Post EGM Update for Owners on Defects Matter
Dear All Owners & Agents,
Following the recent EGM, this is an update for Owners as follows on the defect matter:
As already discussed at the EGM regarding the State Administrative Tribunal (SAT) directions hearing, the COO were initially given 8 weeks to progress toward a second directions hearing. During this period, the Council of Owners has continued working through the extensive testing and investigations required to properly assess the building defect claims. Despite best efforts, the timeframe was not achievable due to the volume and complexity of the matters requiring investigation and expert review.
A significant component of this process has now been completed, including concrete testing relating to key aspects of the claim. In addition, the COO’s engaged consultant has completed a comprehensive risk assessment across the identified defects within the building.
The risk assessment identified a total of 130 defect items, categorised as follows:
- 57 High Risk Items
- 45 Medium Risk Items
- 28 Low Risk Items
Please note the defects do not involve immediate structural or safety risks. The building remains safe and fit for occupation.
The SAT had also directed the COO to prepare detailed schedules of defect items together with supporting expert evidence and documentation for mediation purposes. This requires each claimed defect to be individually identified, supported and categorised, which has contributed significantly to the time required to progress the matter, particularly given the importance of the concrete testing results to aspects of the claim.
At the second directions conference the Senior Member was considerate regarding the difficulties the COO had on meeting the deadlines and has again given the COO an extension of time, however we will now go straight to the mediation conference which has been scheduled for 9 September 2026. At this stage, the COO anticipates that the currently quoted investigative works and defect cost analysis required prior to and including our lawyers attending mediation will remain within the approved budget.
The Council of Owners has commenced repairs to owner-related defect items that have been assessed as low risk, where it is considered appropriate to proceed without impacting the broader SAT proceedings. This approach is intended to ensure that minor matters are not unnecessarily delayed while larger and more complex defect issues continue through the investigative and legal process.
The COO acknowledges that this process is taking considerable time; however, the matters involved are technically complex and require expert testing, reporting and legal review to ensure the defects are properly identified, prioritised and addressed. Some owners may also have observed representatives of Atlas (formerly BGC) recently attending the property to inspect certain defect items as part of the ongoing process.
The COO will continue to provide updates to owners as significant progress occurs.