PART a-BG1461 Defect Report

BG1461 9 Goldlang Street, Dandenong 3175 Page 1
CONTENTS
SECTION ITEM PAGE
1.0 SUMMARY 2
2.0 INTRODUCTION 4
3.0 CLIENT BRIEF & INSTRUCTIONS 5
4.0 SITE INSPECTION DETAILS 6
5.0 PROJECT DETAILS 7
6.0 WORKS TO COMPLETE 8
PHOTOGRAPH INDEX-PART ‘B’ 14
APPENDIX A Conditions relating to the

Inspection and Report 37
APPENDIX B List of Reference Documents 38
APPENDIX C Evaluation and VCAT Practice Notes 39
ANNEXURES & OTHER REFERENCE DOCUMENTS

BOSTON GROUP – BUILDING CONSULTANTS
8 Murray Court Vermont 3133 – Tel (03) 9803 2837
TOTAL PAGES TO REPORT 46

8 Murray Court Vermont 3133 – Tel: (03) 9803 2837
Member of the Master Builders Association of Victoria
1.0 SUMMARY
1.01 WORKS DESCRIPTION
The domestic building works situated at 9 Goldlang Street Dandenong, consists of land
with three units being partly constructed to the entire development of the site.
Existing Major Domestic Building Works

9 Goldlang Street, Dandenong

1.02 WORKS COMPLETED (as to inspection)
The Domestic Building Works situated at 9 Goldlang Street Dandenong consists

of the construction of a three unit development site, ie the “Existing Residences”.
At the time of the Inspection of the works on the 18th of September 2011, the
existing residences were under construction and were in part way completed
during the lock up stage in having external blue board installed in preparation
for an applied rendered finish.
The common road way to each Unit had also been prepared with an existing
crushed rock road base.
At the time of the Inspection the writer was instructed to form a view as to
defects at the project and as to the completion of the major domestic building
works at the site.
1.03 QUANTUM – DEFECT WORKS TO RECTIFY
The “Quantum” allows for the completion of the works and includes items in
accordance with 6.0 – Works to Complete & Or Defects.
QUANTUM – WORKS TO COMPLETE $34,327.00
Glenn Jones
Managing Director
Boston Group, MAIB
VICTORIAN FAIR TRADER OF THE YEAR 1997

2.0 INTRODUCTION
2.01 REPORT CONTENTS
This report consists of a brief evaluation of the works required to complete the
rectification of defects as to the domestic building works in accordance with the
original contract documentation and provides for the Quantum of Works to be
completed.
2.02 REPORT ASSUMPTIONS
It has been assumed by the Writer that the completion of the building work would
need to be completed by another building contractor pursuant to further instructions
due to the nature of the dispute between the building owners and or relevant parties.
2.03 REPORT METHODOLOGY
The writers Opinion of the Probable Cost to Complete the Works, hereinafter called
the Quantum – Works to Complete, is broadly based on the following
methodology.
a) the construction works to complete are determined by indices escalation of a

percentage to complete based appraisal of estimated trade and sub-trade
values, all based on the original (amended) contract sum, or where the original
contract sum is considered to have been insufficient, a similar evaluation is
undertaken on a realistic works budget.
b) the defect rectification works are itemised and compiled on a Lump Sum basis
so as to remedy defects.

3.0 CLIENT BRIEF & INSTRUCTIONS
This Defect Report has been prepared by:
CONSULTANT DETAILS
Name: Mr Glenn Jones MAIB, Director-Boston Group Victorian Operations.

Address: 8 Murray Court, Vermont 3133
Telephone: (W) 9803 2837 (Mobile) 0408 392 795
(F) 9803 2837 (Email) [email protected]
(Website) www.bostongrp.com.au
This Defect Report has been requested by:
CLIENT DETAILS
Name: Mr Kamal Kohli, Building Owner

Address: 71 Tucker Road, Bentleigh, 3204
Telephone: (W) (H) (Mobile)0430-103750
(F) N/A (Email) [email protected]
[email protected]
CLIENT INSTRUCTIONS
This report was prepared at the request of the Building Owner(s) and instructed the
Boston Group to conduct an inspection of the property and prepare a report as to
the alleged defects and other matters pertaining to the project so an evaluation of
alleged defects could be undertaken.
a) Detailing the current stage of the works

b) Detailing the standard of the construction
c) Providing a costing analysis which allows for the completion of works to be
undertaken including any noticeable defects.

