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Peter Whalley Homes Pty Ltd v Queensland Building and Construction Commission [2020] QCAT 454 (16 November 2020)

Last Updated: 2 December 2020

QUEENSLAND CIVIL AND
ADMINISTRATIVE TRIBUNAL


CITATION:
Peter Whalley Homes Pty Ltd v Queensland Building and Construction Commission [2020] QCAT 454
PARTIES:
PETER WHALLEY HOMES PTY LTD
(applicant)

v

QUEENSLAND BUILDING AND CONSTRUCTION COMMISSION
(respondent)
APPLICATION NO:
GAR112-16
MATTER TYPE:
Building matters
DELIVERED ON:
16 November 2020
HEARING DATE:
25 September 2019
HEARD AT:
Townsville
DECISION OF:
Member Pennell
ORDER:
The decision of the Queensland Building and Construction Commission dated 8 April 2016 to issue Peter Whalley Homes Pty Ltd with a Direction to Rectify No. 42267 to rectify building work said to be defective or incomplete is set aside and substituted with the decision that in the circumstances it would be unfair to give that direction.

CATCHWORDS:
PROFESSIONS AND TRADES – BUILDERS – STATUTORY POWER TO REQUIRE RECTIFICATION OF DEFECTIVE OR INCOMPLETE BUILDING WORK – where applicant constructed a kit home – complaints of defective building work – investigation by regulator – applicant directed to rectify building work – direction to rectify withdrawn and converted to request to rectify defects – re-inspection of dwelling showed no further action required by regulator – internal review by home owners – direction to rectify reinstated – internal review identified a Category 1 defect in the dwelling – applicant issued with a direction to rectify – whether building work was defective – whether it would be unfair to direct the applicant to rectify building defects

PRACTICE AND PROCEDURE – EVIDENCE – EXPERT EVIDENCE – joint expert report – where competing opinions and assessments expressed by each expert – competing expert evidence – whether an examination is required of the substance of opinions expressed – primary duty of the Tribunal – Tribunal not bound by the rules of evidence – whether a discretion should be exercised to accept hearsay evidence which unnecessarily disadvantages a party
Queensland Building and Construction Commission Act (1991 (Qld), s 3(a)(ii), s 3(b), s 72, s 72(5), s 87 and Schedule 2.
Queensland Civil and Administrative Tribunal Act 2009 (Qld), s 18, s 19, s 20, s 20(1), s 20(2), s 21, s 24(1), s 28(2), s 28(3)(a), s 28(3)(b), s 28(3)(c), s 32
Alsco Pty Ltd v VICA Mircevic [2013] VSCA 229
Boland v Yates Property Corporation Pty Ltd [1999] HCA 64; (1999) 74 ALJR 209
Drake v Minister for Immigration and Ethnic Affairs (1979) 24 ALR 577
G & A Lanteri Nominees Pty Ltd v Fishers Stores Consolidated Pty Ltd [2007] VSCA 4
Holtman v Sampson [1985] 2 Qd R 472
Kehl v Board of Professional Engineers of Queensland [2010] QCATA 58
Kioa v West [1985] HCA 81; (1985) 159 CLR 550
Makita (Aust) Pty Ltd v Sprowles [2001] NSWCA 305; (2001) 52 NSWLR 705, 743.
McNab Constructions Australia Pty Ltd v Queensland Building Services Authority [2010] QCA 380
Pappas v Queensland Building Services Authority [2002] QDC 290
Q M Properties Pty Ltd v Belscorp Pty Ltd [2019] QCA 138
Queensland Building and Construction Commission v Whalley [2018] QCATA 38
Shi v Migration Agents Registration Authority [2008] HCA 31; (2008) 235 CLR 286
Spencer v The Commonwealth (1907) 5 CLR 418
The Commonwealth v Milledge [1953] HCA 6; (1953) 90 CLR 157
The King v The War Pensions Entitlement Appeal Tribunal and Another; ex parte Bott (1933) 50 CLR 228
Whalley v Queensland Building and Construction Commission  [2017] QCAT 15 


