The decrease in manufacturing of building products in Australia is fuelling an increase in imported building products often from countries with poor or different building standards producing inferior materials. To date such products have included, cladding panels, electrical wiring and hot water pipes which are highly likely to cause losses to property and possibly lives in serious circumstances.
Despite claims that these imported products meet the various requirements stated, such as, compliance with Australian Standards these representations are often not true. Knowledge of these short comings does not arise until it is too late and the product has been rolled out on masse.
Engineers, architects, developers, builders, certifiers and even importers selecting, importing and installing these types of products can expect to face claims in respect of losses associated with the use of these products. Such claims, arising in breaches of statutory warranties, negligence or claims under the Trade Practices Act 1975 or the Competition and Consumer Act 2010 have the potential of costing tens of millions of dollars of rectification works and compensation.
This follows recent reports that the use of combustible building materials in an apartment building in Melbourne was a major contributing factor to the rapid spread of a fire last November. While the property was damaged there was thankfully no loss of life.
The bad news is that the remedies for many owners to claim for losses in relation to these products – for breach of statutory warranties in NSW was greatly reduced by the NSW Government retrospectively from 15 January 2015.
In a huge blow to new property owners, it has been reduced to two years from the completion of the works in many instances or, for strata buildings, two years from the date of the interim occupation certificate or final occupation certificate, whichever is first.
Many people are unaware of this as the message that the NSW government has duded new home and apartment owners has not gotten through. Many people are going to learn the hard and costly way that the NSW Government is no longer looking out for their best interests.
Concerned parties seeking to claim or cross-claim should find out what their relevant statutory time limitations are as a priority by seeking advice from a suitably experienced legal professional.
This article was prepared by David Bannerman of Bannerman’s Lawyers.