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Step Eight

Step Eight

Final release and defect liability period

Purpose

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."