Zero Defect Certificate

The Zero-Defect Certificate recognises buildings that achieve a fully compliant result during their annual Essential Safety Measures (ESM) audit, meaning no critical, non-critical or non-conforming defects were identified.

It’s official recognition that the building is meeting its ESM obligations in full and that the Owners Corporation (OC) and its manager are maintaining safety systems proactively, not reactively.

Too often, compliance is only noticed when something goes wrong. The Zero-Defect Certificate shifts the focus to rewarding those who consistently do things right.

It recognises the investment, diligence and teamwork it takes for a building to maintain defect-free safety systems and records, and encourages others to strive for the same.
In short, it’s about rewarding responsible management and promoting better risk outcomes across the industry.

Under AS 1851:2012, all ESM items must be inspected, tested and maintained to ensure they perform as intended.

A zero-defect result means the auditor found no unresolved critical, non-critical or non-conforming issues as defined in the Standard at the time of audit.

That means all systems and records met the required standard, a significant achievement given that, according to Focus BRC’s 2025 Industry Benchmark Study, only 31 % of audited buildings achieved a zero-defect result.

Only buildings audited by Focus BRC for their annual ESM compliance, where Focus also signs the Annual Essential Safety Measures Report (AESMR) or Annual Compliance Certificate are eligible.

The certificate is not issued for mid-year or interim audits, and only when the annual audit shows zero defects.

Each certificate reflects the building’s compliance status up to the date of audit.
While the building could become non-compliant afterwards, the certificate remains a true record of performance at that time.

It will only ever be withdrawn if material errors or missing information are later discovered.

Owners Corporations and managers are encouraged to:

• Attach it to their AESMR and annual compliance documentation.

• Include it in insurance renewal submissions to demonstrate proactive maintenance.

• Present it at AGMs and Committee meetings as evidence of strong compliance performance.

It’s a simple, credible way to demonstrate that the building’s safety systems are verified as compliant, not just assumed to be.

Early feedback from major strata insurers has been very positive.

Insurers increasingly recognise that buildings engaging independent ESM auditors show a proactive approach to compliance and maintenance, and therefore represent a lower risk profile.

While no insurer has yet formalised premium discounts, Focus BRC hopes that over time this recognition will translate into premium benefits for compliant buildings.

Absolutely - and it’s the law.

In Victoria, the Building Regulations 2018 require adherence to AS 1851:2012, which mandates that:

• Critical defects must be rectified immediately, and

• Non-critical or non-conforming defects should be rectified before the next annual service is due.

In other words, having zero defects should be the norm, not the exception.
However, our data shows only about one-third of buildings actually achieve it,  making this certificate a true mark of excellence.

Every certificate includes a unique ID and verification link.

Anyone can verify its authenticity by visiting
focusfs.com.au/verify-your-certificate
and entering the certificate ID and building address.

Our team will confirm that the certificate was issued for that building.

For privacy reasons, we do not share any specific data about the building’s systems or service providers.

Because the certificate reflects compliance up to the issue date, it will only ever be withdrawn if Focus BRC identifies that material defects were missed or new information invalidates the result.
Otherwise, it remains a valid record of the building’s performance at that point in time.

Buildings that engage an independent ESM auditor demonstrate a commitment to verified safety, transparency and accountability.

Insurers, committees and owners can all have confidence that compliance has been independently assessed, not just self-reported.

Independence means we review records, test results and site conditions objectively, giving stakeholders assurance that compliance is genuine, not assumed.

• Reduced long-term maintenance costs - proactive upkeep is always cheaper than reactive repair.

• Potential insurance advantages - insurers are showing growing interest in verified, low-risk buildings.

• Improved asset value - documented evidence of compliance reassures purchasers and lenders.

• Committee confidence - managers can demonstrate measurable performance and good governance.