An analysis of the utilization of defect deposits for apartment complexes

Deok-Seok Seo, Ung-Kyun Lee
2013 Journal of the Korea Institute of Building Construction  
This study analyzed the actual use of defect deposits for financing long-term expenses (that is, expenses incurred within 4-10 years of building completion) and for financing short-term expenses (that is, expenses incurred within 3 years of building completion). Therefore, 36 cost data on the expenses financed out of defect deposits for apartment complexes were collected from construction companies and analyzed using statistical methods. The findings revealed that 62.6 percent of defect
more » ... t of defect deposits were spent to resolve actual defects, and 37.4 percent were spent resolving resident complaints. Furthermore, these results are valid regardless of the location of the complexes. As such, these results could be of significance when establishing or revising regulations regarding the repair of the long-term defects of apartment complexes.
doi:10.5345/jkibc.2013.13.6.549 fatcat:eicpkq4ylnd5bitnxa5sgx5gxi