
Professor (Adj) Kim Lovegrove MSE, RML offers a global perspective on ways by which construction dispute resolution systems can improve, derived from insights learnt by law reform deployments in Japan, Africa and China.

Professor (Adj) Kim Lovegrove MSE, RML offers a global perspective on ways by which construction dispute resolution systems can improve, derived from insights learnt by law reform deployments in Japan, Africa and China.
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Tsigereda Lovegrove’s presentation discusses the development of mediation in construction disputes in the Horn of Africa and gives an informed analysis on methods which would afford better access to construction dispute resolution in emerging economies.
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Section 16 of the Building Act 1993 Vic (“the Act”) states that: “A person must not carry out building work unless a building permit in relation to the work has been issued and is in force under this Act.” In Victoria, a building permit is issued by a private or a municipal building surveyor. The building permit will contain the classification of the building, which is determined in accordance with Part A6 the National Construction Code (“NCC”), which describes the Building Classification system as follows:
“The NCC groups buildings and structures by the purpose for which they are designed, constructed or adapted to be used, assigning each type of building or structure with a classification. A building may have parts that have been designed, constructed or adapted for different purposes. In most cases, each of these parts is a separate classification. A building (or part of a building) may also have more than one such purpose and may be assigned more than one classification.” [1]
Note: Some structures and building types are exempt from the Building Permit requirement.
The NCC building classes are as follows:
Class 1:
(1) A Class 1 building is a dwelling.
(2) Class 1 includes the following sub-classifications:
Class 2:
(1) A Class 2 building is a building containing two or more sole-occupancy units.
(2) Each sole-occupancy unit in a Class 2 building must be a separate dwelling.
This class may also include single-storey attached dwellings with a common space below, such as a carpark.[2]
Class 3:
(1) A Class 3 building is a residential building providing long-term or transient accommodation for a number of unrelated persons.
(2) Class 3 buildings include the following:
Class 4:
Class 4 is a dwelling in a Class 5, 6, 7, 8 or 9 building if it is the only dwelling in the building.
A single domestic dwelling within a building of non-residential nature (that is, a Class 5 to Class 9 building). For example, a caretaker’s residence within a hospital.[3]
Class 5:
A Class 5 building is an office building used for professional or commercial purposes.
Class 6:
(1) A Class 6 building is a shop or other building used for the sale of goods by retail or the supply of services direct to the public.
(2) Class 6 buildings include the following:
Class 7:
(1) A Class 7 building is a storage-type building.
(2) Class 7 includes the following sub-classifications:
Class 8:
(1) A Class 8 building is a process-type building.
(2) Class 8 buildings include the following:
Class 9:
(1) A Class 9 building is a building of a public nature.
(2) Class 9 includes the following sub-classifications:
Class 10:
(1) A Class 10 building is a non-habitable building or structure.
(2) Class 10 includes the following sub-classifications:
Regulation 13 of the Building Regulations 2018 (Vic) (“The Regulations”) states that: “if there is any doubt as to the classification of a building under the BCA, the relevant building surveyor must classify the building as belonging to the class it most closely resembles”.
Both municipal building surveyors and private building surveyors have powers to issue:
Schedule 3 of the Regulations provides some exemptions for building work and buildings. The main exception is when a building falls into a Class 10a and:
“a) has a floor area not exceeding 10 m 2 ; and
b) is no more than 3 m in height or, if situated within 1 m of a boundary, is no more than 2.4 m in height; and
c) if appurtenant to a building of another Class on the same allotment, is located no further forward on the allotment than the front wall of the building to which it is appurtenant; and
d) if it is not appurtenant to a building of another Class on the same allotment, is the only Class 10a building on the allotment and is set back at least 9 m from the front street alignment and at least 2 m from each side street alignment; and
e) is not constructed of masonry.”
There are a number of other exemptions to the requirement of a building permit, including a buildings demolition (if within the allowable specifications), or the repair, renewal or maintenance of an existing building (subject to the nature of the work). Details on this can be found in the VBA Building Practice Note: “Building Permits and Other Exemptions BP 01 | When is a Building Permit required”.[6]
That which can also culminate in the issuance of a Building Notice or a Building Order is the change of use of a building. There are instances where this could be the use of a Class 10 building (non-inhabitable shed) to the use of a Class 1 (domestic residence). For example, if there is illegal conversion of the use of a shed into a primary residence. Anecdotally, the prevalence of this type of conversion increased during COVID.
