The NSW government is being warned it could face a multi-billion dollar lawsuit from apartment owners if it doesn't urgently address the state's building problems.
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The peak body representing strata residents and owners will on Wednesday meet with the government to demand it fix the "dog's breakfast" in construction standards and flammable cladding.
It comes after owners of units in Sydney's beleaguered Opal Tower lodged a class-action lawsuit against the Sydney Olympic Park Authority, which owns the land on which the complex was built.
It's unclear how many owners are involved, but the action - filed in the NSW Supreme Court on Friday - is being led by owner Terry Williamson.
The newly-built block in Sydney Olympic Park was evacuated on Christmas Eve after cracks discovered in the building sparked fears it could collapse.
Strata Community Association NSW president Chris Duggan said the suit could "open the legal floodgates" unless the problems are addressed.
Mr Duggan will present a seven-point plan to Better Regulation Minister Kevin Anderson and is calling on the state government to require by law that builders responsible for the issues pay compensation.
He is also urging the government to match Victoria's $600 million flammable cladding remediation plan in light of similar concerns over safety in that state.
The state government has already put the handbrakes on calls for a $1 billion funding package to help owners replace flammable cladding on properties across the state, while the federal government has refused to get involved.
As of July this year, 629 buildings were identified in NSW that could have cladding that poses a risk.
"The NSW government has reaped billions of dollars from the state property market in taxes and charges and it is time to put something back," Mr Duggan said in a statement on Tuesday.
"If no solution can be found, I believe NSW will face potentially the largest class action the state has ever seen. Thousands of people in NSW have been caught up in this mess through no fault of their own."
Premier Gladys Berejiklian was not fully aware of the lawsuit when asked early on Tuesday, but defended owners' rights to take action.
"I don't blame anybody for taking legal action to defend their own rights," she told reporters.
"This is an unfortunate set of circumstances. We inherited the system we have today and we're aiming to fix it by the end of the year through legislation."
Ms Berejiklian said the government will be announcing a new building commissioner "imminently" to oversee the problem-plagued construction industry.
"(The commissioner) will ensure moving forward that everybody in the industry not only is aware of their responsibilities, but delivers on those responsibilities to the nth degree," she said.
In an update to residents in mid-July, the tower's builder, Icon, said site works have been "progressing well" and structural works should be completed by the end of the month.
Residents of 40 apartments in Opal Tower are set to be allowed to return to their units on Friday after inspections are carried out.
The body corporate's engineers Cardno and BT Project management are attending the site regularly to inspect the structural works.
Australian Associated Press
