Developers have "absolutely" breached the National Construction Code with the Unioldge building in Darwin which is partly made up of highly flammable cladding, the Australian Fire Protection Agency (AFPA) says.
A third of the material used for the exterior of the Unilodge complex in Casuarina in Darwin is polyethylene aluminium composite cladding, the same material used on the Grenfell Tower in London.
Last year the tower burnt down and 71 people were killed.
The developers of the eight-storey Unilodge, which can house 800 students, say it's highly unlikely its exterior cladding would be the cause of a major fire.
"The building had been independently reviewed by a fire engineer who says the units are safe to live in," a spokesman from the GPT group told the ABC.
"The Grenfell tower used a 100 per cent polyethylene cladding; our building comprises a 30 to 70 [per cent] mix which has been deemed safe."
But AFPA said the developers have breached building safety regulations and there was no guarantee that the building was safe.
"They've absolutely broken the law, they haven't followed the building law of Australia which is really clear," said spokesman Scott Williams.
"No building can knowingly use combustible materials that cause the spread of fire, so they've breached regulations."
Mr Williams also said there was a lack of transparency in the building industry which had caused the proliferation of potentially dangerous buildings throughout the Northern Territory, and Australia generally.
"You can't just take them on their word when they say, 'hey it's safe to live in,' there needs to be more checks and balances in place," he said.
He said there needed to be a duty of care to residents and a more robust regulatory framework.
"My feeling is [that] after the failing at Grenfell, unless there is surveillance and auditing and consequences, they [property developers] will just keep doing the wrong thing," Mr Williams said.
"It seems in the building industry, there have been decades of regulatory neglect and it's up to the states and territories [to regulate] but they've failed us."
Combustible cladding could be 'tip of iceberg': AFPA
About half of Darwin's population rent; that, combined with an ever-growing number of apartment blocks means there may be increased fire risks for residents.
Prime Minister Malcolm Turnbull asked states and territories to audit their buildings for combustible cladding.
The Labor Opposition promised tougher penalties for builders who breach the National Construction Code, saying it was illegal to use the material on high-rise buildings but that the current building regulations were riddled with loopholes and the rule was constantly breached.
Mr Williams said that combustible cladding "could be just the tip of the iceberg", and it was likely that more dangerous materials were being used as developers opted for cheaper materials to save on building costs.
The Unilodge building was completed in 2015, and the NT Fire Service has made enquiries about its safety.
But Mr Williams said fire services in small cities such as Darwin were under-resourced and often didn't have the time or manpower to extensively audit buildings.
"These fire services just can't keep up and do everything because they just don't have the services to do everything; I mean, how can they be expected to?" Mr Williams said.
One resident named Mark said he suspected the Unilodge building was "made on the cheap" and didn't feel safe living there.
"I definitely don't feel safe here, the place is leaking and it just seems unsafe," he said.
"Had I known it was partially made up of [combustible] cladding I would've chosen to live somewhere else."
Another resident named Nashwa Catherine said it wouldn't have altered her decision to live in her unit, but she would've liked to have known.
"I think everyone should have a right to know whether there is even some minor risk," she said.
NT Government looking into ways to reduce risks
AFPA said residents had a right to know what the risks were.
"If you bought a car, wouldn't you like to know the risks involved, whether the brakes worked?" Mr Williams said.
"Doesn't everybody have a right to know if there is a risk?
"But it is a very complex matter and the buildings won't disclose a lot of the potential risks because of insurance, because the moment you say this it's like saying your car is not roadworthy and trying to get it insured."
The Northern Territory Department of Infrastructure and Planning declined to comment on specific buildings.
"The NT continues to liaise with the Commonwealth and other jurisdictions on its response to the combustible cladding issue, and on strategies to reduce the potential risks from non-conforming building products and materials," it said in a statement.
