Homeowners Wins over $41,300 in Dispute Over Defective Garage Construction
In a ruling by the Victorian Civil and Administrative Tribunal (VCAT), Daniel and Rebecca Smith were awarded $41,332.68 in damages after a long-standing dispute with builder Impressive Homes & Developments Pty Ltd over defects in their Lilydale property. The case, which revolved around the construction of a garage with a rooftop terrace, revealed significant issues with the waterproofing, structural integrity, and aesthetic quality of the garage, ultimately leading to this outcome.
Background of the Dispute
The Smiths, homeowners of the Lilydale property, aimed to enhance the front of their home by adding a new driveway, garage with a rooftop terrace, and landscaping. Impressive Homes & Developments Pty Ltd was contracted for the work at a price of $89,529, with the project completed in December 2017. However, by 2018, the Smiths identified numerous defects in the construction, leading them to file a claim with Domestic Building Dispute Resolution Victoria (DBDRV). After a failed conciliation in 2019, the case moved to VCAT.
Key Defects and Disagreements
The Smiths claimed the garage and terrace showed signs of multiple defects, including:
- Structural inadequacies in the garage.
- Failed waterproofing of both the terrace and the garage walls.
- A non-compliant balustrade system on the terrace.
- Faulty stackerstone façade on the front of the garage.
The homeowners initially sought full reconstruction of the garage and terrace, estimating the cost at $184,637. In contrast, the builder admitted to some defects, including the terrace’s failed waterproofing and the balustrade’s improper fixings, but they estimated rectification costs to be much lower, at $24,706.
VCAT’s Findings on Defective Work
VCAT found that the waterproofing of the terrace and the stackerstone façade were indeed defective, warranting rectification. The terrace’s waterproofing issues led to water ingress, while the stackerstone façade posed a safety risk due to delamination. The tribunal agreed with the homeowners that the garage door would need to be removed and reinstalled during the repairs to avoid further damage.
However, the tribunal did not support the Smiths’ claims regarding the timber boundary fence and the structural integrity of the garage. It found that the builder was not contractually obligated to provide a fully watertight garage, as it was classified as a Class 10a building, which does not require complete waterproofing. Additionally, no structural defects were proven.
Rectification Costs and Builder’s Responsibility
The tribunal, relying on expert opinions, determined that rectifying the defective work would cost $41,332.68. This amount includes costs for:
- Removing and reinstalling the terrace balustrade.
- Waterproofing the terrace and replacing part of the stackerstone façade.
- Necessary preliminaries, builder’s overheads, profit margin, contingency, consultant fees, and GST.
Implications for the Building Industry
This case highlights the importance of clear communication between homeowners and builders regarding expectations and the scope of work. While the builder admitted to certain defects, the tribunal ultimately found that the homeowners’ expectations of a fully waterproofed garage were not clearly communicated or contractually required. The decision also underscores the significance of ensuring compliance with Australian Standards and proper construction techniques to avoid costly rectifications. This ruling serves as a reminder for both homeowners and builders to pay close attention to contract details and ensure that any required rectifications are addressed promptly and thoroughly to avoid prolonged disputes.
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