Cladding safety plan unveiled

The Victorian government has announced a plan to replace combustible cladding. But the proposed approach has not met with support from all quarters.

Earlier this month, the Victorian Cladding Taskforce delivered its report. It contains the results of audits performed on buildings in Victoria.

Combustible cladding: state of play

The report notes that although some states have begun to address the issues around combustible cladding, Victoria is the first to start identifying the buildings affected. As at July 5, 2019, the taskforce had audited 2,227 Victorian buildings. Of these, 1,069 were found to have combustible cladding.

The report contains almost 40 recommendations. These include calls to improve the culture within the construction industry, to consider introducing statutory duty of care on building practitioners and require practitioners to undertake compulsory continuing professional development on the National Construction Code.

It also recommends that the Victorian government establish a dedicated authority to support owners and occupants through the rectification process.

Cladding Safety Victoria

The government has responded swiftly. Earlier this week, Victorian Premier Daniel Andrews and Minister for Planning Richard Wynne jointly announced a program to tackle high-risk cladding.

“This world-first program will fix the buildings most at risk and keep Victorians safe,” said Andrews. “Combustible cladding is a national problem and we want the federal government to be part of the solution here in Victoria.”

The plan is based on a $600 million package that will be overseen by Cladding Safety Victoria, a new agency established manage the procurement of rectification works for existing buildings with combustible cladding.

The $600 million funding announcement includes a $300 million contribution from the Victorian government and an intention to raise the other $300 million through changes to the building permit levy. This is currently set at 0.128 per cent of the cost of building work. It is believed that it will increase to 0.82 per cent.

Who carries the cost?

The Property Council of Australia has responded by supporting government’s commitment to safety, but strongly criticising the plan for funding the initiative.

“The Government is proposing a 700 per cent increase in the levy for new buildings valued at more than $1.5 million,” said Matthew Kandelaars, Victorian Deputy Executive Director of the Property Council of Australia.

“The increases which are being proposed for new projects are disproportionate and unreasonable when you consider that the buildings being targeted for rectification have previously been lawfully approved under the Victorian building code.

“We understand and support the imperative to strengthen public confidence in construction and building safety and address the looming insurance crisis. However, a unilateral and massive increase in construction costs is not the answer.”