REFERENCE NO. BP9382020

VCAT Awards Over $446K to Homeowners in Defective Building Case

In a significant ruling from the Victorian Civil and Administrative Tribunal (VCAT), homeowners Barry and Geraldine Alderson were awarded $446,329.47 in damages due to major defects in their newly built home. The case, brought against builder Darren Nelson, focused on severe issues in the construction of the house, which was completed in 2017. The Aldersons endured six years of frustration and disappointment as their home exhibited numerous problems that made it nearly uninhabitable.

Major Defects in the Home

The defects identified in the case were extensive and compromised both the functionality and safety of the Aldersons’ home. The most critical problems involved improperly installed windows, which allowed air and water to enter the home. The double-glazed windows were not sealed properly, leading to drafts and water leaks, and many of the windows were scratched, affecting both their appearance and performance.

The flooring throughout the home was another major issue. The timber floors were uneven and out of level, creating tripping hazards, particularly near high-traffic areas such as the entrance to the alfresco space. This instability also caused damage in other areas of the house, such as the kitchen, where a granite benchtop cracked due to the movement in the floors.

Water leaks were pervasive in the home, especially around the balcony and roof. These leaks caused significant damage to the interior and exterior of the house. Rainwater entering through the front door added to the homeowners’ distress, as it further deteriorated the property.

The kitchen was also plagued by problems. Cabinets were poorly installed, with several not opening or closing correctly. In combination with the cracked benchtop, the kitchen was rendered nearly unusable for the Aldersons.

In addition, the Aldersons’ home had several other significant defects. The render on the exterior walls was applied unevenly, and rust stains had already started to appear, compromising both the aesthetic and structural integrity. The water leaks extended to multiple areas, damaging ceiling boards in the alfresco, and the timber flooring near the entrance was significantly bowed. The windows were not only the wrong colour but also poorly installed, with scratches on the glass and gaps between the frames and the render, allowing wind and water to enter.

Rectifying the window issues alone was estimated to cost $141,081, as the entire installation would need to be redone to match the contract specifications and address the defective sealing and glasswork. The high cost reflects both the aesthetic and functional failures, with proper replacements required to ensure weatherproofing and compliance with building standards.

Impact on the Homeowners’ Lives

The Aldersons described their experience of living in the defective house as “six years of hell.” They could not fully enjoy their home, which was intended to be their dream retirement residence. Instead, they were constantly dealing with the embarrassment and frustration of the ongoing issues. The defects were so severe that the Aldersons felt they could only “use” the house as a place to sleep but could not fully live in or enjoy it as a home.

The condition of the house was not only emotionally draining but physically unsafe. Barry Alderson recounted how pieces of timber had fallen from the structure into the alfresco area due to severe leaks from the balcony above. The faulty windows also created uncomfortable drafts and allowed water into the house, making it unsuitable for long-term habitation.

Despite these issues, the Aldersons lacked the financial resources to rectify the defects on their own, leaving them in a stressful and difficult situation for years.

VCAT Ruling

The case proceeded without builder Darren Nelson present at the hearing, despite his awareness of the proceedings. Nelson did not provide any expert evidence to contest the homeowners’ claims, leaving the Tribunal to rely on the Aldersons’ testimony and documentation. The Tribunal found that Nelson had breached the building contract by failing to carry out the work to the required standard under the Domestic Building Contracts Act 1995 (Vic).

The ruling awarded Barry and Geraldine Alderson compensation to cover the rectification costs of their home, as well as the cost of temporary accommodation during the repair period. The Tribunal assessed that the Aldersons would need to stay in alternative accommodation for at least two weeks while the necessary repairs were carried out and estimated the cost of such accommodation at $5,400.

Additionally, the Tribunal acknowledged the significant impact the defects had on the Aldersons’ quality of life and awarded them $15,000 for loss of amenity. This award reflects the emotional and physical toll the defects had on the couple over the course of six years.

The total damages awarded included $424,633.47 for rectifying the defects, $1,296 for the flyscreens that were never supplied despite being included in the contract, $5,400 for temporary accommodation, and $15,000 for the loss of amenity.

 

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