The So Called Building Reforms [Podcast]

I discuss the recent announcement on building supervision reform with property inside Edwin Almeida. Will it make a difference?

Digital Finance Analytics (DFA) Blog
Digital Finance Analytics (DFA) Blog
The So Called Building Reforms [Podcast]
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Building ministers announce national approach to reforms

A new agreement by the Building Ministers Forum to implement a national approach to reforms is a major step forward in addressing poor building outcomes and restoring community confidence. Via FPA Australia.

At a Building Ministers Forum (BMF) meeting this morning, state, territory and Commonwealth ministers announced a unanimous decision to establish a national approach to implementation of recommendations made by the landmark Shergold-Weir report, Building Confidence.

The new national approach will see an expanded role for the Australian Building Codes Board (ABCB), and establishment of a dedicated implementation team under the aegis of the ABCB. The implementation team will include both government and industry representatives, and will drive implementation of the Shergold-Weir report’s recommendations, including potential changes to the National Construction Code (NCC).

As part of the change, the ABCB’s strategic plan will be recast, and the organisation’s capabilities further strengthened to meet its expanded role and responsibilities.

“The announcement today is a significant step forward for both the building sector, including fire protection, and the community, and paves the way to deliver an important program of reforms,” said Scott Williams, CEO of Fire Protection Association Australia (FPA Australia), who attended the BMF meeting in Sydney.

“Building compliance is a national problem, and we congratulate the BMF on coming together to agree to a national response. The ABCB is absolutely the correct vehicle to drive that response, and its coordination will provide the leadership and stability needed to implement the major reforms required.

“The community’s trust in the building sector has been eroded, and there is a lot of work to be done to restore that by both industry and government. There is no more important time for us to be united and work together to rebuild that trust.”

Victorian Cladding Canary Sings To The Tune Of $600m

The Victorian Government has announced $600m to help cover the costs of rectifying around 400 properties in the state, from about one third of those audited of high-risk dwellings (not so far covering any commercial buildings). Half may be recovered from higher building levies.

This issue will run and run, as it is a country-wide issue, thanks to the deregulation of standards a decade or so ago. The bill will run into billions and take years to fix up. The supervisory approach also needs attention.

It also begs the question of what happens to those residents who have already spent to fix buildings?

The Andrews Labor Government will establish a world-first program to tackle high-risk cladding and keep Victorians safe.

Premier Daniel Andrews joined Minister for Planning Richard Wynne to announce a $600 million package to fix buildings with combustible cladding.

The grants will fund rectification works on hundreds of buildings, found to have high-risk cladding, to make sure they’re safe and compliant with all building regulations.

The program will be overseen by a new agency, Cladding Safety Victoria, which will manage funding and work with owners corporations from start to finish.

The Labor Government will directly fund half of the rectification works and will introduce changes to the building permit levy to raise the other $300 million over the next five years.

Rectification of buildings with high-risk cladding and the establishment of a dedicated cladding agency were key recommendations from the final report from the Victorian Cladding Taskforce released today.

The Taskforce was established by the Labor Government in 2017 to identify how many buildings had combustible cladding and potential solutions to fix them.

The Taskforce has also recommended the Victorian Government seek a contribution from the Commonwealth to help fund rectification, as combustible cladding is a national problem.

The Taskforce, headed by former Victorian Premier Ted Baillieu and former Deputy Premier John Thwaites, has worked with the Victorian Building Authority to identify 15 buildings that will have their cladding fixed first.

Work on these high-risk buildings was funded in the Victorian Budget 2019/20 and will begin in the coming weeks. Cladding Safety Victoria will also be contacting owners corporations and property owners shortly, starting with those whose buildings are at the greatest risk.

The government will also review the state’s Building Act to identify what legislative change is needed to strengthen the system and better protect consumers.

For more information, including a copy of the Victorian Cladding Taskforce’s final report, visit https://www.planning.vic.gov.au/building-policy/victorian-cladding-taskforce