3.0 CLIENT BRIEF continued
3.01 PURCHASE HISTORY
Based on various documents provided to the writer from the Building Owners,
Mr Kamal Kohli entered into (one) Major Domestic MBAV HC-6 Building Contract of
which was executed on the 20th of January 2011, for a sum of $355,000.00
The Contract(s) were between Mr Kamal Kohli (Building Owners) and Mr Stewart Purvis,
(Builder) of Managed Contracts Pty Ltd of P.O Box 809 Berwick 3806.
The working Building Contract documents contemplate that the Builder was to construct
three (3) New Units at number 9 Goldlang Street in Dandenong.
4.0 SITE INSPECTION DETAILS
Date of inspection: Sunday the 18th of September 2011
Time on site: 2.0 hours
Weather conditions: Fine-Mild
Temperature: 18 Degrees
Dwelling inspected by: Mr Glenn Jones-Director Boston Group-Victoria

In the presence of the Building Owner Mr Kamal Kohli
and Mr Hasan Yuvarajah
Front doors face: Unit 1-South, Unit 2-East and Unit 3-South
Access conditions: Reasonable, save for Internal aspects of Units 1 & 2

as these Units were locked and were not internally
Inspected by the writer on the day, a further Inspection
subject to further instructions may be required.

5.0 PROJECT DETAILS
5.1 CONSTRUCTION DETAILS: For Renovated Building
Buildings Brick Veneer Structure
No. of Floors: Ground Floor and First Floor
Footings: Raft Concrete Slab Construction
Floor: First Floor-Particle Board Flooring
Wall structure: F-5 Radiata Pine Stud and timber sections.
Wall Cladding: Bricks and Mortar-Blue Board Rendered
Roof Frame: F-5 Radiata Pine Roof Truss Materials
Roof Cladding: Cement Roof Tiles
Quality of Specified Items: Medium to Standard Finish=(Low)

5.2 WORKS COMPLETED
The writers opinion of the “Works Completed” is based on an overview of the site at the
time, viewing of the relevant plans and documents, if available not limited to the following:-
(a) Casual observation that the works and any materials used in the carried out works
are reasonably fit for that purpose or are of a nature and quality that might
reasonably expected to achieve the original proposed project.
(b) That the works were carried out with out reasonable care and skill as specified by
the relevant documents or industry standard.
(c) That the works fail to comply with all laws and legal requirements including the
relevant building regulations made under that act.
(d) Allowance has not been included where a reasonable probability exists that further
defects or difficulties arise when works recommence on site and the problems are
only discovered then.
Any works partially completed, defective not to standard, or not standard are
contained in section 6 “Works to Complete”.
The following table represents Works Completed only pursuant to the standard as
outlined above.
6.0 WORKS TO COMPLETE
The writer was Instructed to advise generally on the quality of construction of the
units that have been constructed at the site & matters that relate to the Master Builders
Association of Victoria HC-6 Building Contract.
It is noted by the writer that there is NO superintendent appointed to the works

pursuant to the conditions of the Building Contract.
Construction Period.
The time allowed of 203 as per clause 9.2 of the Building Contract has now fully elapsed
with the original scheduled completion date being the 22-08-2011.
Time extensions have been sought to the contract period that have NOT been approved
by the building owner totalling 15 days pursuant to Variations 1 to 15 dated 18-09-2011.

