Hello, the developer will have to repair the damage done during the defect rectification. They are bound by the clause whereby the 5% cannot be released until all defects are rectified. The lawyers holding the money is the S&P lawyers (who are acting for the developers), please do not go to the wrong lawyers..

The warranty period is 2 years and any more than that, you will need to show proof that the damage was caused by the developers themselves and not by tenants doing renovation. The law is a bit susah here (think Highland Towers) as the process can be very lengthy, so its best to spot the defects immediately but some are not so evident like properties built on landfill and mining pools or near slopes.   

Also not easy to claim the 5% from the lawyers as they are working for the developers (cos most developers pay the legal fees for you, I would be suspicious) so its better to ask them to repair it themselves and not allow the 5% to be released, a cc to the Bar council and the Housing Ministry, complaints department is a better bet. 

Also before you collect the key, make sure that the developer has a checklist or you can do one yourself and if not all is 100% marked off, then do not accept the key and ask them to rectify the problem. Any delays by the developers and they will have to pay a late delivery penalty, so you need to remind them..usually first time developers. The more experienced ones will have a proper checklist and a site clerk/supervisor to attend to you and not just a foreigner passing you the keys. 

Reminder : Please change the front door lock or get a grill installed before you start any renovations/installation of lights and fan as the guy fixing the locks can never be trusted.