Building Management;
New Developments
Defect management

The 12-month Defects Liability period on any new Development is a critical time to remedy issues and faults with minimal cost.
Every Warranty provided by vendors, sub-contractors, and suppliers needs to be monitored by a diligent and direct building manager.

Report Defects and issues to relevant stakeholders including the appointed strata manager, the Builder, and the committee to ensure all parties are aware.

Keeping records int his defect management period is core to successful stewardship into operations with fewer issues to be concerned about.Programmed facility management keyboard tab structure

Diligent and Direct Building Manager

Defect Management needs diligence and a direct Building Manager, Why?

Sub-contractors are keen to get the job done, get paid, and put the job behind them, “call Backs” are typically not welcome.
Hence, The Building Manager in a new development, during the Defects liability period, needs a strong, determined and direct attitude. The good building manager will ensure the people who are engaging them, are getting value from their sub-contractors and ensuring all relevant warranty obligations are fulfilled.

Vendor Contracts and Documentation

The process of effective Defect management starts with the documentation

Defect management begins with reading and understanding the Quote, the contracts, the functional specifications, the various drawings and layouts, the vendor brief, and any services dockets from the commissioning phase.
Understanding these documents means the Building Manager knows what the expectations of the works are. This brings to attention what is out of place, and generates the questions to the relevant supervisor, team leader of the sub-contractor.
In turn, the appropriate correspondence is written and sent to ensure the sub-contractor knows they need to fulfill their warranty obligations or potentially lose money.

Contractual Terms in Defect Management

In Defect Management there are fundamental contractual terms to know and understand, most are from the Australian Standards Contractual Agreement AS 4900 series, here are just a few:

Date of Practical Completion:

The Date evidenced in a certificate of practical completion from the sub-contractor
See AS 4901

Defects Liability Period:

Shall Commence on the date of Practical completion, i.e start of the warranty period
See AS4901 Clause 35

Main Contract

The agreement between the principal and the Main Contractor.
See AS4901
Q – is this the same as a sub-contract, you need to know

Practical Completion

The Sub-contract works are complete except for minor defects.
See AS 4901

Provisional Sum:

Includes the monetary Sum, contingency sum, and the prime cost of the item (typically including labor) – see AS 4901

Final Payment

21 days after the expiry of the last defects period, a final payment claim can be made,
seeAS 4901 Clause 37

Secondary Sub-contractor

The Sub-contractor of the sub-contractor
See AS 4901
What does this mean for warranty obligations?

Limitation of Liability

Liability of each party arising in connection with the subject matter of the Contract……
See AS 4920 Clause 13

Asset Register

The Defects Liability Period can often be a fundamental opportunity to organize an Asset Register for the major disciplines.

In the Defect Management Process the Asset Regsigters for the major disciplines should be organized/completed:

🔶 FIRE
🔶 HVAC (Mechanical Services)
🔶 ELECTRICAL – GENERAL
🔶 ELECTRICAL – MECHANICAL
🔶 BUILDING AUTOMATION SYSTEM
🔶 SECURITY
🔶 DOORS
🔶 ELEVATORS & VERTICAL RISE
🔶 TANKS
🔶 SUBSOIL PUMPS

Maintenance Regime

Building a Maintenance Regie is fundamental in the First year of Building Management

The Defects Liability Period will run out, the Defect Management period will end, What then?

The Building Manager will need to ensure all the relevant preventative maintenance agreements are in place or at least with the strata manager for their approval.

Critical dates such as the Annual Fire Safety Statement, Backflow Prevention, Roof Anchors, and many others will return in the next calendar year. The Building Manager will need to ensure these dates are adhered to for statutory obligations and workplace health and safety.

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