Home Warranty Insurance.
As an interim point we note that given the quantum of the contract totalling a sum of
$355,000.00 that no Home Warranty Insurance has been provided by the Builder to
the Building Owners for Unit 1 of the project.
The writer has only been provided with details that relate to two Home warranty
Insurance policy’s as detailed below;
Unit 2-QBE Domestic Building Insurance, Policy Number 57-0012894-BWI-9, Dated 16-3-2011
Given the issue date of the QBE Insurance policy’s the Builder may have commenced
the building works at the site prior to the Building Permit being issued on the 22-03-2011.
Building Permit Number BS1329/20110639/0 by Building Surveyor Jim Tsagnas 22-03-2011.
Existing Site Levels.
It is to be noted that the working drawings, engineering computations and specifications

applicable to the works provide for the construction of finished floor levels to the project.
Given the limited time available to the writer these levels have not been checked however
on a casual observation there are substantial issues as to finished floor levels to the garage
areas of each unit as to steps & treads access to each unit and the as built scenario with
Unit access and tread heights is substantively different to the permitted and documented
design as to the working drawings, This is a substantial issue as to the project as the
current access arrangements do not comply with BCA regulations.
The writer recommends that a conference with the Building Surveyor be arranged as a
matter of urgency so as to check if all statutory inspections have been passed for the works.
Current Status of Works at Site.
The writer has also been instructed to advise as to the current status of the works at the
Project, as a suspension of works “Notice” has been issued by the Builder Stewart Purvis
to the Building Owners Dated the 21-09-2011.
The Notice specifies that the Building owner is in breach of the contract for allegedly ,,
“late in making payment” ,, it does not specify concisely what area of the contract that
this notice would relate to and in the opinion of the writer the notice is defective.
On the day of the Inspection the photograph logs depict that the entrance roofs to
units 1, 2 & 3 have not been fitted,, these works apply to section 40 under the definitions
of section 40 of the Domestic Building Contracts & Tribunal Act 1995.

Current Status of Works at Site, Continued,
The writer has been instructed by the building owners that all progress payments as
described under Method B of the contract have been fully paid for up until the end
of stage 6 as depicted per the graph below;
REFERENCE HEAD CONTRACT MBAV-HC-6 METHOD "B" UOM AMOUNT %COMP ADJUSTED STATUS
1. Contract Payment On Signing of Contract-Deposit ToT 17,750.00 5.00% 17,750.00 Paid
2. Contract Payment Cleaning of Site-Distribution Fees ToT 8,600.00 0.00% 8,600.00 Paid
3. Contract Payment Retaining Wall & Boundary Fencing ToT 17,600.00 0.00% 17,600.00 Paid
4. Contract Payment Base Stage ToT 53,250.00 15.00% 53,250.00 Paid
5. Contract Payment Frame Stage ToT 53,250.00 15.00% 53,250.00 Paid
6. Contract Payment Lock-Up Stage ToT 78,750.00 25.00% 78,750.00 Paid
7. Contract Payment Fixing ToT 106,500.00 30.00% 0.00 Pending
8. Contract Payment Completion ToT 19,300.00 10.00% 0.00 Pending
GST Inclusive-Contract Sum Total 355,000.00 100.00% 229,200.00 125,800.00
Furthermore it would be prudent the check with the relevant building surveyor if he has
issued a notice under section 40 of the DBCTA so as to ensure that the Frames as to
each of the units have been passed in readiness for the construction works to proceed
from this point forward.
Section 40. Limits on Progress payments.
“Frame Stage” means the stage when a home’s frame is completed

and approved by a building surveyor;
Note: No Relevant Building Surveyors notice or document referring that the

Buildings frame systems have been passed, Hence stage not achieved.
“Lock-Up Stage” means the stage when a home’s external wall cladding
And roof covering is fixed, the flooring is laid and external doors and external
Windows are fixed (even if those doors or windows are only temporary)
Note: In this case the roofs/ceilings have not been fitted to the front entrance
veranda’s nor has the applied render finish been applied to the base blue
board that related to external wall claddings, Hence stage not achieved.
“Fixing Stage” means the stage when all internal cladding, architraves,
skirting, doors, built-in shelves, baths, basins, troughs, sinks, cabinets,
and cupboards of a home are fitted and fixed in position.
Note: In this case none of the kitchens to the entire project have been fitted
Nor have the basins, troughs, sinks and or shower bases been completed.

