Report Number - Monark – Landscaping and Building Servicesmonark/PDFs/Sample... · C1. The building is a two (2) storey attached duplex residential dwelling of brick veneer construction

GPM Pty Limited PO Box 835

Castle Hill NSW 1765

ABN: 97 094 165 563 Ph/Fax: (02) 8850 4408

Email: romeogpm@tpg.com.au

BUILDING DEFECTS REPORT Commissioned By: Solicitor/Conveyancer Client: Mr & Mrs XXXX Property Address: XX Road, XXXXXX NSW Inspection Date: 30 October 2013 Report Number: RG XXXX

GPM Pty Limited XX XXXXXX Road, XXXXX NSW XXXX

Report Number: RG XXXX Page 2 of 19

Index

Section A Instructions, Qualifications, etc Page 3 Section B Documents Reviewed Page 3 Section C Introduction Page 4 Section D Scope and Report methodology Page 4 Section E Method of Assessment Page 5 Section F Expert Witness Statement Page 10 Section G Executive Summary Page 10 Section 1 Inspection and Assessment Page 10 Section 2 Recommendations Page 12



A Instructions, Qualifications, etc Instructions A1. I have been requested by the XXXX Solicitors to prepare a building report

on behalf of Mr & Mrs XXXX (hereinafter referred to as the Owner’s), the owner’s of the property at XX XXXXXX Road, XXXXX NSW XXXX.

A2. The purpose of this report is to identify the cause of the leak from within the main bathroom and determine if this is a defect which the builder must repair under their statutory responsibilities of the Home Building Act.

Qualifications A3. I am a civil engineer, practising as a building consultant as well as being a

licensed building contractor with the qualifications set out in my annexed curriculum vitae (Appendix A).

Matters upon which my opinions are based A4. In expressing my opinions in the following report, I have relied on:

(a) my experience as an engineer for nearly 20 years; and (b) my experience as a builder for nearly 20 years involved in project

management and construction of several projects within the Sydney Metropolitan area;

(c) my experience as a building consultant for more than 10 years; and (d) my inspection of the premises at the following time(s):

26 October 2013; and (e) documents provided to me, as identified at Section B, immediately below;

and (f) reference to the Building Code of Australia, Australian Standards, and

other relevant documents that specify required performances in the construction; and

(g) such assumptions of fact as I have been asked to make which I have identified in the substance of my report.

B Documents Reviewed In the preparation of this report I have been provided with the following documentation: • Copy of the Final Occupation Certificate No. OCXXXX dated 18 April

2009, • Copy of the Certificate of Home Warranty Insurance, issued by HIA

Insurance Services Ltd dated 28 September 2008.



C Introduction C1. The building is a two (2) storey attached duplex residential dwelling of brick

veneer construction (hereinafter referred to as the Building). C2. The Building was constructed by XXXX Homes Pty Limited, ABN XX XXX

XXX XXX and Contractors Licence # XXXXXC (hereinafter referred to as the Builder).

C3. The Owner’s have advised that the hand over date ‘was around November

2008’. C4. The Occupancy Date based on the Occupation Certificate provided is 18

April 2009. C5. The Building is classified as a Class 1a building, pursuant to Part 1.3 of the

Building Code of Australia. C6. Defective construction presents to the Building. The Owner’s request

advice/reporting, as instructed, to the extent of building defects for which is the Builder is responsible to rectify under their statutory responsibilities of the Home Building Act.

D Scope and Report Methodology D1. This report has been generally prepared in accordance with Australian

Standard 4349.1-1995 Inspection of Buildings Part 1: Property Inspections-Residential Buildings, to the extent that the Standard is applicable and to the extent of those areas we are instructed to inspect.

D2. The report is based on a visual inspection of reasonably accessible parts of

the property, to the extent of the inspection as described, and intrusive testing at selected locations as described herein.

