Defects are an unfortunate reality in many strata buildings, whether they appear in brand-new developments or emerge as a building ages. For strata committees, the ability to identify and properly report defects is more than just a responsibility. It is essential for protecting the building’s value, the safety of residents, and the finances of the owners corporation.
At Progressive Strata, we work closely with committees across Sydney to manage defects effectively. This guide explains what defects are, why early action matters, and how to report them correctly.
A defect is a fault or failure in the building’s design, construction, or maintenance. Some are minor, like cracked tiles, while others are serious, such as structural damage, waterproofing failures, or fire safety non-compliance.
Research from the NSW Building Commission shows that serious defects most often relate to waterproofing, fire safety systems, and structural elements. These issues can be costly and disruptive if not addressed quickly.
Understanding the difference between minor and serious defects is important, because it determines how they are managed under NSW law.
Defects that are left unchecked often escalate into much larger problems. A small leak can spread into major water damage, while a crack might indicate structural movement that worsens over time. Identifying problems early saves committees from expensive repairs later.
Defects are not only about money. Many affect the health and safety of residents. Faulty fire systems, unsafe balconies, or electrical issues can put lives at risk if ignored.
Committees also have a legal duty to maintain and repair common property. Failure to act could expose the owners corporation to legal and financial consequences. For newer buildings, identifying defects early is especially important, as statutory warranties apply for a limited time. Once these expire, the right to pursue builders for rectification is lost.
While individual owners may notice problems within their lots, the committee is responsible for managing the building as a whole. Committees should ensure concerns are raised at strata meetings, carry out regular inspections of common property, and take action when necessary.
Independent building consultants are often engaged to provide expert reports. These reports are invaluable if the matter needs to be escalated to a builder, insurer, or NCAT. Proper record-keeping is just as important. Our secretarial services ensure defects are documented clearly, helping committees track progress and avoid disputes over what was reported and when.
The first step is documenting the problem. Clear photographs, detailed descriptions, and dates provide evidence that supports the committee’s case. Once documented, the issue should be formally reported to the strata manager and added to meeting agendas for discussion.
From there, the responsible party must be notified. This might be the builder, developer, or insurer, depending on the defect and the age of the building. If the responsible party fails to act, committees may need to escalate the issue through NSW Fair Trading or NCAT. Guidance on this process is available through Fair Trading’s resources.
Urgent defects that pose safety risks should be treated differently. Our emergency services support helps committees respond quickly, ensuring problems are dealt with before they endanger residents or cause further damage.
Defect management is often complex. Committees may face uncertainty about whether an issue is the responsibility of the owners corporation or an individual lot owner. Builders and developers sometimes dispute claims, causing delays. In other cases, poor record-keeping makes it difficult to prove when a defect was first identified.
For new buildings, missing warranty deadlines is one of the biggest risks. Once the warranty period passes, the committee’s ability to recover costs from the builder may disappear entirely. These challenges highlight the importance of having professional strata management that understands both the legislation and the processes involved.
At Progressive Strata, we take a structured and proactive approach to defect management. We coordinate inspections, maintain detailed records, and make sure defects are logged in meeting minutes. Our financial reporting provides clarity on the costs of rectification, while our insurance services assist committees in making claims where coverage applies.
We also manage levy arrears to ensure funds are available for urgent works and guide committees through escalation when disputes arise. By combining accurate reporting, strong communication, and industry expertise, we help committees avoid unnecessary delays, missed deadlines, and unexpected costs.
Defects are a reality of strata living, but they do not need to overwhelm committees. With the right processes in place, problems can be identified early, reported correctly, and resolved before they cause lasting damage.
At Progressive Strata, we provide the structure and experience committees need to manage defects with confidence. If your building requires expert guidance, contact us today.