Building Defects

The NSW apartment construction watchdog, NSW Building Commissioner David Chandler claims a large number of strata body corporate committees are not reporting defects.

It followed a survey by the NSW Fair Trading Department, and the peak body for strata managers, showing that fewer than one in five buildings with serious defects had been reported to the regulator.

&quot;What that is telling us is that a large number of body corporates are sitting on known defects and not reporting them,&quot; he said.

Chandler said body corporates risked defects in their buildings becoming revealed in a &quot;very public way&quot; if they did not report them to Fair Trading.

He told the Sydney Morning Herald he believed the main reason they stayed silent was due to fears that reporting would lower the value of apartments and make them harder to sell.

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NSW laws require vendors - irrespective of whether they are an existing owner or developer - to disclose serious defects to prospective purchasers in contracts of sale.&nbsp;

However it is not a current legal requirement for defects to be reported to Fair Trading, a matter that Mr Chandler signalled the state government would now be looking to require.

The NSW construction watchdog was appointed to clean up the construction industry and restore public confidence after the Opal and Mascot Tower disasters.

Last month the NSW Government announced plans to recruit 30 further building inspectors and auditors to join NSW Fair Trading.

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Minister for Better Regulation Kevin Anderson said it was part of the progression to lift confidence in residential construction.

&ldquo;Under this Government we&rsquo;ve introduced landmark legislation to shake up the industry and prevent risky players from putting substandard properties on the market,&rdquo; Mr Anderson said.

&ldquo;The new laws provide homebuyers with confidence that their new home has been designed and built in accordance with the Building Code of Australia.&nbsp;

The 30 new inspectors and auditors will join an existing team of 30 that have been active in the field since September last year implementing Fair Trading&rsquo;s new proactive compliance strategy to identify and resolve defects before projects are completed.&nbsp;

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&ldquo;Having the legislation in place is one thing, but enforcing it is another,&quot; Anderson said.

&quot;We want to knock out the dodgy players and make sure that customers can have confidence when they are handed the keys to their new apartments.&rdquo;

The recent departmental survey of more than 500 buildings in NSW that were built in the past six years found 36 per cent had serious defects, with just 17 per cent reported to the regulator.

Around a quarter related to water leaks and moisture, 15 per cent with fire safety systems and 10 per cent had structural issues, and 6 per cent had non-compliant cladding.

A further raft of protections for apartment buyers in NSW came into effect this month including a requirement for designers, engineers and builders who work on apartment buildings to be registered.

David Chandler said body corporates risked defects in their buildings becoming revealed in a "very public way" if they did not report them to Fair Trading

jchancellor-FAypfDUnLy

NSW strata owners keeping apartment faults secret as Fair Trading appoints more inspectors

