NSW: Project Intervene FAQs as deadline extended 30 Nov 2023

The LookUpStrata Team

11 months ago

A few weeks ago, we conducted a webinar featuring Sedgwick and the Project Intervene team, where we discussed the benefits of registering for the project if your NSW strata building has building defects.

Table of Contents:

QUESTION: Project Intervene is a program to resolve serious defects in the common property of buildings that are up to ten years old. So what is the definition of a serious defect?

QUESTION: Our building has defects. As a lot owner not on the committee, how do I ensure we register our building for Project Intervene?

QUESTION: Project Intervene FAQs as deadline extended 30 Nov 2023

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Question: Project Intervene is a program to resolve serious defects in the common property of buildings that are up to ten years old. So what is the definition of a serious defect?

Answer: A serious defect is a failure to comply with the performance of the Building Code of Australia.

A serious defect is a failure to comply with the performance of the Building Code of Australia. This may include defective design or faulty workmanship relating to five elements:

Waterproofing: mould, water ingress, membrane failure. Examples – often seen in planter boxes, rooftop balconies or roofs.

Structure: Internal and external load bearing components of a building that are essential for the stability of the building or part of it. Examples – cracks in concrete over three millimetres and where movement is evident, seepage from cracking, and honeycombing.
Fire Safety Systems: fire safety systems for a building within the meaning of the Building Code. Example – obstructed sprinklers.

Enclosure: Separates the interior from the exterior, including windows, doors, walls, roof and cladding. Examples – water ingress around cavity flashing, leaking windows, cracking facades, combustible cladding and shattered balustrades.

Services: mechanical, plumbing and electrical services. Examples – incorrect height of fire hydrants, obstruction to fire safety equipment, missing fire safety equipment, inadequate ventilation systems, and non-compliant switchboards.

Bruce McKenzie Sedgwick E: bruce.mckenzie@au.sedgwick.com P: 1300 735 720

This post appears in the September 2023 edition of The NSW Strata Magazine.

Question: Our building has defects. As a lot owner not on the committee, how do I ensure we register our building for Project Intervene?

I am a lot owner not on the committee but certainly involved in my building. I know our building has severe defects. I’ve heard about Project Intervene. Do I jump on the Project Intervene site and fill in the registration form so our building is registered before the 30 November deadline? What is the first step to become involved?

Answer: If an owner is concerned about defects, please raise Project Intervene with your strata manager or the strata committee and an agreement can be reached to register for the program.

We prefer the registration form is completed by an authorised representative rather than an individual owner. We’re looking at serious defects in the common property, so if an individual owner has noticed something in the common property, please raise this with your strata manager or the strata committee, and an agreement can be reached to register for the program.

The 30 June deadline was recently updated to 30 November. This sounds like a fair way away, but you really need to start getting organised to make that deadline. When it comes to registration, the sooner, the better.

It’s an easy process to register for Project Intervene. We have information available on our web page. Try to provide as much information as possible so we can consider the application and see if your building meets the eligibility criteria. We may reach out to the strata manager to seek further information. If you’re unsure if you meet Project Intervene criteria, we suggest you still register and Fair Trading may still be able to assist.

The Team at Project Intervene NSW Department of Customer Service

This post appears in the August 2023 edition of The NSW Strata Magazine.

Project Intervene FAQs as deadline extended 30 Nov 2023

Good news! The registration deadline for Project Intervene has been extended to the 30 November 2023. You can find out more about registering for the project here: Project Intervene.

The webinar generated significant interest from the NSW strata community, resulting in numerous questions before, during, and after the session. Due to the high volume of questions, we couldn’t address them all during the webinar. Below, you’ll find the responses to the remaining queries from our audience.

Watch the recording of the webinar

What is the deadline to register for Project Intervene?

Question: What happens after Project Intervene? Defects will keep appearing after that. Why is this project only for a limited time?

Answer: Project Intervene was introduced as a surge project using new legislative powers in the Residential Apartment Building Act. It is intended to quickly identify and remedy apartment buildings that we know have serious defects that were completed before the new legislation was introduced. However, the work of Project Intervene will continue after the program ends. The registration deadline for the project has been extended to 30 November 2023. After that time, Owners Corporations with serious defects should continue to lodge their serious defects complaints with NSW Fair Trading.

Eligibility for Project Intervene: who should register?

Question: Does a building with 3 floors and two basement car parks qualify for Project Intervene?

Answer: No, a building with three storeys is not eligible for Project Intervene. Storeys are counted from the ground. Project Intervene is focused on buildings which have four storeys or more and had an occupation certificate issued no more than six years ago as we believe serious defects in these buildings have the most impact on consumers. However, residential apartment (class 2) buildings that are less than four storeys and up to ten years old are still covered by the Residential Apartment Building (Compliance and Enforcement Powers) Act 2020 (NSW). Owners Corporations of these buildings should register their serious defects complaints with NSW Fair Trading.

Question: Is Project Intervene applicable for roofing rectification works on a building originally completed over 20 years ago?

