1

Building Investigations Report

NOT DISCLOSED
Table of Contents
1.0 INTRODUCTION .............................................................................................................. 4
2.0 PURPOSE OF REPORT ...................................................................................................... 4
3.0 QUALIFICATIONS ............................................................................................................ 5
4.0 EXPERT WITNESS CODE OF CONDUCT ............................................................................. 5
5.0 METHODOLOGY.............................................................................................................. 6
6.0 REFERENCE/DOCUMENTS INFORMATION ....................................................................... 6
7.0 DESCRIPTION OF THE BUILDING ...................................................................................... 7
8.0 ASSUMPTIONS................................................................................................................ 7
APPENDIX A ............................................................................................................................. 13
APPENDIX B ............................................................................................................................. 17
APPENDIX C ............................................................................................................................. 20
APPENDIX D ............................................................................................................................. 42

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 General Details
Client Details
Client Name: -
Client Phone: -
Client email: -
Client Reference No.: -

Inspector for Effective Building & Consultancy

Mr Elie Farah – Mr. Elie Farah has been in the building industry since 1995. His qualifications include
-Building Foreman Clerk of Works, Building Certificate, Diploma in Structural Engineering,
Statement of Attainment in Building Consultancy, Statement of Attainment in Pest Management,
Statement of Attainment in Pest Inspection, Home Guard Certificate of Accreditation, Altriset
termiticide Training Certificate, Statement of Attainment for Tool tagging, Statement of Attainment
in Senior First Aid & Workplace Safety Certificate IV. He currently holds the following licenses-
Building- No. 211722C, Building Consultant, Qualified Building Supervisor, Drivers Licence and OHS
Green Card.

Report Provided by Effective Building and Consultancy

Location
Phone: 02 9613 3353
Level 3 419 Church St Parramatta
Fax: 02 8088 4396
NSW 2150
Postal Address Email
PO Box 5009 Kingsdene NSW 2118 [email protected]
Builders License ABN: 76 115 177 289
No: 211722C ACN: 115 177 289
Website:
www.effectiveconsultancy.com.au

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 1.0 INTRODUCTION
Background and Commission

1.1 This report has been prepared as a result of instructions received from G&S Law Group,
Lawyers representing the Applicant, Indu Pokhrel, hereinafter referred to as “the Owner”
against the Respondent Roseland Services Pty Ltd, hereinafter referred to as “the Builder”.
1.2 On 21 June 2018, the parties entered into an agreement for the construct the double
storey dwelling at the site known as NOT DISCLOSED, hereinafter referred to as “the Site”.
1.3 The Owner and the Builder signed a contract for the project for as sum of $280,000.00
including GST.
1.4 The works had to comply with The Building Code of Australia in force as at 3 August 2018,
being the date that the CDC Approval was provided by the Builder.
1.5 The Works commenced in or about September 2018.
1.6 During the period 21 June 2018 and January 2019, the Respondent issued Payment claims
and carried on some work on and from September 2018. During this period, the Owner
paid to the Builder, on account only, an amount of $140,000.00 for progress claims and
variations.
1.7 The Builder has not carried out any works on the site since about 10 January 2019.
1.8 On 19 March 2019, the private certifier that was responsible for the approval and
certification of the works, informed the Applicant that he had been suspended by the
Building Professionals Board.
1.9 By March 2019, the Owner had become concerned with the quality and progress of the
works and notified the Builder of this.
1.10 The Owner’ partner met with the Builder in late March 2019 and the Builder promised to
restart the works within 3-4 weeks.
1.11 On 6 May 2019 the Builder sent an email to the Owner advising that the work had
resumed.
1.12 The Owner lodged a complaint with NSW Fair Trading and on 19 July 2019, the Owner
and Builder attended a mediation meeting and entered into a mediation agreement
whereby the Builder agreed to complete all works, rectification and completion to be
finalised and handover achieved within 4-5 months.
1.13 The Builder did not complete the works in accordance with the agreement and on 10
October 2019, the Owner issued a termination notice to the Builder.