While converted sheds and shipping containers are increasing in use, the determination of whether they are truly “buildings” is something addressed by the broad definition of “building” in s3 of the Act, which reads as follows:
“building includes any structure, temporary building or temporary structure and also includes any part of a building or structure”
Interestingly, there is another exemption in the regulations which covers buildings which are “unclassifiable”:
(5) “Any building that is not of a Class listed in clauses A6G2 to A6G11 of the BCA Volume 1 and clauses A6G2 to A6G11 of the BCA Volume 2.”
The Victorian Building Authority (“VBA”) Building Practice Note – General GE-04 Definition of Building makes a recommendation that: “only a structure which can be classified under the NCC should be regarded as a building, as Schedule 3 of the Regulations exempts unclassifiable buildings from all parts of the Regulations.“ [6]
The classification of a building is determined by it’s “use or intend use”. In practice, this paints with a very broad brush. In the case of Chen v Kevin McNamara & Son Pty Ltd [2012] VSCA 63, it was said that:
“If that structure is unable to classified, then the objects of the Building Act 1993 set out in section 4 and the goals of the Code, namely to protect people and property, require that regard be had to the constituent components of the structure, to see if they are individually classifiable.” [para 27]
The case concerned a dispute over whether an underground structure, intended to be used for water storage, was within the definition of 10b “a retaining wall” or a “swimming pool”, and therefore domestic building. It was decided that it was neither, and therefore not a Class 10b structure.
Under section s106 of the Act, a municipal building surveyor or a private building surveyor may cause a building notice to be served on a owner of a building if the surveyor is of the opinion that:
“The building, land or place or building work on the building, land or place is a danger to the life, safety or health of any member of the public or of any person using the building, land or place or to any property”. This is regardless of any exception, subject to s107 of the Act.
This section in conjunction with the s4 purpose as described above demonstrates the difficulty of a “non-classifiable” argument under Sch 3 of the Regulations.

In conclusion, section 16 dictates that the carrying out of building work can only occur if there is a building permit. The building permit will be issued in accordance with the appropriate NCC classification.
Failure to obtain a Building Permit for building work or the conversion of use of a building from a non-habitable class to a habitable class is a breach of the Building Act 1993. “Building” is a defined term under the Building Act, although there are some exceptions that preclude the necessity to obtain a Building Permit, those exceptions are contained in the Building Regulations and very careful regard must be had for same.
Building Surveyors have extensive powers to issue building notices and orders. Municipal Building Surveyors have a greater arsenal of building order powers at their disposal. Pursuant to s106 the Municipal Building Surveyor has the far reaching power to issue building Notices if there is any danger to life, health and safety of the public. While it is not common, if an argument is raised that a structure’s class is indeterminable much emphasis will fall of the purpose of the Act; the priority of the protection of people and property.
Please see the below for further and related articles:
Do Building Laws and Consumer Protections Apply to Shipping Container Residences in Victoria?
Lovegrove & Cotton Cladding Compliance and Regularisation Lawyers
For thirty years, Lovegrove & Cotton have provided advice and represented property owners, builders, and building practitioners in cladding regularisation matters. Please see the building surveyors page for more information.
Please see our page for more information. If you wish to engage the firm, feel free to contact us via our website, by emailing enquiries@lclawyers.com.au, or via phone at (03) 9600 4077.
Disclaimer
This article is not legal advice and discusses its topic in only general terms. Should you be in need of legal advice, please contact Lovegrove & Cotton Lawyers and our experienced lawyers will assist you based on the facts and circumstances of your case.
[1] https://ncc.abcb.gov.au/editions/ncc-2022/adopted/volume-two/a-governing-requirements/part-a6-building-classification
[2] https://www.vba.vic.gov.au/building/regulatory-framework/building-classes
[3] https://www.vba.vic.gov.au/building/regulatory-framework/building-classes
[4] https://www.vba.vic.gov.au/__data/assets/pdf_file/0005/97619/Building-notices-and-orders.pdf
[5] https://www.vba.vic.gov.au/__data/assets/pdf_file/0005/97619/Building-notices-and-orders.pdf
[5] https://www.vba.vic.gov.au/__data/assets/pdf_file/0006/136149/Building_BP-01_-When-is-a-building-permit-required.pdf
[6] https://www.vba.vic.gov.au/__data/assets/pdf_file/0008/145925/Building_GE_04_Definition-of-Building_v2.pdf
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Cladding Safety Victoria (CSV) has been established by the Victorian Government to deliver the $600M investment to tackle the issue of combustible cladding on privately-owned residential apartment buildings across Victoria. It’s formation was one of the 35 recommended actions following a repot released by the Victorian Cladding Taskforce. [1]
To be considered for funding, an owners corporation must be responsible for a residential building that has been:
Practically, Cladding Safety Victoria will progressively inform owners corporations if they are eligible to participate in the program, but what happens if that does not occur?