Answer: No. Project Intervene uses powers under the Residential Apartment Building (Compliance and Enforcement Powers) Act 2020 (NSW) which applies to buildings up to ten years old. If however, the roof rectification work completed is defective and still under statutory warranty, an Owners Corporation may be able to apply to Fair Trading for assistance.

Question: Our building is approximately 13 years old. The recent fire safety report identified major defects and we have had to raise special levies to pay for remediation of the defects. We are now required to have a A1 Certifier to ensure the work is done correctly and is compliant. These defects are because of builder neglect. Can our strata register for Project Intervene?

Answer: No. Project Intervene uses powers under the Residential Apartment Building (Compliance and Enforcement Powers) Act 2020 (NSW) which applies to buildings up to ten years old, to compel the developer or builder to fix the serious defects. You could register your building’s serious defects with NSW Fair Trading and they may be able to assist.

Question: Our building is 10 years old. We have obtained defects reports and commenced litigation within the 6-year period. The litigation process is becoming very long drawn. Can we register for Project Intervene?

Answer: Yes, you can register with Project Intervene. However, we suggest this is done very quickly noting the 10-year period that applies to the Residential Apartment Building (Compliance and Enforcement Powers) Act 2020 (NSW).

Question: We are in the process of getting expert reports. Should we continue to do this or stop and register for Project Intervene? Our apartment block was handed over in October 2018.

Answer: You can register for Project Intervene. If your building is eligible we will arrange for a building inspection to be carried out. We may ask to see any existing reports as part of our inspections. The decision about whether to continue with your own expert reports is for the Owners Corporation to make.

Question: We have a report identifying our defects – some serious and some minor. All are listed on a spreadsheet indicating what has been fixed and what is still outstanding. Do we upload this file along with our registration to Project Intervene?

Answer: Yes. The more information you can provide us, the better. If your building is eligible for the program, we will arrange for an inspection to be carried out to be satisfied that there are serious defects.

Addressing issues with a developer or builder

Question: What happens if a builder does not want to sign the deed and ignores the Building Work Rectification Order (BWRO)? What are the powers of enforcement?

Answer: An Undertaking is voluntary for both the developer or builder and the Owners Corporation. We cannot compel the parties to sign an Undertaking Deed Poll. However, if the developer or builder does sign an Undertaking Deed Poll, then it is enforceable. If an Undertaking cannot be achieved, a Building Work Rectification Order (BWRO) may be issued. A BWRO has very high penalties for non- compliance.

Question: What happens if the developer has attempted to but didn’t fix the defects? Do we still apply to Project Intervene?

Answer: Yes. If the serious defects have not been satisfactorily remediated, then you should apply for Project Intervene. As part of the application process we ask for evidence of serious defects. You should include an explanation of what has happened in your building with the (unsuccessful) attempts to fix the defects. See our web page for more information including an application template.

Question: We have an agreement in place with the developer to fix the defects. Should we still register for Project Intervene in case the developer does not complete the work?

Answer: If there are still unresolved serious defects, the Owners Corporation should consider registering for Project Intervene. We may be able to get timeframes agreed for the serious defects to be fixed.

Communication during Project Intervene

Question: I’d like our building to participate in Project Intervene. If we are accepted and during the process, owners wish to receive updates on the progress of the project and the strata committee or the strata manager are not passing on information, are there options for owners to obtain updates on the progress?

Answer: The Undertaking Manager is the person who is central to communicating with all stakeholders. The Undertaking Manager would typically liaise with the developer and the strata manager or Owners Corporation. The communication with all owners should happen through the strata manager or an authorised representative of the Owners Corporation. It is not practical to provide multiple updates to various owners.

Program success

Question: What success rate has Project Intervene had so far in getting serious defects fixed?

Answer: The success rate is not straightforward to quantify as there are a range of reasons an Owners Corporation or a developer may not proceed with an Undertaking. At the time of writing, we have had 51 building inspection reports issued to a developer with seven Undertakings signed and a further 16 currently in negotiation. Put another way, Project Intervene is providing a positive impact.

Owners corporation’s role in Project Intervene

Question: To apply for the project, is a meeting of strata committee members enough or do we need a full meeting of the owners corporation?

Question: Is an owners corporation resolution required for initially applying, or can it be a strata committee resolution? And if the strata manager has the delegation of the chair/secretary/treasurer, can they register if there has not been time to call a meeting?

Answer: There is no need for a formal resolution at a general meeting of the owners corporation. However, there should be agreement among the strata committee to register for Project Intervene. The strata manager may have the authority to do this.

Question: What if the strata committee doesn’t want to address the defects?

Answer: A key step in Project Intervene is the owners corporation registering in the program. The owners corporation of any building has an obligation to maintain the common property including to have serious defects fixed. If however, the reason they do not want to address the defects is because the developer still owns a proportion of the dwellings or because the owners corporation are poorly informed about their responsibilities, there may be some room for NSW Fair Trading to act.

How do we register for Project Intervene?

If your building has defects and you have not registered for Project Intervene, you can find out more and here: Resolving serious defects in residential apartment buildings less than six years old: Project Intervene. The new deadline for registrations is 30 November 2023.