We are hearing lots of stories from numerous OC managers dealing with cladding notices or emergency orders issued by Municipal Building Surveyors to either remove the entire cladding from buildings or at least remove what is considered dangerous where cladding is present adjacent to exit ways and or near firefighting equipment so not to obstruct firefighting personnel in the event of a fire at the location. These notices sometimes only require minimal on site works to satisfy these notices. Roscon assist OC’s in dealing with these cladding notices or emergency orders issued by Municipal Building Surveyors quickly and efficiently.
The establishment of Cladding Safety Victoria by the Victorian Government was supposed to be a world-leading initiative. The $600 million program which was aimed to make Victorians safer by reducing the risk associated with combustible cladding on residential apartment buildings and publicly owned buildings. Since its establishment Cladding Safety Victoria – CSV has been just busy trying to get its head around the cladding and had little time actually removing cladding as the whole cladding matter is kept a secret.
Cladding Safety Victoria recently asked the Government to introduce the Cladding Safety Victoria Bill 2020 (Vic) (CSV Bill) which has been passed.
The aim of this CSV Bill is to essentially do the following:
- Establish Cladding Safety Victoria (CSV) as a separate body corporate.
- Prescribe the process by which CSV will administer the cladding rectification program in Victoria;
- Introduce an extended limitation period of 12 years for cladding building actions; and transfer the existing cladding rectification work functions from the Victorian Building Authority (VBA) to CSV.
- Separates CSV from the Victorian Building Authority (VBA), where it is currently a business unit of the VBA
- Provides for the appointment of a CSV board, CSV chief executive officer and CSV staff in its own right
- Prescribe the process for cladding rectification work
- CSV is to determine if the buildings referred to it will be registered in its program and if it will grant financial assistance for the cladding rectification work.
- And much more.
Originally when the $600 million program was announced by the Victorian Government property owners were somewhat relived on the announcement, however from what I see the funds will be consumed in providing CSV staff salaries, board fees, office premises and paying professional indemnity insurance premiums and a host of other fees they incur over their lifespan.
From my understanding CSV is going to be granting financial assistance by way of loans which it intends to recover from OC and not pay for the total costs of removal and replacement of non-combustible cladding. Typically, another government department who will burn a lot of taxpayers money in setting up the infrastructure and little money going out where it’s needed urgently.
What about commercial premises, how will this be managed by CSV? There are thousands of commercial buildings with combustible cladding around Australia will these be left alone as they pose a lessor risk, there is no clear indication from CSV or other state governments how these buildings are to managed moving forward. In our opinion non-residential buildings should be left alone as the risk has always been there in the past and insurers should stop adding additional premiums to these buildings.
Roscon would like to hear from any OC where CSV has removed the cladding at no cost to the OC as we believe none have been completed since the establishment of CSV. We appreciate confidentiality and we don’t need the address details but looking for feedback from the OC industry.
This post appears in the April 2021 edition of The VIC Strata Magazine.
Paul Cummaudo
Roscon Group
E: info@roscon.com
P: 1800 767 266
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