Page 31 - Climate Control News Magazine October 2018

Insulation & Ducting
Lacrosse owners seek damages for cladding
THE OWNERS OF the 328 apartments in Mel- bourne’s Lacrosse resi- dential tower began their long awaited case for damages against builder LU Simon last month.
The Lacrosse owners are seeking $24 million in damages over the combustible cladding on their building which contributed to the spread of a fire in the building
in November 2014.
They are seeking $10.7 million in recladding
costs, $1 million in lost rent and emergency ac- commodation costs and over $500,000 in insur- ance premium hikes. In the interim the Lacrosse owners are in the process of finalising an $11 million loan to replace the cladding.
The Lacrosse owners are just one group of a number of apartment owners across Australia dealing with the cladding problem.
Victoria identified 1400 buildings with com- bustible and potentially dangerous cladding that has to be replaced. Other states are undergoing a similar process.
Queensland identified 1200 buildings in a state audit while NSW and South Australia are going through a similar process.
In August a ban was introduced in NSW which could lead to fines of up to $1.1 million for using
Victoria provides loans to ensure cladding is replaced.
LEFT: Lacrosse Towers, Melbourne
FAR LEFT: Planning Minister, Richard Wynne.
cladding with a core comprised of more than 30% polyethylene.
The statewide prohibition affects any form of combustible building material used in external cladding, external walls, exter- nal insulation, facades or rendered finishes for multi-storey residential and commercial buildings.
Building owners and strata bodies can now be issued with rectification orders requiring them to undertake remediation and removal work.
Queensland will enact legislation next month
that will also require owners to change combusti- ble cladding, it is also likely to include penalties.
According to a report in the Australian Finan- cial Review (AFR), the Lacrosse owners have seen their annual insurance premiums inflated by 80 per cent due to the ongoing presence of the cladding on their building.
Since 2016, as much as $534,270 out of the to- tal $1,023,209 paid in insurance was attributa- ble to cladding-related premium rises, Owners Corporations chairman Jeffrey Dawson said in a witness statement. ✺
NO FINANCIAL SUPPORT
NSW isn’t planning to provide financial support to building owners and strata bodies hit with rectification orders under the Building Products (Safety) Act.
If rectification orders are not acted upon owners or strata bodies can be hit with fines totalling $110,000 per day until the matter is addressed.
NSW won’t even provide financial support for residential buildings despite the high cost of replacing the dangerous cladding.
Victoria provides low-interest, long- term loans to building owners to replace the combustible polyethylene-core aluminium cladding.
Victorian Planning Minister, Richard Wynne, introduced legislation to create Cladding Rectification Agreements between building owners, local councils and lenders.
The low-interest loans are guaranteed by local authorities through their rates system.
Owners can pay back the loans through
their rates over a minimum period of 10 years. If they sell the property in the meantime,
the outstanding cost will transfer to the new owner.
The introduction of the rectification agreements are part of recommendations made by Victoria’s Cladding Taskforce.
Wynne said it is only available for residential buildings.
“This scheme is the first of its kind anywhere in the world and offers owners the cheapest and most efficient way of fixing their buildings,” Wynne said.
The NSW government has no plans to follow suit although Fire and Rescue NSW reviewed 185,000 buildings and identified 435 as potentially high risk, demanding owners and building managers take action.
While the names and addresses of these buildings have not been made public, owners of a 19-storey building in Pyrmont face a $7 million replacement bill.
CLIMATE CONTROL NEWS OCTOBER 2018
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© PETER CLARKE PHOTOGRAPHY