Relevant for Any Owners Corporation with Combustible Cladding on Their Building.

On 18 October 2021, the NSW Supreme Court delivered a landmark judgment in the case of Taylor Construction Group Pty Ltd v The Owners – Strata Plan No. 92888 [2021] NSWSC 1315, confirming that biowood cladding is combustible cladding that poses a risk of fire spread between levels on the façade of an apartment building. Muellers represented the successful owners corporation in NCAT and also in the Supreme Court – a WIN for all owners corporations.

Senior Lawyer, Faiyaaz Shafiq, JS Mueller & Co Lawyers, said, “The outcome of the case represents a major win for owners corporations strengthening the basis for claims by owners corporations against builders and developers who have installed combustible cladding on their buildings.”

“I have no doubt it will see a marked shift in the way in which builders and developers respond to combustible cladding claims”, said Faiyaaz.

The owners corporation initially commenced proceedings in NCAT against the builder and developer seeking orders that biowood cladding installed on the façade of its building be replaced or compensation be paid to cover the cost to replace the cladding.

The owners corporation claimed that the cladding was combustible or created an undue risk of fire spread in breach of the statutory warranties under the Home Building Act 1989 because it did not comply with the Building Code of Australia and was not fit for its purpose.

NCAT ordered that the defective biowood cladding be rectified by the builder and developer. The builder/developer appealed NCAT’s findings to NCAT’s Appeal Panel which dismissed the appeal.

The builder/developer then appealed to the NSW Supreme Court.

The NSW Supreme Court on 18 October 2021 gave a comprehensive judgment dismissing the appeal. In doing so, the Court accepted the owners corporation’s arguments that:

1. biowood cladding is combustible;
2. there is a risk that fire will spread beyond the floor of origin because the material from which the biowood is made will support fire spread between the levels of the building;
3. there was evidence from the fire safety engineer of the owners corporation that there is an undue risk of fire spreading due to the biowood;
4. there was no evidence to support the contention of the builder/developer that a slower rate of fire spread does not present an undue risk in comparison with a higher rate of spread; and
5. there was evidence that sprinklers or any other fire safety measure would have no relevance to external fire spread.

Furthermore, the Court also agreed with the owners corporation’s submission that combustible cladding is not fit for purpose which is one of the categories of the statutory warranties under the Home Building Act 1989.

The Court has reaffirmed the view that the fundamental fire safety requirement for a class 2 apartment building requires external walls to be non-combustible, and cladding installed in a multi-storey apartment building which does not comply with the BCA is not suitable for the purpose for which it is used.

The Court’s judgment confirms the view the owners corporation always held that biowood poses an unacceptable fire safety risk.

The Court’s judgment is a landmark ruling that is relevant to any owners corporation that has combustible cladding on its building.

The ruling strengthens the basis for claims by owners corporations against builders and developers who have installed combustible cladding on their buildings and should see a marked shift in the way in which builder and developers respond to those claims.

Note: Faiyaaz Shafiq of JS Mueller & Co Lawyers acted for the successful owners corporation and was assisted by barristers Tom Davie and Anita Power of Queen’s Square Chambers.

If you or your owners corporation require advice about combustible cladding, please contact our expert team now.

For all NSW strata legal advice including by-laws, building defects and levy collections contact us here or call 02 9562 1266, we’re happy to assist.

The NSW Government has recently established a Cladding Taskforce known as ‘Project Remediate’.

This Taskforce will:

• Identify residential buildings with potential combustible cladding issues
• Address the use of non-compliant cladding materials with local councils

As of February 2021, 185,000 building records have been audited by the Taskforce with 4,127 buildings inspected.

It is important to note that not all cladding is dangerous. Fire + Rescue NSW (FRNSW) have been engaged to assist the Taskforce in determining building risk. Those buildings considered a higher risk will be further referred to consent authorities such as their Local Council or the Department of Planning, Industry and Environment (DPIE) for further investigation.

Register your interest in ‘Project Remediate’ here.

What is ‘Project Remediate’?

‘Project Remediate’ is a 3 year program designed to help remove combustible cladding from eligible residential buildings who will receive:

• Interest free loans over a 10 year period with loan payments commencing after the completion of work
• Assurance and project management services offering technical, risk and practical support to owners corporations and strata managers
• A free 2-hour course on Project Remediate (free until 30 September 2021, following a fee of $140.00 will apply). This course is designed for strata managers and committee members of affected buildings to help them explain ‘Project Remediate’ to lot owners, to enable lot owners to make informed decisions.

Who is Eligible for ‘Project Remediate’?

To be eligible for ‘Project Remediate’ support, the building must be either:

• A residential apartment building (Class 2) located in NSW approved by the Taskforce to have a high-risk combustible cladding façade which requires remediation
• A multi-use building which has part commercial/residential located in NSW approved by the Taskforce to have a high-risk combustible cladding façade which requires remediation

Do you need More Information on ‘Project Remediate’?