D3. The items noted in the report are observed and assessed as to whether the

construction is defective. In assessing whether a particular item is defective or not I have made reference, where possible, to published and objective performance requirements pertaining to the building industry, as available and/or applicable. Documents stating performance requirements exist for many specific types of construction or installations; but not for all. Where possible, assessment as to whether an issue/item is defective will be based on objective performance criteria contained in published documentation. Where there is no published performance requirement for a specific type of construction



and/or installation, a more subjective assessment is made based on the author’s experience of the building industry. Generally, any assessment as to whether a particular item/issue incorporates or is defective construction is based on the following; with importance given to the particular reference diminishing in descending order, as a more subjective assessment is required:

- Building Code of Australia (Vol. 1, as it refers to Class 2 & 7 buildings; hereinafter referred to as the “BCA”), and relevant Australian Standards

- General building reference texts, manuals, articles, etc. - Implied warranties pursuant to s18B of the Home Building Act (NSW)

1989. - Prevailing building industry practice and experience

Where a defect issue is itemised, there is accompanying commentary stating why the item is considered to be defective or not so, particularly where the defect is considered to be significant. In addition, there is, generally, commentary provided as to an appropriate method of rectification.

D5. This report is prepared on the basis of the information made available at this date and/or enquiries in respect of the report. I reserve the right to amend this report and the opinions expressed in the light of additional information being made available.

E Method of Assessment E1. BCA now known as the National Construction Code (NCC) Series

The BCA is a statutory code given legal effect by the Environmental Planning and Assessment Act in NSW. The BCA is law. Compliance with the BCA is mandatory to the extent provided in the BCA. The BCA prescribes performance requirements for each class of building.

E2. BCA classification The BCA classifies the Building as Class 1a: a single dwelling.

E3. Home Building Act warranties The Home Building Act (NSW) 1989, Part 2C Statutory Warranties, S.18B Warranties as to residential building work provides:

The following warranties by the holder of a contractor licence, or a person required to hold a contractor licence before entering into a contract, are implied in every contract to do residential building work:



(a) a warranty that the work will be performed in a proper and workmanlike manner and in accordance with the plans and specifications set out in the contract,

(b) a warranty that all materials supplied by the holder or person will be good and suitable for the purpose for which they are used and that, unless otherwise stated in the contract, those materials will be new,

(c) a warranty that the work will be done in accordance with, and will comply with, this or any other law,

(d) a warranty that the work will be done with due diligence and within the time stipulated in the contract, or if no time is stipulated, within a reasonable time,

(e) a warranty that, if the work consists of the construction of a dwelling, the making of alterations or additions to a dwelling or the repairing, renovation, decoration or protective treatment of a dwelling, the work will result, to the extent of the work conducted, in a dwelling that is reasonably fit for occupation as a dwelling,

(f) a warranty that the work and any materials used in doing the work will be reasonably fit for the specified purpose or result, if the person for whom the work is done expressly makes known to the holder of the contractor licence or person required to hold a contractor licence….the particular purpose for which the work is required or the result that the owner desires the work to achieve, so as to show that the owner relies on the holder’s or person’s skill and judgment.

E4. Home Building Act (NSW) (HBA) definitions

The following are definitions at Part 1, S.3 Definitions of the HBA: residential building work means any work involved in, or involved in coordinating or supervising any work involved in: (a) the construction of a dwelling, or (b) the making of alterations or additions to a dwelling, or (c) the repairing, renovation, decoration or protective treatment of a dwelling. It includes work declared by the regulations to be roof plumbing work or specialist work done in connection with a dwelling and work concerned in installing a prescribed fixture or apparatus in a dwelling (or in adding to, altering or repairing any such installation). It does not include work that is declared by the regulations to be excluded from this definition. dwelling means a building or portion of a building that is designed, constructed or adapted for use as a dwelling (such as a detached or semi-detached house, transportable house, terrace or town house, duplex, villa-home, strata or company title home unit or residential flat). It includes any swimming pool or spa constructed for use in conjunction with a dwelling and such additional structures and improvements as are declared by the regulations to form part of a dwelling. It does not include buildings or portions of buildings declared by the regulations to be excluded from this definition.



