Barratt problem concrete frames and cladding bill hits £163m

Grant Prior 1 month ago
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Barratt has confirmed the cost for rectifying concrete design defects and unsafe cladding at several blocks  has risen to £163.1m – and could go even higher.

Serious concrete cracking at Croydon's Citiscape scheme prompted a review of 26 other buildings
Serious concrete cracking at Croydon's Citiscape scheme prompted a review of 26 other buildings

Problems with several multi-storey concrete frames built over 10 years ago were uncovered during post-Grenfell cladding and building checks.

Significant structural problems were found at its Citiscape residential high-rise in Croydon town centre last year which had suffered large cracks.

This prompted Barratt to survey 26 other developments where reinforced concrete frames were designed for Barratt by either the same original engineering firm or by other companies within the group of companies which has since acquired it. 

In a trading statement today the house builder said it has incurred charges of £163.1m since 2018 in respect of legacy properties with £85.6m of that yet to be spent.

It added: “Whilst the charges reflect the current best estimate of the extent and future costs of work required, as assessments and work progresses or if Government legislation and regulation further evolves, estimates will be updated.”

The figures were contained in a first quarter trading statement this morning which was full of more positive news.

Construction activity continued to rise with 321 homes built a week as forward sales recovered to historic levels.

David Thomas, Chief Executive said: “We have seen strong demand for our high quality, energy efficient homes on well-designed developments which means we now expect to increase wholly owned completions to between 16,000 and 16,250 homes this year, along with around 650 JV home completions.

“As construction activity has increased our employees and sub-contractors have worked hard to maintain our high standards of quality and service and we are proud that for the 12th successive year, our customers have rated us as a 5 star housebuilder.”

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