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The Dispute Resolution
Training and Membership Specialists

Tel: 1300 781 533 

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Victorian Alternative Dispute Resolution Scheme (Cladding) Consultation

Alternative Dispute Resolution Scheme Draft Terms of Reference | Engage Victoria

Opportunity to contribute between the 28th September and the 31st October.


In July 2019, the Victorian Government had launched a Cladding Rectification Program to help owners and owners’ corporations rectify high-risk combustible cladding installed on the external façade of buildings. The Government through its agency, Cladding Safety Victoria, has made available to the Victorian public, $600 million for the residential buildings’ rectification program.

The Government has implemented legislative changes to allow the State to recoup the cost associated with rectification of dangerous combustible cladding. The Government is currently taking legal actions against relevant building practitioners to recover costs expended through CRP for the removal and replacement of combustible cladding.

Alternative Dispute Resolution

To combat the legal costs and expenses incurred by the parties, and the time taken by traditional litigation for the final resolution of the building dispute, the Government is promulgating Alternative Dispute Resolution (“ADR”) as the primary step for resolving disputes.

The ADR Scheme through series of conciliation conferences, which primarily focuses on cladding claims for residential buildings, supports the State to comply with its obligation to act as a model litigant by:

  • Exploring options for early resolution and reducing unnecessary litigation;
  • Reducing the likelihood of wasted legal expenses; and
  • Reducing the likelihood of costs orders against the State if the State fails to successful prove its case in court.

The Scheme offers the industry a voluntary platform to resolve and settle cladding claims pursued by the State in a cost-effective manner. The voluntary nature of participation in the ADR Scheme means that all relevant parties can be brought together to settle all matters of liability through one process.

How to participate

The survey has 8 sections for you to complete. The survey will take around 15 to 20 minutes to complete.

To participate in the survey, please:

  1. Read the following documents:
    • ADR Scheme Guidelines,
    • ADR Scheme Terms of Reference,
    • ADR Scheme Settlement Agreement Key Term Sheet, and
    • Process Chart
  2. Complete the online survey.
  3. Write to us should you have any additional feedback with regards to the ADR Scheme.

Feedback closes at 5pm on Monday, 31 October 2022.

If you have any questions, please feel free to contact us at combustiblecladding.costrecovery@delwp.vic.gov.au

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