Mirvac chief calls for lift in building standards

The boss of Mirvac, one of Australia's largest apartment developers, has called for an urgent lift in building standards, despite being caught up in the combustible cladding crisis.

Describing the sale of defective units as a "breach of faith", Mirvac chief executive Susan Lloyd-Hurwitz called for swift improvements to construction practices.

"Of particular urgency currently is the need to raise building standards in Australia," she said.

Lloyd-Hurwitz said it was "unacceptable" families who bought or rented apartments in good faith could find themselves without a home.

She said it was "unacceptable" for them to then face years of legal battles and substantial costs to rectify buildings.

"It's an outrageous situation as people bought them in good faith and now they have to battle through the legal processes," she said

"This breach of faith is more than just a transaction gone wrong.

"These homes represent the life savings and dreams of Australians who have invested their futures in those homes.

"People should be able to know that their homes are constructed safely, and that in the event something does go wrong, that they will have support and recourse."

She said Mirvac supported recommendations in the Shergold Weir Report.

"I don't think there needs to be [another] inquiry," Lloyd-Hurwitz was reported as saying by Nine Entertainment.

Mirvac had in fact benefited from the crisis as customers sought out a better known brand at the same time as the market was slowing, she said.

The upmarket Ikon apartment block in Potts Point is the latest Sydney apartment block to find it has dangerous combustible cladding.

The building is set to spend $420,000 on rectification 15 years after its construction by Mirvac.

The report lodged seeking permission with Sydney City Council notes, based on the risk assessment and inspection by Red Fire Engineers, suggests certain sections of aluminium composite panelling must be removed and replaced with non-combustible panelling.

Earlier this year the residents and Mirvac were still in discussion over the cost issue with its strata manager advising the Ikon owners corporation would not comment.

A Mirvac spokeswoman said the building's cladding complied with relevant rules at the time it was built.

"All completed Mirvac buildings, including Ikon, have been certified at the time as complying with the relevant fire safety standards and the Building Code of Australia," she said.

Last year Lendlease, another ASX listed developer with a proud reputation, replaced combustible panels on an apartment building at its own undisclosed cost.