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GUEST OBSERVATION
If you own an apartment – or are thinking of buying one – the recent news about building quality <a href="https://theconversation.com/would-you-buy-a-new-apartment-building-confidence-depends-on-ending-the-blame-game-122180">has been worrying</a>. There have been evacuations at the <a href="https://theconversation.com/there-are-lessons-to-be-drawn-from-the-cracks-that-appeared-in-sydneys-opal-tower-but-they-extend-beyond-building-certification-109428">Opal</a> and <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2020-11-24/mascot-towers-apartment-owners-still-living-in-limbo/12911968">Mascot</a> apartment towers in Sydney, cladding fires at the <a href="https://theconversation.com/lacrosse-fire-ruling-sends-shudders-through-building-industry-consultants-and-governments-112777">Lacrosse</a> and <a href="https://theconversation.com/cladding-fire-risks-have-been-known-for-years-lives-depend-on-acting-now-with-no-more-delays-111186">Neo200</a> towers in Melbourne and the <a href="https://theconversation.com/grenfell-tower-inquiry-expert-explains-four-main-findings-and-how-emergency-services-must-improve-126163">Grenfell Tower tragedy</a> in London. While most buildings won’t have such serious defects, many do have significant problems, and owners must get these fixed so they aren’t a health and safety risk.
Even if the defect doesn’t affect their apartment, this is often the shared responsibility of all owners in the building. It’s essential they have access to good guidance on dealing with defects in strata properties – but this isn’t always easy to find. To help owners, we’ve worked with the <a href="https://nsw.strata.community/">Strata Community Association (NSW)</a> to produce a <a href="https://cityfutures.be.unsw.edu.au/research/projects/defect-rectification/">free guide to rectifying defects</a>.
<a href="https://images.theconversation.com/files/372949/original/file-20201203-23-1770psg.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/372949/original/file-20201203-23-1770psg.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="screenshot of strata defects rectification guide home page"></a> The online guide to rectifying defects takes apartment owners step by step through what they should do. <a class="source" href="https://cityfutures.be.unsw.edu.au/research/projects/defect-rectification/">City Futures Research Centre, UNSW/SCA (NSW)</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a>
This how-to guide takes current and potential owners through the steps of identifying and rectifying defects, with links to helpful resources. It includes advice on getting a defect report, whether the developer or builder might be responsible for fixing the issue, how to choose and manage building experts, and how to manage communication with owners and workers.
The guide has been developed for New South Wales, but may also be helpful if you have a strata property elsewhere in Australia.
So what key things should owners know?
Each building’s experience with defects will differ. But there are some key principles owners should always keep in mind – these underpin all the advice in our guide.
Ignorance isn’t bliss: as an owner, you are automatically a member of the <a href="https://www.fairtrading.nsw.gov.au/housing-and-property/strata-and-community-living/strata-schemes">owners corporation/body corporate</a>. This means you have a legal <a href="https://www.fairtrading.nsw.gov.au/housing-and-property/strata-and-community-living/strata-schemes/responsibilities-of-the-owners-corporation">responsibility to maintain and repair the common property</a>, including dealing with defects.
Information is power: gather all the information you can when investigating defects. For buyers, a good strata report is essential. For owners of new buildings, getting a professional defects report is particularly important. It’s worth the cost.
Focus on potential fire, waterproofing or structural issues. These defects can be hard to see but expensive to fix. They also have major impacts on health and safety.
The early bird catches the worm: you can never start looking for and dealing with defects too early. Be aware of time limits on building warranties.
In NSW, for minor defects, you have two years to start the process of getting the builder or developer to fix the defect. For major defects, you have six years. If your building is outside the warranty period, you may have to fund rectification yourself.
Sharing is caring: make sure you report defects to people who need to know. This will include your owners corporation, but also your insurer(s) and <a href="https://www.fairtrading.nsw.gov.au/help-centre/online-tools/make-a-complaint">Fair Trading</a> (especially if the defect is major).
Keeping good records is also important. Records are needed in case there are disputes and to show future buyers the building is well-maintained.
Look after yourself: dealing with defects can be financially and emotionally draining. Conflict can occur, and collective decision-making can feel very slow.
To help navigate the process, you want the best experts by your side. They include lawyers, building specialists, strata managers and project managers. And always get a second opinion if in doubt.
What else can be done to improve the situation?
While our guide will help apartment owners and buyers to work through defect issues, state and territory governments could also do more to help out owners.
Since the Opal Tower evacuation, the NSW government has <a href="https://www.fairtrading.nsw.gov.au/about-fair-trading/legislation-and-publications/changes-to-legislation/building-industry-reforms">moved to tighten building laws</a> to reduce future defects.
These legal changes are important, but they are unlikely to completely get rid of building defects. And buildings built before the new laws might still have problems down the track.
One way governments can help owners who face such issues in the future is to make it easier for them to get the information they need to deal with defects effectively and efficiently.
Currently, strata buyers and owners suffer from what economists call “<a href="https://theconversation.com/lack-of-information-on-apartment-defects-leaves-whole-market-on-shaky-footings-127007">information asymmetry</a>” – they don’t have access to all the information they need to make informed decisions about building quality. For example, developers might not give new owners all the details about how their building was built, what materials were used, or which builders and tradespeople worked on it.
Developers should be required to give owners better information, as well as taking more responsibility for fixing defects.
Owners corporations should be encouraged to keep building records on defects up-to-date and make this information available to prospective buyers and relevant authorities.
And governments should support further professionalisation of the strata and building management industries, to make sure owners have the best possible support to navigate defects issues and care for their buildings.<img src="https://counter.theconversation.com/content/150292/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" 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;">
<a href="https://theconversation.com/profiles/sian-thompson-301831">Sian Thompson</a>, Research Associate, City Futures Research Centre, <a href="https://theconversation.com/institutions/unsw-1414">UNSW</a>; <a href="https://theconversation.com/profiles/bill-randolph-147968">Bill Randolph</a>, Director, City Futures Research Centre, Faculty of the Built Environment, <a href="https://theconversation.com/institutions/unsw-1414">UNSW</a>; <a href="https://theconversation.com/profiles/hazel-easthope-175163">Hazel Easthope</a>, Scientia Associate Professor, City Futures Research Centre, <a href="https://theconversation.com/institutions/unsw-1414">UNSW</a>; <a href="https://theconversation.com/profiles/laura-crommelin-15376">Laura Crommelin</a>, Research Lecturer, City Futures Research Centre, <a href="https://theconversation.com/institutions/unsw-1414">UNSW</a>, and <a href="https://theconversation.com/profiles/martin-loosemore-4690">Martin Loosemore</a>, Professor of Construction Management, <a href="https://theconversation.com/institutions/university-of-technology-sydney-936">University of Technology Sydney</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/dealing-with-apartment-defects-a-how-to-guide-for-strata-owners-and-buyers-150292">original article</a>.
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j.ballantyne1990-6AQqhLzZaK

