Owners of the Lacrosse tower are claiming more than $15 million from L.U. Simon Builders, saying combustible cladding installed on the apartment complex by the construction company was responsible for the spread of a major blaze.
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Fairfax Media has obtained details of the damage bill following the 2014 fire at the Docklands building, and details of an ongoing case between the builder and owners of at least 140 apartments.
Work fixing damaged units has already cost more than $6.5 million, including almost $700,000 to dry out the building, according to documents filed with the Victorian Civil Administrative Tribunal.
And it is estimated that it will cost another $8.6 million to remove and replace the remaining unburnt cladding, to comply with a Melbourne City Council order.
More than 400 people were evacuated from 673 La Trobe Street on November 25, 2014, when a discarded cigarette on a balcony started a fire that very quickly spread up the face of the building.
No one was injured, but the Metropolitan Fire Brigade has said it was lucky no one was killed.
Afterwards, an investigation by the fire brigade found that the building's cladding material, imported from China, should never have been used. The incident also exposed widespread problems with building construction standards in Victoria.
However, L.U. Simon is defending against claims from the affected owners, saying it should not be held responsible for the fire and subsequent damage because the blaze was caused by careless disposal of a cigarette and spread as a result of materials stored on the balcony.
It said its design plans had been approved by a building surveyor, fire engineer and the Metropolitan Fire Brigade, which "gave approval for the building including variations from specific requirements of the [Building Code of Australia], subject to certain recommendations being satisfied".
Cladding like the Alucobest brand used on the Lacrosse tower had been used across Australia for at least 40 years, it said.
"Until the fire incident on 25 November 2014, it was standard practice in the industry to use aluminium composite panels on the external walls of buildings not just in Melbourne CBD and all suburbs, but across all the states and territories in Australia," court documents say.
"The Alucobest panels are marketed and sold internationally as a product suitable for use on the external cladding of buildings including high rise residential and commercial buildings."
The Building Appeals Board is set to make a ruling soon on whether the combustible cladding will have to be removed.
In the meantime, lawyers for the owners are claiming almost $1 million in lost rent, money spent on emergency accommodation during the fire emergency and compensation for an increase in insurance premiums since the blaze – which have jumped almost $140,000 since 2013.
The Melbourne City Council says the Lacrosse building is now safe to occupy, but only if balconies are kept clear of excessive clutter, which has remained a recurring problem at the tower.
