OWNERS PREPARE FOR FIRESTORM
GOLD Coast unit owners are bracing for six-figure reparation bills under the State Government’s new combustible cladding laws.
The Queensland Building and Construction Commission (QBCC) has written to the owners of 1300 Gold Coast buildings – including 217 bodies corporate – asking them to investigate the materials used in homes or face heavy fines.
Peak residential groups warn the owners of buildings found with defects would have to foot the repair bills to stop a repeat of last year’s Grenfell tower fire disaster in London, which claimed 72 lives.
The QBCC estimates 12,000 private buildings across Queensland will need to be reviewed, but believes most buildings are safe.
GOLD Coast unit owners face bills of tens of thousands of dollars for reparation works under new State Government combustible cladding laws.
The Queensland Building and Construction Commission (QBCC) has written to the owners of 1300 Gold Coast buildings, asking them to investigate materials used in their homes or face fines of up to $20,000.
Of those 1300 letters, 217 were sent to bodies corporate.
The QBCC estimates 12,000 private buildings across Queensland would have to be reviewed, but believed most buildings were safe.
However, peak residential groups warn that the owners of buildings with defects would have to pay for repairs to stop a repeat of last year’s Grenfell tower disaster in London.
“It is a massive issue which could cost building owners who have this cladding thousands to rectify, or damage the price of their property,” said Burleigh Heads unit owner Mike Murray, who has been part of the QBCC stakeholders committee discussing the new cladding laws.
“Some unit owners might be looking at levies of up to $100,000 each from their body corporate to fix the work.
“A majority of unit owners on the Gold Coast are retirees. They simply don’t have thousands just sitting around.”
Unit Owners Association Queensland president Wayne Stevens said owners could pursue builders for the fees through legal action. However, warranties may have expired or the company may no longer be operating.
He said he did not believe the State Government would foot the reparation costs.
“Possibly there could be recourse and we would like that, but I don’t believe it has been considered,” he said.
The responsibility for disclosure of the unsafe materials could also affect sellers who hope to get out of the market before the litigation storm hits.
Frank Higginson, director of Hynes Legal, said real estate agents and sellers had an obligation to disclose defects.
“Absolutely this will cost money if your building is found to have non-conforming cladding,” he said. “In my view, if there are potential defects, a unit owner is required to disclose that to a buyer.”
Johnathan Barnett, of the fire safety engineering and forensic engineering firm Basic Experts, said reparation costs in other states had run into the millions.
“I know of a 24-storey building that has $11 million in rectification works, so it does not come cheap,” he said.
Mr Barnett said not all combustible cladding would need to be removed. “None of this is simple. The cost is high but it depends on the case as to who pays for it,” he said.
“Once determined, an owner needs to decide if they want to go ahead with the rectification works, though a document stating the building is unsafe might be enough.”
Buildings of three storeys or more built from 1994 onwards must be registered by March 29, 2019.