Building Oversight Failures

An Opal Tower resident is allowed to move back in only to find there is no water.

And an article regarding the shonky NSW private building certifiers.

https://www.msn.com/en-au/news/australia/building-certifiers-leave-a-trail-of-chaos/ar-AAFeWGF?ocid=spartandhp

Move along folks. Nothing to see here.

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It just keeps going from bad to worse.

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Or?
$100,000 per owner give or take a bit more perhaps.

It’s likely that the Owners Corporation or Body Corporate may only require a simple majority to bind the other half of the owners, many may be feeling helpless and left out.

It’s also worth noting that building insurance typically does not cover foundation failure. Owners are 100% dependent on the quality of the geotechnical assessments, ground works design and conforming construction. All soon covered up, never to be seen again? In more ways than one.

Historically property defects/failures became such an issue in NSW where there had been extensive underground coal mining, the NSW Government stepped up and put in place the Mine Subsidence Board. It’s job, to assess building damage, failures and loss due to ground movement above old mining areas and determine remedy/compensation.
Note: An overhaul of the legislation has recently split the responsibilities, although the Minerals Council web site does not reflect the change.

What ever the current causes of the failures in high rise construction, it is not the fault of the property owners. Construction has occurred with the acceptance by the State of the benefits to the community through the construction activities and housing provided. There is a precedent for at least one State Government footing the bills. Although it may need to change policy in Lib and Nat Party Head Office.

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Let the buyer beware is probably very much in force at some Poltical Parties headquarters (unless the buyers are very strong supporters of those political parties). The adage (perhaps the “not best use” of that word but it suffices) that the market will correct itself is probably a strong mantra with some.

I worked it out to about $76,000 per unit at a $10 million bill so depending on the number of owners per unit and how many units each may own or part own it could be much less, the same, or very much more than the $76,000 per owner. Still not a bill I would be happy to face at any level. The article however expressed that the $10 million was based on “at least” and only “stage one” of the works so could be very substantially more and a much greater hit per unit. From the article…“vote on a $10 million “special levy” to fund “stage one” of the remedial works for the 132-unit block”. How many stages and how many levies until it is fixed is yet to be revealed.

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This could, not saying it is, be part of the governments ‘jobs’ planning. Remediation creates construction work, lawsuits keep the silks going, and so on.

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Some commentary from our CEO on the issues being discussed here:

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Some scathing comments by the NSW Building Commissioner regarding Mascot Towers.

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I thought he was being polite,
“I’m quite certain that the builder didn’t know how to read any construction plans, because the faults that are in that building are simply someone who didn’t pay any attention to them,” he said.

The alternative is the builder did know and chose not to. Something that requires more than opinion to prove.

Given that there are multiple levels of knowledge, skill and expertise required on such a project, there would likely be more than just one individual similar opinions might apply to. :rage:

P.S. there is possibly an undertone in the report which suggests we may see a, “it’s just a few bad apples in the barrel” campaign from the industry. Point the finger at Mascot Towers, and a few others, before insisting the system works. No need to change anything?

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A study has found that 70% of Apartments, Units and Flats built since 2003 had at least 1 defect in multiple locations with Waterproofing and Fire Safety systems being the most prevelent problem in NSW. With a number approaching 700,000 built since 2000 one of the Study’s authors says “we’ve got a serious problem here”. ABC’s 4 Corners will air the story called “Cracking Up” on Monday 19th of August 2019 at 8.30pm on ABC TV and iview if you want to watch it.

To read the ABC article see:

To download the paper by Dr Nicole Johnston & her co-author AProf Sacha Reid the link is:

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Tonight’s Four Corners will likely be of interest to those following this thread:

https://www.abc.net.au/4corners/cracking-up/11414814

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Another day another report that condemns the industry (well a report from 2018 but who’s counting :smile:):

The report the article refers to is able to be downloaded here:

https://www.industry.gov.au/sites/g/files/net3906/f/July%202018/document/pdf/building_ministers_forum_expert_assessment_-_building_confidence.pdf

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@Drop_Bear. ‘Aust faces $6.2B Bill for unit defects’

A potentially massive drag on the economy and consumer spending as it already appears many of the costs are going to be worn by the owners.

Does the $6.2B take into account the accommodation costs etc of those who who loose use of their units for a period of time? Look to Townsville after their recent floods to see how this can play out?

Expenditure on the remedial work is going to reward the same industry that has benefitted from the boom in construction of all these substandard products. Another ‘golden egg’?

P.S.
Choice has recently suggested consumers buying a $40,000 car have less rights than those buying a $40 toaster.

Worse still?
For the B&C industry and a $400,000+ property you have to pay for any warranty yourself, assuming the developer has profit shifted leaving owners to legally pursue an empty shell.

Perhaps not enough to redeem the reputation of car dealerships, or is it? :wink:

Perhaps also the ground has been removed from beneath the proverbial ‘Paul Keating’s Snakes Belly’ to reveal an abyss, the home of opportunistic developers, blind regulators and negligent government. How low can some one go? For the unfortunate victims, It appears there is no known bound in this sorry situation.

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Another day, another (disaster or more).

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Yet another petition calling for yet another Royal Commission. He does raise some good points though.

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Another article regarding this sorry saga which highlights just how much these apartment developers are making.

Yet another article regarding shonky apartments, this time in ACT.

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And another apartment disaster of a different kind.

A structural engineer who designed 200 defective apartments in the NT has had his registration suspended.

Too little. too late for the unfortunate apartment owners.

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Australia has long been owned and operated by the developers and their supporters who receive often substantial political donations. All the parties are happy to take donations from whomever, wherever, and respond to maintain that ‘good will’. If they stall until all these buildings tumble, burn, and are remediated it will die down with only the aggrieved owners still aggrieved.

It is the most common treatment from this government for most anything. Suck it up folks, business is important, you are not as most governmental actions reinforce.

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