Palisade Miranda: Galileo and Duffy Kennedy in stoush over defects

It was billed as “luxurious resort-style living”. But the developers and builders are now in a stoush after residents were left with wonky floors, missing taps, leaking windows and a host of other defects.

Palisade, a luxury apartment block in Miranda in Sydney's south. Picture: Palisade Miranda

A new apartment block billed as “luxurious resort-style living” is riddled with defects, prompting the developer to report the site to Fair Trading.

Developers promised residents buying into 190 luxury apartments at Palisade in Miranda a “peaceful and glamorous retreat” where “every day feels like a vacation”.

However, developers Galileo Group ultimately enlisted a new construction company to rectify a host of defects not limited to faulty exhaust fans and duct work, leaking windows and doors and flooring which had to be completely replaced due to uneven levels.

A spokeswoman for Galileo Group said it has now taken Duffy Kennedy – the construction company originally contracted for the Palisade build – to the Office of Fair Trading over the raft of issues.

“As more defects came to light late last year, Galileo filed a complaint against Duffy Kennedy with the Office of Fair Trading and the Building Commissioner,” the spokeswoman said.

“We requested an investigation and complete review of the development with a view to ensuring DK returned to site to rectify the defects for which it is responsible.”

Palisade in Miranda.

In a statement to the St George Shire Standard, a spokeswoman for Duffy Kennedy denied any responsibility for the issues identified.

“We have never been contacted by the Department of Fair Trading – in fact, in over 30 years of building we have never had an order from Fair Trading for defective work,” the spokeswoman said.

“Duffy Kennedy met all deadlines as per contract for the Palisade project – Galileo used the contract clauses to terminate Duffy Kennedy and removed Duffy Kennedy from site.”

An inspection for NSW Building Commissioner David Chandler was conducted in January and Galileo is now awaiting the report and rectification orders.

Some residents had already moved into Palisade in 2019 before the extent of the building’s issues were fully realised by Galileo.

The developers subsequently footed the bill for temporarily relocating the occupying residents while their apartments were repaired.

Palisade in Miranda.

“Prior to the settlements taking place and purchasers moving in during 2019, there was no indication based on inspection and our consultants’ advice and reports of the extent of the defects that has subsequently become manifest,” the Galileo spokeswoman said.

“Galileo has spent a considerable amount of money rectifying defects as they have arisen in apartments and common property, and has attended to defect rectification at no cost to the owners.”

Galileo is now proceeding against Duffy Kennedy in the Supreme Court after the Court of Appeal found the construction company was in breach of their building contract and Galileo was entitled to enlist new builders.

“Galileo continues to incur the costs of rectification as and when further defects become apparent,” the spokeswoman said.

“Galileo has commenced further Supreme Court proceedings against them to recover its costs incurred to date and prospective rectification costs.”

Inside an apartment at Palisade in Miranda.

Galileo continues to retain CD Construction Group on site to complete ongoing repairs to the apartment block – for which it also continues to foot the bill.

“We understand that the delay in rectifying the remaining defects is difficult for the owners corporation but we have and will continue to do our best to work with them,” the spokeswoman said.

“It is our intention to ensure that defects are rectified prior to our exit from the project.”

A spokesman for Laing Simmons in Miranda, the agency selling the project, said there were no plans to stop marketing the block and that most residents were very happy at Palisade.

Inside an apartment at Palisade in Miranda.

THE LAUNDRY LIST OF DEFECTS

– Fixing exhaust fans/duct work in all units to ensure airflows complied with relevant standard.

– Replacement of a number of timber floors or carpet due to uneven levels plus other matters

– Touch ups to paint work – walls doors balcony railings

– Provision of access panels for airconditioning filter access

– Increasing the size of aircon grills

– Replacement of storm water pipes with nail penetration in walls in a unit stack that caused leaking

– Fixing sliding door installations/windows that had been leaking

– Sundry apartment leaks

– Sundry car park leaks

– Minor electrical issues in units and common areas

– Leaks under kitchen sinks and laundries as well as taps

– Replacement of cracked storm water pipe in basement

– All work required for the first Annual Fire Safety Certificate

– Extensive cleaning of tiles where glue had been walked through several floors

– Installation of missing ground floor balcony taps

– Installation of missing individual unit cold water meters

– Review of gas meters to solve the cross metering issues

– Review of hot water system to commission and reduce lag time

– Completion of external lighting and pavement works

– Installation of missing garbage area large sliding metal door

-Replacement of drummy wall tiles around front of building and at the entrance to Building AA

– Replacement of laundry area and floor boards due to leaking airconditioning unit

– Replacement of scratched glass sliding doors

– Replacement of carpet