VIC: Q&A Should our strata have an asbestos report done?

This article is about the implications of not having an asbestos report carried out in a Victorian strata scheme.

Table of Contents:

• QUESTION: Our 1968 block of units has never had an asbestos report. What if we have asbestos? Will this impact our strata insurance?
• QUESTION: There has never been an asbestos report done on our 35 year old strata property. What are the consequences of not having an asbestos report done?

Question: Our 1968 block of units has never had an asbestos report. What if we have asbestos? Will this impact our strata insurance?

Our 1968 block of 10 single story units have never had an asbestos report. We believe the eaves of each unit might be asbestos.

With no common area structures, is the owners corporation responsible? Can they compel unit holders to have a report and remedy any issues? If this is not investigated, does it impact our owners corporation insurance?

Answer: Yes, it will affect your insurance.

If the gutters and/or eaves cross the boundary of each lot/unit, this represents common structure. If this is the case, the owners corporation has a duty of care when enlisting contractors working in this area.

If the gutters/eaves start/finish within each lot owners property, then as you pointed out, there are no common area property structures. If you are correct, this means that any works undertaken within each lot owner’s property and duty of care owed to the contractor enlisted by them are the lot owner’s responsibility.

Have all common property tested (pool change rooms; Telstra pit; mailboxes, etc). If the results come back negative, send an email to all owners pointing out that, while there was no ACM (Asbestos Containing Material) identified, the units are highly likely to contain ACM as they were built before 2003. ACM was used in the construction of buildings up until 1990 and is still used in fixtures and fittings as late as 2003. Therefore, when renovating, each owner should inform the contractor of this and state they must assess the areas they’re working in before commencing any work. Each contractor has a duty of care to their Work Health Safety, as well as that of their staff/employees.

Yes, it will affect your insurance. We are receiving a number of queries from owners/managers with regard to asbestos reports, cladding reports, and safety reports in the case where owners are not doing maintenance when due and looking after their schemes. Therefore putting a greater risk of the increase of claims onto their insurers. Insurers have been smashed in the recent decade by terrorism, flooding, fire, earthquakes, cyclones or combustible cladding claims. Every time there is a natural disaster, premiums increase across the board affecting our own home insurance premiums. Ensuring the common property is in good condition and risk free will assist the OC to get insurance and minimise their premiums.

Peter Berney
Solutions in Engineering
E: [email protected]
P: 1300 136 036

This post appears in the April 2023 edition of The VIC Strata Magazine.

Question: There has never been an asbestos report done on our 35 year old strata property. What are the consequences of not having an asbestos report done?

We bought a villa in a 6 unit complex about 4 years ago. We don’t have a professional Owners Corporation Manager and haven’t had an annual general meeting for the past two years.

To my knowledge, there has never been an asbestos report done on the 35-year-old property. What are the consequences of not having the report done?

Answer: I recommend that you inform any person undertaking work to ensure that they obtain an Asbestos Survey and if deemed to be present then have tested by a NATA accredited laboratory.

Based in the information available it sounds like the villas were built around 1987. ACM (Asbestos Containing Materials) were still being used in the construction of buildings as well as in the fixtures and fittings until banned from 2003.

If ACM was used on your scheme the areas where it could have been used would include – fences, the soffits/eaves, roof sheeting & concrete tiles, the walls, the lagging around hot water pipes, hot water systems, floor tile glue, carpet underlay and vermiculite (popcorn) ceilings, and loose-fill asbestos was also used as insulation in roof spaces.

If ACM is present then yes, there is a health risk to a resident, to contractors and DIY home handypersons. Assuming that no one lives above or below (Class 1A) like in a block of units, then there is likely to be little to no building materials located on the common property. If you are getting any work undertaken on the exterior then let the contractor know that they have a duty of care to themselves and others and should investigate the likeness of the presence of ACM where they’re working. Smart contractors won’t commence work until they have received the all-clear from a suitably qualified inspector.

In regard to the interior of the Villas, until such time as any ACM has been identified and tested, I recommend that you inform any person undertaking work to ensure that they obtain an Asbestos Survey and if deemed to be present then have tested by a NATA accredited laboratory. Hundreds of Australians die from Mesothelioma from exposure to Asbestos each year so it is wise to treat any work that could disturb ACM until such time as it has been removed if present.

Peter Berney
Solutions in Engineering
E: [email protected]
P: 1300 136 036

This post appears in Strata News #539.

Have a question about the implications of not having an asbestos report in strata complexes or something to add to the article? Leave a comment below.

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