Following the recommendations handed down by the Victorian Cladding Taskforce on Tuesday 16 July, the Victorian State Government has announced that part of the cladding rectification works will be funded by the State Government. In doing so, Premier Daniel Andrews has provided some comfort to owners of buildings which have been found to contain non-compliant cladding.
Whilst the news from the State Government comes as a welcome relief, it is important to understand that non-compliant cladding is a complex, wide-spread issue across Victoria and the costs associated with rectification will far exceed $600 million. Industry experts are reporting that the cost to rectify will exceed $1.6 billion or more.
The State Government is yet to release further information on exactly which buildings will be eligible for funding to rectify their non-compliant cladding. At this stage, it appears the funding will only be available to buildings rated as an extreme or high risk. The report handed down by the Victorian Cladding Taskforce lists the following, noting that the audit is not yet complete:
This leaves 588 Buildings in the moderate to low risk category, with no plans for funding.
Furthermore, whilst the actual rectification works associated with non-compliant cladding are costly, so too are the steps required prior to rectification works. The Victorian Cladding Taskforce has detailed the process required for those buildings which have been issued Building Notices by their Local Council. The process includes obtaining expert reports from practitioners such as Fire Engineers, Building Surveyors, Project Managers and in some cases, Lawyers.
With the hope of government funding in the air and promises from our political leaders, Lot Owners and Committees have been left wondering “Do I have to do anything? Sounds like the government is going to sort it out for me?” – The answer is yes, you need to take action! If you do not respond, penalties will apply.
If your building has been issued a Building Notice, Building Order or Emergency Order, the Owners Corporation must respond to the statutory authorities at Local Council. This is to avoid hefty financial penalties and to reduce the risk to the safety of occupants.
SSKB is a leading Strata firm operating across Queensland, New South Wales and Victoria. When choosing SSKB, you’re not only choosing Australia’s market leader in the Community Management industry, but you’re also choosing peace of mind knowing that your community’s affairs are in the safest of hands.
If you have any further questions contact your Community Manager directly.