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There is no sprinkler system in the Loafer's Lodge, which has three residential floors and more than 90 residents.
Witnesses said the fire alarms did not go off automatically, and residents ran down the corridors banging on doors telling people to get out.
Wellington City Council says the lodge had a Building Warrant of Fitness issued in March this year.
And there were no concerns raised by the independently qualified person who inspected and tested the life safety systems in the building.
Fire protection expert Chris Mak talks to Lisa Owen.