Concrete Cancer in Strata Buildings

Concrete cancer is a critical issue that can impact strata buildings and have a flow-on effect on insurance premiums and in extreme cases, insurability. In this article, Strata Insurance Solutions Managing Director, Tyrone Shandiman, discusses the issue of concrete cancer, its implications, and effective management strategies.

What is Concrete Cancer? 

Concrete cancer, a term often heard in construction and insurance, refers to the deterioration of concrete due to internal rusting of steel reinforcements. This phenomenon is typically marked by visible rust stains and cracking of concrete surfaces. It occurs when the embedded steel in concrete starts to rust, causing expansion and subsequent cracking and erosion of the surrounding concrete. 

The Impact of Concrete Cancer 

The consequences of concrete cancer are far-reaching. As the steel rusts and expands, it not only damages the structural integrity of the building but also leads to escalating repair costs. In severe cases, as seen in the Iluka Surfers Paradise building on the Gold Coast, it can render a building too hazardous to occupy, necessitating its demolition. 

Immediate Steps and Prevention 

Upon noticing signs of concrete cancer, such as rust leakage from concrete, it's crucial to engage a qualified contractor immediately. Delaying action only exacerbates the problem and increases the financial burden. Painting over rust is a temporary fix that hides the underlying issue, leading to more significant problems in the future. 

Responsibilities and Liabilities 

Committee members in strata schemes have a duty to take reasonable action if they are aware of building defects such concrete cancer. Decisions made in this regard can have long-term implications, including potential liabilities. 

The Role of the Body Corporate in Managing Concrete Cancer 

Committees play a vital role in managing concrete cancer. They must disclose the presence of building defects such as concrete cancer to insurers. This can be done by providing reports or, better yet, demonstrating a proactive plan to remediate the issue. In instances where repair costs are high, raising special levies or seeking loans may be necessary to ensure prompt and effective rectification. 

The Importance of Disclosure 

Failing to disclose concrete cancer to an insurer can lead to severe consequences, such as policy cancellation or denial of claims. This makes disclosure a crucial aspect of managing strata properties with concrete cancer. 

Conclusion 

Dealing with concrete cancer requires prompt action, informed decision-making, and the guidance of specialists. If you have a question about strata insurance or would like a quote contact our friendly team on 1300 554 165. For more information and resources on strata insurance follow Strata Insurance Solutions on LinkedIn and YouTube.

This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisernet Australia AFSL No 240549, ABN 15 003 886 687.