Case Overview
The case of Mohammed & Sheikh v Ausko Building and Construction Pty Ltd & Ravikumar & Roshan & Augustus & Stanley (2015) NSWCATCD 107 is a notable decision by the Civil and Administrative Tribunal of New South Wales, delivered on 22 September 2015. The case highlights significant issues regarding warranties under the Home Building Act 1989, particularly concerning defective work and the responsibilities of builders and developers in residential construction projects.
Project Details
The dispute arose from the construction of a new property located at 73C Girraween Road, Girraween. The project details are as follows:
- Type of Residential Work: New property construction
- Original Contract Price: $512,000
- Final Project Cost: $521,000 (including upgrades)
- Project Timeline:
- Planned Completion: March 2013
- Actual Completion: 17 February 2014
Parties Involved
The primary parties involved in this case were:
- Applicants: Abdul Mohammed and Shahin Sheikh
- 1st Respondent: Ausko Building and Construction Pty Ltd
- 2nd, 3rd, and 4th Respondents: Roshan Paul Ravikumar, Viji and Syliva Augustus, James and Aravinda Stanley
Nature of the Dispute
The applicants claimed multiple issues during the construction process, which culminated in defects and incomplete works. The key points of the dispute included:
- Specific Section 18B Warranties Allegedly Breached: Warranties concerning due care and skill, compliance with plans and specifications.
- Types of Defects or Incomplete Work Claimed:
- Defective driveway levels
- Water discharge issues
- Damaged fence panels
- Incomplete landscaping
- Defective plumbing
- Shower leaks
Claim Details
On 29 December 2014, the applicants filed a claim seeking:
- Amount Claimed: $71,282.74
- Specific Remedies Sought:
- Rectification of defective works
- Return or replacement of specified goods valued at approximately $6,000
No counter-claims were made by the builder.
Key Findings
The Tribunal’s determination revealed that:
- Breach of Section 18B Warranties: The Tribunal found clear evidence of defective workmanship.
- Classification of Defects: Major, as they directly affected the habitability and function of the home.
- Determination of Fault: The developers were held strictly liable for the breaches of warranties under the Home Building Act.
Outcome
The Tribunal’s decision was in favour of the applicants, resulting in the following remedies ordered:
- Financial Award: $55,951.40 for rectification costs
- Payment of Expert Costs: $7,480.00
- Joint and Several Liability: The second, third, and fourth respondents were held jointly and severally liable for the awarded amounts.
Key Sections and Interpretation of the Home Building Act and Relevant Case Precedents
The application of Section 18B in this case reiterates that:
- Warranties are implied in every contract for residential building work, ensuring that the work is conducted with due care and skill.
- Developers bear strict liability for breaches of the statutory warranties outlined in the Home Building Act.