Applicant:
P Whalley
Respondent:
R Ensbey, Special Counsel, Gadens Lawyers

REASONS FOR DECISION

Introduction

The Tribunal’s role

Background

(a) The kitchen server window and a number of the external windows were not externally weather sealed;[30]

(b) The barge capping located at the rear verandah required flashing;[31] and

(c) The rear door jamb was not square which prohibited the installation of a security door.[32]

  1. Resulting from that re-inspection and the Re-inspection Report, the QBCC sent correspondence to the owners and the applicant advising that because Item 1 was a Category 2 defect, the QBCC were not notified by the owners within the required time period which applied to that category.[37] Therefore, the QBCC would not be issuing a Direction to Rectify to the applicant for this item. In relation to the remaining two items of the Request to Rectify, the QBCC determined that those items had been satisfactorily rectified by the applicant.[38]
  1. In that letter, the QBCC confirmed to the applicant that it considered that the windows did not comply with or satisfy the requirements of the Building Code of Australia[47] (‘the building code’). Although the QBCC recognised that the applicant’s argument that the construction method is an alternative solution, the QBCC’s position was that no relevant documentation had been provided to show that the construction method had been certified as an internal solution to meet the performance requirements of the building code.

Due date for completion – 16 May 2016

You are directed to rectify the following defective or incomplete building work by the Due date for completion.

  1. The construction of the external facade of the dwelling is not in accordance with P 2.2.2 of the Building Code of Australia in that flashings have not been provided to the wall openings.[54]

..... complied with Part 2.2.2 of the Building Code of Australia in that the flashings have not been provided to the top of the openings in external walls and there is not any evidence that an alternative solution has been provided.[55]

QBCC’s Reasons for Decision

(a) adversely affects the structural performance of a building.

(b) adversely affects the health and safety of persons residing in or occupying a building.

(c) adversely affects the functional use of a building.

(d) allows water penetration into the building.

(a) it does not meet a reasonable standard of construction or finish expected of a competent holder of a contractor’s licence of the relevant class; or

(b) it has caused a settling in period defect in a new building.

that as the dwelling is in a ‘C3’ wind code the deemed to satisfy provision of the BCA are not appropriate in this instance and the engineers design provided compliance under the performance provisions.[65]

Regardless of the recommendation provided in the report prepared by SCME or the opinion provided by the building certifier, on the basis of the advice of the window manufacturer, the cladding manufacturer and the Australian Window Association, it is recommended that a head flashing be provided to window (sic) in similar situations to the subject site. Any failure to install a suitable window head flashing has the direct consequences of likely voiding the warranty that may have been provided by either the window manufacturers or the cladding manufacturer in circumstances where water penetration into the dwelling is found to occur at some point in the future.[81]

Issues considered

(a) Was the installation of the external facade on the owners’ house building work?

(b) Was the applicant or its representative the relevant person who carried out the building work?

(c) Was the installation of the external facade of the owners’ house defective?

(d) Should discretion be exercised to issue a direction to the applicant?

Was the work undertaken by the applicant actually work building work?

Was the applicant the relevant person who carried out the building work?

  1. The parties do not dispute the applicant was the building contractor for the construction of the owners’ house[93] Therefore, I am satisfied that the applicant is responsible for the carrying out the building work.

Was the construction of the external facade defective?

  1. Evidence was heard from Mr Ferguson. While also being the QBCC’s original decision maker,[95] he is currently the QBCC’s Manager of Technical Resources. In undertaking his inquiries into this matter, Mr Ferguson carried out an inspection of the owners’ house.[96] He completed an inspection report[97] which contains his observations and comments.[98] I note that his inspection of the owners’ house was carried out almost 15 months prior to him issuing the direction to the applicant. I also note that his assessment did not purely focus on the items identified in the first and second notices, but instead it was a revisit of all of the owners’ original complaints.

