True cost of cladding crisis as high as £50bn

Aaron Morby 2 years ago
Share

The true cost of the national fire safety recladding project is 10 times higher than the Government’s allocated funding, according to one of the largest specialist contractors in the Midlands.

The government has set aside £5bn for cladding remediation works but this falls woefully short of the £50bn estimate Colmore Tang Construction believes is needed to make every high-rise housing development compliant.

The firm, which set up a specialist cladding arm at the start of this year, has priced remedial projects on over 20 typical developments in Leeds, Liverpool, Manchester.

It found the average cost of these works to be around £4.65m for buildings above 18m and £2m for buildings between 11m and 18m, which they claim is fair reflection of typical costs across the country.

According to Government figures around 5,000 buildings over 18m require an EWS1 certificate and may require remedial works, while around 35,000 11-18m buildings also fall into this category.

According to Colmore Tang’s pricing, which reflects their first-hand remedial works pricing experiance, this would bring the total to around £25bn for buildings over 18m and £70bn for buildings between 11m and 18m.

Given the paucity of information generally available and taking an optimistic view, they have reduced the theoretical total of £95bn by around half for safe measure, arriving at almost £50bn + VAT  as a realistic upper sum.

There has been mounting pressure from MPs to reassess the size of the Building Safety Fund, with the Housing, Communities and Local Government committee claiming the full cost of remedial works could be closer to £15bn.

The firm warns that some professionals have submitted budgets that are as much as three to four times below the real cost of the works.

It said that a developer in Birmingham submitted a bid for £3m despite the full project being worth closer to £10m, and claims it is a phenomenon being repeated across the country.

Steve Underwood, Chief Operating Officer of Colmore Tang, said: “The bottom line is that the true cost of remedial works has been severely underestimated and meaningful progress won’t be made until politicians and industry professionals develop a clearer understanding of funding and logistical challenges at hand here.

“Our estimates are not plucked out of thin air but are based upon real life scenarios which we see day in, day out. There’s a stark difference between costing a project and actually executing it, which largely explains this discrepancy.

“We’re seeing developers and surveyors quoting budgets that are nowhere near where they should be and we’re sleep walking into a scenario in which that only becomes apparent half way through the remedial works. That’s bad news for everyone.

“Suggestions that by simply re-tendering schemes we can reduce costs to original figures are patently unrealistic and quite frankly, dangerous.

“The race to the bottom approach to costing produced the poor workmanship, material standards and quality control which led to the cladding crisis in the first place and we are in danger of things spiralling out of control if we don’t buck up our ideas,” he warned.

 

Latest news

Moving in to new markets paying off for McLaren

Contractor carving out new niche as leading player in heavy refurbs
2 days ago

Plan to add retentions record to payment reporting law

Government consults on tougher reporting to include disputed invoices and retention policies
2 days ago

Morgan Sindall wins £88m Beckton DLR depot upgrade

Delayed work to start on Docklands Light Railway train maintenance depot in East London
2 days ago

Hare and Severfield win £250m Sellafield deal

Country's two biggest steelwork contractors secure 17-year framework
2 days ago

Max Steward returns to head up ISG’s Agility fit-out arm

Former ISG project director returns after three years to take up MD role
2 days ago

McLaren wins massive Portland House refurb

Construction to start this year on £380m revamp of 28-storey building in central London
3 days ago

Green light for £275m HS2 Midlands nerve centre

Trio of contractors battling it out to win huge new depot near Birmingham
3 days ago

Winners named for Government £10bn offsite framework

29 firms secure places on mega framework for schools, healthcare, defence and justice jobs
3 days ago

ISG, Amey and Costain now industry’s quickest payers – list

Average payment times from main contractors slip by a day
4 days ago

Staff at Outco Surfacing start looking for new jobs

Administration notice filed two years after acquisition of NMC Group
3 days ago

£4.75m building work provision tips Higgins into the red

Partnerships business counts cost of changes to building safety rules
3 days ago

John F Hunt snaps up London temporary works design firm

Demolition contractor buys geotechnical and structural engineering design specialist RKD Consultant
3 days ago

Vital Energi lands £13m package at Plumstead regen site

Specialist will start on site this summer helping to transform the former home of Arsenal FC
3 days ago

Galliford Try to start £14m Scunthorpe Market scheme

Firm will build NHS staff accommodation and offices in two phases
3 days ago

Vast £500m British Library expansion go-ahead

London Mayor still needs to give final nod to 800,000 sq ft extension at St Pancras site in London
4 days ago

Wates names new chief executive

Cork-born Eoghan O’Lionaird to join later this month
4 days ago

Keltbray director joins Barhale as North East chief

Mark Wood heads operations in Yorkshire and North East England
4 days ago

Major London City building green deep retrofit approved

St Bride’s Tavern near Fleet Street will be demolished for the building expansion
4 days ago

Gilbert Ash lands starring role in £38m Welsh theatre revamp

Contractor to start work this year on Theatr Clwyd upgrade
4 days ago

Property clients to ramp up spending on decarbonising

Survey reveals nearly half of property chiefs plan to speed up spending on net-zero programmes over next twelve months
4 days ago

Average self employed labour rates top £1,000 a week

Average weekly earnings reach high for skilled trades
5 days ago

BAM wins £49m Harrogate Convention Centre revamp

Local council hopes to sanction work start this autumn
5 days ago

Renaker to top-out Manchester with 71-storey skyscraper

Developer lifts the lid on planned five-building cluster for phase 3 of Great Jackson Street development
5 days ago

Costain bridge lift delayed by ground conditions

National Highways chiefs postpone planned lifting operation
5 days ago

Nexus sells utilities and EV contracting arms for £78m

Group to now focus on remaining business at south east housing civils contractor Tamdown
5 days ago

Speller Metcalfe lands lead role on £40m Tamworth revamp

Town centre to be transformed under ambitious plans
5 days ago

Scaffold boss banned over covid loan abuse

Eleven-year director ban after misuse of £50,000 loan
6 days ago

Gove issues six weeks ultimatum to sign building safety contract

Developers told to sign Government contract issued today or be banned from building homes
6 days ago

Firm fined £120,000 for lifting two builders in a telehandler bucket

Rochdale builder Hoyle Developments fined after repeated safety breaches
1 week ago

Hunt quashes reports HS2 will stop at Old Oak Common

Chancellor says no "conceivable circumstance" where HS2 would not terminate in Central London
1 week ago

Contractor services