2.0 PURPOSE OF REPORT

The purpose of this report is to identify:
(a) Whether any of the Works are defective. For each part of the works that are
defective:
i. Please identify the nature of the defect by reference to section 18B(1) of
the Home Building Act 1989 (NSW) (the Act), the Contract, the Conditions
and/or the Plans & Specifications.
ii. Please identify all material you rely on to establish that the Works are
defective.
(b) Whether the Builder is liable to rectify that defect. For each defect that the Builder
is liable to rectify:
i. Please set out the reasons why the Builder is liable;

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 ii. Please identify the reasonable and necessary rectification cost;
iii. Please specify the rectification method and why the rectification method
you propose is reasonable and necessary.
iv. If necessary, please identify and comment on other rectification methods
and why such methods are not the preferred method of rectification for
each defect.
v. Please break down and itemise all costings that you provide for the
proposed rectification methods.
(c) Please identify all items of incomplete work. For each item of incomplete works,
please set out:
i. Please set out the reasons why the work is incomplete work as opposed to
defective work.
ii. Please identify the reasonable and necessary completion cost.
iii. Please break down and itemise all costings that you provide for the
completion costs.
(d) Please identify what stage the works had reached at the date of your inspection. IN
that regard:
i. Please identify what works had been substantially complete by reference
to the following stages of work:
1. Footing/steel/plumbing/slab
2. Framing;
3. Lock up;
4. Fit out; and
5. Handover
ii. Please identify all material you rely on to establish what stage of the Works
had reached substantial completion.
(e) Please advise whether you consider the amounts that were charged for each state
of the works were reasonable, having regard to the total contract price and the stage
that the works had reached when the works ceased.
(f) Please provide a Scott Schedule in the format usually adopted by NCAT setting out
those matters referred to in your report.

3.0 QUALIFICATIONS
3.1 Annexed and labelled as Appendix A to this report is my short resume, which
sets out my qualifications and experience in the building industry.

4.0 EXPERT WITNESS CODE OF CONDUCT

4.1 This report has been prepared in accordance with NCAT Procedural Direction 3 which
includes the Expert Witness Code of Conduct. The Procedural Direction is made by the
President under s 26 of the Civil and Administrative Tribunal Act 2013.

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4.2 I have read and agree to be bound by this code and the terms of NCAT Procedural
Direction 3 which is annexed in Appendix B of this report.

5.0 METHODOLOGY
5.1 A site inspection was conducted on Tuesday 21 July 2020 at 1:00 pm.
5.2 In compiling my observations/opinion I have commented on only the matters requested of
me through my instructions by G&S Law Group.
5.3 The purpose of this report is to identify a reasonable and necessary cost of the building
works completed at NOT DISCLOSED.
5.4 Any reference to Fair Trading Standards and Tolerances is relevant to the New South Wales
Fair Trading Guide to Standards and Tolerances 2017.

5.5 Where possible, published rates for the works listed have been adopted. However,
where the published rate was inappropriate or not applicable, I have used my
experience in the Building Industry to either adjust the published rate to suit the
situation, or I have calculated an applicable rate.

5.6 Where I have made any assumptions in formulating my opinion I have included those
assumptions or the body of the report at the relevant issue being discussed or I have made
reference to the evidence without repeating these facts. I have adopted this practice so
that any assumptions I have made are encapsulated in the matter being discussed, and
therefore immediately obvious to the reader of this report.
5.7 In this report I refer to “competent Builder” or “acting competently”. In doing so I am
referring to a contractor acting such that the works meet the standards in section 18B of
the Home Building Act 1989.

5.8 This Report has been prepared on the basis of the information made available to me. I
reserve the right to amend this Report and the opinions expressed in it in light of any
additional information that might be received post the date of this report.