The building, being in a cyclonic location, is located in an area with a design wind speed of more than NS. 3.5.3.1(d) applies regardless of the design wind speed for buildings in the area. The limitation in 3.5.3.1(a) applies to the installation of wall cladding in accordance with 3.5.3.1(b). To interpret 3.5.3.1 otherwise would be to place a lesser requirement for the weatherproofing of buildings in cyclonic areas.[112]

(a) the building is located in an area with a design wind speed of not more than W41; and

(b) wall cladding is installed according to the appropriate part of the building code for the type of cladding utilised; and

(c) .......

(d) Openings in cladding are flashed in accordance with Part 3.5.3.6.

(a) All openings must be adequately flashed using materials that comply with AS 2904.

(b) Flashings must be securely fixed not less than 25mm under the cladding and extend over the ends and edges of the framing of the opening.[113]

Discussion

  1. Of interest was the opinion expressed by Mr Stennett that the window complied with the building code,[120] particularly regarding the construction of the house to a Category C2 wind rating, which is a greater rating than Category N3.

The primary duty of a tribunal is to find ultimate facts, and so far as is reasonably possible to do so, to look not merely to the expertise of the expert witnesses, but to examine the substance of the opinion expressed; and in doing so, the tribunal may not accept the opinion of an expert witness, and in cases where the experts differ, the tribunal will apply logic and common sense to the best of its ability in deciding which view is to be preferred or which parts of the evidence are to be accepted.[121]

In considering this issue it is as well to bear in mind some matters established by the authorities. The determination of value is a question of fact, to be decided upon the evidence of experts conversant with the subject matter. Lay evidence or common sense does not have to be disregarded in deciding whether to accept (wholly or in part) the competing assessments of the experts.[122]

When faced with competing opinions, which are both supported by sound reasoning, the tribunal's function is to decide the issue at hand and that may require the tribunal to accept one opinion over the other....

The Court went on to say –

......the tribunal's persuasion to prefer one opinion over another may well be based on factors such as that the expert's opinion was tested under cross-examination, or that the opinion was given by a person eminent in his or her field, or that the opinion was supported by clinical observations.[123]

Should discretion be exercised to issue a direction to the Applicant?

  1. In applying the principle which the court arrived at in Holtman v Sampson,[129] I have given consideration to not merely to the expertise of the expert witnesses, but an examination was undertaken of their evidence about the building work to the external facade. I accept and prefer that opinions expressed by Mr Stennett and Mr McKenzie over those expressed by Mr McDonald and Mr Ferguson so far as compliance of the building work with the building code. In applying a logical, practical and commonsense approach to the circumstances of this matter, there has been no failure of the workmanship of the window that contravenes P2.2.2 of the building code.

[1] QBCC’s SOR-2, pages 28 – 31.

[2] QBCC’s SOR-3, pages 32 – 50.

[3] Direction to rectify and/or complete No. 42267 issued by the QBCC on 08/04/2016.

[4] Application filed 06/05/2016.

[5] Kioa v West [1985] HCA 81; (1985) 159 CLR 550, 585.

[6] Queensland Civil and Administrative Tribunal Act 2009 (Qld), s 28(3)(a).

[7] Queensland Civil and Administrative Tribunal Act 2009 (Qld), s 28(2).

[8] Queensland Civil and Administrative Tribunal Act 2009, s 20; Kehl v Board of Professional Engineers of Queensland [2010] QCATA 58, [9].

[9] Queensland Civil and Administrative Tribunal Act 2009 (Qld), s 28(3)(c).

[10] Queensland Civil and Administrative Tribunal Act 2009 (Qld), s 28(3)(b).

[11] The King v The War Pensions Entitlement Appeal Tribunal and Another; ex parte Bott (1933) 50 CLR 228, 256.

[12] Queensland Building and Construction Commission Act 1991 (Qld), s 3(a)(ii) and Schedule 2. A consumer generally means a person for whom, building work is carried out.

[13] Queensland Building and Construction Commission Act 1991 (Qld), s 3(b).

