Red Hot - Essential Safety Measures and Fire Protection
Failure to maintain fire safety equipment can lead to infringement notices, fines, and closure orders; it can invalidate insurance cover; and give rise to legal liability through negligence claims or owner’s liability claims if a fire breaks out and a system fails due to poor maintenance.
(5 minute read)
Waverley RSL Building Fire - ABC News
A thorough assessment of fire protection systems helps protect you from inheriting a legacy of non-compliance.
Why should your building inspector know about this? In Victoria, the regulatory landscape for fire safety is rigorous. Whether you’re purchasing for investment or to occupy, understanding the basics of Essential Safety Measures (ESM) is not just a matter of safety, it’s a matter of risk management and asset protection.
What are Essential Safety Measures?
In Victoria, ESM is the technical term for the fire and life safety systems within a commercial building. These are governed by the Building Regulations 2018.
The scope of ESM is broad, covering everything from the passive (fire doors and smoke walls) to the active (sprinklers and detection systems). These systems are there to ensure that if a fire occurs, the building behaves exactly as it was designed and protects the occupants and the structure itself.
Why It Matters
Why do we place such an emphasis on fire services during the due diligence process?
Liability and Life Safety: The primary concern is always the safety of the people inside. Failure to maintain fire services can lead to catastrophic outcomes and significant legal liability for investors and owners.
Insurance Integrity: Most commercial insurance policies are predicated on the building being compliant with statutory requirements. A failure in a fire pump or a neglected sprinkler test can be grounds for a claim to be reduced or denied.
Asset Value: A building with an up to date ESM history is far more attractive to institutional tenants and future buyers. It demonstrates professional management and reduces the likelihood of unforeseen capital expenditure.
Booster tag check - LRM
The Audit Trail: The AESMR
The cornerstone of fire service compliance in Victoria is the Annual Essential Safety Measures Report (AESMR).
Every year, a building owner or their appointed agent must sign off on this report, confirming that all safety measures have been maintained and are performing to the required standard. It is the record of the building's safety systems.
When we conduct due diligence for clients, the AESMR is a key item. A missing or incomplete AESMR is a significant concern; it suggests a potential gap in maintenance history that could lead to costly capital works or insurance complications.
The "Maintenance Gap" in Older Assets
A common challenge in the Victorian market arises when dealing with older buildings.
Under the regulations, a building must be maintained to the standard that was in place at the time of its construction, or most recent major refurbishment that triggers a retrospective upgrade obligation. This means a 1980s office tower will have very different systems and maintenance requirements that a newly constructed tower.
For investors compliance creep can increase risk. As standards evolve, the gap between old systems and modern ones widens. While the building might be technically compliant with its original permit, it may no longer be "fit for purpose" for modern tenants seeking high performing buildings, or insurers with a specific risk in mind. If you buy before you inspect the ESM you’ll only have half the picture.
Newly installed fire pump set - LRM
Managing the Risk
Fire services shouldn't be a "set and forget" component of property management. It requires a proactive approach:
Routine Testing: Ensure your contractors are hitting their monthly, quarterly, and annual testing targets.
Documentation: Keep a meticulous list of all ESMs to know what you have and what standard it must meet.
Due Diligence Review: Before a transaction, look beyond the paperwork and inspect the physical state of the plant and equipment.
In the complex ecosystem of Victorian commercial property, fire services can help you sleep at night, or prevent you from insuring or leasing your property. By checking they are in good repair, well-documented, regularly tested, and fully compliant you protect not just the building and the occupants but the investment itself.
At LRM Property Advisory, we help investors navigate these complex Victorian standards, ensuring you don’t just buy a property, you buy peace of mind.
Disclaimer: The content provided in this article is for general informational purposes only. Every site is different and anyone seeking site specific advice should seek professional guidance.