Firms making £10m-plus profits told to fund cladding retrofits

Aaron Morby 2 years ago
Share

The Government is ordering developers to stump up cash to fix the cladding crisis on intermediate height buildings of around four to seven storeys.

House builders' share prices slide as Government threatens punitive action
House builders' share prices slide as Government threatens punitive action

Firms have been given until early March to agree fully-funded plans of action including remediating unsafe cladding on mid-rise buildings of 11m-18m in height currently estimated to cost around £4bn to fix.

The Government has also pledged to unveil a package of measures to restore common sense to the industry and stop surveyors declaring buildings unsafe when they were not.

In a big overhaul of building safety, Levelling Up and Housing Secretary Michael Gove warned firms refusing to pay for fixes faced punitive action

This includes restrictions to government funding and bid competitions, the use of planning powers and the pursuit of companies through the courts.

The government will confirm shortly which size firms fall into scope for funding contributions. The rules are expected to cover all firms with annual profits from house building at or above £10m.

Last month the Government ordered the suspension of Rydon Homes, linked to the contractor responsible for the refurbishment of the Grenfell Tower, from the government’s Help to Buy scheme.

Gove also condemned the Mercedes F1 team sponsorship deal with Kingspan, an insulation supplier connected to the crisis.

Gove has today written to industry giving them the deadline, warning that if the industry fails to take responsibility, the government will if necessary impose a solution in law.

In the letter, Gove said that the Government had accepted its share of responsibility and made significant financial provision through its ACM remediation programme and the Building Safety Fund.

He said: “Some developers have already done the right thing and funded remedial works and I commend them for those actions.  But too many others have failed to live up to their responsibilities.”

Developers asked to agree to:


  • make financial contributions to a dedicated fund to cover the full outstanding cost to remediate unsafe cladding on 11-18m buildings, currently estimated to be £4bn
  • fund and undertake all necessary remediation of buildings over 11m (ie both 11-18m and 18m+) that they have played a role in developing
  • provide comprehensive information on all buildings over 11 meters which have historic safety defects and which they have played a part in constructing in the last 30 years

Developers must take forward all necessary remediation work at pace – prioritising buildings with greatest risks first and in all cases finding the quickest and most proportionate solution to make buildings safe.

He called on industry to enter an open and transparent dialogue with the government to hear their proposals, starting with a roundtable with the largest residential developers and trade bodies.

The government will invite leaseholders and those affected by the Grenfell Tower tragedy to the table to discuss solutions at appropriate junctures to ensure discussions are not taking place behind closed doors.

 

 

Latest news

Bouygues/Murphy JV tipped for £2.3bn Thames tunnel job

Frontrunner emerges for Lower Thames Crossing 4.2km tunnel job
2 days ago

Subbies facing squeeze as main contractors tighten belts

Pay disputes increasing as suppliers fear major contractors returning to "bad old ways"
2 days ago

Portview takes control of Fulham Buckingham stand

Fit-out specialist steps in after main contractor failure
2 days ago

Firefighters probe cause of Leeds modular scheme blaze

Fire broke out in timber frame office job at Citu's eco development
2 days ago

Manslaughter probe dropped after demolition deaths

HSE to now lead investigation of 2019 tragedy
2 days ago

Vinci/McAlpine JV to start £105m NHS rehabilitation centre

Treasury clears New Hospital Programme job to start main construction
2 days ago

First sign of price falls for construction products

Supply returns to pre-covid levels as demand drops
3 days ago

Three giant lab buildings approved at £700m Oxford R&D district

Phase 2 Oxford North office and lab buildings to deliver 460,000 sq ft of space
4 days ago

PM fails to quash speculation about plan to axe HS2 phase 2

Sunak ducks future of HS2 question at big net zero Government briefing
3 days ago

Green light for giant North Wales offshore wind farm

Awel y Môr wind farm is the biggest renewable investment in Wales for a decade
3 days ago

T&T breaks £1bn revenue mark for first time

Global consultant enjoys strong growth across all seven geographical regions
3 days ago

Subcontractors and suppliers wanted across Scotland

Constructionline Meet the Buyer event next week at Hampden Park: Register now
3 days ago

Springfield switches strategy as private housing slumps

Scottish house builder turns back to affordable homes market
3 days ago

Sunak details zero carbon targets climbdown

Ban on gas boilers delayed five years; 50% rise in scrappage scheme
3 days ago

RG Group to build tallest student block in the world

Contractor confirmed on 45-storey tower in Leeds
4 days ago

Galliford Try forecasts profit to double next year

Contractor delivers strong results this year and raises expectation for 2024
4 days ago

Strabag hires 15 senior Buckingham Group staff

Austrian civils giant to set up UK building business with pool of staff
5 days ago

Contractors raise pay offer to avert engineering construction strike

Blue book agreement employers up final offer to 10%
4 days ago

Former Mid Group chief joins Tilbury Douglas

Steven Hearn gets new role as regional director of the South East division
4 days ago

Crumbly concrete found at extra 27 schools

A total of 174 schools now found to contain RAAC concrete
5 days ago

Henry Boot Construction struggling to find work

Contracting arm looking to fill order book
5 days ago

More schools found to have crumbly concrete

Surveyors find another 27 schools containing Raac
5 days ago

Buckingham Plant Hire still trading as normal

Separate plant business "not affected" by collapse of contractor
5 days ago

NG Bailey makes £25m loss after Britishvolt shock

Gigafactory loss and problem contracts blow hole in books
6 days ago

Steelwork specialist Billington delivers record first-half

Overseas recruitment push boosts headcount by 10% to drive growth
5 days ago

Vinci wins major St Helens town centre revamp

£90m first phase includes new market hall, 120-bed hotel and over 60 flats
5 days ago

Mace deputy chairman to step down from board

Mace veteran Mark Holmes will leave at the end of the year
5 days ago

CHIC extends bid deadline on £3.2bn new build framework

Closing date for 8-year framework set for 20 October
6 days ago

Work to start this year on Manchester £250m spa resort

Developer Therme gets green light for re-engineered 28-acre Trafford complex
6 days ago

Costain bags £80m water order for upgrades at 16 sites

Severn Trent contracts include work to improve wastewater quality and protect wildlife
6 days ago

Contractor services