6.0 REFERENCE/DOCUMENTS INFORMATION

6.1 To assist me in forming my opinion, I have had regard to the following
documents/information.

(a) The Owners application filed 17 December 2019

(b) Complying Development Certificate CDC-18215
(c) Architectural Drawings by Roseland Projects dated 10/12/18
(d) Emails from Pietro Scalise of NSW Fair Trading dated 28 May 2019 and 10 July 2019
(e) Structural inspection report by Halina Consulting dated 3 June 2019
(f) Home Building Contract signed 21 June 2018
(g) Mediation agreement by Mark Kavanagh of Integrated Building – Engineering

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 Consultancy dated 19 July 2019
(h) Tender documentation by Roseland Projects

7.0 DESCRIPTION OF THE BUILDING

7.1 The subject building is located on Dalmatia Avenue, in the south-western suburb of Sydney
being Edmondson Park, and approximately 32 kilometres from Sydney’s Central Business
District
7.2 My inspection of, and this report, relates only to the building at Edmondson Park.
7.3 Having regard to my instructions and my observations of the completed works, below is my
opinion on the matter.
7.4 My inspection is based on having full and uninterrupted access to the building being
Edmondson Park.

8.0 ASSUMPTIONS
8.1 Following my inspection and the perusal of various documents made available to me I have
made the following assumptions;
8.2 The building works were carried out by the Builder (Roseland Services).
8.3 Complying Development Approval and conditions were applicable.
8.4 The use of the building is strictly for residential purposes.
8.5 Statutory Warranties are applicable to these works as the Builder was a licenced Builder at
the time of the works and the works are residential building works.
8.6 All prices are exclusive of GST.

9 SUMMARY OF FINDINGS, OPINIONS AND CONCLUSIONS

9.1 Whether any of the Works are defective. For each part of the works that are defective:
a) Please identify the nature of the defect by reference to section 18B(1) of the
Home Building Act 1989 (NSW) (the Act), the contract, the conditions and/or
the plans and specifications
b) Please identify all material you rely on to establish that the works are
defective.
From my inspection, the defects identified to the dwelling are a result of the breach of
contract and terms of mediation by the Builder. These building defects has been a result of
the non-compliance to the mediation agreement that was established to complete the works
in “4-5 months” from the mediation meeting.
As a result of the Builders’ failure to complete the construction of the dwelling, the timber
frame structure of the building has been exposed to weather for 18 months since the Builder
last carried out works on the site on or about 19 January 2019.
1) Figure 2.2 in the Halina Consulting report identified that the concrete in the garage area
was not correctly constructed and that there are no supports underneath the timber stud
wall between the garage and entry area/staircase. From my inspection, the concrete slab

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 was not rectified as part of the mediation agreement, and this is due to a lack of care or
skill by the Builder. The failure to construct this area contravenes Part 2C – Section 18B
(1) (a) of the Home Building Act as the building works have not been constructed in
accordance with the contract drawings and with reasonable care and skill. Additional
photographs of the defective concrete slab can be found in figures 14 and 35 in Appendix
C. Whilst I have relied on the photos in the Halina Consulting report, the opinions I
provide with respect to any defects are based on my own observations and expertise.
2) Figure 2.7 in the Halina Consulting report identified that the floor sheeting on the first
floor has been exposed to weather for a few months, which has resulted in a reduction
in structural capacity. From my inspection, the particleboard floor sheeting has since
deteriorated further and has resulted in mould growth. The Builder’s failure to cover the
floor sheeting has resulted in water ingress into the particleboard floor. In my opinion,
the water ingress into the floor sheeting will result in failure of the flooring structure
when permanent and imposed actions are applied to the floor sheeting, which
contravenes The Building Code of Australia Volume 2, Part P2.1.1 Structural stability and
resistance to actions. Additional photographs of the damage can be found in figures 5, 6,
7, 18, 19, 20, 21, 22, 26, 27 and 28 in Appendix C.
The matters referred to above contravenes Part 2C – Section 18B (1)(a) and (c) of the
Home Building Act as the building works have not been carried out with reasonable care
and skill.
3) The timber wall frames on the ground floor and first floor have deteriorated and resulted
in splitting of the timber beams and wall frames – see figures 8, 10, 11, 12, 23 and 34 in
Appendix C. The splitting of the timber beams and wall frames will result in an adverse
effect on the structural integrity of the structure. The failure to adequately support a
structure contravenes The Building Code of Australia Volume 2 Functional statement
F2.1, which states in part:
“A building or structure is to withstand the combination of loads and other actions to
which it may be reasonably subjected.”
In my opinion, the splitting of the timber in the structure of the dwelling has impacted
on the overall structural integrity of the dwelling.
The matters referred to above contravenes Part 2C – Section 18B (1)(a) and (c) of the
Home Building Act as the building works have not been carried out with reasonable care
and skill.
4) There is evidence of corrosion to the metal wall and floor fixings throughout the dwelling
– see figure 3, 26 and 27 in Appendix C of this report. The corrosion of the nails adversely
affects the bonding capacity between the timber framing, which can result in the
structural failure of the dwelling. In my opinion, the corrosion in the nails contravenes
The Building Code of Australia Volume 2, Part 2.1.1 Structural stability and resistance to
actions.
The matters referred to above contravenes Part 2C – Section 18B (1)(a) and (c) of the
Home Building Act as the building works have not been carried out with reasonable care
and skill.
5) Water ingress into the timber frame on the ground floor and first floor has resulted in a
reduced structural capacity of the timber. Images of the water damaged timber can be
seen in figures 4, 8, 9, 13, 17, 23, 24 and 34 in Appendix C of this report. The exposure to
weather has resulted in the construction of the timber wall frames to contravene The
Building Code of Australia Volume 2, Part 2.1.1 Structural stability and resistance to

