Flammable cladding builder gets harsh words as owners burn millions

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By Leith van Onselen

While apartment owners are being stung by huge costs and are embroiled in legal battles relating to dangerous flammable cladding that now must be removed, the builders of these abominations are escaping relatively scot-free.

Recently, the owners of apartments in Melbourne’s Lacrosse Building launched legal action against its builder, LU Simon, seeking $24 million in damages over a 2014 fire. However, this has resulted in buck passing by the defendants, with LU Simon attempting to shift the blame for the potentially fatal blaze onto its consultants, whereas fire engineer, Con Nicholas, claimed he had directed others involved in the building’s construction not to use flammable cladding, and therefore takes no responsibility for its use.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.