Dealing with apartment defects: a how-to guide for strata owners and buyers

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The would-be residents of Sugarcane and Honeycomb, the uninhabitable Erskineville residential complexes built on possibly toxic land, likely face more months of being unable to access their dwellings.
The City of Sydney Council has concerns about the Chinese-backed developer, Golden Rain Development not meeting the required remediation conditions.
Buyers were told on their purchase to expect an April 2018 move-in date.
In February 2015 timeline expectations were as follows:
<ul>
<li>Demolition of existing industrial buildings on the site</li>
<li>Removal of trees</li>
<li>Construction of a multi-level apartment building with a two-level basement on the southern portion of the site (Sugarcube apartments)</li>
<li>Construction of 18, three-bedroom terrace development on the north portion of the site (Honeycombe Terraces)</li>
<li>Construction of new roads, pedestrian links and public domain works to be dedicated to Council</li>
</ul>
There are ongoing fears of contaminated groundwater on the former Monier roofing tiles site which had residue heavy metals, hydrocarbons and asbestos from its days as an industrial suburb.
Sydney Council confirmed that no final site contamination audit statement had been lodged.
"A private certifier issued the construction certificate to allow construction to proceed on the site despite not having received the final site audit statement," a SCC spokesperson said.
"City staff have been in ongoing discussions with the developer, who has not complied with the development consent conditions concerning remediation of the site."
It advised the developer has since provided further test results of the contaminants on the site and an assessment of the risk.
"Council is currently reviewing this material and is likely to seek some further information from the developer."
A spokesperson for Golden Rain Development said they "understood the delays have caused frustration."
It claimed the delays are due to requests by the City of Sydney relating to testing of groundwater near access roads and pedestrian walkways on the site.
"As Council will take ownership of these roads and walkways, it has asked for the additional testing before the final occupation certificate can be issued for the development."
"Golden Rain Development will continue to work with the City of Sydney to ensure Council is satisfied the site meets all health and safety requirements, and apartment owners can begin enjoying their new homes as soon as possible," the spokesperson said.
The City of Sydney approval came with a required $736,000 by the developer for a walkway.
The projects are within the Ashmore Precinct, one of the City of Sydney's biggest urban growth precincts.
The 17 hectare site, bounded by Ashmore Street, Mitchell Road, Coulson Street and the Bankstown railway line, is expected to have 6,000 residents by 2025.
A Sydney contamination auditor expects there will be a "long delay" for residents in getting into the upmarket projects where studio prices fetched $550,000 plus.
Industry experts have questioned how the project construction began without the necessary documentation in place.
"How did this build ever start in the first place?" a conveyancer said.
In NSW the management of contaminated land is “shared” by the Environment Protection Authority, the state Department of Planning and Environment and local councils.
Both projects were a finalist in "excellence in marketing" at the 2016 UDIA Awards.
The selling estate agents Colliers International declined to advise on the status of the sales contracts secured between 2015 and 2016, along with when the strata plan would be registered.
"All enquiries should be referred to Golden Rain Development," Colliers residential managing director Peter Chittenden said.
It is understood that some buyers have sought to terminate the sales contract and receive a refund of their deposit.
Nearby resales in other unaffected complex have shown no price growth over the past three years.
Golden Rain's ultimate owner is based in the British Virgin Islands.
One local director is 54 year old Bernard Chi, who has a 34th floor Bathurst Street, Sydney apartment. Another associated director is 55 year old Anne Bi, from West Pennant Hills.
The other directors give Hong Kong addresses.
A $1 million Sugarcube buyer Nick Rehac said he was "not allowed to stay here."
"We have no power," he told reporters as he stood in front of a fence preventing him to access the building.
"They took the money."
This article was first published in the Saturday Daily Telegraph.
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Honeycomb and Sugarcube residents to wait on contaminant tests