[14] Queensland Building and Construction Commission Act 1991 (Qld), Schedule 2. Building work means and includes the erection or construction of a building.

[15] Queensland Building and Construction Commission Act 1991 (Qld), s 87; Queensland Civil and Administrative Tribunal Act 2009 (Qld), s 18.

[16] Queensland Civil and Administrative Tribunal Act 2009 (Qld), s 19.

[17] Queensland Civil and Administrative Tribunal Act 2009 (Qld), s 20(2).

[18] Drake v Minister for Immigration and Ethnic Affairs (1979) 24 ALR 577, 589.

[19] Queensland Civil and Administrative Tribunal Act 2009 (Qld), s 20(1).

[20] Queensland Civil and Administrative Tribunal Act 2009 (Qld), s 21.

[21] Shi v Migration Agents Registration Authority [2008] HCA 31; (2008) 235 CLR 286, 299.

[22] Drake v Minister for Immigration and Ethnic Affairs (1979) 24 ALR 577, 589.

[23] Queensland Civil and Administrative Tribunal Act 2009 (Qld), s 24(1).

[24] By email on 24/06/2014.

[25] On 11/07/2014.

[26] The inspection was carried out on 21/07/2014.

[27] QBCC’s SOR-10, pages 94 – 113.

[28] First Direction to Rectify issued 15/08/2014.

[29] QBCC’s SOR-11, pages 119 – 123.

[30] Items 2 and 3 on the owners’ QBCC complaint form; QBCC’s Initial Inspection Report / Statement of Reasons dated 21/07/2014: QBCC’s SOR-10, pages 96 – 99.

[31] Item 4 on the owners’ QBCC complaint form; QBCC’s Initial Inspection Report / Statement of Reasons dated 21/07/2014: QBCC’s SOR-10, page 100.

[32] Item 6 on the owners’ QBCC complaint form; QBCC’s Initial Inspection Report / Statement of Reasons dated 21/07/2014: QBCC’s SOR-10, page 103.

[33] QBCC’s SOR-12 pages 119 – 123.

[34] On 1 October 2014.

[35] QBCC’s SOR-13, pages 124 – 129. Mr Cameron’s Re-Inspection Report / Statement of Reasons dated 24/10/2014.

[36] QBCC’s SOR-13, page 125.

  1. [37] Queensland Building and Constriction Commission Board Policy provides that a Category 2 defect is one that is a non-structural defect. Generally, for a Category 2 defect, the lodgement of a complaint has to be made within 6 months following the completion of the building work.

[38] QBCC’s SOR-14, pages 130 – 146. QBC’s letter to owners dated 21/11/2014.

[39] On 09/12/2014.

[40] QBCC’s SOR-15, pages 147 – 155. Mr Ferguson’s Inspection Report dated 30/01/2015.

[41] Ms June Blaney

[42] Ms June Blaney, the QBCC’s Internal Review Officer made this finding on 04/02/2015.

[43] Issued on 06/03/2015.

[44] QBCC’s SOR-16, pages 156 – 158. Issued 06/03/2015.

[45] QBCC’s SOR-17, pages 161 – 164. Mr Whalley’s letter dated 18/03/2015.

[46] This query was emailed to the QBCC on 09/02/2015. QBCC’s SOR-17, page 177.

  1. [47] The Building Code of Australia provides the minimum necessary requirements for safety, health, amenity and sustainability in the design and construction of new buildings.

[48] QBCC’s SOR-18, pages 178 – 179. QBCC’s letter to the applicant dated 02/04/2015.

[49] Mr McKenzie’s Consultant Engineer Report sent on 14/04/2015. QBCC’s SOR-20, pages 182 – 185.

[50] QBCC’s SOR-22, page 190. QBCC’s letter to the owners dated 21/04/2015.

[51] QBCC’s SOR-23, page 193. QBCC’s letter to the applicant dated 22/04/2015.

