I am hoping someone here can forward me in the right direction.
I am building a house as an owner builder, and purchased my steel frame and structural steel from a supplier in Queensland. A lot of the things they sent were incorrect and/or missing, and I have since had to purchase the correct/missing items. This has so far cost me thousands of dollars.
Not only that, but now the installation of steel frame and strucural steel is costing me an additional $6,000 for all the extra work that the erectors have had to do due to all the mistakes in the frame/structural steel supplied.
I am just trying to find out if the steel frame supplier is responsible for this (I believe they are) and if it is ok for me to ask for some sort of compensation (???) from them?
There is a sale of goods act in NSW and would be a similar Act in QLD. Look on austlii.edu.au. You will need to determine if the frame and steel is classes as goods under the act (I think they probably would be) and then look at your agreement with them – whether verbal or written. If you paid for certain goods and they haven't supplied them then you have a case
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks for that Terry
Found this thanks to Terry!
http://www.austlii.edu.au/au/legis/cth/consol_act/tpa1974149/s74d.html
Re: the corporation is liable to compensate the consumer or that other person for the loss or damage and the consumer or that other person may recover the amount of the compensation by action against the corporation in a court of competent jurisdiction.
Does this mean that I should be able to claim rent for delays we've had?
You may be able to class damages under that section of the TPA if the goods supplied were of an merchantable quality.
Sale of Good Act is worth a look too
http://www.austlii.edu.au/au/legis/qld/consol_act/soga1896128/Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
A few basic questions that need to be answered:
Is this supply covered by Home Warranty Insurance (NSW or Qld)? If yes, then it is an office of fair trading issue
Was the supplier advised of the defects?
Was the supplier given the opportunity to rectify the faults?
Did they attempt any restitution or offer any solutions?
Were the defects purely the supplier's fault or was it due to incorrect plans (supplied by yourself) or incorrect shop drawings (drawn by the supplier but checked by yourself) or incorrect construction of the sub-structure/slab/footings (by the owner-builder)?Scott No Mates wrote:A few basic questions that need to be answered:Is this supply covered by Home Warranty Insurance (NSW or Qld)? If yes, then it is an office of fair trading issue
Was the supplier advised of the defects?
Was the supplier given the opportunity to rectify the faults?
Did they attempt any restitution or offer any solutions?
Were the defects purely the supplier's fault or was it due to incorrect plans (supplied by yourself) or incorrect shop drawings (drawn by the supplier but checked by yourself) or incorrect construction of the sub-structure/slab/footings (by the owner-builder)?Thanks for that Scott.
I have Owner Builder Insurance. It says here it covers the main risks encountered during the building process, including fire, storm, impact, wind and water damage, malicious damage and theft. It also provides cover for Public Liability.
The first 2 times we discovered the defects we informed the supplier. After a lot of troubles they accepted that it was their fault and sent us the correct materials a few months later. Due to the time taken with the first two issues, we couldn't afford any further delays and so decided to source the materials locally.
Yes, the defects and missing materials were purelly the supplier's fault.I have just gone through the contract again and … from what I can see the supplier has got himself covered
Delivery Of Goods
The failure of the Supplier to deliver shall not entitle either party to treat this contract as repudiated.
15.9 The Supplier shall not be liable for any loss or damage whatever due to failure by the Supplier to deliver the
Goods (or any of them) promptly or at all, where due to circumstances beyond the control of the Supplier.Risk
The Client acknowledges that prior to installation of the Goods that it is the Client and/or his agent’s
responsibility to check the measurements of the area for installation to ensure the Goods are compliant with the
original measurements. Failure to comply with this clause by the Client shall indemnify the Supplier from any
extra costs in rectifying the Goods. On written agreement between the Supplier and the Client any rectification
of the Goods shall be deemed to be a variation of the original quotation and will be detailed separately as per
clause 14.2.Defects
The Client shall inspect the Goods on delivery and shall within seven (7) days of delivery (time being of the
essence) notify the Supplier of any alleged defect, shortage in quantity, damage or failure to comply with the
description or quote. The Client shall afford the Supplier an opportunity to inspect the Goods within a
reasonable time following delivery if the Client believes the Goods are defective in any way. If the Client shall
fail to comply with these provisions the Goods shall be presumed to be free from any defect or damage. For
defective Goods, which the Supplier has agreed in writing that the Client is entitled to reject, the Supplier’s
liability is limited to either (at the Supplier’s discretion) replacing the Goods or repairing the Goods except where
the Client has acquired Goods as a consumer within the meaning of the Trade Practices Act 1974 (CWlth) or
the Fair Trading Acts of the relevant state or territories of Australia, and is therefore also entitled to, at the
consumer’s discretion either a refund of the purchase price of the Goods, or repair of the Goods, or replacement
of the Goods.Warranty
Subject to the conditions of warranty set out in clause 21.2 the Supplier warrants that if any defect in any
workmanship of the Supplier becomes apparent and is reported to the Supplier within fourteen (14) days of the
date of delivery (time being of the essence) then the Supplier will either (at the Supplier’s sole discretion)
replace or remedy the workmanship.Now, some of the defects our steel frame installer picked up within the time frame allowed, so we should at least be covered for those items, right?
The thing is, it would have been impossible to go through, measure and count the thousands of items and little pieces. There is simply not enough room to lay everything out and check
A lot of the defects we could not see until we got to the installation stage of those particular items.Does this mean we don't have a case? Since it took us more than 7/14 days to discover the defects????
The thing is, the supplier admitted most of the faults and did not try to deny anything. Does this count at all?
Sounds like you had better see your lawyer.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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