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 actions.
The matters referred to above contravenes Part 2C – Section 18B (1)(a) and (c) of the
Home Building Act as the building works have not been carried out with reasonable care
and skill.
6) The timber wall frame’s exposure to weather has also resulted in warping and distortion
of the wall frames – see figures 30-33 in Appendix C. The distortion of the timber frame
contravenes The Building Code of Australia Volume 2, Part 2.1.1 Structural stability and
resistance to actions.
The matters referred to above contravenes Part 2C – Section 18B (1)(a) and (c) of the
Home Building Act as the building works have not been carried out with reasonable care
and skill.
7) The Builder has failed to correctly install the timber frame. Figure 25 in Appendix C shows
that the timber frame has deviated 5mm in 50mm of wall. This contravenes the New
South Wales Fair Trading Guide to Standards and Tolerances, Part 4.3 Straightness of
steel and timber frame surfaces, which states
“Frames are defective if they deviate from plane by more than 4mm in any 2m length of
wall.”
The matters referred to above contravenes Part 2C – Section 18B (1)(a) and (c) of the
Home Building Act as the building works have not been carried out with reasonable care
and skill.
8) The termite barrier system installed around the perimeter of the dwelling has been
impacted by weather. As the membrane used for termite protection has been exposed
to weather for 18 months, it is not suitable for re-use upon resumption of construction
of the dwelling. There is evidence of water entry to the membrane and the top and base
layer of the membrane is flaking is various areas. Notwithstanding this, a termite
protection notice has not been provided and therefore contravenes Part 2C – Section
18B of the Home Building Act. Figures 29 and 36 in Appendix C show images of the failed
termite barrier.
The matters referred to above contravenes Part 2C – Section 18B (1)(a) and (c) of the
Home Building Act as the building works have not been carried out with reasonable care
and skill.
9) The Builder has failed to comply with the waste management plan provided as part of
the Complying Development Application. There is excess spoil, debris and construction
materials that has been stored at the front and rear of the dwelling which has not been
removed as required on the contract. As per the site provisions on the tender
documentation to the Owner, “waste management from commencement to
completion” has been allowed, however the waste materials on site have not been
removed. The failure to remove the excess spoil, debris and construction material
contravenes Part 2C – Section 18B of the Home Building Act. Figures 1 and 15 in Appendix
C show images of approximately 11m3 of excess construction waste that has not been
removed as required in the building contract.
The matters referred to above contravenes Part 2C – Section 18B (1)(a) and (c) of the
Home Building Act as the building works have not been carried out with reasonable care
and skill.
10)

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9.2 Whether the Builder is liable to rectify that defect. For each defect that the Builder is liable
to rectify.
a) Please set out the reasons why the Builder is liable;
b) Please identify the reasonable and necessary rectification cost;
c) Please specify the rectification method and why the rectification method you
propose is reasonable and necessary.
d) If necessary, please identify and comment on other rectification methods and
why such methods are not the preferred method of rectification for each defect.
e) Please break down and itemise all costings that you provide for the proposed
rectification methods.

