Cladding Rectification

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NSW Minister for Better Regulation Kevin Anderson has today announced a major milestone for Project Remediate with the release of an independent report outlining four safe and non-flammable product categories that represent the first tranche to replace high-risk cladding.

Mr Anderson said the four categories had been recommended by the experts of the Cladding Product Safety Panel as part of Project Remediate, the NSW Government’s billion-dollar program to fast track the removal combustible cladding on 214 high-risk residential buildings.

“Thanks to our panel of experts we’ve now identified four, safe, options that can be specified for use as part of the Government’s replacement program,” Mr Anderson said.

“We are taking the lowest possible risk approach to fire safety. That’s why every component we are recommending in the first tranche will have to meet the highest fire safety standard under the Building Code of Australia. The system includes fixings, brackets, and insulation, and will also need to be completely non-combustible.”

Mr Anderson said the project would also appoint a single façade engineer who will provide guidance and quality assurance of the cladding system design on every building remediated by the Government.

“Homeowners need to be confident their building will be rectified with systems that are safe. That’s why we will also be requiring products and systems in each of the recommended categories to have demonstrated independent fire testing before they can be specified in designs under this program,” Mr Anderson said.

Chair of the Cladding Product Safety Panel Professor, Mark Hoffman said the panel would be giving further consideration to additional products and systems but only after more rigorous independent testing is completed and demonstrated.

“There may be additional systems that can safely include elements with some combustibility. The panel will consider submissions relating to these but to date, we have not been provided with robust data from independent accredited labs which tests both the product and the system,” Mr Hoffman said.

Four system categories are considered acceptable replacement options for Project Remediate, subject to additional design requirements. These categories are:

<ul>
<li>Solid aluminium panels installed with cavity barriers and fire-proof mechanical fixings</li>
	<li>Solid metal sheets installed with cavity barriers and fire-proof mechanical fixings</li>
	<li>Fibre cement panels installed with cavity barriers and fire-proof mechanical fixings</li>
	<li>Non-combustible cement render.</li>
</ul>
“It is time to get the job done. We expect to commence assessment and project design for the first batch of 30 buildings by July this year, with the first cladding removed in late 2021,” Mr Anderson concluded.
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Thanks to our panel of experts we’ve now identified four, safe, options that can be specified for use as part of the Government’s replacement program

jordan_55689

Report outlines 4 safe non-flammable cladding products

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EXPERT INSIGHT

Australia has <a href="https://www.tandfonline.com/doi/full/10.1080/19491247.2021.1893119">more than 3,400</a> buildings with flammable cladding. In Victoria alone, at least 71 of these buildings <a href="https://theurbandeveloper.com/articles/cladding-safety-victoria-ceo-appointed">have been classified</a> as “extreme risk” and another 368 as “high risk”. Despite the <a href="https://www.theguardian.com/uk-news/2020/oct/26/director-at-grenfell-tower-tmo-describes-how-fatal-cladding-saved-800000">tragic evidence</a> of the <a href="https://theconversation.com/lacrosse-fire-ruling-sends-shudders-through-building-industry-consultants-and-governments-112777">risks</a> of <a href="https://theconversation.com/cladding-fire-risks-have-been-known-for-years-lives-depend-on-acting-now-with-no-more-delays-111186">cladding</a> fires, rectification work had been completed on only <a href="https://www.theage.com.au/national/victoria/secrecy-around-cladding-hit-list-attacked-as-spin-after-signs-reveal-dozens-of-sites-20210219-p573yr">11 of these buildings</a> by February 2021.

The estimated cost of making these buildings safe is <a href="https://theconversation.com/flammable-cladding-costs-could-approach-billions-for-building-owners-if-authorities-dither-118121">in the billions</a>. State governments have provided limited funding to rectify the highest-risk buildings. Occupants of lower-risk buildings have largely been left to fund the work themselves.

We know from previous building industry failures like the leaky homes crisis in <a href="https://www.stuff.co.nz/business/116236850/the-rottenomics-of-the-47-billion-leaky-homes-market-failure">New Zealand</a> and <a href="https://www.cbc.ca/news/canada/british-columbia/bc-leaky-condo-crisis-1.4609418">Canada</a> that the impacts go beyond the repair costs.

In two recently published research papers, we explore the impacts on occupants’ finances and well-being of owning and living in apartments with flammable cladding in Australia. We interviewed 16 owners and investors from Victoria, Queensland, Western Australia and ACT.

[smartcode_project:default project_id=31257]

What costs are owners facing?

The <a href="https://doi.org/10.1080/19491247.2021.1893119">paper</a> published last week looked at the accumulating financial costs beyond the rectification work. Participants revealed these costs include:

<ul>
<li>
	special levies, to cover rectification costs
	</li>
	<li>
	higher owners’ corporation fees
	</li>
	<li>
	rising insurance premiums
	</li>
	<li>
	legal fees
	</li>
	<li>
	fixing other fire safety defects, such as sprinklers
	</li>
	<li>
	possible loss of property value.
	</li>
</ul>
As one occupant said:

“We’ve (owners’ corporation) had to put the levies up and then we’d have rates of special levies for the legal fees and the fire engineer’s report as well […] And we still got the cladding on the building.”

The financial burdens on households have influenced major and minor life decisions. One participant said:

“I really want to retire in two years […] how will I be able to pay for all of this (cladding rectification)? I don’t know […] It might be the case that I then have to actually sell a defective unit.”

How are owners coping?

Our <a href="https://doi.org/10.1080/02673037.2021.1887458">second paper</a> explores the effects on owners’ well-being. They reported frustration, concern and anger. Some in higher-risk buildings feared for their safety. Some said this range of long-term negative emotions was harming their mental health and well-being.

All owners were very disappointed that building industry-related professions and the government could allow this to happen. This was compounded by the realisation that their building warranty was mostly useless in this situation:

“And then you find out that the warranty is worth very little, and you have to then deal with the builder who’s engaged in dishonest practices essentially […] The kind of builder we had, it’s the kind of builder that would very much just disappear his company, and recreate to avoid any liability.”

Some expressed serious concerns for people’s lives because of the financial stresses the crisis had caused:

“There’s one lady who’s even worse off than me. She’s absolutely beside herself. She doesn’t know what’s she’s going to do […S] he’ll probably go insane or kill herself or something. Seriously […] she is so distraught about this all.”

Policy change needed to improve support

Our research clearly shows apartment owners are feeling the impacts of much more than just the direct rectification costs. Support to help people cope with these broader impacts is lacking. A similar lack of wider support was identified in the building defect crises in New Zealand and Canada.

Recent developments include a Victorian <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2021-02-01/victorian-ban-on-combustible-cladding-comes-into-effect/13107218">ban on flammable cladding</a> on all new multi-storey buildings and <a href="https://www.theguardian.com/society/2021/feb/09/ministers-to-increase-financial-support-for-cladding-removal">extra government funding for rectification work</a> in the UK. The Victorian government is <a href="https://www.vic.gov.au/find-out-about-cladding-safety-victorias-program">contributing A$600 million</a> towards the cost of rectifying some higher-risk apartments. In New South Wales, the government is <a href="https://www.nsw.gov.au/customer-service/projects-and-initiatives/project-remediate">providing interest-free loans</a> to help owners in an estimated 225 buildings.

NSW has also begun work on building industry <a href="https://www.nsw.gov.au/building-commissioner/news/a-better-future-a-better-industry">reforms</a> to:

<ul>
<li>
	improve regulations, with new powers, processes and audit practices for the regulator
	</li>
	<li>
	use a system to rate building risk that links past practice, finance and insurance records so consumers are protected from risky projects and practitioners
	</li>
	<li>
	improve procurement methods with major changes to contracting, declared design requirements, and sign-off processes/stages
	</li>
	<li>
	improve building skills and capabilities through professional education, development, responsibilities and certification
	</li>
	<li>
	develop digital systems to modernise and harmonise the industry.
	</li>
</ul>
These are clearly good steps forward. But governments and the building industry need to do more to provide broader support and protection for the affected households. As our research shows, they are suffering financially on a number of fronts and all the while the crisis eats away at their well-being.

Government policy on housing defects has focused on the cost of fixing these defects. The other indirect financial costs, such as increased insurance, and effects on well-being, have been neglected. Future policy must reduce the risks of more crises such as combustible cladding and, if there is a crisis, consider all the financial costs owners bear as well as the need to support their well-being.<img alt="The Conversation" casgev6pv="" ffbm2w6r6="" height="1" kb3entpod="" src="https://counter.theconversation.com/content/157307/count.gif?distributor=republish-lightbox-basic" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important" width="1">

<a href="https://theconversation.com/profiles/trivess-moore-12580">Trivess Moore</a>, Senior Lecturer, School of Property, Construction and Project Management, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a>; <a href="https://theconversation.com/profiles/david-oswald-1218862">David Oswald</a>, Senior Lecturer in Construction, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a>, and <a href="https://theconversation.com/profiles/simon-lockrey-207247">Simon Lockrey</a>, Senior Lecturer in Industrial Design and Research Fellow, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a>

This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/only-a-small-fraction-of-buildings-with-flammable-cladding-have-been-fixed-and-owners-are-feeling-the-strain-157307">original article</a>.
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In Victoria alone, at least 71 buildings with flammable cladding have been classified as “extreme risk” and another 368 as “high risk”

urban.com.au

Only a small fraction of buildings with flammable cladding have been fixed, and owners are feeling the strain

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In July earlier this year, Urban.com.au <a href="https://www.urban.com.au/news/cladding-rectification-victorian-government-announces-new-fund-to-fix-hundreds-of-unsafe-homes">reported on the announcement</a> of the Andrews Labor Government funding scheme to help hundreds of vulnerable Australians who are living in a home that has been constructed using hazardous aluminium composite cladding. Today, the Building Amendment (Cladding Rectification) Bill 2019 is being brought into effect and will see the State investigating those accountable for the hazardous cladding, and cover any costs associated with rectification.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/1506cladding729px.png" rel="gallery-all" title="Credit: Jamie Brown"><img alt="" class="image-article-full-width-580px" height="430" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/1506cladding729px.png?itok=MT0dMFk9" title="Credit: Jamie Brown" width="580"></a>

<figcaption>Credit: <a href="https://www.smh.com.au/politics/victoria/builders-to-blame-for-bad-cladding-will-now-be-chased-through-courts-20191015-p530qn">Jamie Brown</a></figcaption></figure>Minister for Planning, Richard Wynne commented that apartment homeowners should not have to endure the time, hassle and expense of dealing with building compliance issues which were caused “at no fault of their own”.

<blockquote>
“…They shouldn’t have to deal with the cost and stress that court action can mean – so we’re pursuing wrongdoers on their behalf.”
</blockquote>

- Richard Wynne, Minister for Planning

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/20181026001368175751_otvzf8.jpg" rel="gallery-all" title="Victorian Planning Minister Richard Wynne. Photo credit: Wayne Taylor "><img alt="" class="image-article-full-width-580px" height="290" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/20181026001368175751_otvzf8.jpg?itok=0VTAutDl" title="Victorian Planning Minister Richard Wynne. Photo credit: Wayne Taylor " width="580"></a>

<figcaption>Victorian Planning Minister Richard Wynne. Photo credit: Wayne Taylor</figcaption></figure>A staggering $600 million has been allocated for Cladding Safety Victoria’s extensive project, where they aim to treat over 500 at-risk buildings (potentially more) over the course of five years. Any fines charged to accountable building practitioners will likely be reinvested into the rectification budget.

Mr Wynne also shared that the team were disheartened to learn that the Commonwealth Government would not be supporting their initiative,

<blockquote>
“Combustible cladding is a national problem and we’re disappointed the Commonwealth Government has decided not to be part of the solution here in Victoria.”
</blockquote>

- Richard Wynne, Minister for Planning

To date, the Victorian Building Authority (VBA) have suspended two builders and surveyors over the installation of non-compliant cladding and nine show cause notices have been issued.

Lead image credit: <a href="https://www.mbav.com.au/news-information/news/economyfinance/victorian-government-announces-600-million-package-cladding?">Master Builders Victoria</a>
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Olivia Round

New cladding rectification bill introduced today: Victorian Government helps home owners affected by combustible cladding, despite lack of national support

Cladding Rectification

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