The journey through major remedial construction is complex, demanding rigorous due diligence from strata managers to protect owners and their assets, with informed preparation the bedrock of a successful project.
Aryian Yousefi, Director of Operations at Dapcor, joined SCA (NSW) Board Member Natalie Fitzgerald for the final 2025 SCA (NSW) webinar, arming strata managers with the essential toolkit for approaching major works.
This process builds upon Dapcor’s earlier guidance on navigating the tender stage – Navigating Building Remedial Works: 6 Key Questions Strata Managers Should Ask. Here, Dapcor outlines the core stages: Screening, Tendering, and Contracts, providing a concise, actionable framework for confident project management.
This webinar was the fifth and final instalment in the SCA (NSW) series on navigating defects – providing members with a complete toolkit to confidently and professionally manage major building works.
Stage 1: Screening contractors for remedial work in strata
Before engagement, you must verify the background and reliability of every party involved, from the builder to the project consultant.
Finding the Right Contractor: Key Checks
Compliance is paramount. Strata managers must confirm a valid builder’s licence (for works > $5,000) using the NSW Fair Trading checker, specifically looking for disciplinary action or ban notices. Verification as a Registered Building Practitioner (for Class 2 projects under DBPA) and confirmation of current workers’ compensation and public liability insurance are mandatory.
Competency and experience must be scrutinised. Review past performance, assess workmanship standards, and utilise third-party checks like iCirt rating (for financial stability) and iCare – HBCF insurance status. Finally, ensure the contractor’s capabilities match the scale of the work; a $500,000 job differs significantly from a $3 million project.
Screening Engineers and Project Managers
Your consultants manage technical risk and scope. Review the company through reference checks. Ensure the contract includes a regulated design and that the scope provided is detailed, not generic. The contract must enforce accountability: regular site inspections, clear payment claim processes, and a transparent fee structure.
Stage 2: Assessment
Tender assessment evaluates professionalism, methodology, and commitment to value, not just price.
- Submission Quality: Look for professionalism in the proposed work methods, program, and availability.
- Access Methodology: The chosen method significantly impacts cost and disruption. Assess the efficiency of the proposal: Scaffolding (comprehensive/costly), Abseilers (small areas), EWP (scattered works), or Swing Stage (cheaper/slower).
- Value Engineering: Did the tenderer offer constructive suggestions that demonstrate a deeper understanding of the building’s specific needs?
Managing Provisional Items
These items manage budget uncertainty and ensure scope clarity:
- Provisional Sum (PS): Allowance for unknown or expansion items (e.g., hidden defects).
- Provisional Quantity (PQ): Unit rate + estimated quantity (for variable scope, like render repairs).
- Prime Cost (PC): Unit rate for materials/products needed.
Post-Tender Steps
Always conduct interviews before awarding. Engage the strata committee in the final decision, remain open to a builder’s final suggestions, and maintain strict tender ethics.
Stage 3: Contracts for remedial work
The contract formalises scope, risk allocation, and commercial terms. Selecting the right contract is paramount, and it must be tailored to the project’s specific needs.
Key considerations must be addressed upfront:
The Defects Liability Period (DLP) is typically 6 or 12 months, during which the builder must return to fix minor defects. Remember, however, that statutory warranties apply regardless of the DLP: 2 years for minor defects and 6 years for major defects.
Regarding financials, retention is usually 5% of the contract value; half is released at completion, and the rest held through the DLP. Any clause for delay & liquidated damages must reflect a genuine pre-estimate of loss, not operate as a penalty. Finally, ensure payment terms comply with the Security of Payment Act (usually 21 days after the reference date).
Summary for Success remedial work in strata and Next Steps
To achieve a successful remedial outcome: screen thoroughly, understand methodology and cost fairly, and negotiate contracts based on the project’s specific needs, avoiding generic terms.
If you are approaching a remedial project and require expert assistance with scope development, tendering, or contract oversight, contact the Dapcor team today. They are ready to partner with you to ensure your project’s success.
