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Thinking MR

Thinking MR

Roof leaks & water damage: Gett ing ahead of the problem

By Lynda Kypriadakis,

Diverse FMX

Here we go again with the Queensland heavy rain over the summer months, as well as the tail-end of La Nina pouring down on the southern states. Every insurance company’s nightmare is coming into full focus at this time of the year: WATER LEAKS into buildings!

The penetration of water into habitable and structural areas of residential strata complexes is a structural defect that requires not only urgent, but specialist att ention. Water leaks into new buildings that are still under the builders’ warranty is one of the most common defects discovered during defect inspections (refer to University research study undertaken in this area: An examination of building defects in residential multiowned properties, by Dr. Nicole Johnston of Deakin University June 2019).

Liability

Who is responsible for fi xing water that leaks into habitable private property or the structure of the common property? In a residential strata scheme the body corporate would usually be responsible for repairing the cause of any water leak into habitable or structural areas. The body corporate is burdened with the responsibility to maintain the structural integrity of the scheme buildings, and nothing erodes structural integrity like water ingress. Before actioning any repair works tasks, it is important to check with the body corporate insurer as soon as a water leak is reported to get confi rmation on who is liable for what.

What about if the building is still under the statutory builders’ warranty? Any form of water leak is considered a major structural (Category 1) defect under the building contract and therefore claimable under the builder’s warranty. Before any repairs are done to the water leak defects it is important to check that there is no enduring warranty on foot. Other warranties?

Metal roofi ng products come with manufacturer warranties so it might be worth checking the warranty certifi cate out before undertaking repairs in case there is a claim against the manufacturer available.

© Adobe Stock - stock.adobe.com Investigations

Once the liability chain is established and warranty conditions understood, the fi rst step in dealing with the actual water ingress issue in the building should always be a thorough investigation into the cause of the leak. Commonly, a contractor is engaged to “fi x” the leak without doing a thorough investigation to confi rm the ingress point (ie., the defect) so the full extent of both the defect and the resultant damage (eg., damage, mould, rot, rust etc. in concealed spaces) is not always understood. Where repairs are att empted without a proper investigation beforehand there is a high likelihood that the repairs will fail at some point and the body corporate outlay will be in vain.

Water leak investigations are considered expert work and it is therefore recommended that highly experienced, qualifi ed and specialist consultants are engaged up-front to properly determine the leak issue and whatever remedial actions are required to permanently fi x the defect. It is not unusual for leaks to persist despite multiple eff orts to fi x, and this is usually because a holistic overview investigation was not conducted by an independent expert in the fi rst instance.

Note: The independent expert will not be interested in off ering a quote for the repairs. They will limit their involvement to inspecting and preparing the remedial works scope for tendering (and possibly Project Managing for the body corporate). It will cost money

to have a proper independent specialist investigation done because they will be qualifi ed to prepare a reliable remedial works scope that can be used for tendering repairs to fi x.

Water testing

A proper investigation into water leaks will always require fl ood testing or water testing unless the defect is extremely obvious (eg., roof sheets blown off in a storm). Thorough investigations include the expert consultant fl ooding the suspect area with water (eg., via a hose) and watching how the water behaves. The investigator will take steps to track where the water gets in and follow where it goes. Water testing is a highly eff ective strategy for obtaining accurate information on the point of ingress (defect), however it is not always easy to see where the water goes once it gets into concealed spaces, so invasive surveying should accompany the water testing.

Invasive surveying

In order to review the behaviour of the water ingress it is usual for invasive testing to be done. This involves the expert consultant either removing roof cladding or cutt ing apertures in linings to gain visual access to concealed cavities such as roof/ceiling space, eaves overhangs, walls etc. While moisture reading devices and thermal cameras are very eff ective and tracking moisture in concealed spaces or lining materials, nothing beats seeing the water live with your own eyes. The downside to invasive surveying of course, is that it leaves unsightly openings inside units, which can be inconvenient for the lot occupiers.

Other leaks

It may be that the source of the leak is not from common property, in which case it is unlikely that the body corporate would be liable. For example, the upstairs neighbour may overfl ow the bath or sink and that leak tracks into the unit below. Or a renovation upstairs has caused water leaks into apartments underneath. Also, retrofi tt ed air-conditioning units (installed privately) may leak, or lot occupiers may drill holes through the roof for solar panels or antennae, causing leaks. All these types of leak sources can be identifi ed by the independent leak investigator before repairs are undertaken.

QLD - NSW - VIC - WA

© Adobe Stock - stock.adobe.com

Mould

It is commonly held that mould is an indicator of water leaks, but this is not always the case. Most mould issues arise out of lack of light/ventilation inside apartments. In cooler months when heaters are on inside the unit condensation can form on the windows and cause mould growth. In the hot summer months, the opposite occurs with condensation forming on hot windows when the air inside the unit is cold. Also, running the clothes dryer without adequate ventilation is a primary cause of mould inside units, so just check out ventilation in the unit if mould starts to occur.

Summary

The ideal process for att acking water leaks is as follows:

• Determine liability fi rst; • ascertain extent of any warranty claims available; • engage an independent expert to conduct water testing and prepare the remedial scope of works • ensure the quotes come from qualifi ed and licensed roof plumbers; and • ensure a water test is conducted upon conclusion of the repair works to confi rm the leak is fi xed (before fi nal payment is sett led for the works).

 Structuring  Income Veri cation  Accounting/Taxation  Superannuation  Audit

Are you looking for a pre-purchase nancial veri cation report, pro t and loss for sale or just an accountant who really understands your management rights business?

We provide a comprehensive range of compliance and consulting services for all entity types operating within the industry. Jonathan Grant Accountants operates within a wide referral network of other professional industry specialists and we are dedicated to ensuring you receive the right advice from the right people.

PO Box 391 WEST BURLEIGH QLD 4219 Phone: (07) 5534 4333 | Fax: (07) 5534 2081 reception@jonathangrant.com.au | www.jonathangrant.com.au

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