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The developer of an apartment block neighbouring the beleaguered Mascot Towers has disputed claims it could be to blame for the building's cracks.
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<div id="article-titan-mobile-pos1" class="advertisement">The Mascot Towers residents have been presented preliminary findings from a report into what may have caused the cracking, but the case has not been expressly pinpointed.</div>
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<div class="advertisement">A meeting that lasted nearly 5 hours was held on Thursday night, attended by more than 300 people who were evacuated on June 14 due to worsening cracking and movements that date back many years.</div>
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There had been earlier engineering advice that potentially linked the building's issues partly to Aland's next-door development called Peak Towers.
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But Aland on Friday said it was "completely confident that an independent investigation will confirm that the failures at Mascot Towers are unrelated to construction nearby."
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"We believe the comments of the building commissioner at the NSW parliamentary inquiry support Aland's contention that the problems at Mascot Towers pre-date any work undertaken by Aland."
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After visiting Mascot Towers last week, the newly appointed building commissioner David Chandler told an upper house committee that he'd not seen many building as poorly built.
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"I'm quite certain the builder didn't know how to read any construction plans because the faults that are in that building are simply someone who didn't pay any attention to them," Mr Chandler told MPs.
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A dilapidation report prepared in 2017 for Aland's pending construction found parts of the Mascot Towers complex were in "reasonable-to-poor" prior to the construction of Peak Towers.
</div>
<div class="assets">
It noted cases of cracking, material loss, material separation and efflorescence - the deposit of white crystalline salts on concrete.
The Daily Telegraph reported Aland rejected a request for access­ from lawyers representing the Mascot owners corporation for access because it “did not demonstrate a genuine need from an engineering perspective as to why it was required”.
“The information sought could either have been obtained­ from plans and associated reports relating to Peak Towers, or bore no relevance to the access that was requested,” it said.
Legal proceedings <a href="https://www.urban.com.au/news/100080-not-us-says-aland-as-mascot-towers-crack-concerns-investigated-in-2011" target="_blank">against the adjacent ALAND-built Peak Towers building</a> are being considered after engineers were denied access to the site.  
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Aland deny any Mascot Towers culpability but refuse access to neighbours

