Cladding Safety Victoria's Annual Work Program 2024-25

CSV’s Annual Work Program for 2024–25 reflects the progress made to date in reducing cladding risk and the path we are taking to complete the job.

Through our collaboration with apartment owners, local councils and others, works are complete on more than 300 buildings. Others have works underway.

As CSV moves into the final stages of its world-leading program, a huge amount of work and planning is being done to ensure all buildings identified in Victoria with combustible cladding
are addressed.

The pathways in the Annual Work Program have been created to accommodate all buildings referred, regardless of whether they are eligible for funding or not. This includes pathways to deal with unacceptable-risk buildings, elevated-risk buildings and low-risk buildings.

Progress on buildings assessed as lower risk has been made possible in particular by the development a methodology that enables a proportionate response in each case. This methodology, encapsulated in Protocols for Mitigating Cladding Risk, has been backed by Minister’s Guideline 15, which requires all building surveyors to have regard to CSV’s advice for each building and on cladding risk more generally. The lessons learned from the program and research undertaken for the establishment of the protocols have resulted in the production of a valuable and enduring asset that creates ongoing benefits for government stakeholders, industry practitioners and owners of buildings with combustible cladding.

The net impact of this development is that where previously apartment owners may have been required to remove and replace all combustible cladding, CSV will in many cases be able to provide them with an alternative approach that is simpler to implement and much more cost effective. In other cases, due to the nature of the cladding and its location on a building, it may be that no action is required. CSV’s investigations and advice have identified more than 500 apartment buildings for which no further action is necessary.

Overall, the program has given tens of thousands of Victorians certainty in thousands of individual homes across the state.

Of course, all of this work will continue to be delivered through strong engagement with building owners – this having been at the core of CSV’s success since the beginning of the program.

Supporting this strong engagement program, CSV also continues to be committed to the highest quality and safety standards while undertaking remediation works. This has been delivered to date through our leading Clerk of Works program, which has proven to be a valuable investment keeping workers on site safe and ensuring works are done to the highest quality.

Underpinning program delivery are the processes and controls that are crucial to build and sustain a high level of organisational performance via effective resource management, comprehensive risk systems and robust financial governance. A strong emphasis in this annual work program is also given to close-out preparations, recognising that the program is time limited. This is outlined further in Outcome 2 of this document.

CSV’s goal from the beginning has always been to make Victorians safer from the risk of combustible cladding, and that’s exactly what we’re doing. Over the course of the 2024–25 period, we will continue to build on the strong momentum we’ve built to date in delivering this promise.

Once CSV’s program is complete, Victoria will become the first jurisdiction in the world to resolve all Class 2 building cladding risk.

Dan O'Brien

Chief Executive Officer

Cladding Safety Victoria

The object of our organisation, as stated in the Cladding Safety Victoria Act 2020 (Vic) (the Act), is to support Victorians to rectify non-compliant or non-conforming external wall cladding
products on buildings to improve the safety of those buildings.

Under CSV’s legislation, the organisation has a clear remit to administer the rectification program through prioritising buildings, determining eligibility for assistance, and supporting owners corporations and government departments throughout the process and monitoring works.

The annual work program outlines the projects, initiatives and performance targets which are in place to deliver the organisation’s strategic plan.

The strategic plan, which is endorsed by the Cladding Safety Victoria Board and approved by the Minister for Planning, specifies how the organisation will deliver the objective of the organisation as specified by the Act and the Ministerial Letter of Expectations.

This is the fourth annual work program to the delivered under the 2021–25 CSV Strategic Plan. The annual work program provides a one-year view of the projects, initiatives and performance targets to be delivered under the strategic plan and forms the basis for formal reporting to the CSV Board and to the public through CSV’s annual report.

Strategic Plan

The structure of the strategic plan reflects the Victorian Government Outcomes Framework. The diagram below outlines the elements of the strategic plan and their purpose.

A high-level overview of the strategic plan is provided below. Details of the indicators, measures, outputs and strategic initiatives that sit beneath each outcome are presented in the following sections.

CSV is committed to providing clear pathways for all buildings referred to it, whether they are deemed eligible for funding or not.

These pathways are determined by a comprehensive assessment of the degree of risk presented by the amount and type of cladding on each building. For all buildings that are assessed as having a level of risk that requires mitigation, CSV works intensively with a range of stakeholders including Municipal Building Surveyors (MBSs) and owners corporations to develop high-quality and cost-effective solutions that effectively reduce cladding risk to an acceptable level.

