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Project Remediate

Owners corporations can now register their interest in a program to remove high-risk combustible cladding on Class 2 residential apartment buildings in NSW.

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About Project Remediate

Project Remediate is a three-year program to help remove combustible cladding on an estimated 225 buildings known to the Cladding Taskforce

Eligible building owners will be helped through:

  • interest free loans over a 10-year period with repayments to commence upon completion of the work
  • assurance and project management services to provide technical and practical support to owners corporations and strata managing agents

Project Remediate is a voluntary program.

Expected outcomes

Project Remediate will lead to: 

  • a remediation solution that is done to a high standard and a fair price
  • post-completion, the building can be fairly insured without cladding caveats. 

 

This video explains what Project Remediate is about, what’s involved and how affected strata communities can register. 

 

The Hon. Kevin Anderson MP, Minister for Better Regulation and Innovation, speaks about Project Remediate.

Interest-free loan scheme

The NSW Government will pay for the interest on loans on behalf of apartment owners for the removal of high-risk cladding across NSW residential apartment buildings.

Each loan will be designed with the building owners’ interests at the centre. Interest-free loans will be issued to the building owners corporations for a 10-year period. 

Loan repayments commence after the building work has been completed. Repayments will be made quarterly to align with the schedule of strata levies. 

Provisions to accommodate and support owners who may experience financial hardship will be included in the loan scheme. 

Eligibility

To apply for a Project Remediate interest-free loan, your building must be: 

  • a residential apartment building (Class 2) in NSW. This includes multi-use buildings, for example part commercial/part residential
  • confirmed by the Cladding Taskforce to have a high-risk combustible cladding façade that requires remediation.

Application process 

The following points are a summary of the steps in the application process:

  1. An authorised representative of the owners corporation registers their interest in Project Remediate (one registration per owners corporation).
  2. The Office of Project Remediate validates the eligibility of the building/development.
  3. If eligible, the building is assessed. Existing designs and reports are reviewed and any necessary inspection, testing, scoping and development of remediation proposals will be carried out by contractors and designers engaged by government. 
  4. The managing contractor will propose options for remediation and indicative costs for the owners corporation’s consideration. 
  5. The owners corporation selects a preferred option which is then further designed and costed as a lump sum quote.
  6. The managing contractor works with the owners corporation to confirm that the design satisfies the planning approval and/or fire safety orders that have been received from the consent authority (usually the local council). 
  7. Loan agreement and contract is entered into by the owners corporation.  
  8. Remediation contractor, superintendent and an assurance consultant are appointed. 
  9. Work is scheduled to commence. 

Assurance and project management services

Cladding replacement is more complex than the usual maintenance decisions faced by owners corporations. 

A managing contractor will be appointed by mid-2021 and paid for by the NSW Government to coordinate all activities necessary to deliver a safe and durable solution for each building. 

The managing contractor will guide owners corporations through the process of remediation from start to finish. Owners will be kept informed of work or decisions affecting the building and consulted on matters of design, scheduling, safety and building access. 

The managing contractor will establish five pre-qualified panels of service providers for the program, covering building assessment and investigation, design, remediation and consultants that will verify that work complies with standards and program requirements. 

Other measures which will also support the remediation services under this program include: 

  • advice from the Cladding Product Safety Panel (CPSP) to inform the selection of products and system design choices to deliver a safe and insurable result
  • a principal façade practitioner to provide program-wide design guidelines, incorporating the CPSP’s advice and maintain a repository of suitable remediation designs
  • verification by a qualified professional to confirm that the work and documentation is compliant with standards under the program
  • regulatory powers held by the Office of the Building Commissioner to obtain building documentation, investigate building work and defects and issue orders for rectification. 

Guide - coming soon

A comprehensive guide will soon be made available for owners corporations, lot owners, strata committees and strata managers. The guide will explain how the program will work, how it benefits owners, how to join and what to expect. 

Key dates

 

Expression of Interest (EOI) process for program assurance managing contractor Closed 17 March 2021
EOI process for financial providers Closed 30 March 2021
Register your interest for the program 30 March to 30 September 2021
Tender process for managing contractor and financial providers April – June 2021
Managing contractor appointed Mid 2021

 

 

Questions and answers

The term ‘cladding’ refers to lightweight panels that have been applied to a building’s external walls or to any other external area of the building. 

Some types of cladding, made from aluminium composite panels (also called ACPs) and other metal composite materials, have been recognised as posing increased fire safety risk if they are selected or installed incorrectly. 
 

The Cladding Taskforce considers buildings high-risk if they have combustible cladding of a type, amount and configuration that increases the risk of fire spread and the risk to occupants and/or firefighters in the event of a fire. 

Owners will have been contacted by the consent authority (local council or Department of Planning, Industry and Environment) or the NSW Cladding Taskforce if their building has been identified by government. 

If you believe that your building has this type of cladding and it has not been identified by authorities or been assessed by a qualified professional, you should: 

  • contact the local council or consent authority for your building, if you have not already done so, to discuss the status of your building
  • refer to any fire safety assessment reports that may have been obtained for your building
  • consider having an authorised representative of the owners corporation register your interest in Project Remediate.

If you are a tenant, contact your building owner as they will have been informed by either Department of Planning, Industry and Environment or Local Council about whether the building has potentially combustible cladding. The building owner will also know the status of the building assessment if this has been completed.

  • A managing contractor appointed and paid for by Government will coordinate all the necessary design, remediation and certification work
  • The remediation solution is endorsed by a Principal Designer appointed under the program to guide the selection of suitable cladding systems in line with advice from the Cladding Product Safety Panel
  • Pre-qualified contractors and service providers from panels established under the program offer expertise and value for money 
  • Value and efficiency is achieved through program-wide sourcing of designs and expertise and specific services such as waste disposal/recycling
  • Thorough investigation and assessment of the building prior to commencement of works, to identify issues upfront and enable high confidence in the price of remediation work owners corporation
  • Delivers remediation of buildings that insurers should be satisfied can be insured without cladding-related exclusions or premium increases
  • An interest-free loan for the cost of remediation works.
     

Where the owners corporations have already arranged the commencement of remediation work, and they are interested in joining Project Remediate, they can register their interest. The Office of Project Remediate will contact all registrants to request the relevant documentation related to the status of investigations, design and remediation work. These records will be reviewed individually to determine if the remediation work meets the program’s standards. The Office of Project Remediate will inform the owners corporation of the conditions that would apply for their building to join the program.

Owners corporations that have already completed remediation work and are interested in Project Remediate may register their interest. The Office of Project Remediate will contact all registrants to request the relevant documentation related to completed works. These cases will be reviewed individually to determine if the work completed meets the program’s standards. 

The Office of Project Remediate will inform the owners corporation of the conditions that the building work would need to meet to be considered for a loan or other financing arrangement.

Project Remediate is not mandatory. It is one way of getting the cladding remediated. If a building is identified as eligible, it is up to the owners corporation to decide how to fund and deliver the required cladding remediation. If not joining the program, the owners corporation can choose to arrange their own remediation work in consultation with the consent authority (usually local council).

Contact us

Phone: 13 77 88
Email: projectremediate@customerservice.nsw.gov.au

 

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