Current Status of Works at Site, Continued,
Due to the site status at inspection and the level of the works complete and given that
the builders notice is not stage specific I believe the notice is defective.
Completion.
In the writers view there are substantial works at the site to complete and in the
absence of a Works Program it is the writers view that the works are only 50%
complete over all with issues as to the existing floor levels to be resolved.
Upon further inspection of the works many defects have been identified and these
are fully described on page 14 of this report.
The Defects have been rated as Major, Medium and low due to non compliance
with the Building Code of Australia and standards applicable to AS3500 & AS5601
in terms of Sanitary plumbing and Gas Fitting line installations.
The writer’s opinion of the probable cost to complete the works the “Quantum –
Works to Complete” is based on the total of:
a) the estimated value of the construction works to complete (escalated to the

project works period).
b) defect rectification allowances.
c) new Builders Preliminaries (works related overheads) and Tender Adjustments

(profit, organisational overheads and tender additions).
The following Works to Complete Table, sets out the above:
Column 1
Contains estimated sub-trade and material values so as to rectify defects and complete
the project works as originally contemplated and contracted to the original builder.

Defects.
DATE DEFECT NUMBER DEFECT DESCRIPTION VALUE
18-09-2011 01.Defect Unit 1-House Floor Levels are Incorrect Maj TBA
18-09-2011 02.Defect Unit 1-Garage Floor Levels are Incorrect Maj TBA
18-09-2011 03.Defect Unit 1-Garage Door Floor Thresholds’ Maj TBA
18-09-2011 04.Defect Unit 1-Shower Base Installations Med 2,000.00
18-09-2011 05.Defect Unit 1-Basin Waste Installations Incorrect Low 250.00
18-09-2011 06.Defect Unit 1-Trough Waste Installations Incorrect Med 250.00
18-09-2011 07.Defect Unit 1-Sink Waste Installations Incorrect Med 250.00
18-09-2011 08.Defect Unit 1-Stacks re Wastes Level Invert Tappers Med 450.00
18-09-2011 09.Defect Unit 1-Storm Water Pits, Debris & Connections Maj 850.00
18-09-2011 10.Defect Unit 1-Weep Hole Installations to Rebates Maj 4,500.00
18-09-2011 11.Defect Unit 1-Flashings to Blue Board re Tiles Entrance Med 450.00
18-09-2011 12.Defect Unit 1-Gas Meter Assembly Incorrect Med 430.00
18-09-2011 13.Defect Unit 1-Water Meter Assembly Incorrect Med 210.00
18-09-2011 14.Defect Unit 1-Scratched Bath needs Replacement Low 310.00
Total Defects Unit 1 9,950.00
TOTAL DEFECT RECTIFICATION WORK 29,850.00
Defect Classifications and Rating Maj=Major, Med=Medium, Low=Low

6.04 COST TO COMPLETE
It is the writer’s view that the probable Cost to Complete the works The Quantum
Is as detailed below
A. The project costs for completion based

on an estimated costs outcome + $ Refer Contract
B. Defect Rectification Allowances

$29,850.00
as per Defect Summary +
C. New builders preliminaries

(work related overheads) and tender
adjustments (profit, organisational + $ 4,477.00
overheads and tender conditions) with
a new building contractor rated at 15%
TOTAL = QUANTUM- DEFECTS TO COMPLETE = $34,327.00

Appendix A: CONDITIONS OF INSPECTION AND REPORT
1.
The building was inspected on the date noted, and in the prevailing weather and environmental
conditions stated in the report.
2.
The defects or items described in the report are limited to the items, the subject of the clients
instruction. Any further items noted in the report are resultant from casual observation only.
3.
Unless otherwise stated in the report:
(a) no soil or other material has been excavated or removed,

