. Those owners were always going to face the cost of repairing their properties. When property sold, claims varied
The owners who had sold their units after the failure of the remedial works was identi ed were in a similar position. Their loss was the di erence in the value of their units had the repairs been e ective and their sale cost (sold as a defective property) less the costs of the repairs they would have had to carry out anyway.
However, new owners with no prior knowledge of the defects were entitled to the full costs of repair. They had relied on the
Code Compliance Certi cates issued for their properties after the repair works. But for the negligent repair works, they would not have had to carry out any works on their properties.
Builders, leave design to designers
Builders involved in remedial works need to take particular care if they wish to exclude any responsibility for the remedial solu- tions put forward. Often solutions will have been proposed by architects or building surveyors. To exclude any responsibility, contractors should go back to the architects and building surveyors on design matters during construction.
Where remedial works fail, a key issue will be whether the remedial work is causing new damage, making existing damage worse or simply an ine ective waste of money.
Build 165 — April/May 2018 — 101