Section 27 of the Cladding Rectification Act 2020 provides:
That notification is that, in the opinion of the municipal building surveyor (MBS), a particular building is in need of cladding rectification work (which can mean replacement of cladding with non-combustible material).
The MBS must use Form 1 under schedule 1 of the Cladding Safety Victoria Regulations 2020 in order to properly notify CSV of the same.
Section 28 of the Act states that CSV must prioritise for “potential financial assistance” any buildings in respect of which it has been notified by an MBS that cladding rectification work is needed.
Following the above, sections 28 and 29 are activated.
If the CSV determines that the building qualifies for funding, CSV may invite an OC to make an “Application to register Owner or Owners Corporation of building for potential financial assistance” using Form 2 under Schedule 1 of the Regulations.
Section 29 stipulates:
In conclusion, the purpose of Cladding Safety Victoria’s establishment by the VBA is to prioritise the rectification of buildings in accordance to the risk they pose and offer financial assistance in this rectification work. Details on thier current projects are detailed on thier website.
References
[1]https://www.bayside.vic.gov.au/sites/default/files/2021-10/information_pack_-_cladding_safety_victoria.pdf
Lovegrove & Cotton Cladding Compliance and Regularisation Lawyers
For thirty years, Lovegrove & Cotton have provided advice and represented property owners, builders, and building practitioners in cladding regularisation matters. Please see the cladding section page for more information.
Please see our page for more information. If you wish to engage the firm, feel free to contact us via our website, by emailing enquiries@lclawyers.com.au, or via phone at (03) 9600 4077.
For related articles on cladding please see:
How to Respond to Cladding Rectification Notices and Orders in Victoria
Appealing cladding related building notices under the Building Act 1993 (Vic)
Cladding safety Victoria funding and demands for cladding regularisation – the interplay
Disclaimer
This article is not legal advice and discusses it’s topic in only general terms. Should you be in need of legal advice, please contact Lovegrove & Cotton Lawyers and our experienced lawyers will assist you based on the facts and circumstances of your case.
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On 21 September 2023 a new guideline was issued on behalf of the Victorian Government in relation to the approaches that ought to be adopted by Municipal Building Surveyors and Private Building Surveyors with respect to remediation work proposals to deal with “Combustible External Cladding”.
Arguably the advent of this new guideline, that must be adopted by Building Surveyors, may herald a changing emphasis away from a default position of replacing all combustible cladding towards a more risk-based mitigation strategy, and a higher emphasis (in appropriate circumstances) on partial cladding replacement and/or reliance on the overall active and passive fire safety systems at a building.
The relevant instrument is Minister’s Guideline 15, that was issued under section 188(1)(c) of the Building Act 1993 by the Minister of Planning on 21 September 2023. It is stated in the preamble that Municipal and Private Building Surveyors “must have regard to this Guideline pursuant to section 188(7) of the Act”.
This Guideline does not apply to every building in Victoria that has combustible cladding that does not comply with the deemed-to-satisfy provisions of the Building Code / NCC. Instead, it is stated to apply only to buildings which are “classified as Class 2 or Class 3 by the NCC or contain any component which is classified as Class 2 or Class 3”, for which the works were completed or final approval issued before 1 February 2021, and which have “Combustible External Cladding”.
The term “Combustible External Cladding” is defined for the purposes of Minister’s Guideline 15 to mean:
There are also graded definitions to measure the extent of a risk with combustible cladding; the relevant category terms being “Low Cladding Risk”, “Elevated Cladding Risk” and also “Unacceptable Cladding Risk”. Each of these key terms are said to have the meanings given to them in the “Cladding Risk Mitigation Framework”.
Regard should also be had to this document known as the “Cladding Risk Management Framework” [1], which is defined in the Guideline to be “the document of that name published by the Department of Transport and Planning on 22 September 2023, as updated from time to time.”
This document (the CRMF) consists of some 10 pages of more detailed guidance which seeks to “remove uncertainty amongst municipal building surveyors, building owners and building practitioners about the practical and reasonable measures that can be taken to make a building sufficiently safe from a cladding fire risk perspective.” We note the reference to “sufficiently safe”, which is not the same as “completely safe” and has elements of subjective discretion to be applied.
Refer to page 2 of the CRMF under paragraphs 1.1.1 to 1.1.7 for more detail on the purpose and objectives of the “framework”, which should be considered carefully by the Council Municipal Building Surveyors (“MBS”) and also Private Building Surveyors (“PBS”), as well as building owners and practitioners, alongside Minister’s Guideline 15.