(b) no plants, trees or shrubs have been removed,
(c) no samples have been taken, tested or accepted,
(d) no fixtures, fittings, cladding, lining materials or other items have been removed,
(e) building services have not been tested,
(f) no items of furniture or chattels have been moved,
(g) the roof has not been water tested,
(h) no inquiries of Drainage, Sewerage Water of other Authorities have been made,
4.
And in accordance with the above, the report does not necessarily identify defects in parts of the
building structure not reasonably accessible, or not apparent from usual or non-destructive
inspection, or only apparent in different conditions.
5.
The consultant carries a3.6 metre high ladder and any areas exceeding this height, above ground
level, may not be accessible for the purpose of this report.
6.
No special investigations of insect attack (eg borer, termite, etc.) or soil contamination has been
made and any reference to the above or similar has been based on a casual visual inspection.
7.

Appendix B: REFERENCE DOCUMENTS
1. Master Builders Association of Victoria-MBAV HC-6 Building Contract-Dated 20-01-2011
2. Master Builders Association of Victoria-Building Specifications- Dated 20-01-2011
3. Engineering Computations-Multiple Design Engineering Consultancy-Dated Nov-2010
4. Managed Contracts Pty Ltd-Major Domestic Building Variations 1-15-Dated 18-09-2011
5. Unit 2-QBE Domestic Building Insurance, Policy Number 57-0012894-BWI-9, Dated 16-3-2011
6. Building Permit Number BS1329/20110639/0 by Building Surveyor Jim Tsagnas 22-03-2011
7. Planning Permit-City of Dandenong PLN 10/0041 Dated 30-08-2010
8. Working Drawings-John Anthony Garofalo, Building Design Consultants Job:09017

Totalling 14 A3 Sheets with Energy Rating Stamps Dated 29-10-2010 Drawn J.A.G, G.T
9. Managed Contracts Pty Ltd-Facsimile “Suspension of Works Notice” Dated 21-09-2011

Appendix C: EVALUATION AND PRACTICE NOTES
SCOPE OF WORKS
The scope of the works to complete is based on an overview of the project documents as
detailed in Appendix B, site observations and relevant corresponding comments from the
proprietor/tendering contractors.
EVALUATION
The Quantum of the works to Complete is derived by applying the site visit established
works completed percentage figure to the estimated value of the trade, sub-trade or
budget item. Where further works have been undertaken following the project suspension
the percentage complete figures are generally based on proprietor and /or new contractor
supplied information.
The balance of the original contractors Preliminaries and Profit is subtracted from the
Construction Works to Complete Sub-Total to produce a construction works only sub total.
The construction works only sub-total is than escalated using a rounded building cost
adjustment index (as detailed below in INDICES ADJUSTMENT)
To produce a costing of the construction works to complete, applicable to the period in
which the balance of the works will most likely be carried out.
Defect rectification costs are added to produce a Labour and material costs as tabled.
New Contractors Preliminaries and Tender Adjustments are added to provide the
WORKS TO COMPLETE QUANTUM.
An analysis of the original or amended contract value is undertaken and where it is

established that the tendered price may have been insufficient further evaluation is
undertaken to establish a reasonable works value and an appropriate quantum for the
Works to Complete.

DEFECTS
The percentage complete estimates do not include allowances for defects rectification. the
costing of the defect rectification work is included separately in Rectification Allowances for
Defects.
The defects listed are based on an evaluation of items included in the Descriptions of
Defects as observed by the writer during the site inspection at the subject property.
A distinction is made between defective work and works which would normally have been
undertaken as part of the original scope of works (omitted works), if the builder had
proceeded to completion, (e.g. cleaning down of brickwork, minor bracing and additional
propping to roof framing, extra noggins to wall frames etc). Allowances for these minor
“construction works” are included in the To Complete section of the Works to Complete
table.
Where works which surround or follow an omitted element, item or process have
progressed to the point where the completion of the overlooked works will be significantly
more difficult than normally required the omitted works are evaluated as a defect.
Where the rectification work involves no possibility of the discovery of further defects,
matching and/or compatibility problems or other minor risks the labour and material
allowances are based on minimum time and materials required.
Where a reasonable probability exists that further defects and/or other difficulties will be
involved in the rectification works, and that the extent of these problems can only be
discovered following the commencement of works, the costings are based on an average
of the labour and material allowances. The best and worst rectification outcomes are
evaluated and the average of these two is utilised in the costing.
Where the dwelling will be occupied during the works the time allowances include for the
moving of goods and chattels to allow the required work to be carried out. Where “wet”
works are being undertaken (e.g. painting, plastering) time is allowed to spread and
position cover sheets.
The Rectification costings have been made at the quarter in which the works expected to
take place (i.e. unless stated in the report this is assumed to be within three (3) months of
the date of the site inspection).
An extensive investigation of the works would be required to identify all defects.

