Fire risk has long been an accepted reality in construction but has become more complex, more scrutinised and more consequential in recent years. Modern building methods, lightweight materials, temporary electrics and ambitious designs have made fire risk harder to predict and control. As a result, fire safety is no longer a one-off compliance exercise for contractors, but a live operational risk that evolves throughout the construction lifecycle.
The housing crisis and growing demand for property development1, as well as infrastructure expansion investments, have driven a large surge in construction in Australia for some time. As construction accelerates, safety risks may be overlooked, leaving the industry exposed to serious legal, financial and reputational consequences.
In response to residential fire incidents, regulatory design controls in each state have tightened. In the years following the cladding fires at Lacrosse and Neo200 apartment buildings in Melbourne, fire safety continues to be a focus in both building design and site management.
Key fire safety in construction regulations and challenges
Fire safety is emerging as one of the defining challenges shaping how projects are planned, delivered and ultimately insured.
Updated Australian construction site fire safety regulations, such as the National Construction Code (NCC) 20222, focus on key areas such as compliant cladding materials and fire safety systems, including sprinkler systems. This is in addition to changes in regulations by each state, particularly in NSW, with mandatory compliance with AS 1851‒20123 for fire safety systems and other related requirements.
The NCC specifies allowable materials in terms of performance properties, as well as walls, floors and ceilings separation measures, sprinkler system specifications, smoke alarms and evacuation routes.
Industry insight highlights several issues that are compounding the fire safety crisis in construction:
- A national shortage of skilled workers and qualified inspectors
- Pressure to meet housing targets rapidly
- Weak enforcement of existing fire regulations
- Buildings certified despite known defects
- Legacy systems unable to meet current demand
- Gaps between design intent and onsite execution
- Fire safety sign-offs with limited verification
- Delays in national policy harmonisation
The changing nature of fire risk on a construction site
Construction sites present a unique combination of hazards that can amplify fire risk if not carefully managed.
Hot works such as welding, cutting and grinding remain a persistent concern, particularly because ignition can occur hours after work has finished. Smouldering materials, hidden voids and poorly monitored areas continue to feature prominently in post-incident investigations.
Material selection and storage also play a significant role. Timber, insulation products, solvents, adhesives and fuels can all contribute to high fire loads, especially on constrained or fast-moving sites. Where flammable liquids or gases are stored incorrectly, the potential consequences escalate rapidly.
Temporary electrical systems add another layer of risk. Exposed wiring, overloaded circuits and makeshift connections are common features on construction sites, yet they remain a frequent source of ignition. Environmental exposure — including moisture, dust and mechanical damage — only increases the likelihood of failure.
A concerning emerging risk is the widespread use of lithium-ion batteries. Cordless tools, site equipment and e-mobility solutions are now standard across many projects. While these technologies bring clear efficiency benefits, battery failures can generate extreme heat, release toxic fumes and prove difficult to extinguish. For sites not designed with these risks in mind, lithium-ion incidents represent a fundamentally different fire profile.
Stay informed about construction fire safety requirements
For many construction projects, the challenge lies not in understanding individual requirements but in managing how they interact. Fire risk now spans design, materials, site operations and sequencing, often requiring closer collaboration between contractors, designers, fire engineers and clients and needs to be embedded into decision-making at every stage of a project, from design and procurement through to construction and occupation.
Key frameworks and requirements to support fire safety in construction in Australia include the following stages:
The design phase is pivotal in eliminating fire hazards and ensuring safety from the outset. Designers must collaborate with clients and other duty holders to identify risks early, such as designing efficient escape routes and selecting fire-resistant materials.
High-risk or specialised developments require detailed fire safety studies during the design phase to influence layout and construction methods.
The procurement phase ensures that fire safety considerations are carried forward effectively through documentation of fire hazard information and control measures and communicated to all stakeholders involved in subsequent phases.
Design consultants and contractors should be chosen based on their ability to meet fire safety requirements outlined in the project brief.
Active fire risk management is essential during construction. Legally required fire risk assessments and management plans must be updated regularly throughout the construction process.
On site, builders and supervisors must ensure fire suppression systems, such as hydrant systems, are installed and tested in compliance with Australian Standards (e.g., AS 1851-2012)3.
Hazardous materials and ignition sources must be strictly managed, particularly for projects near bushfire-prone areas. The AS 3959:2018 code governs construction in bushfire-prone areas4.
A safety-first culture is essential, where fire hazards are identified and mitigated from the initial design concept to the final occupied building. This approach emphasises the seamless transfer of safety information between project phases, ensuring comprehensive fire risk management throughout the lifecycle of a structure.
Benefit from broker expertise and support from construction insurance specialists
The Gallagher construction specialism helps developers address evolving fire safety challenges with tailored insurance and risk management solutions.
From mitigating site risks to ensuring compliance with stricter regulations, Gallagher supports clients in protecting their people, projects and long-term resilience.