Commercial and legal challenges facing CSV For many, the establishment of CSV and the announcement of its A$600 million fund will be a welcome development. If successful, the CSV could set a positive precedent and be adopted across the country, and possibly beyond. However, given that CSV is the first agency of its kind and has a complex and widespread issue to tackle, it is likely to face a number of commercial and legal challenges. While not insurmountable, the following seven issues will require careful management in order to ensure CSV operates effectively: 1. Prioritising buildings for rectification. While it is sensible to prioritise the rectification of the highest-risk buildings over lower-risk buildings, there could be inherent difficulties in the prioritisation process. The State Government will need to ensure its method for prioritisation of buildings is consistent across the State and is based on appropriate assessment criteria. It will also need to carefully consider where to draw the line between buildings that are eligible for funding and those that are not. Rectification (or recovery proceedings) that have commenced on high priority buildings should also be addressed. There is a related issue associated with disclosure of buildings to be rectified and the impact on prospective sales of those properties. 2. Limited funding. CSV’s rectification fund is, at least at this stage, limited to A$600 million, meaning it is possible it could be exhausted relatively quickly. The State Government should consider whether it will ‘top up’ the fund if/when it has been exhausted. 3. Quality Control. It is assumed that CSV will not directly procure the rectification work, however it will need to take steps to ensure the work is delivered in a consistent and cohesive way and that all relevant standards are met. Part of this may be ensuring the work is not rushed and that design for the rectification is completed before work commences.