Act now for serious building defects, owners corporations urged

Time is “running out” for owners corporations wanting to register for an NSW initiative that looks to address serious defects within recently completed and occupied residential apartment buildings.

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The Building Commission said that more than 150 buildings have already registered with Project Intervene, which reportedly supports owners corporations throughout the process of getting serious defects fixed in the common property areas of eligible buildings, at no cost to the owners corporation and without the need for litigation.

With the program registration window closing on 30 November, serious defects covered by the program can include waterproofing, fire safety systems, structural systems and building services.

Once accepted into the program, Project Intervene can facilitate agreement on the serious defect list, ensure compliance and ensure on-time completion. The Building Commission noted the project is an alternative to litigation “which takes years and involves steep legal and expert fees often with little to no result on rectification of the defects”.  

With estimates suggesting owners corporations spend upwards of $330,000 per building attempting to resolve serious defects, Project Intervene follows the release of the 2021 research which found nearly four in 10 buildings – or 39 per cent – had one or more serious defects in the common property.

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More than 50 per cent of these property defects remain unresolved in 2023.

Weighing in on the program, NSW Building Commissioner David Chandler acknowledged that “serious defects within the common property create a significant financial and emotional toll, and owners corporations are often left with years of expensive litigation without any rectification of the defects.

“From facilitating agreements on the list of serious defects to ensuring the remediation work is compliant and delivered on time, Project Intervene provides support to owners corporations and developers,” he explained.

“I would encourage owners corporations wanting to register for Project Intervene to act now as the 30 November 2023 deadline is fast approaching.”

Available to owners corporations of residential apartment buildings of four storeys or more where an occupation certificate was issued within the previous 10 years and there is an active developer to respond to remediation responsibilities, the commission noted that beyond the 30 November deadline, owners corporations who have not registered will once again be directed to go through the standard complaint handling process.

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