​An audit of WA buildings was prompted following the Grenfell Tower fire in the UK which killed 72 people (more info). 

During the audit the Department of Mines, Industry regulations and Safety sent reports to local governments identifying buildings with faulting cladding.

Upon receiving the report your local government must:

• Issue a notice of building order, and subsequent building order, to the owners. It will recommend an assessment be carried out by a fire engineer who will detail risk reducing measures.

• Notify occupiers and neighbours of the at risk building.

• Your local government must issue a second notice of building order and second order once an engineer's report is received. Owners will be told to complete the measures indicated and provide a surveyor's certificate saying the building is safe.

You can limit your exposure to these risks by:

• Enforcing the above measures.

• Assessing your own buildings – these are not part of the audit, but that does not mean they are safe.

• Not being the certifier of a building identified at risk.

• Settlement agents and other interested parties must be told about at risk buildings.

• Not disclosing information about the risks identified in the audit to the public (re loss of commercial value).

In the claim received by LGIS the interested party asked about building orders but did not receive that information.

In this instance, we believe there is a reasonable defence given the property owner was aware of the order and failed to tell the buyers.

Record keeping

It is crucial records are kept following the audit.

Once the DMIRS issues a report, local governments should make a note in the property records that the building was identified as being at risk.

Local governments should keep written records of communication with owners and any decision making and enforcement measures.

Building surveyor insurance

Insurers have stopped providing coverage for cladding-related matters and increased insurance premiums for building surveyors.

Risk profile of local governments certifying buildings?

If your local government has the resources to be a building certifier, you are allowed to certify buildings outside of your local government borders.

However, doing so can increase your risk profile, as you assume all liabilities associated with certifying a building.

Check your own stock

We recommend local governments inspect their buildings to identify the use of cladding and the associated risks. If your local government has any building with external cladding walls, please report to LGIS.