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22 August 2019
The cost of fixing the unfolding national building crisis, including widespread residential apartment block defects and the use of dangerous combustible cladding, could soar past $6.2 billion, according to a new economic analysis.
Equity Economics has released its report which analysed the additional costs to owners of remediating water leaks, fire safety breaches, structural failure, combustible cladding and associated costs in apartment buildings built within the last ten years.
More than 3400 residential unit blocks across the country have potentially flammable exterior cladding, according to a report commissioned by the construction union.
Depending on the type of defect, remediation costs could be up to $165,000 per dwelling, with cladding and water damage works costing around $45,000 per dwelling.
Most of the defective buildings were found to be in Queensland, New South Wales and Victoria, with taller buildings often having higher associated costs.
The cost of Australia’s national building crisis is now becoming apparent, and it looks like oftentimes homeowners are likely to be the ones to foot much of the bill.
The total cost is estimated to be as much as $6bn, including increased insurance premiums, temporary accommodation for residents, legal fees, and remediation of water leaks and fire safety hazards.