[52] QBCC’s SOR-24, pages 195 – 228. NJA Consulting Pty Ltd provided their report to the QBCC on 01/12/2015.

[53] QBCC’s SOR-25, page 229. QBCC’s letter to the applicant dated 05/04/2016.

[54] QBCC’s SOR-26, page 239. QBCC’s submissions dated 18/10/2019, page 1, paragraphs 1 – 2. Direction to rectify and/or complete No. 42267.

[55] QBCC’s SOR-25, page 238. QBCC’S letter to the applicant dated 05/04/2016.

[56] The Building Code of Australia Vol 2, P2.2.2 – Weatherproofing.

[57] QBCC’s SOR-26, page 242. QBCC’s letter to the owners dated 08/04/2016.

[58] Applicant’s application filed 06/05/2016.

[59] Pursuant to the provisions of the Queensland Civil and Administrative Tribunal Act 2009 (Qld), s 32.

[60] Whalley v Queensland Building and Construction Commission  [2017] QCAT 15. 

[61] Queensland Building and Construction Commission v Whalley [2018] QCATA 38.

[62] Tribunal’s Directions dated 08/05/2019.

[63] An engineer engaged by the QBCC.

[64] Queensland Building and Construction Commission Act (1991 (Qld), Schedule 2.

[65] QBCC’s SOR-25, page 235. The term BCA is a reference to the Building Code of Australia.

[66] The local authority is the Townsville City Council.

[67] Building Code of Australia – Vol 2, Part 2.2; F2.2.2 Weathering and dampness.

[68] QBCC’s SOR-25, page 236.

[69] Australian Standards 2904 – Damp-proof.

[70] QBCC’s SOR-25, page 236.

[71] QBCC’s SOR-24, pages 195 – 228. Engineering report of Mr John Van de Hoef, Engineer of NJA Consulting Pty Ltd dated 01/12/2015.

[72] NJA Consulting Report, dated 01/12/2015, page 1.

[73] Dated 14/04/2015.

[74] Dated 07/05/2015.

[75] Dated 27/01/2015.

[76] Dated 20/04/2015.

[77] The author of the NJA Consulting Report was Mr John Van de Hoef, Senior Structural Engineer.

[78] Tracey Gramlick from the Australian Window Association, email dated 25/11/2015; Conal O’Neill from Weathertex, email dated 23/11/2015

[79] Representatives from Weathertex, Australian Window Association and Bradnams.

[80] QBCC’s SOR-24, pages 195 – 228. Engineering report of Mr John Van de Hoef, Engineer of NJA Consulting Pty Ltd dated 01/12/2015.

[81] QBCC’s SOR-24, page 202.

[82] QBCC’s SOR-25, page 237.

[83] Queensland Civil and Administrative Tribunal Act 2009 (Qld), s 28(3)(b).

[84] Queensland Civil and Administrative Tribunal Act 2009, s 20; Kehl v Board of Professional Engineers of Queensland [2010] QCATA 58, [9].

[85] Queensland Civil and Administrative Tribunal Act 2009 (Qld), s 19.

[86] Queensland Civil and Administrative Tribunal Act 2009 (Qld), s 20(2).

[87] Shi v Migration Agents Registration Authority [2008] HCA 31; (2008) 235 CLR 286, 299.

[88] Drake v Minister for Immigration and Ethnic Affairs (1979) 24 ALR 577, 589.

[89] Queensland Building and Construction Commission Act 1991 (Qld), s 72.

[90] Queensland Building and Construction Commission Act 1991 (Qld), Schedule 2 – Dictionary.

[91] QBCC’s SOR-2, pages 28 – 31.

[92] Queensland Building and Construction Commission Act 1991 (Qld), Schedule 2. Company means any body corporate.

  1. [93] Queensland Building and Construction Commission Act 1991 (Qld), Schedule 2. The term ‘building contractor’ generally means a person who carries on a business that consists of or includes carrying out building work and includes a subcontractor who carries out building work for a building contractor. Queensland Building and Construction Commission Act 1991 (Qld), Schedule 2 – Dictionary.