In all cases, listed in section 9.1 above, the Builder should rectify the work or otherwise
compensate the owner because it has failed to carry out the work in accordance with Part
2C – Section 18B (1) of the Home Building Act and the obligations imposed on it by the
contract.
Construction of a concrete step is required in order to rectify item 1 in section 9.1 to allow
for supports of the timber stud wall in the garage area. The construction of the step will be
200mm in width, 85mm in height and 5800mm in length. No alternative construction
measures are recommended due to the load-bearing nature of the garage wall.
In my opinion, due to the compounded nature of the weather-damaged timber structure, it
is most economical to remove and replace all timber structural members within the dwelling
to ensure for compliance with The Building Code of Australia Volume 2, Part 2.1.1 Structural
stability and resistance to actions. The rectification cost of these works are outlined as part
of the Scott Schedule in Appendix D.
The reason why replacement of the entire timber structure is the most economical option is
because:
 In order to facilitate to the replacement of the particleboard flooring identified in item 2
in section 9.1, the removal of the first floor wall and roof frames will be required.
 The water damaged timber identified in items 3-7 in section 9.1 will require replacement
due to warping and a decreased structural stability and resistance to actions because the
timber cannot be reused or treated in order to achieve a satisfactory standard that will
be suitable for residential use.
It is recommended to remove and replace the termite barrier system as outlined in item 8 of
section 9.1. Replacement of the termite barrier is required because a termite protection
notice has not been provided by the Builder. Notwithstanding this, the exposure of the
membrane to weather has resulted in deterioration of its components, this resulting in an
inadequate termite protection system if the products are re-used. An alternate to the
replacement of the termite membrane is through chemical injection or the installation of a
termite baiting system, however these systems are not the most economical option in this
situation.
The removal of excess spoil and materials is required as outlined in item 9 of section 9.1. The
removal of waste materials is required to facilitate a clean site and to allow for construction
works to resume.
The overall cost to rectify the defects is $56,341.68 + GST. A breakdown of the cost of

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 repairs can be found in Appendix D of this report for items b) and e).

9.3 Please identify all items of incomplete work. For each item of incomplete works, please set
out:
a) Please set out the reasons why the work is incomplete work as opposed to
defective work.
b) Please identify the reasonable and necessary completion cost.
c) Please break down and itemise all costings that you provide for the completion
costs.
At the time of my inspection of the dwelling, the dwelling had reached a framing completion
stage. The documentation that I have been provided shows that the Owner has paid the
Builder, on account only, up to the framing completion stage, and since terminating the
contract no additional works have been conducted by any third parties.
As a result, stages 4-6 as outlined in Clause 12 of the building contract has not
commenced/been completed.

9.4 Please identify what stage the works had reached at the date of your inspection. IN that
regard:
a) Please identify what works had been substantially complete by reference to the
following stages of work:
• Footing/steel/plumbing/slab
• Framing;
• Lock up;
• Fit out; and
• Handover
b) Please identify all material you rely on to establish what stage of the Works had
reached substantial completion.
At the time of inspection, the dwelling was completed to a framing stage. My opinion of this
is based upon the substantial completion of the timber structure of the dwelling and that the
windows, brickwork and roof covering was not installed.
9.5 Please advise whether you consider the amounts that were charged for each state of the
works were reasonable, having regard to the total contract price and the stage that the
works had reached when the works ceased.
In my opinion, the amounts charged for each stage are reasonable because the percentage
charged for each progress payment stage is in line with the industry standard. This is based
upon my 15 years’ experience in the industry.
The overall contract price is also considered reasonable because the contract price for the
construction works was $280,000.00. The overall construction area of the dwelling as
indicated on the Drawing 002 on the Architectural drawings is 206m2. This results in an
average price for the construction to be $1,359.22/m2, which is lower than the average cost
to construct a four bedroom double storey dwelling with budget finishes. This conclusion has
been reached from my 15 years’ experience in the construction industry.
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9.6 Please provide a Scott Schedule in the format usually adopted by NCAT setting out those
matters referred to in your report.
A copy of the Scott Schedule can be found in Appendix D of this report.