E5. Application of BCA and HBA In my opinion, based on the definitions at S.3 of the HBA, this property is a residential building within the meaning of that Act for those parts identified as residential construction. The building work is now assessed to be approximately two years of age and thus, the statutory warranties pursuant to S.18B of the HBA are considered applicable for any identified defect. In my opinion a licensed builder should have reasonable awareness of, and/or skill in, and/or competency of, building and construction industry accepted practices in the construction of building works. Such awareness, skill and competence should include a requirement to comply with the BCA, legislative requirements, and standards and codes for individual construction trades, to enable the building and construction to be carried out in a workmanlike manner, meeting all statutory performance requirements, and being fit for purpose. The BCA and the HBA, in concert, either require specific standards of workmanship and/or or warrant that an appropriate standard workmanship will be delivered.

E6. Assessment of defects

Where specific construction does not meet the mandatory performance requirements pursuant to the BCA, such construction is considered defective; and, additionally, may be a breach of S.18B(c) of the HBA; the construction does not comply with, this or any other law. Where specific workmanship does not meet the standard of workmanship described in the relevant Australian Standards, Codes of Practice, handbooks, or other recognised industry guides to construction practice, such construction may be considered defective, and, additionally, may be a breach of S.18B(a) of the HBA; the construction is not performed in a proper and workmanlike manner. Where specific materials are used in a construction that does not meet the standard of workmanship described in the relevant Australian Standards, Codes of Practice, handbooks, or other recognised industry guides to construction practice, such construction may be considered defective, and, additionally, may be a breach of S.18B(b) of the HBA; materials are not suitable for the purpose for which they are used.



In many instances, especially to do with the finish surfaces, there are no determinative relevant Australian Standards and Codes. In such instances, a degree of common sense needs be applied. Hairline cracking Buildings are not static: they are subject to differential and thermal movement, as well as numerous other forces. Hence, cracking at the junctions of dissimilar materials is an anticipated phenomenon. The techniques used to control anticipated movement are invariably the issue with respect to minor cracking, as distinct from the cracking itself. AS 2870 (1996) Residential slabs and footings-Construction establishes requirements for the footing systems of residential construction. At Appendix C, AS 2870 provides a classification for the classification of damage due to foundation movements. Table C1 of AS 2870 provides a Classification of Damage with reference to Walls. Table C1 provides:

Description of typical damage and Approximate crack Damage required repair width limit category Hairline cracks < 0.1 mm 0 Fine cracks which do not need repair < 1 mm 1 Cracks noticeable but easily filled. < 5 mm 2

Though this Standard is addressed to foundation movement, cracking expresses little difference due to its cause. AS 2870 provides that cracking due to foundation movement, where less than 1mm, needs no repair, presumably on the basis that the cracking is generally cosmetic, causes minimal aesthetic concern, and is easily repaired at minimal cost.

In my opinion, this general classification can and should be applied to all cracking as the reasonable standard of workmanship. The NSW Fair Trading Guide to Tolerances and Standards, 2007 Edition, now adopts this classification as a guide to the appropriate standard. This approach is adopted in this report.



Materials Surface Imperfections AS 2311 (2000) Guide to the Painting of Buildings establishes considerations and appropriate specifications for painting. At Appendix C4, AS 2311 provides inspection criteria for the final inspection of painting:

C4 FINAL INSPECTION The final inspection should ensure the following where appropriate: (a) The painted surface shows—

(iii) uniformity of gloss, colour and opacity; (iv) correct range of dry film thickness of paint; (v) freedom from painting defects such as—

(A) tackiness and paint application defects; (B) brush marks, roller coater marks, spray application defects and those

irregularities in texture, which are inconsistent with good trade practice. NOTE: Differences in appearance will occur; however, where such differences are not clearly discernible from a distance of typically 1.5 to 2 m the finish is usually considered acceptable (emphasis bolded).

