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ARTICLE · 25 JANUARY 2018

VBA thwarted in battle against combustible cladding

Holding Redlich
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The VBA cannot direct builders to fix existing cladding problems, so owners will continue to face significant costs.

AustraliaReal Estate and Construction
Lachlan Ingram
Lachlan Ingram
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The Victorian Building Authority's (VBA) efforts to make builders accountable for the cost of rectifying combustible cladding took a blow just before Christmas, with a Supreme Court decision confirming the VBA did not have power to order LU Simon Builders Pty Ltd to rectify combustible cladding on six apartment towers it had constructed since 2008.

On 22 December 2017, Justice Cavanough confirmed that the VBA did not have power under section 37B of the Building Act to give a 'direction to fix building work' to the relevant builder, once the occupancy permit for that building had been issued. Whilst the case is an uncontroversial decision from a legal perspective, its financial and political implications in the context of the current combustible cladding crisis in Victoria are significant.

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