June 19, 2025

Understanding Building Defects in Strata Properties – VIC

For strata communities, building defects represent a serious concern that can carry significant financial and safety risks. If not addressed quickly, these problems may result in costly repairs and negatively impact property values. No matter the age of the building, understanding how to identify and deal with defects is a critical responsibility for Owners Corporations.

What Qualifies as a Building Defect?

A building defect is any flaw in a building’s structure, systems, or materials that stops it from functioning as intended. This may involve waterproofing failures, structural weaknesses, faults in fire safety systems, or problems with finishes on common property. Defects can stem from construction errors, inferior materials, or poor design — and newly constructed buildings are typically protected by statutory warranties for a set period.

Typical Building Defects Found in Strata Schemes

Certain types of defects are commonly found in strata-managed properties. These include:

  • Waterproofing breakdowns on balconies, basements, and podium levels
  • Cracking or deterioration of concrete in underground car parks and building facades
  • Deficiencies in fire protection systems, such as faulty alarms, fire doors or sprinklers
  • Structural movement, settlement, or cracking of building components
  • Electrical faults or drainage system failures
  • Accelerated corrosion of metal fixtures in coastal or moisture-prone areas

Regular building inspections and proactive, planned maintenance are the most effective ways to identify these issues before they develop into major problems.

Addressing Building Defects in Victoria

In Victoria, building defect management is covered by the Domestic Building Contracts Act 1995 and the Building Act 1993. Warranty periods include 10 years for major structural defects, with shorter coverage for minor issues.

Owners Corporations are responsible for the upkeep of common property and must pursue builders or developers for defect rectification within these statutory timeframes. Should disputes occur, they can be escalated to Domestic Building Dispute Resolution Victoria (DBDRV) or the Victorian Civil and Administrative Tribunal (VCAT) for resolution.

Preventing Defects Through Proactive Management

While it’s impossible to avoid every defect, many can be identified early or prevented altogether through careful, proactive management. Key steps include:

  • Scheduling periodic building condition inspections
  • Actioning recommended maintenance tasks without delay
  • Keeping thorough records of all reports, repairs, and relevant communications
  • Educating Committee members about statutory warranty periods and defect processes
  • Appointing experienced, qualified contractors to perform any repair or maintenance works
  • It’s best for the Committee to engage with the builder where possible in terms of any known common property defects to try and resolve these together

An attentive, organised approach to managing building defects is essential for preserving the safety, value, and liveability of your strata community. If you’re unsure about the current condition of your property, it’s a good idea to book a professional building assessment and speak with your Community Manager at SSKB about the next steps.

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