The use of polyethylene core aluminium panels (ACP) presents a compliance and liability risk for both building owners, those who built them and those who were involved in their design and certification.
The use of the product is widespread in any urban area that experienced a spike of building activity since the 1990s and is present in a range of asset classes and applications, including in refurbished assets. Unlike some other non-conforming building products (NCBPs) its use wasn’t confined to budget projects, rather, it was extensively used in high end architect designed projects, including public buildings. Its presence in multi-owner buildings, such as residential strata, presents particular issues as to dilution of ownership and distance from those who may otherwise have contractual liability.
The Grenfell and Lacrosse apartment fires in particular have focussed attention of the use of this material.
The legislative response varies between states, creating a patchwork landscape for those with assets or risks located around the country. It is also continuing to evolve, as governments grapple with the issues presented and the extent of exposure, as the audit taskforces of each state and territory continue their work.
Our team continues to work with asset owners and regularly speaks with industry stakeholders on the latest market and regulatory developments in this area.