Yours faithfully,

Elie Farah
Building Consultant

Effective Building & Consultancy Pty Ltd

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APPENDIX A
CURRICULUM VITAE OF ELIE FARAH

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APPENDIX B
UNIFORM CIVIL PROCEDURE RULES 2005 – SCHEDULE 7 EXPERT WITNESS CODE OF CONDUCT

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 APPENDIX C
Photographs taken 4 May 2020

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 Figure 1. Residue debris that has been discarded in the rear yard. Approximately 1m3.

Figure 2. General condition of the southern elevation.

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 Figure 3. Corrosion noted to the nail fasteners throughout the dwelling.

Figure 4. Water damage to the ground floor timber frame in the stair void area.

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 Figure 5. Mould and water damage to the particleboard flooring to the first floor.

Figure 6. Mould and water damage to the particleboard flooring to the first floor.

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 Figure 7. Mould and water damage to the particleboard flooring to the first floor.

Figure 8. Water damage to the timber beam in the first floor northern bedroom.

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 Figure 9. Water damage to the timber wall structure on the first floor.

Figure 10. Splitting of the timber beam above the northern first floor bedroom.

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Figure 11. Splitting of the timber beam supporting the eastern wall above the garage area. Approximately 5.8 linear metres.

Figure 12. Timber splitting to the timber beam on the eastern wall above the garage area. Approximately 5.8 linear metres.

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 Figure 13. Water damage to the ground floor timber frame near the powder room.

Figure 14. The timber frame to the garage wall has not been constructed on the rebate of the concrete slab.

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 Figure 15. Construction debris has been stock piled at the front of the dwelling. Approximately 10m3 in size.

Figure 16. The temporary support to the garage roof is weathered and the eave overhang is not constructed in accordance
with the contract drawings.

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 Figure 17. Weathered timber in the garage roof area.

Figure 18. Mould and water damage to the particleboard flooring to the first floor.

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 Figure 19. Mould and water damage to the particleboard flooring to the first floor.

Figure 20. Moss growth found to the timber particleboard flooring to the first floor.

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 Figure 21. Moss growth to the timber particleboard flooring to the first floor.

Figure 22. Mould and water damage to the particleboard flooring to the first floor.

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 Figure 23. Water damage noted to the timber frame of the first floor wall structure.

Figure 24. Water damage to the timber frame of the first floor wall structure.

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 Figure 25. The timber frame has not been constructed square and has deviated 5mm in 500mm.

Figure 26. The nail fixings have corroded and require replacement.

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 Figure 27. The nail fixings to the particleboard floor sheeting have corroded.

Figure 28. Water damage to the timber floor joists in the lounge room area.

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 Figure 29. The termite barrier is water damaged and requires replacement throughout the dwelling. Approximately 43
linear metres.

Figure 30. The timber wall frame in the garage area is not straight and has deflected 2mm from the vertical.

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 Figure 31. The timber wall frame is not straight and has deflected 2mm from the vertical.

Figure 32. The timber wall frame is not straight and has deflected 2mm from the vertical.

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 Figure 33. The timber wall frame is not straight and has deflected 2mm from the vertical.

Figure 34. The timber bottom plate is water damaged and requires replacement.

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 Figure 35. The concrete step down to the garage area has been constructed 200mm shorter than the architectural
drawings.

Figure 36. The timber frame/concrete slab in the porch area has not been constructed in accordance with the architectural
drawings. The termite barrier has been applied to the edge of the concrete slab, which does not sit directly underneath the
timber frame.

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 Figure 37. The timber frame to the garage wall has not been constructed on the rebate of the concrete slab.

Figure 38. There is evidence of splitting to the timber base plate.

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Figure 39. The wall opening in the entry area has not been constructed in accordance with the architectural drawings. There
is a 100mm deviation from the plans.

Figure 40. General photo of the entry area.

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Figure 41. The concrete slab to the porch area has been constructed 200mm from the building line, which is 800mm shorter
than required in order for completion of the porch area.

Figure 42. The side panels to the temporary fence are missing and require reinstatement. Total length required is 10 metres.

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 APPENDIX D
Scott Schedule

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