(vi) general cleanliness and absence of disfigurement, related to paint application.

NOTE: Surfaces, fixtures and fittings should be checked to ensure that they have been masked or removed, and that all paint spills or stains have been removed as set out in the specifications.

(h) The surrounding area is clean, tidy and undamaged, and all of the paint contractor’s materials, equipment and debris related to the work performed, are removed from the premises or site.

The critical item in this commentary, emphasis added above, is the recommendation that inspection should occur from a reasonable distance. Though there may be minor surface imperfections/defects, AS 2311, with respect to painting, recommends that where such differences are not clearly discernible from a reasonable distance the finish is usually considered acceptable. Because the reasonable standard of building construction is not absolute perfection, it is my opinion the general parameters of inspection as recommended in AS 2311 for painting are generally applicable to the assessment of the surface finishes of most other materials finishes.

This approach is adopted in this report.



F Expert Witness Statement

F1. I, Romeo George of GPM Pty Limited, acknowledge that I have read, understood and agree to be bound by the Consumer, Trader and Tenancy Tribunal Chairperson’s Directions Number CD2003-2 with respect to the conduct before the Tribunal of expert witnesses.

F2. This Report has been prepared and written in accordance with the requirements of the Chairperson’s Directions CTTT CD2003-2 with respect to the form of the experts report.

F3. I have examined the documentation provided to me and inspected the subject areas of the building.

F4. I believe that I have made all necessary inspections and enquiries that are desirable and appropriate to form an opinion on the matters identified to me.

F5. No matters of significance that I would regard as relevant have, to my knowledge, been withheld from the Tribunal.

G Executive Summary

G1. This report is based on an inspection of the interior of the Building.

G2. Inspection and investigation revealed a defect relating to a leaking shower recess in the main bathroom.

Section 1 Inspection and Assessment

Internal Areas 1.1 Main Bathroom

The shower recess in the upper level bathroom was tested using a basic flood test (See Photo 1) and a water leak was found along the floor of the adjoining bedroom (See Photos 2 & 3). This appears to be related to a failed or incorrectly installed waterproofing membrane. It appears that the Builder has previously sealed perimeter joints with a flexible sealant in attempt to rectify this issue, however, this is not a permanent solution and does not provide an adequate solution to this problem.

Extensive damage has occurred to the particleboard floor sheeting, carpet, plasterboard wall lining and timber skirting boards within the bedroom area adjacent to the bathroom shower recess (See Photos 4 & 5).

Further investigation is also recommended to verify the extent, if any, of damage to the concealed timber wall and floor frames adjacent to this area.

The appropriate performance requirement Compliance with the BCA, at Section P2.2.1 as well as AS 3740 – Waterproofing of domestic wet areas Home Building Act Breach of S.18B(a) and S.18B(b) of the HBA.



Photo 1 – Flood test within main bathroom shower recess

Photo 2 – Evidence of water leak onto floor of bedroom area adjacent to main bathroom shower recess

Photo 3 – Evidence of water leak onto floor of bedroom area adjacent to main bathroom shower recess



Photo 4 – Evidence of water damage to carpet in bedroom adjacent to main bathroom shower recess

Photo 5 – Evidence of water damage to plasterboard wall lining and timber skirting board in bedroom adjacent to main bathroom shower recess

Section 2 Recommendations 2.1 Recommended rectification methodology 2.1.1. Main Bathroom

