I agree in part with Bryan's comments although am not sure that this issue is necessarily as straightforward as that.
The word 'fault' under clauses 61.1 and 61.4 is not defined, although probably assumes that a compensation event arises because the Contractor did, or did not do, something for which they are contractually obligated.
The inherent problem already existed but was compounded by prolonged exposure, caused by the Defect. The issue is whether you can define a Defect as a 'fault', as it is 'a part of the works not in accordance with the Works Information'. This could actually occur for a number of reasons, however, including one which is not the Contractor's fault, although they are still obliged to correct it.
Consequently I would be inclined to say that this matter is more appropriately dealt with by the insurance for 'loss of or damage to property ... '.