Lendlease Australia responds to Jordan Springs East media reports

  • 24 Oct 2020
  • Since becoming aware of the differential ground settlement issue in 2018, Lendlease has been working with residents to rectify the issue and its impact. This has involved: 
  • Extensive geotechnical investigations by an independent engineer, initially in the immediately impacted area and then for caution, the whole of the Jordan Springs East precinct;  
  • A peer review of the independent engineer’s methodology by two other leading international geotechnical engineering firms;  
  • Inspecting homes to ensure they were structurally safe;
  • Working with customers to understand and rectify impacts;  
  • Establishing a compensation scheme for impacted residents; 
  • Establishing a customer hotline and email.  

Our investigations and expert advice have determined that the excessive ground settlement issue is an isolated, localised issue, impacting around 90 houses in the Armoury Road area, rather than a precinct-wide issue. 

Lendlease stands by the quality of its product, its engineers' investigations and testing process.  

Since that time Lendlease has removed two houses at Jordan Springs East. In addition, at this stage Lendlease has offered to repurchase a further 42 houses where damage relating to settlement has occurred at a level considered to be inconsistent with Australian Standards despite the homes remaining structurally sound and safe to occupy. So far, approximately 20 owners have accepted our offer.  

Lendlease has established a compensation scheme with the Commissioner for Fair Trading to support residents impacted by excessive land settlement in the Jordan Springs East precinct.  This is anticipated to be a small group of residents in a localised area and is not a precinct-wide issue.  Impacted residents have a choice under the scheme to either have their home repurchased by Lendlease or to receive appropriate compensation. The compensation scheme was developed with input from the NSW Office of the Building Commissioner.  Lendlease will continue to work with impacted residents in accordance with that scheme.  

Notwithstanding that this issue and the compensation scheme give rise to increased costs, the financial impact considered over the life of the project is not material to the financial position of the Group overall. 

Owners are not asked to sign confidentiality agreements when Lendlease repairs their property. In accordance with normal commercial and industry practice, owners who receive financial compensation or an agreement to repurchase their house are asked to sign mutual confidentiality agreements meaning Lendlease is also bound by confidentiality.   

Recently Penrith City Council placed a notation on the planning certificates of 841 properties, before investigations requested by Council’s experts have concluded. Based on the extensive geotechnical investigations that Lendlease has undertaken over the last two years, Lendlease does not agree with the position of the Council. Lendlease remains committed to continuing to work with Council on behalf of its customers with the goal of removing the notation from properties which are not impacted.  

Customers who are concerned can call our dedicated hotline for Jordan Springs East on 1800 906 470 or email jseenquiries@lendlease.com