Combustible cladding and strata: what committees and owners should know

Combustible cladding is a fire safety problem first and a financial problem second, and committees often meet it the other way round. This article explains the legal framework in NSW, the support program that was set up for the highest-risk apartment buildings, and the practical steps a committee can take. We are builders, not fire engineers: identifying and designing the fix for cladding risk is work for a qualified fire safety engineer and the authorities. What we can help with is the building side, which is scope, procurement, oversight and records.

The legal framework

Banning unsafe products

The Building Products (Safety) Act 2017 lets the Secretary prohibit the use of a specified building product in a building, by written notice published on the internet, if satisfied on reasonable grounds that the use is unsafe (section 9). A ban can apply to particular uses, particular classes of building or particular people. Using a banned product in contravention of a ban is an offence, and the penalties are severe: for a corporation, up to 10,000 penalty units plus a further 1,000 for each day an offence continues (section 15).

Rectifying affected buildings

Part 4 of the Act deals with buildings that already contain a banned product. A relevant enforcement authority, which is usually the council or other authority that can make orders under the Environmental Planning and Assessment Act 1979, may make a building product rectification order. That order requires the owner of the building to do what is necessary to eliminate or minimise the safety risk, and to restore the building afterwards. In a strata scheme, that means the owners corporation and, in the end, the lot owners who fund it.

Two points matter to committees:

• An order can be made only if the authority is satisfied on reasonable grounds that the building is an affected building.
• The power extends to products that were installed before Part 4 commenced. A product being lawful on the day it was installed is not a defence to an order.

The duty to maintain

Separately, the owners corporation must properly maintain and keep in good and serviceable repair the common property. The cost of remediation goes through the levy system, which is why the capital works fund plan matters.

Project Remediate

For the highest-risk apartment buildings the NSW Government set up Project Remediate. According to the NSW Government's page (last updated 29 June 2026):

• It is a voluntary (opt-in) program for eligible Class 2 residential apartment buildings, including multi-use buildings, that the Cladding Taskforce has confirmed as having a high-risk combustible cladding facade that requires remediation.
• Eligible owners corporations can receive a 10-year interest-free loan to fund the work, administered by Lannock Strata Finance, with repayments levied on owners. Hardship relief is available for residential owner-occupiers who struggle with levy payments.
• Construction can take around 180 days, depending on size. On completion the owners corporation receives a Remediation Assurance Certificate, and a six-month defects liability period applies.
• Registrations have closed. The page states that new registration enquiries are no longer accepted. If your building was already in the program, the obligations above continue for the life of the loan.

If you believe your building is affected and is not part of the program, ask your strata manager what notices or correspondence the owners corporation has received, and seek advice from a strata lawyer on your options.

What a committee can do

1. Establish the facts. Get the as-built drawings, the certificate and approval records, and any facade inspection or fire safety report. Ask the strata manager whether any notice or order has been received.
2. Engage the right professional. A qualified fire safety engineer can assess whether the cladding on your building is a risk. Do not rely on a visual opinion from a general trade.
3. Do not make it worse. Any facade work, including repairs, new signage, balcony upgrades or penetrations for services, should not introduce combustible products or break fire-rated construction. Ask for product data sheets and the fire performance of every material before it is installed.
4. Plan for the cost. Include investigation and remediation in the capital works fund plan so levies are predictable.
5. Keep records. Product data, photos of concealed work, test results and certificates are what insurers, buyers and authorities ask for.
6. Tender properly. Remediation is major work and should be scoped by the engineer's design, tendered on identical documents and overseen at hold points. Our post on tendering a strata rectification sets out how.

Why this connects to the rest of the facade

Cladding sits on the same facade as windows, balconies and flashings. Opening it up to remediate is a chance to inspect what is behind it, and a bad moment to find the waterproofing behind it is also failing. Read facade and balcony waterproofing and where buildings leak before settling the scope, so that the cladding work and any waterproofing repairs are planned together instead of paid for twice. Fire safety obligations that run alongside, such as the annual statement, are covered in our post on the annual fire safety statement.

For developers and builders of new buildings

The ban and rectification powers apply to products used in new work as well. Specify cladding by tested fire performance, keep the evidence of what was installed, and hand the owners corporation a complete record. This is part of the reform context in our post on the developer duty of care.

Working with us

We work alongside strata managers and the fire engineer on the building side: scoping and tendering the works, overseeing them, and assembling the records. See Strata Inspections & Repairs or get in touch.

Sources

• Building Products (Safety) Act 2017, sections 9, 15 and Part 4, NSW Legislation
• Project Remediate, NSW Government
• Strata Schemes Management Act 2015, section 106, NSW Legislation via AustLII

This article is general information, not legal, fire engineering or financial advice. Whether your building is affected, and what you must do, depends on its construction and any notices received, so get advice from a fire safety engineer and a strata lawyer, and check the current Project Remediate position directly with the NSW Government. Full website disclaimer