The definition of “Acceptable Cladding Risk” in the CMRF means where the building:
The definitions of “Low Cladding Risk” and also “Elevated Cladding Risk” are defined in technical terms in relation to the risk of fire spread between Sole Occupancy Units in “sprinkler protected” versus “not sprinkler protected” parts of the building where there is combustible external cladding. This is as set out in Table 1: Cladding risk rating categories, found in section 2.2 of the CMRF.
Likewise, “Unacceptable Cladding Risk” is also defined in that section 2.2 table, and has technical benchmarks associated with it. In other words, it is not simply that cladding system and building which does not meet the definition of “Acceptable Cladding Risk” referred to above.
Regard would most likely need to be had to advice from a suitably qualified fire engineer, in order to assess what level or risk applies to the building. The level of risk may vary depending on the layout and location of the combustible external cladding on the building and may differ with some parts of the building compared with others.
The key emphasis is on how the MBS or a PBS should assess a “Remediation Work Proposal” to address non-compliant combustible cladding on such buildings. That term is defined as:
This will clearly depend very much on the appropriate risk category for the premises based on the above definitions, which will have regard to other elements such as sprinkler protection and other fire safety systems rather than solely looking at the extent and combustibility of cladding.
It is said that Municipal Building Surveyors and Private Building Surveyors, when fulfilling their functions under the Building Act 1993 and the Regulations, must have regard to the Cladding Risk Mitigation Framework and any information or advice provided to these professionals by Cladding Safety Victoria (CSV) or the Department of Transport and Planning after the date of the Guideline. That is, if that information or advice is expressly identified as being supplied for the purpose of the Guideline.
The purpose of the Guideline is to provide guidance to an MBS or a PBS when fulfilling these functions, including where:
The purpose of the Guideline is also said to be to supply guidance on how an MBS or a PBS should assess Remediation Work Proposals for such cladding where the proposal does not include the full removal and replacement of the cladding.
If one examines the CRMF, it could be argued that the emphasis is more on avoiding the full replacement of all cladding (where possible and technically justified) in favour of either targeted removal and replacement in certain areas, and/or upgrades and maintenance of other active and passive fire safety systems in the building.
For instance, paragraph 2.3.3 amplifies the notions of “proportionality” and “scalability” in responding to cladding fire risk on buildings. That paragraph reads:
“This policy applies the principle of proportionality and scalability in responding to cladding fire risk on buildings in Victoria. Applied to relevant buildings, the primary focus is on achieving an acceptable cladding risk rating. The recommended focus is targeted combustible external cladding removal in conjunction with enhancements of the building’s active and passive fire safety systems proportionate to the risk exposure presented by combustible external cladding.”
At the very least, this heavily emphasises a ‘holistic’ approach that takes into account all active and passive fire safety features at a property, rather than only focussing on the type and combustibility of cladding products present and the fact they are banned or non-compliant products.
Table 2 on page 5 of the CRMF sets out potential actions for cladding risk remediation based on the cladding risk rating category, and even for “Unacceptable” risk it does not necessarily mandate full replacement of all combustible cladding on the building.
There is also section 3.6 of the CRMF that states that an MBS “should consider” issuing a “letter of action” to the relevant owner or Owners Corporation before issuing an enforcement instrument (such as a Building Notice or Order), or where such an instrument has already been served, before taking any enforcement action on it, so as to:
Again, this demonstrates that the expectation is that an MBS will adopt potentially a more symbiotic relationship with affected owners and the CSV in relation to the formulation of a Remediation Work Proposal to resolve the issues.
Written By Justin Cotton, Director, Lovegrove and Cotton Construction and Planning Lawyers
References
[1] The Cladding Risk Mitigation Framework is available at: https://www.planning.vic.gov.au/guides-and-resources/building-policy/building-reform/Cladding-remediation-partnership-program
Lovegrove & Cotton Cladding Compliance and Regularisation Lawyers
For thirty years, Lovegrove & Cotton have provided advice and represented property owners, builders, and building practitioners in cladding regularisation matters. Please see the cladding section page for more information.
Please see our page for more information. If you wish to engage the firm, feel free to contact us via our website, by emailing enquiries@lclawyers.com.au, or via phone at (03) 9600 4077.
For further articles on cladding, please refer to:
Appealing Cladding Related Notices and Under the Building Act 1993 (Vic)
How to Respond to Cladding Rectification Notices and Orders in Victoria
Disclaimer
This article is not legal advice and discusses it’s topic in only general terms. Should you be in need of legal advice, please contact Lovegrove & Cotton Lawyers and our experienced lawyers will assist you based on the facts and circumstances of your case.
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