Average cost to rectify a defect in a new apartment, $9,349, national owner survey

What it is. Per defect, rectification cost in an apartment building; owners' own costs scaled to total cost to all parties by the CIE; excludes owners' time and other costs.

Sample. Apartment owners' personal rectification cost averaged $8,494; the CIE multiplied it by the detached-house ratio of total cost to personal cost, about 1.10, to give $9,349 (Table 2.17 and the text above it). The report's total cost per apartment defect, including owners' time and other costs, is $12,238. Waterproofing in apartments averaged $19,648 a defect and flammable cladding $34,375, the latter set from one VCAT judgment on the Lacrosse Tower.

What it is not. Graded low because the CIE did not use apartment owners' reported total cost: respondents confused the cost to the whole building with their own unit's, so it scaled personal cost by the detached-house ratio. Owner side, not the contractor's loss, and residential apartments rather than civil works. Owners' estimates, covering every defect reported, including some weighted as caused by maintenance or alteration. The report does not state the price year; 2021 is the report's date.

Where it came from

• Centre for International Economics (for the Australian Building Codes Board) (2021), Building Confidence Report, A case for intervention
  Section 2.5 (Table 2.5), Tables 2.8 to 2.10, 2.16 and 2.17 (printed pages 24 to 36), executive summary Table 1 · source record

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