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Step Eight

Step Eight

Final release and defect liability period


To provide North East Water with a quality control period which indemnifies North East Water against any defect relating to water and/or sewer infrastructure.  

Should any defects be identified during the twenty-four month defect liability period they are to be corrected by the developer at the developer’s cost.  At the conclusion of the twenty-four month period, a Final Release Inspection is undertaken, defects are identified and recorded, and the appropriate party is notified (e.g. the developer, the property owner, or the LGA).  The appropriate party must correct any defects within twenty-one days of notification and pay for the cost of the works.

Once the developer has rectified any defects for which they are responsible, any security held by North East Water as security will be returned to the appropriate party. Should the developer fail to rectify the defects at their cost, North East Water will recall the appropriate funds to have the works completed. Remaining funds, if any, will be returned to the appropriate party. If the security is insufficient, reimbursement from the developer for additional funds will be sought.  Or, should no security be held by North East Water as the total cost of works was under $10,000, the appropriate party will be invoiced for the cost of North East Water rectifying the defects.

Furthermore, as stated in the Developer Agreements, the Consultant or Owner will "Indemnify North East Water against any claims or costs arising from design faults or inaccuracy of As Constructed details supplied to North East Water, for a period of five (5) years after North East Water accepts practical completion of the works notwithstanding that the agreement may already have been terminated."

Key topics for consideration

  • Has an inspection been undertaken to verify that the assets are in good working order and accessible? If not, determine who is responsible for correcting the defect
  • Has the developer been informed, in a timely manner, of any defects that they are responsible for correcting?
  • Has the developer rectified the defects? Defects are required to be rectified prior to Final Release being issued and any security returned?
  • Has the LGA been notified of defects that they are responsible for correcting?
  • Once all defects that the developer is responsible for are corrected, has the security been returned or removed from a rolling bank guarantee?
  • Has North East Water’s Operations been notified that the defect liability period has been completed?
  • Has CCTV footage been undertaken to investigate possible design and/or construction faults?

Our role

  • Undertake an inspection with the Consultant and contractor to verify that all assets are in good working order and accessible
  • Notify the Consultant of defects and request that they be rectified. Any costs for rectification works are to be paid by the developer
  • Once defects for which the developer is responsible have been corrected, notify the Consultant that Final Release is granted and return the security (in whole or part) to the appropriate party 
  • Notify North East Water’s Customer Service Department of property owner defects so that follow-up may be done to correct the defects 
  • Notify relevant North East Water departments that Final Release has been granted on the infrastructure and that North East Water is now responsible for future maintenance issues that arise.

Key stakeholders

  • Developers
  • Developer’s Consultants (planners, surveyors, engineers)
  • Residents and/or property owners
  • North East Water

Key documents