Replace flammable cladding through Project Remediate
Project Remediate is a voluntary (opt-in) program to replace flammable cladding for eligible class 2 residential apartment buildings.
Key information
- Project Remediate is a voluntary (opt-in) program to replace flammable cladding for eligible class 2 residential apartment buildings.
- It offers a 10-year interest-free loan and assistance from experts.
- Financial support is available for eligible building owners.
- You will end up with a replacement cladding that is certified, safe, long-lasting and insurable.
Get government support
The NSW Government is offering support to eligible owners corporations to remediate (fix) flammable cladding on residential apartment buildings.
Project Remediate is a three-year program to help remove combustible cladding on an estimated 225 buildings.
It offers:
- 10-year interest-free loans to fund the remediation work
- quality assurance and program management services delivered by experienced professionals.
It is a voluntary (opt-in) program, that only fixes flammable cladding.
Project Remediate
Register your interest
Register your interest in the cladding loan scheme by 16 December 2022.
What happens when you register?
- Your authorised representative registers interest for Project Remediate on behalf of your owners corporation.
- We will check if your building is eligible.
- If it is, we will ask you for documents that tell us about the building and the cladding.
- If it isn’t, you will be notified by the Office of Project Remediate.
- There is no obligation to join the program by registering your interest.
Register your interest by 16 December 2022.
- The Managing Contractor will review your documents and arrange a time to inspect the cladding on your building.
- A design team will work with your owners corporation and local council (or other authority) to prepare two remediation designs.
- The design chosen will be fully documented, quotes for the remediation work will be prepared, and you will be offered a fully priced remediation contract.
- A Lannock Strata Finance relationship manager will present the loan agreement and explain the loan and repayments, terms and conditions, and how the funds are administered.
- The interest-free loan contract and loan payments will be administered by Lannock Strata Finance.
- If your owners corporation decides to continue, you will be asked to approve the remediation design and be presented with contracts for the interest-free loan, program management, remediation designs and other services involved in the work.
- We will ensure that you have all the necessary information and documentation required so that your owners corporation can make decisions.
- The Owners Corporation decides if they want to proceed with the agreed design and join the program, or exit at no cost.
- The Owners Corporation is required to table the Project Remediate loan contract at a general meeting and pass the relevant motions to resolve to borrow.
- The Owners Corporation returns the loan and construction contracts.
- Lannock Strata Finance will review your loan contract and relevant documentation and provide a response within two business days on the status of your loan approval.
- Owners corporation sign contracts.
- Once contracts are signed, the Project Remediate Managing Contractor will schedule the building works.
- Work will begin to replace cladding.
- Residents will be kept updated about the work at all times and will have access to the building and amenities as much as possible.
- The Managing Contractor will respond and act quickly to fix any issues that may arise.
- The building work may take around 180 days (6 months) to complete, depending on the size of the job.
- Once work is complete, a Remediation Assurance Certificate will be provided to the owners corporation. A defects liability period of 6 months will apply.
- Your Owners Corporation will make monthly repayments to repay the interest-free loan via direct debit on the Owners Corporation’s bank account. GST does not apply to the loan repayments.
- The Owners Corporation will levy owners for repayments - although the Owners Corporation can choose the levy cycle, most Owners Corporations issue quarterly levy invoices.
- A Lannock dedicated loan relationship manager will be assigned to you for the lifecycle of the loan. They will be on hand every step of the way to provide advice, support and arrange the servicing and management of the loan.
Retrospective financial assistance
Owners corporations who began cladding remediation work before Project Remediate was available may be eligible for retrospective financial assistance. Applications close 28 February 2023.
What if individual owners can't make the extra levy repayments?
- Residential owner occupiers who have difficulty in making their levy payments for their portion of the loan under Project Remediate can apply for hardship relief. Read our hardship policy.
- Lannock Strata Finance will review applications for hardship relief.
- If it is approved, a hardship certificate will be issued to the owner within 14 business days of receiving an application with all required documentation, and monthly loan repayments from the Owners Corporation will be adjusted accordingly.
- The Owners Corporation will be provided with the Project Remediate Hardship Policy after your Loan presentation session.
Insurance
Project Remediate has arranged public liability, professional indemnity and contract works insurance for all contractors and consultants who do work and provide services under this program.
Public liability insurance
The public liability insurance with Lloyds consists of two policies: the first policy has a claim limit of $20 million and the second policy provides an additional claim limit of $30 million. Together, the two policies provide an overall claim limit of $50 million. It covers contractors and consultants for public liability for the works performed and the services provided.
A ($20m) public liability insurance policy under Project Remediate (PDF 499.86KB)
A second ($30m) public liability insurance policy for Project Remediate (PDF 172.93KB)
Professional Indemnity Insurance
Professional indemnity insurance is provided by Pacific Indemnity Underwriting Solutions Pty Ltd on behalf of Berkley Insurance Company. It covers consultants (for example, designers, superintendents and assurers) for the professional services they provide. It has a limit of $10 million for a claim/building and $100 million in total for all claims/buildings.
