Sydney’s Opal Tower – the multi-storey building that suffered damage on Christmas Eve – will reportedly require significant repairs.
Residents evacuated the newly-built tower at Olympic Park after hearing loud bangs that turned out to be cracks on some levels. Many of the Tower’s residents have been staying in hotels at the builder’s expense while an assessment of the damage is carried out. According to the ABC, an interim report has found that while the building is structurally sound, it will require “significant rectification works”.
As a result of this event, the NSW Government has established a compliance operation to crack down on dodgy certifying policies through annual audits.
In a rather odd twist of fate however, the NSW Government may find itself being sued over the building’s defects. This is because it owns the land the building sits on, and under changes to the NSW building act, is considered the Tower’s ‘developer’.
Whatever the outcome of this case, it highlights the risks of construction and the importance of having the right insurance cover in place. For example, Professional Indemnity insurance financially protects architects, builders, electricians and other professional services teams for errors that can lead to losses. It also provides cover for contractual liability where a builder uses subcontractors.
To find out more about Professional Indemnity cover, contact one of your local Reliance Partner.