Remove all of the floor tiles and bottom row of the wall tiles in the shower recess. Re-apply a waterproofing membrane in accordance with AS 3740 – Waterproofing of domestic wet areas. Reinstall tiles to match existing in accordance with AS3958.1: 2007 - Ceramic tiles – Guide to installation of ceramic tiles. If tile match is not achieved, replace all the tiles within the shower recess. Remove the damaged sections plasterboard wall lining in the bedroom area and replace in accordance with AS2589 – Gypsum linings – Application and finishing. Repaint the affected area in accordance with AS2311-2009-Guide



to painting of buildings. If appearance, colour and texture match is not achieved with the surrounding area it is recommended that the entire wall sections be repainted to achieve a uniform and consistent appearance. Remove and replace the damaged particleboard floor sheeting in accordance with AS 1684 – 2010 - Residential timber-framed construction. Assess the extent, if any, of damage to the concealed timber wall and floor framing members once the wall linings and floor sheeting have been removed and repair/replace any of the affected wall and floor framing members in accordance with AS 1684 – 2010 - Residential timber-framed construction. Remove and replace the damaged carpet in accordance with AS 2455.1:2007 Textile floor coverings - Installation practice – General. If appearance, colour and texture match is not achieved with the surrounding area it is recommended that the bedroom floor carpet be replaced to achieve a uniform and consistent appearance. Remove and replace the damaged timber skirting boards in accordance with AS 1684 – 2010 - Residential timber-framed construction. Repaint the affected area in accordance with AS2311-2009-Guide to painting of buildings. If appearance, colour and texture match is not achieved with the surrounding area it is recommended that the entire lengths of skirting board be repainted to achieve a uniform and consistent appearance.

2.2 Procedure 2.2.1.

The inspection of this Building has identified a defect relating to the bathroom area. The defect, identified in this report, is considered to have the potential to become serious in the future. Rectification work is considered to be urgent for the following reasons:

- to preserve the safety of the users of this Building, - to ensure that the amenity of the users is maintained at an appropriate

standard, - to ensure that the cost of rectification is mitigated/minimised, - to ensure that the equity value to this property is maintained.

2.2.2. This report establishes that, in my opinion, the Builder has not fulfilled his statutory responsibilities pursuant to the Home Building Act.

2.2.3. I recommend that the matter be referred to the Builder, with a request to rectify within a reasonable stipulated period.



Any rectification works that the Builder agrees to rectify will only proceed if the rectification methodology is approved and under the supervision of the Owner’s or their representative. If the Builder refuses to rectify in a manner that is considered appropriate, the Owner’s may institute proceedings to enforce their legal rights pursuant to the Home Building Act and any other warranty provisions that may be applicable.

2.2.4. If the Builder refuses to rectify, we recommend the Owner’s consider appropriate action as advised by their legal representatives, which may include any or all of the following: • referral of this report to the HOW insurer, for the purposes of

notification of a potential claim, and presentation of a complaint should the Builder not respond,

• referral of this report to a legal forum for orders that the Builder rectify in accordance with warranty provision pursuant to the Home Building Act,

• referral of this report to the licensing section of the NSW Office of Fair Trading.

2.2.5.

Urgent attention to these defects is recommended, to mitigate the cost of rectification and because of potential danger to the occupants of this building. This concludes the written report. My qualifications to provide this advice are appended to this report. Please advise if further explanation of this report is required and/or if we may be of additional assistance with this matter.

Yours faithfully, GPM Pty Limited

Romeo George BE (civil) Licensed Building Contractor 30 October 2013



ROMEO GEORGE Abridged Curriculum Vitae Address: 23 Wongajong Close

Castle Hill NSW 2154 Ph/Fax: 028850 4408 (m) 0425 226 772 Email: romeogpm@tpg.com.au

Qualifications: BE (Civil) - 1993 (UTS) Licensed Building Contractor: 1994-present

Professional Member of Institute of Engineers Australia: 1988-2000 Memberships Member of NSW Master Builders Association: 2000-present Associations

Career Profile: 1988-1993 Civil Engineering Degree from UTS.

Completed 3 years of practical work experience as a student in several local government and private organisations

1993-1995 Project Engineer & Project Manager with North Shore Paving.

Estimating, tender submissions, contract administration and supervision on several civil construction projects ranging in contract value from $500,000 to $10M

1995-200 0 District (Asset) Engineer with Hornsby Shire Council.

Responsible for the formulation and administration of maintenance programs on civil infrastructure assets.