[94] Queensland Building and Construction Commission Act 1991, Schedule 2 – Dictionary.

  1. [95] At the time of making the final decision, Mr Ferguson held a position within the QBCC as a Senior Technical Internal Review Officer.

[96] Inspection undertaken on 22/01/2015.

[97] Inspection Report dated 27/01/2015.

[98] Exhibit 7. Statement of Stephen Ferguson dated 03/06/2019, Annexure SF-1.

[99] Exhibit 7. Statement of Stephen Ferguson dated 03/06/2019, Annexure SF-1, page 6. Complaint Item 1.

[100] Exhibit 7. Statement of Stephen Ferguson dated 03/06/2019, Annexure SF-1, page 7. Complaint Item 2.

[101] The Building Code of Australia, P2.2.2.

[102] The Building Code of Australia, 3.5.3.6.

[103] Exhibit 7. Statement of Stephen Ferguson dated 03/06/2019, Annexure SF-1, page 8. Complaint Item 3.

[104] Exhibit 7. Statement of Stephen Ferguson dated 03/06/2019, Annexure SF-1, page 9.

[105] Exhibit 7. Statement of Stephen Ferguson dated 03/06/2019, Annexure SF-1, page 9.

[106] Exhibit 7. Statement of Stephen Ferguson dated 03/06/2019, Annexure SF-1, page 10.

[107] Exhibit 7. Statement of Stephen Ferguson dated 03/06/2019, Annexure SF-1, page 11.

[108] Exhibit 7. Statement of Stephen Ferguson dated 03/06/2019, Annexure SF-1, page 12.

[109] Exhibit 7. Statement of Stephen Ferguson dated 03/06/2019, paragraph 7.

[110] Exhibit 7. Statement of Stephen Ferguson dated 03/06/2019, paragraphs 9 – 10.

[111] Exhibit 5. Statement of Milton Stennett dated 13/04/2019, paragraphs 3 – 4.

[112] QBCC’S SOR, paragraph 63.

[113] To assist, the building code provides drawings of the typical window flashing detail.

[114] Exhibit 5. Statement of Milton Stennett dated 13/04/2019, paragraphs 5 – 7.

[115] Exhibit 2.

[116] Exhibit 2, page 3.

[117] Exhibit 2, page 4.

[118] Makita (Aust) Pty Ltd v Sprowles [2001] NSWCA 305; (2001) 52 NSWLR 705, 743.

[119] Exhibit 7. Statement of Stephen Ferguson dated 03/06/2019, paragraph 7.

  1. [120] Building Code of Australia – Volume 2, Part 3.5.3.1 – Acceptable construction practice.
  2. [121] [1985] 2 Qd R 472.
  3. [122] [2019] QCA 138, [154] citing Spencer v The Commonwealth (1907) 5 CLR 418, 432; G & A Lanteri Nominees Pty Ltd v Fishers Stores Consolidated Pty Ltd [2007] VSCA 4, [22]; The Commonwealth v Milledge [1953] HCA 6; (1953) 90 CLR 157, 162; Holtman v Sampson [1985] 2 Qd R 472, 474; Boland v Yates Property Corporation Pty Ltd [1999] HCA 64; (1999) 74 ALJR 209, 221.

[123] [2013] VSCA 229, [95].

[124] Pappas v Queensland Building Services Authority [2002] QDC 290.

[125] Don Mackay Pty Ltd v QBSA [2009] QCCTB 259 endorsing and approving the Tribunal’s earlier approach in Feoderoff v QBSA [2005] CCT QO35, [23].

[126] Queensland Building and Construction Commission Act 1991 (Qld), s 72(5).

[127] McNab Constructions Australia Pty Ltd v Queensland Building Services Authority [2010] QCA 380, [72].

[128] McNab Constructions Australia Pty Ltd v Queensland Building Services Authority [2010] QCA 380, [25].

  1. [129] [1985] 2 Qd R 472.


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