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New South Wales Premier Gladys Berejiklian has said the government wanted to assure everyone they know there is a problem with building regulation. 
"We know there's a gap in legislation. We allowed the industry to self-regulate and it hasn't worked," she told reporters on Wednesday.
"There are too many challenges, too many problems and that's why the government's moving to legislate."
 Berejiklian spoke after it was revealed that a Zetland apartment block had been evacuated late last year and has sat vacant for the last eight months.
The Garland Lofts complex, comprising 30 warehouse conversion-style apartments, had a number of problems, most notable the waterproofing issues.
Phillip Bartlett, one of the directors of the now liquidated developer Garland 204 Pty Ltd, noted in an issued statement that "an insurance claim was settled."
"I have a legal obligation to comply with the insurers’ requirements," Bartlett continued.
"There were a number of parties involved and I am unable to make any further comment."
The SMH reported today in 2011, the owners' corporation launched a claim against the builder, Garland Builders Pty Ltd, and the joint developers of the project, Garland 204 Pty Ltd and Garland 204 Retail Pty Ltd.
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They settled an insurance claim in March 2018 for $1.7 million, on the condition the insurance company was released from all further liability.
</div>
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A few months later a contractor embarked on $1.2 million worth of repairs, but in August 2018 owners received a letter advising "unanticipated structural and fire defects" had been discovered by the contractor.
In October the new law firm acting for the owners' corporation, Chambers Russell, circulated a letter calling for the "urgent" evacuation of the building which happened in November.
Water damage had "significantly compromised" the corridor and the separations between units, essential for fireproofing the building.
"The structural integrity of the building has also been brought into question," the letter said.
</div>
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"Significant timber decay and steel corrosion may result in premature structural collapse in the event of fire.
<p data-gtm-vis-recent-on-screen-6236702_632="1562803658255" data-gtm-vis-first-on-screen-6236702_632="1562803658255" data-gtm-vis-total-visible-time-6236702_632="4000" data-gtm-vis-has-fired-6236702_632="1">"Experts have unequivocally stated the strata scheme is not suitable for habitation in its current state as it poses a serious risk to the health and safety of all occupants."
At an information night, residents were told that with the newly discovered defects was "likely to be in excess of $5,000,000 and potentially substantially more".
</div>
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Gladys Berejiklian says the government 'know there's a problem' around building regulations

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Off the plan Sugarcube-Honeycomb, Erskineville buyers have been locked out after contaminants fears.
They join other groups of residents also locked out of their Sydney apartments over safety concerns.
The 127 buyers secured apartments and terraces at Erskineville, in Sydney's inner-west through Ray White Project Sales Division and Colliers International
They were built on an old industrial estate contaminated with heavy metals, hydrocarbons and asbestos.
Sydney Council documents show construction approval for the <a href="http://www.sugarcubehoneycomb.com.au" target="_blank">Sugarcube Apartments and Honeycomb Terraces</a> was contingent on strict conditions for cleaning up the land and groundwater, involving accredited auditors.
The council said the buildings cannot be occupied because the developer did not comply with the conditions.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/7/19/Sugarcube-Honeycomb%20Erskineville%202.jpg" alt="">
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A City of Sydney spokesperson said the developer had “not complied with the development consent conditions concerning the remediation of the site”.
</div>
<div class="_1665V undefined">
The city was in “ongoing discussions” seeking a resolution with the developer, Golden Rain Development Pty Ltd.
“We understand this is a most frustrating situation for all terrace and apartment owners,” the City of Sydney spokesperson said.
</div>
The 109 Sugarcane apartments, and 18 Honeycomb terraces were built at the old Ashmore industrial estate.
When nearing completion pricing in Sugarcube was 1 bedroom for $665,000 with 2 bedrooms for $1,020,000 – $1,060,000.
The Sugarcane apartments were designed by DKO and built by Hamilton Marino.
The Metters Street and Coulson Street, Erskineville development was marketed as set to be ready to occupy in April 2018.
<div class="_1665V undefined">
Golden Rain Development has completed 30 projects across Asia with the Erskineville development promoted as its “flagship project” in Sydney.
</div>
<div class="_1665V undefined">
The buyers have taken to the City of Sydney’s social media pages to vent their frustrations about the “never-ending saga”.
Last week it was revealed that 30 loft-style apartments at 19 Gadigal Avenue in Zetland were <a href="https://www.urban.com.au/news/101102-zetland-apartment-block-in-secret-evacuation-late-last-year-due-to-building-defects" target="_blank">abandoned nine months ago</a> over severe water and fire safety defects.
Cracking also forced the evacuation of <a href="https://www.urban.com.au/news/94143-no-definitive-cause-identified-but-opal-tower-is-structurally-sound-but-needs-significant-rectification" target="_blank">Sydney Olympic Park’s Opal Tower</a> on Christmas Eve last year and the <a href="https://www.urban.com.au/news/99854-mascot-towers-residents-await-causes-of-cracking" target="_blank">Mascot Towers on Bourke Street, Mascot</a> last month.
</div>
 
