The Bill was presented to the Lower House 3 September 2020 and saw its ‘second reading’ the next day.

Lengthening the limitation period for cladding building actions, The Building Act 1993 (Vic) allows for a 10-year limitation period to launch building actions. This 10-year interval extends from the time that the occupancy permit was issued. The CSV Bill lengthens this limitation period by two years for ‘cladding building actions’, permitting these actions to be brought a dozen years following the date of issue of an occupancy permit.

The extended limitation period will involve only buildings where the limitation period ended between 16 July 2019 (the date on which the Victorian Government declared the $600 million cladding rectification fund, administered by Cladding Safety Victoria) and one year after the CSV Bill becomes the literal law of the land.

CSV exists as a division of the Victorian Building Authority (VBA). Another reason for the CSV Bill is to render CSV as an independent body. CSV will continue to administer and regulate the $600 million Victorian cladding rectification program, but will now do so at a distance from the VBA.

The dual-year extension will benefit building owners and owners corporations, freeing them up to make claims across an extended time period.

The extension will aid the State of Victoria in recovering costs incurred under the cladding rectification program, using its legislated subrogation rights under the Building Act (also amended in the CSV Bill).

The extension will not help those building owners whose limitation period lapsed in the past two years, but before 16 July 2019. That is, buildings owners whose limitation period lapsed around October 2018 to 15 July 2019.


Sources: Sourceable.Com, which reprinted with permission an article by Lachlan Ingram, Senior Associate, Holding Redlich and Stefania Silvestro, Graduate, Holding Redlich