For more specific information please visit:

• Strata, Building, Property and Maintenance Managers
• Lot Owners and Landlords
• Real Estate and Property Managers
• Register your interest in ‘Project Remediate’ here.

Do You Need Further Assistance with Combustible Cladding Issues?

Combustible cladding (and building defects) is a complex area of the law.

The team at JS Mueller & Co Lawyers has unparalleled knowledge and experience dealing with many cases in this complex area of the law.

JS Mueller & Co Lawyers published flammable cladding cases:

• Muellers Win First Cladding Case in NSW
• Apartment Owners Win Legal Victory Over Combustible Cladding
• Faiyaaz Shafiq, Wins Landmark Ruling On Apartment Building Risk
• Builder Loses Lawsuit and Must Replace Flammable Laminates on the Exterior Walls of Residential Building
• Apartment Owners Face Millions of Dollars in Re-cladding Bills in Landmark Ruling
• Undue Fire Risk: Wood Cladding Used on Hundreds Of Buildings Including McDonalds Ruled ‘Combustible’
• NCAT Confirms Biowood is Combustible
• NCAT Rules Biowood Cladding is Combustible
• The Combustible Cladding – You Don’t Know About

If you would like assistance with flammable cladding (and/or building defect) issues, please contact us now, we are here to help you.

As combustible cladding is fast becoming a major focus for multi-storied buildings in New South Wales, lot owners and owners corporations are now facing a major bill and headache to replace combustible cladding.

The problem with combustible cladding has been further exacerbated by the current pandemic as a number of lot owners are unable to afford a special levy due to having lost employment. Some are even facing bankruptcy.

Despite these difficulties, some relief for combustible cladding costs has now arrived from the Australian Tax Office (ATO).

In this document we explain the recent ATO ruling to assist in rectifying combustible cladding defects… ATO Provides Relief for Combustible Cladding Costs

For all NSW strata legal including by-laws, building defect and levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.

Late 2019 a major development occurred for the strata industry when the New South Wales Civil and Administrative Tribunal (NCAT) held that Biowood cladding is combustible, poses an undue risk of fire spreading and is a major building defect.

As of yesterday 4 August, 2020…

In a first for Australia, NCAT’s Appeal Panel upheld a 2019 finding by NCAT that Biowood cladding installed on the facade of a multi-storey building in Sydney is combustible and must be removed.

The owners corporation of the building was successfully represented by Mueller’s and is the first reported case where a Court or Tribunal has upheld a finding that a particular type of cladding is combustible.

The outcome of the case represents a win for owners corporations and sends another timely warning to builders and developers that use of combustible cladding is fraught with risk and carries with it substantial consequences.

The first case in Australia (and globally) the decision in this case sets a precedent A Win for Owners Corporation – Biowood Cladding Confirmed Combustible

For NSW strata legal, by-law, building defect and levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.

In a major development for the strata industry, NCAT has recently held that Biowood cladding installed externally on a Sydney building is combustible and must be removed as it is a major building defect.

There are a number of multi-storey buildings in NSW with Biowood panels that are combustible and pose a risk of fire spreading from one part of these buildings to another.

Faiyaaz Shafiq, Senior Lawyer, said, “it is now up to owners corporations and strata managers to ensure these panels are removed and lives are not put in danger.”

Owners corporations of buildings which have Biowood cladding require urgent assessment of the risks involved and their rights in light of this new decision.

For more information… Biowood Cladding NCAT Rules Combustible and also refer to media coverage in the Sydney Morning Herald (SMH) and news.com.au.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

The cost of fixing the unfolding national building crisis involving building defects including the use of dangerous combustible cladding, could soar past $6.2 billion, according to a new economic analysis.

It is estimated that around 3,461 residential apartment blocks across the country have flammable exterior cladding that’s 170,000 apartments mostly constructed in the last 10 years, the majority of these in NSW.

So, what can you do, whilst the issue is being addressed, to mitigate and minimise your strata blocks risk?  Cladding and the Warranty Period – How can you Minimise your Risk?

For NSW strata legal or levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.

Many strata buildings built since the 1990’s contain some form of external cladding as part of their construction.

A significant number of these strata buildings contain cladding that is highly flammable and combustible such as The Lacrosse Building Fire in Melbourne in 2014, and the Grenfell Tower disaster in London in 2017 which now lay bare.

Building owners including owners corporations are now left to deal with what steps to now take to rectify the problem.  A number of buildings, including strata residential buildings of two storeys or more, with certain types of cladding systems, have recently had to register their building under the planning regulation.

In the meantime, whilst we wait for the outcome, what can you do to mitigate and minimise risk? Combustible Cladding By-laws

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.