What is Cladding and Why Does it Matter For Strata Properties?

An image showing what are cladding risks in strata properties

Cladding is a defining feature of many modern buildings that offers multiple benefits such as protection and design appeal. For a long time, it was just part of the design checklist.

But in recent years, it has also become a growing concern for strata properties due to its link to serious safety, property, and financial risks.

Key Takeaways:

  • Recent fires have made cladding a high-stakes issue. They have shifted it from a design feature to a critical safety, compliance, and legal concern for strata buildings.
  • Owners corporation decisions must be formally documented and voted on. These include appointments, funding approvals, and legal authorisations to proceed with rectification.
  • Clear, consistent communication between the OC, lot owners, and professionals is important for managing cladding risks in strata properties and ensuring long-term compliance.

What is cladding?

Cladding is a non-structural material attached to the external surface of a building, used as an exterior finish. It acts as a skin that is installed to primarily shield the building from being damaged by external elements such as seasons, heat, rain, and wind.

An image showing a detailed illustration of what is cladding

Other than weatherproofing, cladding can also offer several key benefits, such as:

  • reduce heat and cooling costs by insulating the building
  • block out some of the external noise
  • define a building’s character or style

In strata, it’s common to see all sorts of materials. Some safe, some not.

What are the most common cladding materials used in strata buildings?

Strata buildings across Australia use a variety of cladding. These are among the most commonly used types:

A table showing what the common cladidng materials used in strata properties

Why is cladding important for strata properties?

Besides the convenience that this material offers to strata building and residents, cladding is useful because it matches up and contributes to the level of safety the people have.

Over the past decade, high-profile fires have shown how some cladding materials can speed up the spread of flames, most notably at Melbourne’s Lacrosse Apartments in 2014 and the Neo200 Building in 2019.

While no lives were lost in those cases, the 2017 Grenfell Tower fire in London, involving similar materials, claimed 72 lives and triggered global scrutiny, including in Australia.

These events shifted cladding from a design consideration to a serious safety and compliance issue. For owners corporations, it is now important to understand what’s on the building and what risks it may pose to protect residents, meet legal obligations, and avoid costly effects.

What are the fire safety risks of combustible cladding in strata buildings?

Not all cladding is created equal, and some materials pose serious fire risks. Combustible cladding refers to products that can catch fire and accelerate its spread, such as aluminum composite panels (ACP) and expanded polystyrene (EPS).

These materials can cause flames to race up a building’s exterior, blocking escape routes and greatly reducing evacuation time. In multi-storey strata buildings, this turns a fire hazard into a life-threatening situation within minutes.

A major issue is that many owners corporations and building managers, especially in older and existing buildings, may not even be aware that combustible cladding has been installed on their property. This puts residents at risk without them knowing it.

To address this, Cladding Safety Victoria (CSV) was established to rectify high-risk residential and government-owned buildings identified through the Victorian Building Authority’s (VBA) ongoing state-wide cladding audit.

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What are the owners corporation’s cladding obligations and responsibilities?

In most strata buildings, combustible cladding is installed on the external common property, which makes it the legal responsibility of the owners corporation (OC) to manage its assessment, rectification, and ongoing compliance. Because of this, the OC must:

1. Take timely and informed action to make sure that cladding issues are addressed.

Failing to act can lead to unneeded delays, higher costs, insurance complications, or even regulatory enforcement.

The OC decision-making process typically involves lot owners considering and voting on formal resolutions, either at general meetings or via ballots. These resolutions are essential to:

  • register the OC’s interest in funding programs (like CSV)
  • approve the rectification scope and project contracts
  • authorise individuals to act on behalf of the OC (e.g. sign agreements)
  • meet legal requirements for document execution and funding eligibility

2. Maintaining the building’s Essential Safety Measures (ESMs)

These include fire alarms, emergency lighting, hydrants, fire extinguishers, and other systems made to reduce harm in the event of a fire.

Well-maintained ESMs can give residents more time to safely evacuate and limit the spread of flames, especially in buildings where combustible cladding is present.

Owners corporations must make sure these systems are kept in working condition, fire doors remain unobstructed and operational, and residents are aware of the building’s evacuation plan.

Throughout these processes, a good strata manager supports the OC by:

  • coordinating meetings
  • preparing notices
  • managing records
  • make sure resolutions follow the law

They can also assist in coordinating communication between the OC, Committee, Cladding Safety Victoria, the project manager, and lot owners to help make sure that nothing is missed and that everyone stays informed.

Why does proactive cladding management matter for owners corporations?

Cladding compliance in Victoria isn’t just a maintenance issue; it’s a legal, financial, and safety priority that demands active leadership.

Unfortunately, many buildings are left exposed not because of the materials themselves, but because their owners corporation manager lacks the urgency or experience to act decisively.

If your strata manager hasn’t raised the issue of cladding or supported your Committee through the process, it may be time to consider whether you have the right manager in place.

At Strata Management Consultants, we help buildings across Victoria transition to more capable, transparent, and responsive OC managers.

Need expert guidance?

Get in touch for a free and confidential consultation on 03 9007 2618. We’re here to help your building move forward safely and confidently.

Cladding for Strata FAQs

The contents of this article or website are only intended to provide a general overview of the topics discussed. The author of this article makes no representations as to the accuracy or completeness of any information and the information is not intended to constitute investment, legal or professional advice. You should seek professional advice before acting or relying on any of the content. This article does not contain references to any specific company, organisation or individual, unless expressly specified.
Posted
July 14, 2025
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