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<h3> </h3>
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OTP Sugarcube-Honeycomb, Erskineville buyers locked out after contaminants fears

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Building and construction expert David Chandler OAM has been appointed as the new NSW Building Commissioner.
Premier Gladys Berejiklian said the appointment of Mr Chandler was part of the NSW Government’s commitment to implementing the biggest overhaul to building laws in the State’s history.
“David has more than 40 years’ industry experience, which will be invaluable as we move to restore confidence in the building and construction industry,” Ms Berejiklian said.
“We know there are national challenges affecting the industry, but this new appointment will play a key role in protecting NSW homeowners and driving critical reforms.”
The Building Commissioner will be responsible for the investigation and disciplinary action for misconduct in the building industry while overseeing the end to end licensing and auditing across the building industry.
The Commissioner will also drive legislative reforms of the building industry, including consultation with industry.
This will include legislation to be introduced later this year requiring building practitioners to be registered, a new duty of care to make it easier for home owners to seek compensation against negligent building practitioners, and ensuring all buildings are designed and constructed to plans that comply with the Building Code of Australia.
Minister for Better Regulation Kevin Anderson said the Building Commissioner’s priority will be to continue the extensive work that has already been started by the NSW Government to reform the building and construction industry.
“David will lead the implementation of this reform and will advise the Government on additional reforms that may be needed to ensure better protections for homeowners and purchasers, and lift building standards across NSW,” Mr Anderson said.
Mr Chandler has welcomed the opportunity to work with the Government to strengthen the building and construction industry.
“Recent events have reduced community confidence in how buildings are designed and constructed and how they perform, but I welcome the leadership and commitment being shown by the Government to implement change that will strengthen the construction industry foundations in NSW,” Mr Chandler said.
Mr Chandler will start in the position on 14 August 2019.
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jrobinson-rf4aSBido9

David Chandler appointed NSW building commissioner

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Bronwyn Weir, the co-author of a report on how to fix Australia's defect ridden building industry, has said she would not buy a newly built apartment.
"If I was going to be investing in an apartment, I'd buy an older one. It's common sense, isn't it? It's just logical," Bronwyn Weir told Four Corners.
"I wouldn't buy a newly built apartment. No."
Ms Weir, and the former senior public servant Peter Shergold, co-wrote the Building Confidence report commissioned by Australia's federal, state and territory building ministers.
The report was delivered in February last year.
It made 24 recommendations including a crackdown on private certification of buildings and registration of every person involved in the building process.
Finally at a meeting in July this year, the <a href="https://www.urban.com.au/news/102946-how-the-nsw-government-gutted-tougher-laws-on-non-conforming-building-products-four-corners" target="_blank">building ministers committed to implementing the reforms</a>.
But Ms Weir told Four Corners that it would not fix the legacy of decades of inaction.
"Probably the prevalence of noncompliance has been particularly bad, I would say in the last say 15 to 20 years. It's gotten worse over that period. And that means there's a lot of existing building stock that has defects in it.
"[The new reforms] won't improve existing building stock unfortunately. So there'll be legacy issues for some time and I suspect there'll be legacy issues that we're not even fully aware of yet."
Ms Weir said for those looking to buy an apartment, it was more prudent to opt for a building "that maybe is, say, five years plus [of age]".
"You would like to think that if there are major issues with that building, they'll have started to show," she said.
"So I think if people are looking at investing, there are ways to do good due diligence. Buying off the plan is a really tricky proposition at the moment."
But she hoped some better builders would give people assurances it was safe to buy "and try to salvage what has been a pretty damaging impact of these latest news stories".
Watch Sean Nicholls' investigation, Cracking Up, on Four Corners on iview.
 
