reporting defects

7/25/2019 Reporting defects

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GPM Pty LimitedPO Box 835

Castle Hill NSW 1765

ABN: 97 094 165 563

Ph/Fax: (02) 8850 4408Email: [email protected]

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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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


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A Instructions, Qualifications, etc

Instructions

A1. I have been requested by the XXXXSolicitors 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.

A2. The purpose of this report is to identify the cause of the leak from within themain bathroom and determine if this is a defect which the buildermust 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 basedA4. 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 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 Ownershave 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 Buildingis 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 Builderis 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


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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 statingwhy 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 Buildingas 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 complywith, 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 bui lding 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.

dwel l ing 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. 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, andbeing 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; theconstruction 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.

Hair l ine 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) Resident ial slabs and fo ot ings-Construct ion 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:

Descr ip t ion of typ ica l damage and Approxim ate crack Damage

requi red repair width l imi t 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 crackingdue 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 Imperfection s

AS 2311 (2000) Guide to the Paint ing of Bui ldings 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 (emphasisbolded).

(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 therecommendation 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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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 TenancyTribunal Chairpersons Directions Number CD2003-2 with respect to theconduct before the Tribunal of expert witnesses.

F2. This Report has been prepared and written in accordance with therequirements of the Chairpersons Directions CTTT CD2003-2 with respectto the form of the experts report.

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

F4. I believe that I have made all necessary inspections and enquiries that aredesirable 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 myknowledge, 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 Areas1.1 Main Bathroom

The shower recess in the upper level bathroom was tested using a basicflood test (See Photo 1) and a water leak was found along the floor of theadjoining bedroom (See Photos 2 & 3). This appears to be related to a failedor incorrectly installed waterproofing membrane. It appears that the Builderhas previously sealed perimeter joints with a flexible sealant in attempt torectify this issue, however, this is not a permanent solution and does notprovide 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, ofdamage to the concealed timber wall and floor frames adjacent to this area.

The appro priate performance requirement

Compliance with the BCA, at Section P2.2.1 as well as

AS 3740 Waterproofing of domestic wet areas

Home Bui ld ing 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 Recommendations2.1 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 withAS 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 areaand replace in accordance withAS2589 Gypsum linings Application andfinishing. Repaint the affected area in accordance withAS2311-2009-Guide


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to painting of buildings. If appearance, colour and texture match is notachieved with the surrounding area it is recommended that the entire wallsections be repainted to achieve a uniform and consistent appearance.

Remove and replace the damaged particleboard floor sheeting inaccordance withAS 1684 2010 - Residential timber-framed construction.

Assess the extent, if any, of damage to the concealed timber wall and floorframing members once the wall linings and floor sheeting have beenremoved and repair/replace any of the affected wall and floor framingmembers in accordance with AS 1684 2010 - Residential timber-framedconstruction.

Remove and replace the damaged carpet in accordance with AS2455.1:2007 Textile floor coverings - Installation practice General. Ifappearance, colour and texture match is not achieved with the surroundingarea 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 withAS 1684 2010 - Residential timber-framed construction. Repaint theaffected area in accordance with AS2311-2009-Guide to painting ofbuildings. If appearance, colour and texture match is not achieved with thesurrounding area it is recommended that the entire lengths of skirting boardbe 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.


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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:[email protected]

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 andsupervision 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:[email protected]:[email protected]:[email protected]:[email protected]


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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 othergender 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 withclearance 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 notbe 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 heldresponsible 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/orreports 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


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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 inall 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.