Outcome Indicator and Measure

Our progress towards achieving this outcome will be measured through the following outcome indicator and measures.

* Represents the majority of the total cohort of Class 2 buildings referred to CSV and deemed eligible for CSV’s program. Rectification of a small number of buildings will be completed in 2025–26.

Outputs

Rectification of unacceptable-risk buildings

CSV works closely with owners and owners corporations to deliver cladding rectification works for unacceptable-risk residential buildings, which are prioritised through a risk framework for inclusion in the funded rectification program. CSV’s oversight of the program ensures that projects are delivered to high-level quality and safety standards and that value-for-money outcomes maximise the impact of the state’s investment. Stakeholder engagement is based on active case management in accordance with established practices to ensure each owners corporation is a located a dedicated CSV officer to provide all currently available information, advice and support.

What will we deliver in 2024–25?

By the end of 2024–25, works will be complete on all unacceptable-risk buildings in the CSV program. Delivery of this final cohort of buildings will be supported by CSV’s quality assurance processes and site safety oversight, which is implemented through the clerk of works program and regular CSV staff site inspections. In addition, CSV will continue to meet with owners corporations to ensure that they are supported through the rectification process and will continue to provide regular information about fire safety and essential safety measures.

Elevated-risk building works proposals

Extensive cladding removal is not required in all circumstances to reduce risk to an acceptable level. CSV’s world-leading risk reduction framework and supporting evidence base was publicly released in 2023–24 and communication of the extensive research and testing that underpins CSV’s approach is ongoing. For elevated-risk buildings, technical experts – including engineers, building surveyors, architects and fire safety advisers – assess buildings against identified parameters within the framework to identify interventions that will effectively mitigate cladding risk. CSV then works with MBSs and owners corporations to reach agreement on a package of works that achieve the desired risk-reduction goal.

What will we deliver in 2024–25?

CSV will complete assessments for all elevated-risk buildings to determine options for the reduction of cladding risk to an acceptable level. To develop the rectification works proposals for these buildings, CSV will consult with MBSs to ensure that risk reduction works, once implemented by owners corporations, will address cladding-related issues that are or could be the subject of enforcement notices. CSV will then provide owners corporations with resources that provide guidance on how to implement the proposed scope of works.

Low-risk and out-of-scope building risk confirmation

Some buildings referred to CSV do not meet the program’s eligibility requirements – for example, they may be an ineligible class of building or less than three storeys high. For other buildings, the risk posed by combustible cladding is assessed at a level so low that mitigating actions are not considered to be required. CSV assesses all buildings and liaises with MBSs as required to ensure that owners corporations are provided with clarity about the cladding risk associated with their building – which can also be provided to insurance companies – and the status of their building in relation to CSV’s program.

What will we deliver in 2024–25?

CSV will finalise its evaluation of all low-risk buildings and discuss with MBSs the basis of CSV’s assessment, with a view to reaching agreement on the risk rating. For low-risk buildings where engagement has already commenced with owners corporations, they will receive a notification about the agreed rating and confirmation that no further action is required to address the risk posed by external combustible cladding. In addition, where buildings are identified as being outof- scope for CSV’s program, these will be formally discharged to support close-out of the overall program.

Other in-scope buildings

In addition to privately owned residential buildings of three or more storeys, a select number of other residential and public-use properties that may have combustible cladding fall within the scope of CSV’s program. These include short-term accommodation buildings, such as boarding houses, and other buildings of a public nature in which people may gather for social or civil purposes, such as child- and aged-care centres, hospitals and universities.

What will we deliver in 2024–25?

Assessments for buildings within these classes that are referred to CSV will commence in accordance with tailored risk evaluation approaches that take into account the vulnerability of the users. Based on this evaluation, and in consultation with the building owners, a recommended pathway will be developed and provided to owners that reduces the risk of combustible cladding to an acceptable level.

Output Measures

The effectiveness of our delivery will be monitored through the following measures.

* This is an annual measure

Strategic Initiative

Contribution to government policy development and initiatives that aim to improve the safety of Victoria’s built environment

In working collaboratively with the bodies who are responsible for reviewing Victoria’s building regulatory framework and setting government policy, CSV is in a strong position to make valuable contributions to policy development and long-term reform strategy for the construction industry. In addition, CSV’s significant expertise in developing innovative approaches to complex issues and establishing practical solutions to risk reduction may further be used by government in the broader consideration of built environment risk and the design of future programs.

What will we deliver in 2024–25?

