Combustible cladding

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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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Victoria’s appeal court has ruled that builder LU Simon does not have to pay damages for combustible cladding installed on the Lacrosse tower in Melbourne's Docklands. 

The appeals court made the ruling on Friday following a three day hearing in February by Justices David Beach, Kathryn Stynes and Robert Osborn.

The appeal was undertaken by architecture firm Elenberg Fraser, fire engineering consultancy Thomas Nicolas and building surveyor Gardner Group, who sought to overturn a 2019 judgment that saw them hit with a $12 million damages responsibility for use of polyethylene-core panels on the Melbourne apartment tower.

The matter centred whether LU Simon had responsibility arising from having breached the implied warranty of Victoria’s Domestic Building Contract Act and also the state’s Building Act when its constructed the apartment building that did not comply with the Building Code of Australia.

[smartcode_project:default project_id=2929]

The appeals court ruled the builder was not negligent under separate legislation, the Wrongs Act.

The polyethylene-core panels in the Lacrosse tower saw fire affect 13 levels of the 21-storey building in its November 2014 fire. The fire broke out shortly before 2:23am on 24 November 2014 on the balcony of apartment 805 of the Latrobe Street complex with the source of the ignition being an incompletely extinguished cigarette butt left in a plastic container on a table with a timber top.

The cladding through which the fire spread was constructed with an aluminium composite panel (‘ACP’) known as Alucobest, which contained a polyethylene core. Alucobest ACPs had been installed as the external panel cladding on the eastern and western facades of the building.

The Victorian Court of appeal ruled a builder could rely on consultants’ understanding on things that are technical and outside their knowledge as builders can’t be expected to know the intricacies of products.

"The fact that they (the panels) did not meet the statutory warranties given by LU Simon, because they were not compliant or fit for purpose, does not of itself constitute a lack of reasonable care," the judgement noted.

[smartcode_project:default project_id=3490]

The court judgement noted LU Simon "like so many others in the industry" had been "misinformed" by the material which Alucobond published at that time.

It referenced the Alucobond brochure ‘Alucobond — 40 years of excellence — From a Pioneer to the Synonym’ and similar comforting statements were made in the Alucobest brochure where in addition to reference to various ASTM test results, it is stated that Alucobest has ‘Outstanding characteristics of fireproofing’ next to an image of a flaming match.

It is not known if the consultants, and the insurers funding their cases, will now seek leave to appeal the issue to the High Court.

The risk remains that apartment owners and residents will be left without a meaningful remedy for their costs, Matthew Bell, a senior lecturer at Melbourne Law School, told the Australian Financial Review.

The AFR advised the appeals court judgment did offer hope to apartment owners as the ruling went beyond the Lacrosse-specific findings of the VCAT ruling and said the use of aluminium composite panels on all buildings built around that time contravened the building code.

[smartcode_project:default project_id=600]

The 2019 VCAT ruling had allocated 33 per cent of the liability to Gardner Group, 39 per cent to fire engineer Thomas Nicolas and 25 per cent to Elenberg Fraser. The apartment occupier was found to share a 3% responsibility.

Last month the Victorian state government changed the Building Act to ban dangerous cladding on new multi-storey properties.

Planning Minister Richard Wynne announced a prohibition with non-compliant builders now risking fines of up to $400,000.

The Building Act change was a recommendation in 2019 from the Victorian Cladding Taskforce co-chaired by former premier Ted Baillieu and former deputy premier John Thwaites.

More than 500 buildings were identified by the Victorian Building Authority as being at high risk of a cladding fire. 

The state government committed $600 million to rectify dangerous cladding on hundreds of high-risk buildings.

Apartment sales that stalled in Lacrosse have picked up with eight sales since last November, with the priciest being $582,500.

The 92 sqm two bedroom unit had last sold in December 2014 at $505,000 having first sold off the plan in 2008 at $522,500. 
 
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Victoria’s appeal court ruled that builder LU Simon does not have to pay damages for combustible cladding installed on the Lacrosse tower prior to its June 2012 completion 

jchancellor

Apartment cladding insurance battle to possibly head to High Court

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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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The NSW Government has established an expert panel of building and construction specialists to help support the removal of unsafe cladding across the state.
Minister for Better Regulation and Innovation, Kevin Anderson, said the Cladding Product Safety Panel has been tasked with assisting the NSW Building Commissioner, building owners, councils and other regulators by identifying, and where necessary testing, the safest ways to remove and replace high-risk cladding.
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“The Panel will provide expert advice on how to undertake rectification work where unsafe cladding has been identified,” Mr Anderson said. “It will also, for the first time, provide consistent and clear advice on what products can safely be used when replacing combustible cladding. “We know it can be confusing for owners and insurers who are sourcing products to replacing unsafe cladding. The panel will provide details of which products and installation systems can be used safely and comply with the Building Code of Australia, relevant Australian Standards and insurance requirements.” The eight-member panel will be chaired by Professor Mark Hoffman, who led the investigation into building failures at Mascot and Opal towers. It consists of members with expertise in building and construction, product testing, building surveying, certification and fire safety engineering. NSW Building Commissioner, David Chandler OAM, said the Panel will be available to advise councils and industry when they are scoping rectification work on the suitability of building products being proposed to replace unsafe cladding. “The panel will help building owners and occupants to be more confident that remediation and certification work will be compliant and safe,” Mr Chandler said. “We also need to ensure that work will be accepted by insurers without conditionality. The Panel will work closely with the insurance industry to make sure this occurs.
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j.ballantyne1990-6AQqhLzZaK

New government panel for cladding removal oversite for NSW apartments 

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The NSW Parliament has received a list of 444 NSW buildings that are potentially clad in flammable material, however the public will not be notified.
The Department of Customer Service has said making the list public would increase the risk of arson and terrorism, according to the Sydney Morning Herald.
The list includes buildings that have been confirmed to have combustible cladding and others that have been assessed as at risk by Fire and Rescue NSW but are awaiting a second assessment.
They suggest its public release could hurt property owners, potentially mislead the public and breach expectations of confidentiality.
The Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) has released a report 'Solving the National Construction Crisis' which identifies three key recommendations the Federal government should adopt to solve the national crisis in construction.
They suggest the Federal government should require jurisdictions to demonstrate informed purchaser capacity in delivery of projects they are funded for.
They believe a further $2.1 billion of tax payers money for defects and administrative costs could be saved is there's Federal intervention to harmonise construction laws nationally.
Their third suggestion is that Federal funding should be contingent on jurisdictions having an appropriate pre-qualification regime which accounts for past performance against safety, worker’s entitlements and wages and the delivery of government projects on time, and on-budget. 
CFMEU construction and general division national secretary Dave Noonan said ‘the real crisis in construction is industry and government failures, which have wasted billions and endangered lives.
“It has left consumers with cracked apartments, flammable cladding and governments that waste billions on delivering projects," Noonan said.
“Successive Federal and State governments have consistently failed to properly regulate the sector, and unfortunately its workers and home owners who are left to pick up the pieces.
“So far, the crisis has cost <a href="https://www.urban.com.au/news/102863-cladding-cracks-and-shoddy-apartments-to-cost-australians-6-2-billion-to-repair-cfmeu" target="_blank">$6.2 billion in building defects, remediation and associated costs</a>, while a lack of expertise has seen Australian governments waste $10.8 billion in the last ten years.
“State governments simply don’t know what they’re doing because outsourcing has gone too far. This has led to massive infrastructure delays and costs blowouts.
“Instead of doing anything about these real issues, the Federal Government’s ‘Ensuring Integrity’ Bill will try to silence union leaders, lower safety standards, clamp rights at work and cut wages.  
“The only thing it ensures is fatter profits for property developers, lower wages and worse safety.
CFMEU research found that over 3,400 apartment buildings across Australia had defective, non-compliant combustible cladding installed, and would require remediation work to make the buildings safe.
Some of the remediation has been up to $165,000 per dwelling.
The Victorian Government <a href="https://www.urban.com.au/news/102358-victorian-government-appoints-cladding-safety-ceo-and-proposes-new-apartment-designs" target="_blank">hired a cladding safety CEO</a> following the $600 million proposal to <a href="https://www.urban.com.au/news/101459-coalition-says-no-to-300-million-victoria-cladding-funding-request" target="_blank">fix cladding issues across the state</a>.
  “While the problems with the building and construction sector may seem entrenched and overwhelming, the Federal Government retains important levers which could be used to help solve the crisis," Noonan added.
“We’ve carefully articulated why and how this national crisis in construction has emerged.
“Today we lay out three important steps the Federal Government could take to tackle this crisis.
“Australian governments, the private sector and unions collectively owe it to the community to come together and resolve the national crisis in construction.
“As always, the construction union stands ready to work with government and the private sector to tackle this vitally important task for the Australian people.
 
 
 
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wdavis-8cCN98p7xp

Cladding list of 444 NSW buildings to be kept secret

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An investigation after a fire in February at the Melbourne apartment complex, Neo200 revealed safety failures including fire alarms that didn’t work.
There was reportedly also a lack of fire-rated doors.
A flat battery inside the building’s fire indicator panel also emerged in the subsequent fire safety investigation.
The body corporate has been paying around $30,000 a year on fire compliance reports.
<a href="https://www.urban.com.au/news/94825-fire-at-neo200-spencer-street-melbourne-reignites-apartment-cladding-concerns" target="_blank">Property Observer</a> reported a fire broke out in the Neo 200 building on Spencer Street at around 5am.
The fire is believed to have started on the balcony of the 22nd floor, and then spread to the 29th.
Fire crews were first alerted at 5:43am and the incident was upgraded in severity after they thought the building to have combustible cladding.
It has since been reported by The Australian Financial Review that the Neo200 tower only had 1.5 per cent of its facade covered in combustible polyethylene-core cladding.
The fire only directly damaged six apartments.
But the failure of essential safety measures resulted in total evacuation of the building for 11 days after the fire, Melbourne Fire Brigade Commander Mark Carter has noted to a function attended by surveyors.
The ABC reported 15 fire trucks, two ladder-platform trucks and 60 firefighters were used to extinguish the fire, which was brought under control at 6:49am.
Neo200 is 41 storey building with 371 residential apartments, ground floor retail tenancies and entrances to both Spencer and Little Bourke Streets.
Designed by Hayball Architects, the building is distinguished by its yellow podium lights presenting to Spencer and Little Bourke Streets and its distinctive golden curvilinear foyer.
The building’s construction was completed in 2007 by LU Simon builders and was awarded the 2008 Master Builder Association’s – Excellence in Construction Award.
There was a small fire on New Year's Eve in 2015.
 
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Resident safety concerns revealed after fire in Neo200 Spencer Street apartment block

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The boss of Mirvac, one of Australia's largest apartment developers, has called for an urgent lift in building standards, despite being caught up in the combustible cladding crisis.
Describing the sale of defective units as a "breach of faith", Mirvac chief executive Susan Lloyd-Hurwitz called for swift improvements to construction practices.
"Of particular urgency currently is the need to raise building standards in Australia," she said.
Lloyd-Hurwitz said it was "unacceptable" families who bought or rented apartments in good faith could find themselves without a home.
She said it was "unacceptable" for them to then face years of legal battles and substantial costs to rectify buildings.
"It's an outrageous situation as people bought them in good faith and now they have to battle through the legal processes," she said
"This breach of faith is more than just a transaction gone wrong.
"These homes represent the life savings and dreams of Australians who have invested their futures in those homes.
"People should be able to know that their homes are constructed safely, and that in the event something does go wrong, that they will have support and recourse."
She said Mirvac supported recommendations in the Shergold Weir Report.
"I don't think there needs to be [another] inquiry," Lloyd-Hurwitz was reported as saying by Nine Entertainment.
Mirvac had in fact benefited from the crisis as customers sought out a better known brand at the same time as the market was slowing, she said.
The upmarket Ikon apartment block in Potts Point is the latest Sydney apartment block to find it has dangerous combustible cladding.
The building is set to spend $420,000 on rectification 15 years after its construction by Mirvac.
The report lodged seeking permission with Sydney City Council notes, based on the risk assessment and inspection by Red Fire Engineers, suggests certain sections of aluminium composite panelling must be removed and replaced with non-combustible panelling.
Earlier this year the residents and Mirvac were still in discussion over the cost issue with its strata manager advising the Ikon owners corporation would not comment.
A Mirvac spokeswoman said the building's cladding complied with relevant rules at the time it was built.
"All completed Mirvac buildings, including Ikon, have been certified at the time as complying with the relevant fire safety standards and the Building Code of Australia," she said.
Last year Lendlease, another ASX listed developer with a proud reputation, replaced combustible panels on an apartment building at its own undisclosed cost.
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jchancellor-FAypfDUnLy

Mirvac chief calls for lift in building standards

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The Andrews Labor Government have just announced a brand-new funding scheme which aims to protect hundreds of vulnerable Australians who live in apartment buildings with hazardous cladding.

A $600 million fund will be administered by a newly-formed body, Cladding Safety Victoria and will strive to rectify at least 500 buildings with high-risk, combustible cladding, with an outlook to raise the additional $300 million over the next five years to cover more buildings which have been deemed unsafe.

The rectification project was recommended by the <a href="https://www.planning.vic.gov.au/building-policy/victorian-cladding-taskforce">Victorian Cladding Taskforce</a> in their most recent report. The Taskforce previously suggested that the Victorian Government ban the use of aluminium cladding panels that have a polyethylene core of more than 30% and expanded polystyrene that is used on buildings with 3 or more levels, and the policy was passed March 2018.

Premier Daniel Andrews commented that the world-first initiative would fix “most buildings at risk” and help protect residents of Victoria against the danger of non-compliant building materials.

<blockquote>
“Combustible cladding is a national problem and we want the Federal Government to be part of the solution here in Victoria.”
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Premier Daniel Andrews

So far, The Taskforce has identified 15 properties which will be first on the list to undergo remedial works. Cladding Safety Victoria will also be contacting owners corporations and property owners to investigate which buildings are at the greatest risk. The government also plan to revise the Building Code to decipher what legislative changes are required in order to provide better protection for all.

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“This isn’t just about safety, it’s about fairness for people who bought apartments in good faith and were let down by dodgy builders or dangerous building products.”
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Minister for Planning Richard Wynne

The Taskforce has suggested that the Victorian Government seek financial contribution from the Commonwealth due to the problem affecting buildings nation-wide.

Lead image: Lacrosse Tower in Docklands, Credit: The Urban Developer
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