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

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XX XXXXXX Road, XXXXX NSW XXXX

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

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A
A1.

A2.

XX XXXXXX Road, XXXXX NSW XXXX

Instructions, Qualifications, etc

Instructions
I have been requested by the XXXX Solicitors to prepare a building report
on behalf of Mr & Mrs XXXX (hereinafter referred to as the Owners), the
owners of the property at XX XXXXXX Road, XXXXX NSW XXXX.
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.

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C
C1.

Introduction
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 Owners 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 Owners 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
D1.

Scope and Report Methodology

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

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and/or installation, a more subjective assessment is made based on the

authors 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
E1.

Method of Assessment
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:

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(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 holders or persons 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.

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E5.

XX XXXXXX Road, XXXXX NSW XXXX

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.

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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
required repair

Approximate crack
width limit

Damage
category

Hairline cracks
Fine cracks which do not need repair
Cracks noticeable but easily filled.

< 0.1 mm
< 1 mm
< 5 mm

0
1
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.

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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
contractors 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.

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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 Chairpersons 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 Chairpersons 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.

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.

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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

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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
2.1.1.

Recommended rectification methodology

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

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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
2.2.1.

Procedure
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.

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Any rectification works that the Builder agrees to rectify will only proceed if
the rectification methodology is approved and under the supervision of the
Owners or their representative.
If the Builder refuses to rectify in a manner that is considered appropriate,
the Owners 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 Owners 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
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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
Memberships
Associations

Member of Institute of Engineers Australia: 1988-2000

Member of NSW Master Builders Association: 2000-present

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
maintenance programs on civil infrastructure assets.

2000-present

Report Number: RG XXXX

of

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.

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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.

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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 authoritys
requirements, or consent authoritys 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;

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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
Report Number: RG XXXX

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GPM Pty Limited

XX XXXXXX Road, XXXXX NSW XXXX

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.

Report Number: RG XXXX

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