CSV will continue to document lessons learned through the delivery of the rectification program and share key insights with Victorian Government stakeholders, as well as interstate and international governments that are grappling with similar issues. CSV also has an ongoing role in collaborating with departments and agencies to provide data and input to related policy development, such as addressing non-cladding building defects. In addition, CSV will provide feedback on strategic policy reforms as required and work collegiately to identify opportunities to make legislative improvements.

CSV’s success is underpinned by the processes and controls that work to build and sustain a high level of organisational performance through effective resource management, comprehensive risk systems and strong financial governance.

CSV is continually striving to enhance the operational practices that provide a strong foundation for the achievement of its objectives. Particular focus is being directed towards activities that will ensure an efficient and streamlined close-out of the program and transfer of trailing activities.

Outcome Indicators and Measures

Our progress towards achieving this outcome will be measured through the following outcome indicator and measures.

Outputs

Strategic workforce management

CSV is committed to continual enhancement of the systems and frameworks that foster a dynamic, supportive and high-performance workplace culture that facilitates the delivery of strategic objectives. CSV is entering a distinct phase of its lifespan where impending close-out introduces new challenges, particularly with regard to retention of capabilities that are critical for successful program completion and the maintenance of strong staff engagement levels.

What will we deliver in 2024–25?

Activity will focus on the implementation of strategies outlined in the Workforce Transition Strategy 2024–25 that support staff as CSV progresses towards close-out. This includes ensuring sufficient resources and capability to deliver on CSV program objectives, providing development and internal promotional opportunities, and supporting staff through organisational change and career transitions. To enable CSV to maintain a high-calibre workforce and to retain staff and capability, all staff will receive change management training, ensuring readiness for CSV demobilisation.

Financial control systems

A robust financial control system ensures that public resources are being used efficiently and that financial risks, including fraud, are being appropriately managed. It also ensures that CSV is meeting its compliance obligations relating to financial management. CSV is committed to the maintenance of a strong control environment that is underpinned by effective financial information and reporting systems.

What will we deliver in 2024–25?

A review will be undertaken to complete financial acquittals for all projects to facilitate close-out preparations and to finalise contract management and funding agreement obligations. Dashboard data analysis functionality will be maintained and enhanced to support reporting capability and assurance activities. Reporting processes will be modified and tailored as required to support close-out planning.

Transition and close-out planning

From the outset, CSV was established as a time-bound program with a clear mandate. Four years into delivery of the program, planning has commenced for the completion of the program, the close-out of CSV as an entity and the transition of any trailing activities. Efficient management of these activities is critical for the conclusion of the program and leveraging learnings with
government stakeholders, program partners and the community.

What will we deliver in 2024–25?

Transition planning and activities will focus on the delivery of key milestone phases outlined in the demobilisation plan. These will be delivered in the context of a robust change management framework to ensure staff receive effective and timely communication and tailored support. A comprehensive risk management strategy will identify appropriate controls and actions to mitigate barriers to close-out and regular progress reporting will be provided to the Board to enable high-level governance oversight.

Output Measures

The effectiveness of our delivery will be monitored through the following measures.

* Represents the public sector average for similar organisations for 2023

Strategic Initiative

Implementation of a strategic approach to the management of intellectual property that safeguards CSV’s long-term legacy

In collaboration with its well-regarded research partners, CSV has developed and continues to refine new models and approaches that are based on extensive testing and analysis, and are subject to peer review processes. Capturing the outputs of this unique knowledge set and applying an appropriate intellectual property overlay that is aligned with Victorian Government policy settings is critical for maximising the long-term value of this important work.

What will we deliver in 2024–25?

CSV will build on the foundation of its intellectual property strategy to undertake a review of all intellectual property assets. The review will be used to identify the most suitable approach to optimise the open sharing, usability and perpetuation of CSV’s intellectual property, to ensure these assets are as accessible as possible to the largest number of people and organisations. This review will examine related agreement provisions and privacy considerations to confirm that all legal and compliance obligations are taken into account.

CSV regularly reviews its progress towards the delivery of agreed objectives to ensure that projects and initiatives are on track, key risks to outcomes are assessed and any critical issues are addressed in a timely manner.

Formal reporting is undertaken in relation to the projects, initiatives and targets outlined in the annual work program, which are aligned with the strategic plan outcomes.

Quarterly progress reports are provided to the CSV Board and public reporting of achievements and challenges occurs annually through CSV’s annual report.

CSV also provides regular program and operational reports to DTP, as well as progress reports against the Ministerial Letter of Expectations to the Minister for Planning.

Download a PDF copy of Cladding Safety Victoria's Annual Work Program 2024-25: