Longer warranty

The Sun 8/5/2006

KLANG: The Local Government and Housing Ministry may make a 36-month defect liability period a standard practice in the housing industry.

Its minister, Datuk Seri Ong Ka Ting, on Sunday lauded the unprecedented move by developer SP Setia Bhd in launching its 18+18 Month Home Warranty programme in Setia Alam.

Ong said it was the first time he was launching such a warranty programme, adding that if there had been others who had done so, they would have "loudly announced it".

Under current standards set by the ministry, the defect liability period is 18 months after handing over.

Ong said the ministry would look into how to use "all these good examples and see to what extent we can use them in relation to other developers".

For a start, he said, the ministry would look into the basis for the current 18-month warranty.

"When I come across a developer who is confident enough to offer a 36-month warranty, I am prompted to look at the other developers," Ong said, adding that SP Setia's effort, which applies to those who bought houses from the company from April 2 onwards, is courageous, unprecedented and exemplary.

"If you are building houses of quality and using quality construction materials, coupled with excellent workmanship and according to specifications, houses will last longer, thus enabling developers to give such guarantee after surrendering the homes to buyers," he said, in commending the work and corporate social responsibility of the company, headed by group managing director Datuk Seri Liew Kee Sin.

Ong also issued a wake-up call to developers to incorporate good integration in housing projects in ensuring they are a success and parties do "not all jump in to recover the money at the first sign of problems".

"The property industry will be more challenging and if developers and all the field players are not ready to perform, they will be phased out by market forces." he said.