2000-present Principal of GPM Pty Limited: Project Managers and Building Consultants. Supervised and project managed several building construction projects throughout the Sydney Metropolitan area. Reported on the building condition of more than 4000 completed properties or buildings under construction. Prepared more than 300 Building Defects and Dilapidation Reports.

mailto:romeogpm@tpg.com.au



TERMS AND CONDITIONS OF INSPECTION AND REPORTING In these terms and conditions unless the context otherwise requires:

‘Applicant’ means the person or organization for whom the inspection is carried out and to whom the Report is addressed.

`Building Consultant’ means GPM Pty Limited, and includes its agents, servants and subcontractors carrying out one or more inspections.

`Inspection' means the view and examination of the Property. `Property' means the property to be inspected. `Report' means the findings of the inspector/s consequent on an inspection

reduced to writing for the exclusive and confidential benefit of the Applicant. The word `person' shall be deemed to include a corporation, words importing the singular or plural number shall be deemed to include the plural or singular of it respectively and words importing the one gender only shall include each other gender as the case may require.

1. In consideration of the fee advised and payable by the Applicant to the Consultant, the

Consultant shall inspect the property and shall make a report thereon. The Consultant shall only be bound to inspect and report on the part of the property that is clearly accessible, including ceilings and sub-floors through existing manholes, trapdoors or other suitable openings.

The Consultant shall not be obliged to open up and inspect roofs, walls or sub-floors where no such access exists. Reasonable sub-floor access means any space with clearance from ground to underside of joists no less than 600 mm (vertically) and 600 mm wide (horizontally). The Consultant shall not be required to inspect those areas that require specific Occupational Health and Safety cover and/or are precluded pursuant to that legislation.

2. The report is based solely upon a visual inspection by the Consultant on those parts of the Building to which reasonable access is available at the time of inspection, provided always that if the inspection is prevented or inhibited by any obstacles including, but not limited to, cladding or lining materials, surface coverings, fixtures and fittings, furniture, soil and plants (fixed or otherwise), the Consultant shall base his report upon a visual inspection of those parts of the building that are able to be inspected without removing or displacing such obstacles.



3. The Report is based on the condition of the property, the prevailing structural, soil and weather conditions at the time of inspection. Prolonged periods of wet or dry weather may cause structural changes to the property.

4. The Consultant shall not be liable for the non-disclosure, in the report, of the existence

of defects not readily apparent upon a reasonable inspection of the Property (i.e. latent defects). Deliberately concealed faults may not be detected. The Consultant shall not be required to test materials forming part of the Property (i.e. no intrusive testing.

5. The Applicant hereby certifies that the Owner of the Property or the authorised agent

of the Owner has consented to the Consultant gaining access to the Property. If the Consultant is refused access to the Property whether such refusal is lawful or not, or the Consultant cannot reasonably gain access to the property without danger of injury or without trespass to land, the Consultant shall not be bound to enter the property and shall be entitled nevertheless to receive from the Applicant his reasonable expenses of travelling to and from the Property.

6. Only the exterior of single storey roofs shall be inspected. Other roof surfaces are

inspected from ground level where possible.

7. The Report is based solely on a visual inspection, and on the factual condition of the Property at the time of inspection. The Report does not take into consideration the following, unless expressly stated: a. the design specifications of the Property (if any), or whether the Property was

erected in accordance with the design specifications; b. the method of construction of the Property; c. whether the erection of the Property was properly supervised; d. whether the Property complies with all local building Codes or authority’s

requirements, or consent authority’s Conditions of Consent approval; or any other Statute, Ordinance, Regulation or Standard;

e. whether there are defects in title, breaches of covenant as to the user or any encroachments, or any breaches of the law in relation to the Property;

f. whether the drainage layout, sewers and downpipes were approved, or comply with the requirements of the relevant authority. The Applicant should make all necessary inquires of Councils and other Authorities;