Any defects noted, other than those listed in the Defect Reports.

INDICES ADJUSTMENTS
The Indices adjustment makes allowances for the escalation of the cost of the
Construction Works to Complete due to increases in costs between the date of the
suspension of the works and the recommencement and completion of project.
The adjustment escalates the cost of the Construction Works to Complete, from the mid
point of the original construction period to the mid point of the projected second
construction period (the works to complete).
The mid point of each period is used as it is general estimating practice to provide for rises
in the second half of the construction period to be covered by the over-inflated allowances
of the first half of the period.
The indices utilised to escalate the Construction Works to Complete is the BOMA, MBAV,
RAIA endorsed Cost Adjustment Index rounded to the nearest full percentage point. The
projected Indices figure is based on index figures for the previous twelve months.
SUPERVISION
The supervision item makes allowance for pre and post works administration and the
supervision of the works. The percentage allowance is dependant upon the scale and
complexity of the work. An allowance of between two (2) and five (5) percent is generally
considered to be sufficient.
COST INCREASES: ORIGINAL CONTRACT VALUE – WORKS TO COMPLETE
Variances in the cost of the works to complete, over the original contract value are
generally caused by one or more of the following factors:-
(1) escalation of the cost of construction works due to the delays occurring following
suspension of works.
(2) cost of defect rectification.
(3) allowances for risk due to unquantifiable defect rectification requirements.
(4) variances in the contractor’s allowances for preliminaries supervision, profit and
overheads due to the unusual nature of works to complete projects.
(5) additional fees.
(6) increases in trade and/or sub-trade values where all or part of the original contract
price was unrealistically low.
(7) possible industrial distribution causing delays and disruption to works to complete.

Other changes to the project at or post the suspension of works generally have no affect
on the proprietor’s original liability and are therefore highlighted and excluded from the
evaluation for the purposes of arriving at a Quantum – Works to Complete. Alterations
which would not be included in the evaluation are:-
(8) undocumented variations to scope of works.
(9) positive and/or negative variation to the scope of the works following the
suspension.
(10) increases in prime costs and provisional sum allowances not related items (1) to (7)
above.
SUB CONTRACTORS
In some “Works to Complete” projects it may be preferable (due to the special nature of
the project) for the tendering contractors to seek out and obtain prices from the original
builder’s sub-contractors.
If the tendering contractor can locate the original sub-contractors and negotiate individual
agreements, the sub-contractors may then be able to be held to be accountable for their
individual works up to date of suspension.
However, these agreements tend to include lump sum payments, often said to be due to
the original contractor’s failure to pay the sub-contractors’ monies for works performed.
If the original contractor ceased trading soon after receiving a progress payment, it is likely
that a number of the sub-contractors may not have received monies due for works
completed.
The alternative to the above scheme is for the tendering contractors to provide prices
based on new sub-contractors carrying out the works and rectification items. The general
effect of this type of arrangement is that the new sub-contractors tend to load their prices
to allow for risks associated with taking up other trades peoples’ partially completed works.
The writer considers that in complex projects it can be advantageous to engage the
original sub-contractors, if reasonable arrangements can be negotiated.
However, the writer is generally unable to evaluate the cost to complete on this basis as it
falls outside the original contractor’s obligations to the proprietor. The “Quantum – Works
to Complete” is therefore evaluated on the basis that the tendering contractors have not
included any sums to allow for negotiated re-engagement of the original contactor’s sub-
contractors.

