Hi All,
Hope you all can help me see what legal leg I have in this situation, I will have TLDR on the bottom.
I'm currently living in a 6 years and 6 months old house in Victoria, the house were build by one of the top volume builders in 2014
I am currently pursuing them on a total of $1,5k (rounded for example purposes) related to a water leak that happen in July 2020 as per below,
- 18 July, Water leak happen flowing trough one of the bedroom from a bathroom next door, initially we think it was a shower base leak and contacted the builder.
- 19 July, Contacted the builder to see what they can do as assumed its a warranty claim, I have also initiated a leak test during this time and called RACV emergency assist to help secure the area. (both from RACV @$500 and $250)
- 20 July, Leak detection were done and it point out to 2 things, a pipe leak behind basin (pressure test) and shower base leak (dye test)
- 21 July, Leak detection report forwarded to builder while still waiting for their response
- 23 July, Builder replied and I quote,
"Management have reviewed the matter at hand, and have advised the plumbing warranty is for a period of 6 years, due to the plumbing certificate having been issued on the 1st May 2014, the water leak will not be covered as the plumbing warranty period has now passed."
In relation to the shower leak, the original water proofing company will be contacting you directly to arrange a suitable date and time to attend your home to conduct their testing to the shower base"
- 24 July, Disappointed that the builder bring 2 months out of warranty card for a $300k purchase, however I moved on and contact my Home Insurance (RACV) to start the process repair and fix all the damages and paid $500 excess
- 25 July, Leak repair were done via RACV @$500 (not covered) and repairer found that the leaking pipe were due to nails piercing trough the pipe behind wall (possibly during plastering) this must have happen during the build and as the nails starting to corrode, the leak started to happen.
This is now a case of building negligence which is a totally different angle because now its within the 10 years building insurance (implied warranty) per here
Emailed the builder straight away with the report quoting implied warranty
- 26 July, Builder replied (now escalated to management) quoted below,
Given I was only made aware yesterday that there was a nail/screw that had damaged the pipe, this changes the matter. If it was a simple matter of a burst fitting (which was the original information supplied), then the plumbers warranty which is for six years would have applied. Given the latest information supplied we would look at this differently.
- 28 July, Warranty manager come to the house and inspect the pipe and do a shower base leak test for the shower, the shower base leak were debunked on that day however the nail on the pipe were confirmed.
- 10 August, after further follow up builder replied that they will only cover $750 (Leak repair and RACV emergency assist) their reasoning below,
"Of the costs that you are asking us to reimburse, I have discussed this with the group warranty manager and he has agreed to cover the RACV emergency assist and the cost to repair the damaged pipe. This is a total of $750.
He is not prepared to cover the leak detection report as it was not correct in that he called into question the viability of the water proofing of the shower base even when he clearly had over filled the shower base. We have covered the cost of our water proofers attending site to test the validity of his claim. He also not willing to cover the insurance excess as we were not given the opportunity first to inspect and rectify this matter. As you made the call to engage your insurance company as opposed to given builder a call, we feel that we should not have to bear this cost."
I replied with the logic below,
> For the insurance excess, they have ample chance to do the right thing but decided not to do anything due to the 2 months out of warranty, at that point of time (email dated 23rd of July) I have no other course other than contacting my insurance and start the repair / fix process. So i'm still pursuing $500
> For the leak detection, agreed that initial leak detection were not 100% right, however that leak detection also detect the pipe leak which is the real problem. In this case I will settle for $250
Hence total claim from me were $1,500
- between 10th of August to 23 November numerous follow up were done (no reply) however they were close / emergency only during stage 4 restrictions so I only provide updates on the progress of the fix.
- 23 Nov, I got a replied with one sentence, that they have reconsidered but still only going to offer $750. I was pretty angry and tell them off about how disappointed I'm about the unprofessional response considering this matter have been going on for almost 5 months. I reiterate my points and arguments and demanded them to answer the bloody question instead of giving a one liner.
Still no replies until today..
TLDR,
6 years and 2 months old house had a water leak, builder refuse warranty claim due to water pipe warranty of 6 years. Initiated home insurance claim for fix and repair, during fix plumber found that pipe were leaking due nails in the wall hence its builder negligence and covered under 10 years warranty.
Builder willing to pay for emergency response and leak fixing however not willing to pay for insurance excess and leak detection due to not given a chance to rectify the problem.
Damages include (covered by insurance repair),
- Replace 2x walls to fix pipe leak
- Replace skirting due to water damage
- Replace door frames due to water damage
- Replace basin Laminex panels due to water damage
- Replace carpet soft edges due to water damage
- Repaint wall, skirtings and door frames
- Relay carpets, sanitise & steam cleaned
Questions,
- Do I have a legal leg to stand on?
- Is there a government body I can ask for help? (e.g. legal aids)?
- What is the best course of action next?
Thanks so much and apologies for long post, as I'm trying to get as much details as possible.
Ongoing Warranty Issue - Water Leak
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