8. The Consultant will not be responsible for failing or omitting to include advice in the

Report in respect of: a. latent defects in the Property or in the fixtures or fittings attached thereto, whether of

a structural nature or otherwise; b. defects which may arise after the inspection from any cause whatsoever, including

but without limitation, abnormal weather, or abnormal uses or abuses of the Property, or the fixtures or fittings attached thereto;



c. structural defects in the Property, or in the fixtures and fittings attached thereto; and d. `unknowables' defects such as, but not limited to, the course and efficiency of drains

when the inspection is carried out in dry weather; obstruction of sewer pipeworks by roots or subsidence; obstruction and debris in cavity masonry; chimneys which may require rebuilding or cleaning and the existence of asbestos.

9. Whilst comments may be made concerning plumbing in the Report, the testing of taps,

sewer disposal systems, hot water systems and wastewater drainage facilities is specifically excluded. Similarly, whilst the Report may include comments upon the electrical installation, the testing of power points, light and switching points, is specifically excluded.

10. Although comments may be made in the Report on the existence of destructive

insects, present or past, or destructive fungal growth, and of the existence of damage that may have been caused to building materials (particularly timber) and the condition of materials damaged by insect or fungal growth; the Consultant shall not be held responsible for identifying these defects.

11. This report is not a pest inspection and the Consultant is not qualified to perform such

inspections. The Applicant is responsible for arranging comprehensive inspections of the Property by a qualified pest consultant and for any necessary preventative treatment as recommended.

12. The Consultant does not have, or express, expertise in pest inspection, timber

infestation, structural engineering, surveying or strata record inspections. If recommendations are made in the Report that such ‘specialist' inspections and/or reports should be obtained, and such recommendations are not compiled with, the Consultant shall not be responsible for that area of the subject property.

13. Cost estimates, if any, provided in the Report are a guide to expenditure, and not

accurate quotation prices for rectification of defective work, unless stated otherwise.

14. Defect reports are not necessarily exhaustive or complete of all defects identified. In most instances, defect items that are considered relatively insignificant (in relation to loss of amenity, ease of rectification and/or cost of rectification) are assessed as commercially inappropriate to pursue, and are therefore excluded from the report.

15. Where an oral report is given the Consultant shall not be held responsible for any

matters whatsoever should the Applicant misconstrue and/or fail to understand such Report. The written Report shall prevail at all times.

16. The Report shall not be used by the Applicant for any purpose other than that

nominated in the Application, or for making an assessment with regard to purchase of the same. The Report shall be for the private and confidential use of the Applicant only



and may not be reproduced in whole, or in part by any person, nor may it be used or relied upon by any person other than the Applicant. The Report always remains the intellectual property of the Consultant.

17. The Applicant hereby acknowledges and agrees to the full extent permitted by law that

in the event that the Consultant's services herein constitute a supply of services to a `consumer' as defined in the Trade Practices Act, 1974 (the Act), as amended, and in all other cases whether arising in contract or tort, the liability of the Consultant to the Applicant shall in the case of any and all loss sustained by the Applicant be limited at the discretion of the Consultant to:

a. supplying the said services again; or b. the payment of the cost of having the said service supplied again. The Consultant shall be totally excluded from any and all legal liability where any account remains outstanding for in excess of sixty days.

18. The Consultant shall not be liable for failure to perform any duty or obligation that it may have under this agreement, where such failure has been occasioned by an act of God, fire, flood, industrial disturbance, inevitable accident, inability to obtain labour or transportation, war, or any cause outside the reasonable control of the Consultant.

19. The Report is invalid unless the all fees have been paid with respect to the preparation

of the advice, and the Report is valid for 60 days from the date of invoice for the Report.

20. The Report is not a guarantee; it is a professional opinion on the condition of the

inspected property.

21. These “Terms and Conditions” and “Cost Agreement” contain the entire agreement between the Applicant and the Consultant. The Applicant acknowledges that no employee or agent of the Consultant has any right to make any representation, warranty or promise in relation to the inspection service and Report.

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