The “Quantum – Works to Complete” may however include allowances to cover risks
associated with taking up other trades peoples’ partially completed works on the following
basis.
Risk allowances are included where a reasonable probability exists that further defects
and/or other difficulties will be involved in particular trades works, specifically where the
extent of the problems can only be discovered following the commencement of works. The
risk allowances are based on an average of two separate labour and material estimates.
The best and worst rectification outcomes are evaluated and the average of these is
utilised in the costing.
PRIME COST ITEMS
Prime Cost or Provisional allowances are normally included in specification to allow for
items of work or elements to be included in the contract where the extent of work or type of
fitting, fixture or equipment would normally be subject to adjustment (by variation to the
contract sum) as the actual costs of the individual items become clear.
Where the original contractor’s failure to complete the works, results in reasonable
additional costs being incurred against PC Items the PC Allowance should be adjusted by
the additional amount. As the PC Item works are completed, the contract sum should be
adjusted (positive or negative) to reflect the actual cost of the PC Items.
e.g. If a PC Item was scheduled as $5,000, let by the original contractor at $3,500 and
then further reasonable costs were added following suspension of say $1,200 the revised
PC allowance would be $6,200. The final cost to the proprietor would be $4,700, 1,200
being due to the suspension of the works.
Subject to the provisions of the House Contracts Guarantee Act and the Domestic Building
Contracts & Tribunal Act and or The Building Act, an Insurers Liability for that item would
be $1,200. The Contract sum would be adjusted at eh completion of the PC Item works by
negative variation of $1,500. If the Insurers were to award an amount of $1,200 against the
item, the proprietor would have expended $3,500 as per the original agreement.
“Reasonable costs” would be limited to increases associated with the areas defined with
COSTS INCREASES: ORIGINAL CONTRACT VALUE – WORKS TO COMPLETE as
noted above

MEDIATION
Where a Report has been prepared for the purpose of Mediation between a Building
Contractor and a Building Owner, the items as detailed within the Report have been
prepared on a commercial basis in the event that another Building Contractor was to be
employed by a Building Owner to rectify any known defects or complete works in
accordance with the original plans and specifications as documented in the first instance.
The costs are prepared based on applicable trade quantities and trade costs where
commercially applicable for each particular section of work. Each party should have full
regard and understanding of these rates and costs in their thought processes with regard
to mediating the particular dispute at hand. When mediation provisions are agreed to
between parties, each particular party should make a full and justifiable effort with the view
to each particular section of costs pertaining to the Rectification of Defects or Completion
of Works in the interest of settling the Dispute in fairness and with full regard to all of the
difficulties surrounding the nature of the Dispute.
EXPERT EVIDENCE, PNVCAT 2 – PRACTICE NOTE
In the consultants opinion this report fully complies with the Victorian Civil and
Administrative Tribunal rules as to practice note compliance under section 158 of the
Victorian Civil and Administrative Tribunal act 1998.
The consultant writer has at all times endeavoured to assist all associated parties including
the tribunal in relation to these matters to the best of the consultants level of expertise.
This report contains the consultants name and address and contact details inclusive of the
consultants expertise in commercial and domestic construction.
The consultant, Glenn Jones has been extensively involved in the arena of commercial
and domestic construction activities for over thirty years and is also a licensed plumbing
practitioner having built over one hundred homes and many commercial buildings varying
in types from class 1 to class 10 building structures within the jurisdiction of Victoria.
The Consultant, Glenn Jones has also won many building awards for excellence in his
building practice activities, see attached awards listing and qualifications and experience.
This report also outlines all instructions given and required by our client(s) as to its
definition and scope to the best of the consultants ability including all facts, matters and all
assumptions upon which the report proceeds including;
• All documents and other materials that the expert has been instructed to consider
or take into account in preparing this report and or other material used in making
this report.
• The identity of the person who carried out any tests or experiments upon which
the expert relied in making the report and the qualifications of that person.

