Project Intervene-Resolving Serious Defects in Residential Apartment Buildings

What is Project Intervene?

Project Intervene leverages the authority of the NSW Department of Fair Trading to compel developers/builders to undertake the rectification of significant defects.  Through these powers, the regulatory body can issue work orders that mandate the correction of any non-compliant building work. Project Intervene takes a distinct approach by aiming to collaborate with developers or builders to identify and address serious defects, thus circumventing potentially expensive and time-consuming legal proceedings. Additionally, Project Intervene guarantees the completion of remediation work to a satisfactory standard within specified timeframes. 

Eligibility

What is eligible for Project Intervene?

A serious defect in a residential apartment (class 2) building must meet a three-part test. It must have:

1. A serious defect as defined in the Residential Apartment Buildings Act, and, related to one of the building elements (common property)
2. a developer or a builder who is still in business
3. typically, an occupation certificate issued no longer than six years ago. In some circumstances they can look at a building where the occupation certificate was issued up to ten years ago.

The focus is on buildings with four or more storeys as these are likely to have a higher impact on residents.

Who is not eligible?

The building is not eligible for Project Intervene if:

• the developer or the builder are no longer trading
• it’s a residential apartment building with three storeys or fewer
• the building does not have any class 2 part
• the occupation certificate was issued more than ten years ago.

What is considered a serious defect?

A serious defect has a specific definition in the legislation, namely that it:

• arises from a failure to comply with the Building Code of Australia, Australian Standards or approved plans
• is likely to cause the inability to inhabit or use, the destruction of or threat of collapse of part of the building due to defective design, faulty workmanship or materials
• involves the use of a building product that is prohibited by the Building Products (Safety) Act 2017 (NSW)
• includes any defects which are prescribed by the Regulations (if any).

What are the benefits?

Among the many benefits of the program, is that serious defects are resolved and all parties spend less time in litigation. 

For more information on Project Intervene go to the NSW Government Project Intervene page here.  If you would like to discuss this program with one of our Property and Conveyancing Team please call 8525 2700 or click here to request an appointment with one of our Team.