The ACT government has foreshadowed its intention to issue another rectification order against developer Michael Koundouris for a series of alleged defects in the Aureus apartment building on Canberra Avenue near Manuka. It is the third dispute involving the prominent developer to emerge in recent weeks.
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Mr Koundouris is fighting a separate rectification order issued by the ACT government over problems at the Manhattan apartments in Turner. He has taken that case to the ACT Civil and Administrative Tribunal, where he has argued that the rectification order was issued too late and is outside the 10-year limit since building work finished.
And he is in dispute with residents at a third apartment complex, the Lagani development in Braddon, where residents have gone to the Supreme Court alleging problems with leaks and cracking in the masonry.
In the 48-apartment Manuka case, the government issued a notice of intention in March to make a rectification order against Mr Koundouris. Mr Koundouris and residents had until April to respond to the allegations. As yet, no decision has been made on whether a rectification order will be issued that would require Mr Koundouris to fix the alleged defects.
The government points to a lack of waterproofing membrane on balconies of a number of apartments and other faults allowing water to enter apartments through wall cladding and sliding doors, causing dampness, deterioration of the building and unhealthy conditions inside. It also alleges fire defects, including insulation near and on top of downlights in two units.
Mr Koundouris' lawyer, Maurice Falcetta, of Trinity Law, said, "Builders are entitled to rely upon advice given to them by architects, engineers, other consultants and specialist contractors. The design, the type of construction, and the method and systems in both Manhattan and Aureus were what was commonplace at the time, and the certifier and the government approved it."
The certifier in the Manuka case was Ian Anlezark of BCA Solutions.
The notice of intention was issued after complaints from residents.
Body corporate chairman Michael Atfield said in his case water entering from the balconies had meant he had to pull carpets back from the walls in the two rooms. Water had also entered through the ceiling where a smoke detector had been sited, and from behind the fuse box.
"It's a bit of a disaster to say the least," Mr Atfield said, having moved into the apartment in 2010. "This is taking a toll on a lot of people there because of the way its affected their lives through having damaged apartments."
Some rectification work had been done but it had been "like pulling teeth", he said, with the residents having sought intervention from the government in November 2013.
Mr Koundouris' lawyer said both Aureus and Manhattan related to "work which occurred close to 15 years ago and therefore is out of time".
He was referring to the 10-year time limit for issuing a rectification order. The government argues that the clock begins when the certificate of occupancy is issued (meaning any rectification order in the Aureus case would need to be made by November this year, with the certificate of occupancy issued in November 2005), but Mr Koundouris's legal team is arguing in the ACT Civil and Administrative Tribunal that the 10 years begins with each piece of claimed defective work - putting the Manhattan case out of the reach of the rectification order.
Mr Koundouris' website said the Aureus developments received the Housing Industry Association's "apartment development of the year" gong in 2007.
The notice of intention to issue a rectification order was issued to Michael Aristidis Koundouris and Acro Pty Ltd. Acro is owned by Michael Anastasios Koundouris, who was appointed director in May 2005. Aristidis Eric Koundouris was also a director of the company until February this year.