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Building defects report author Bronwyn Weir wouldn't buy a newly built apartment

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New laws to police dangerous building products in NSW — also called non-conforming products — were whittled down by the NSW Cabinet.
The laws — known as chain of responsibility laws — were meant to ensure every person who used or supplied a product on a building site could be held personally responsible if it failed.
NSW showed a draft bill of its own proposed law privately to building industry groups.
It was based on recent Queensland legislation.
But when the bill entered the NSW Parliament, Four Corners reported the industry was shocked to see it had been "absolutely gutted."
"We counted up about 80 clauses that had been pulled out of the documentation," Rodger Hills, the executive officer at the Building Products Industry Council, said.
"They had taken a lot of time to incorporate all the learnings and findings from the Queensland experience and wrapped it up into a piece of legislation that was robust, it was easy to use, and it would have done its job. 
"The industry representative left that meeting very hopeful that this was something that was going to be useful and it actually worked properly."
Many of the 80 clauses pulled out of the documentation of the proposed bill were clauses around non-conforming building products.
"In fact, the definition of a non-conforming building product wasn't even in the bill," Hills said. 
"All of the clauses to do with chain of responsibility and duty of care, they were all taken out. As were all powers, the recall powers the minister had to recall defective products."
Four Corners confirmed the NSW Cabinet rejected the proposed chain of responsibility law due to concerns it would impose more red tape on the building industry, potentially slowing it down.
The NSW Minister for Innovation Kevin Anderson would not comment on Cabinet deliberations but said: "The NSW Government is currently implementing the largest reform to the building and construction industry in the history of the state."
"As part of those reforms, the Government is considering a raft of measures that will improve the transparency, accountability and quality of work within the sector," he said.
Mr Anderson said the current situation "is a collective making of industry and the need for more modernised legislation".
The 2017 Queensland laws to police dangerous building products — also called non-conforming products — included flammable cladding that was responsible for the fire spreading in the UK's Grenfell Tower.
Watch Sean Nicholls' investigation, Cracking Up, on Four Corners on iview.
 
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How the NSW Government gutted tougher laws on non-conforming building products: Four Corners

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Residents of Sydney’s Mascot Towers won't return to their apartments until 2020.
The earliest timeline is January 2020 while the crack remediation work proceeds.
Residents of the complex’s 132 apartments were <a href="https://www.urban.com.au/news/99854-mascot-towers-residents-await-causes-of-cracking" target="_blank">evacuated in mid-June</a>.
They have since been living in <a href="https://www.urban.com.au/news/100225-mascot-towers-residents-given-temporary-accomodation-assistance-by-nsw-government" target="_blank">temporary accommodation</a>.
Engineers investigating the cause of the problems told last night's extraordinary general meeting of unit owners that some residents
The main item on the EGM agenda was vote on a special levy to pay for remediation work on the complex.
It was for the first of four stages.
The meeting voted to raise a special $7 million levy on the decade-old building which is no longer covered under warranty for major defects, which expires after six years in NSW. 
The quote from Sydney engineers Top Consulting covered fixing general defects, water­proofing and rectification work on an expansion joint and transfer beam. 
Earlier on Thursday, residents were told the NSW government has agreed to extend rental assistance for the displaced residents another six months, out to March 2020, subject to an agreed funding deed.
“The decision has been made following a meeting between the building commissioner, strata manager, building manager and engineers which has led to a more focused line of inquiry for the root cause of the issues faced by the buildings,” Better Regulation Minister Kevin Anderson said in a statement.
Legal proceedings <a href="https://www.urban.com.au/news/100080-not-us-says-aland-as-mascot-towers-crack-concerns-investigated-in-2011" target="_blank">against the adjacent ALAND-built Peak Towers building</a> are being considered after engineers were denied access to the site. 
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