Contract works (material damage)
Insurance for contract works (material damage) is provided by QBE Insurance (Australia) Limited. It covers contractors for physical loss or damage to the works they provide or perform. It has a limit of the value of the works at your building up to $10 million for a claim.
How to make an insurance claim
Promptly notify Lockton Australia (the insurance broker for Project Remediate), as soon as possible after the incident or loss has occurred. However, as a general guide:
- Report the incident or loss to Lockton Australia as soon as possible, and tell them what insurance policy you are reporting under.
- Do not admit liability to anyone at any time, even if you think you are at fault.
- Immediately do whatever is necessary to prevent further loss.
- Document as much as possible.
- Complete and email a claim form to Lockton Australia as soon as possible.
Contact Lockton Australia to report an incident or loss, or to lodge a claim at projectremediate@lockton.com or for more information about the insurance policies.
Home Building Compensation Fund (HBCF) insurance under Project Remediate
The Home Building Compensation Fund (HBCF) insurance covers the situation where a builder becomes insolvent. Normally, the builder takes out this insurance, the cost of the insurance is built into the building contract price and an owners corporation can make a claim under the policy.
As Project Remediate provides high-quality assurance and strong insurance coverage to owners corporations that join the program, special arrangements have been negotiated with the State Insurance Regulatory Authority (SIRA) that are unique to remediating combustible cladding under Project Remediate.
These arrangements allow an owners corporation to seek an exemption from paying for HBCF insurance.
If an owners corporation joins Project Remediate, they have the option to be exempt from HBCF insurance, thereby lowering the contract price.
How to apply for an HBCF insurance exemption for Project Remediate
The Project Remediate Managing Contractor, Hansen Yuncken will provide a consent document form to the owners corporation at the same time as providing the remediation contracts. The consent document form is uniquely tailored to Project Remediate because of the quality assurance that the program offers.
If the owners corporation decides at a general meeting to sign Project Remediate contracts, it will be given the option to consent to the contractor applying to SIRA for an exemption from HBCF insurance.
SIRA will make a decision whether or not to grant an exemption upon receipt of documents and information provided. They will consider:
- The information provided about the owners corporation, the building, and the contractor
- Confirmation from the Office of Project Remediate that the owners corporation is eligible to participate in Project Remediate.
The exemption is not available for works done outside Project Remediate.
Contact your Hansen Yuncken Project Manager on remediateconstruction@hansenyuncken.com.au if you need more information about HBCF insurance or the exemption.
Who is doing the work?
Project Remediate uses expertise from across industry, academia, and, government. The Managing Contractor and Global Facade Consultant have a lead role in replacing potentially combustible cladding on buildings. They are guided by the Cladding Product Safety Panel and are supported by a number of other agencies.
Watch the NSW Building Commissioner introduce the Managing Contractor and global façade consultant.
The NSW Building Commissioner introduces the Managing Contractor and Global Façade Consultant.
The Managing Contractor
Hansen Yuncken is the Project Remediate Managing Contractor. As the Managing Contractor, they work with owners corporations and guide them through the remediation process from start to finish, and coordinate all the activities necessary to deliver a safe and durable solution for each building.
The Managing Contractor engages reputable and experienced contractors to perform the remediation work and other services and makes sure that remediation work meets Project Remediate requirements. They also ensure contractors have adequately scoped the work and are able to complete it to Project Remediate standards.
If your owners' corporation has already engaged a builder, they can register their interest for Project Remediate by emailing Hansen Yuncken at remediateroi@hansenyuncken.com.au.
They need to meet the requirements for pre-qualification to participate.
These are the other agencies or officers involved in ensuring combustible cladding is replaced to a high standard.
Global Facade Consultant
ACOR Consultants has been appointed as the Global Facade Consultant (GFC) for Project Remediate.
They develop and maintain a pattern book used to design a remediation solution for each building.
They work in close consultation with the Cladding Product Safety Panel (CPSP) to inform the selection of remediation products and systems to deliver a safe and insurable result.
Building investigators
Building investigators assess, inspect and report on the condition of the existing cladding and external wall build-up, including testing.
Design teams
Designers, architects, BCA consultants and quantity surveyors create and document remediation plans for each building, following guidance from the Global Facade Consultant.
Remediation contractors
Remediation contractors carry out remediation work including coordinating any trade contractors using tendered building contracts.
Superintendents
Superintendents oversee building works, verify that work is completed in accordance with the contract, designs and plans and provide advice on progress payment claims and practical completion.
Assurance consultants
The assurance consultants provide compliance assurance and certify that remediation work has been carried out in accordance with any Fire Safety Orders or conditions of approval.
Fire and Rescue NSW
Fire and Rescue NSW plays a key role in the selection of qualified assurers, and provides oversight of assurance certification processes, and assists with the risk assessment of buildings.
Chief Superintendent Trent Curtin talks about the role of Fire and Rescue NSW in Project Remediate.