• The Consultant has within the contents of this report where applicable, has made a
statement identifying any provisional opinions that are not fully researched for any
reason, (Identifying the reason why such opinions have not been or cannot be
fully researched).
• The Consultant has to the best of his ability set out any questions and or report
dialog that falls outside the experts area of expertise including statements indicating
that the report is either incomplete or inaccurate in any respect.
• The Consultant declares that I have made all the enquires that I believe are
desirable and appropriate and that no matters of significance which I regard as
relevant have to my knowledge been withheld from the Tribunal.

**** END REPORT ****


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PART a-BG1461 Defect Report

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BG1461 9 Goldlang Street, Dandenong 3175 Page 1

SECTION ITEM PAGE

3.0 CLIENT BRIEF & INSTRUCTIONS 5

4.0 SITE INSPECTION DETAILS 6

5.0 PROJECT DETAILS 7

6.0 WORKS TO COMPLETE 8

PHOTOGRAPH INDEX-PART ‘B’ 14

APPENDIX A Conditions relating to the

APPENDIX B List of Reference Documents 38

APPENDIX C Evaluation and VCAT Practice Notes 39

ANNEXURES & OTHER REFERENCE DOCUMENTS

BOSTON GROUP – BUILDING CONSULTANTS

1.01 WORKS DESCRIPTION

Existing Major Domestic Building Works

BOSTON GROUP – BUILDING CONSULTANTS

1.02 WORKS COMPLETED (as to inspection)

The Domestic Building Works situated at 9 Goldlang Street Dandenong consists

1.03 QUANTUM – DEFECT WORKS TO RECTIFY

QUANTUM – WORKS TO COMPLETE $34,327.00

BOSTON GROUP – BUILDING CONSULTANTS

2.01 REPORT CONTENTS

2.02 REPORT ASSUMPTIONS

2.03 REPORT METHODOLOGY

a) the construction works to complete are determined by indices escalation of a

BOSTON GROUP – BUILDING CONSULTANTS

3.0 CLIENT BRIEF & INSTRUCTIONS

This Defect Report has been prepared by:

Name: Mr Glenn Jones MAIB, Director-Boston Group Victorian Operations.

This Defect Report has been requested by:

Name: Mr Kamal Kohli, Building Owner

a) Detailing the current stage of the works

BOSTON GROUP – BUILDING CONSULTANTS

3.0 CLIENT BRIEF continued

3.01 PURCHASE HISTORY

4.0 SITE INSPECTION DETAILS

Date of inspection: Sunday the 18th of September 2011

Time on site: 2.0 hours

Weather conditions: Fine-Mild

Dwelling inspected by: Mr Glenn Jones-Director Boston Group-Victoria

Access conditions: Reasonable, save for Internal aspects of Units 1 & 2

BOSTON GROUP – BUILDING CONSULTANTS

5.0 PROJECT DETAILS

5.1 CONSTRUCTION DETAILS: For Renovated Building

Buildings Brick Veneer Structure

No. of Floors: Ground Floor and First Floor

Footings: Raft Concrete Slab Construction

Floor: First Floor-Particle Board Flooring

Wall structure: F-5 Radiata Pine Stud and timber sections.

Wall Cladding: Bricks and Mortar-Blue Board Rendered

Roof Frame: F-5 Radiata Pine Roof Truss Materials

Roof Cladding: Cement Roof Tiles

Quality of Specified Items: Medium to Standard Finish=(Low)

BOSTON GROUP – BUILDING CONSULTANTS

5.2 WORKS COMPLETED

6.0 WORKS TO COMPLETE

It is noted by the writer that there is NO superintendent appointed to the works

BOSTON GROUP – BUILDING CONSULTANTS

Home Warranty Insurance.

Building Permit Number BS1329/20110639/0 by Building Surveyor Jim Tsagnas 22-03-2011.

END REPORT