Fire and Rescue NSW talking about flammable cladding and Project Remediate
When is it happening?
This information is current as at 4 November 2022.
Key milestones
Project Remediate has achieved these key milestones:
| Description | Status | Completion date |
|---|---|---|
| Capital provider appointed | Completed | July 2022 |
| Loan service provider appointed | Completed | February 2022 |
| Global Façade Contractor appointed | Completed | October 2021 |
| Managing contractor appointed | Completed | August 2021 |
| EOI process for financial providers | Completed | 30 March 2021 |
| Expression of Interest (EOI) process for program assurance managing contractor | Completed | 17 March 2021 |
| Remediation works | Commenced | TBD |
Program overview of remediation work
The remediation work will be undertaken in these stages:
| Description | Status | Expected completion date |
|---|---|---|
| Triage phase | Started | March 2023 |
| Design phase 0% - 30% | Started | May 2023 |
| Design phase 30% - 100% | Started | September 2023 |
| Construction phase | Started | July 2024 |
This information may be adjusted as buildings enter or leave the program.
Building status
- 16 buildings have provided authority to commence.
- 71 buildings are in the triage phase.
- 37 buildings are in the design phase 0% - 30%.
- 08 buildings are in the design phase 30% - 100%.
- 02 buildings are in the pre-construction phase.
- 02 buildings are in the construction phase.
- 00 buildings are in the post-construction phase (and within the defects liability period).
Financial support
Owners corporations are eligible for a payment of between $10,000 and $15,000 to help with strata management costs of participating in Project Remediate.
Councils can access payment for the administration needed for buildings that join Project Remediate.
Owners corporations who began cladding remediation work before Project Remediate was available may be eligible for financial assistance. Applications close 28 February 2023.
What happens if additional remedial work is identified as part of our review of your building?
Sometimes, when we investigate cladding remediation we identify other issues with a building that can be fixed at the same time. When you consider that erecting scaffolding is often the most expensive line item in remedial works, it may make sense to address a number of problems at the same time.
Where an owners corporation needs a loan to fund additional works to non-façade building elements that are outside of the scope of Project Remediate, there are a range of speciality strata lenders. When looking for finance, it’s important to find a financial institution and a loan which is right for you.
Please find below a list of lenders that we are aware of who specialise in lending to strata bodies:
Lannock are the leading strata specialist in Australia, helping owners protect and improve their properties with efficient finance. Lannock can help fund improvement projects like renovations, defects, green projects and repairs. Lannock will also fund strata insurance, professional services and litigation.
Macquarie Bank has specialised in providing financial services to strata managers and their clients for over 30 years. Offering simple payments, bundle multiple repairs, upfront funding and no personal guarantee.
Austrata was established in 2020 to meet a rapidly growing demand for strata finance in Australia. They provide strata schemes with easy access to strata loans and offer a simple application process, competitive interest rates and a friendly team to guide customers each step of the way.
StrataLoans is a product of StrataCash Management, which was established over nine years ago. StrataCash has opened accounts for over 10,000 owners corporations and bodies corporate across Australia.
Plenti Group was established in 2014 with their loan originations growing consistently, supported by diversified loan products, distributions channels and funding, and is underpinned by their exceptional credit performance and continual innovation.
Hardship provision for other loans
Hardship provisions for lenders outside of Project Remediate are determined by each financial institution. You should refer to the Product Disclosure Statement of each lender before making a decision.
Information for industry and local councils
Resources
Online course
This free 2-hour online course is for strata managers and owners of corporations of self-managed schemes.
Strata resolution / motion examples
Owners corporations who join Project Remediate need to make several decisions and agree to several things over the course of the program. This document provides example motions/strata resolutions for your strata meetings (DOCX 54.92KB).
Guides, posters and fact sheets
Resources for owners corporations including translated fact sheets in Arabic, Chinese Simplified and Chinese Traditional.
- Guide to helps strata communities to replace combustible cladding (PDF 1.23MB)
- A guide for strata communities about the government's flammable cladding replacement program. (PDF 764.96KB)
- A brochure from Fire and Rescue New South Wales that explains what to do while your cladding is being replaced. (PDF 887.72KB)
- An A4 poster about fire safety with QR codes for various languages (PDF 2.98MB)
- An A3 poster about fire safety with QR codes for various languages (PDF 2.79MB)
- Apartment owner fact sheet (English) (PDF 84.52KB)
- Apartment owner fact sheet (Arabic) (PDF 140.84KB)
- Apartment owner fact sheet (Chinese Simplified) (PDF 219.58KB)
- Apartment owner fact sheet (Chinese Traditional) (PDF 178.25KB)
Related information
- Media release: NSW government extends Project Remediate registrations
- The briefing (September 2021) for industry and strata
- Capital provider appointed for Project Remediate
- Loan service provider appointed for Project Remediate
- Information for local government
- Information for industry
- Project Remediate Pattern Book
Contact us
For any inquiries contact us at projectremediate@customerservice.nsw.gov.au