Building Safety Bill to drive up PII costs excluding firms

Aaron Morby 3 years ago
Share

Construction experts are warning late Government amendments to the Building Safety Bill will drive up construction professional indemnity insurance for firms driving many out of the housing sector.

Plans to extend the defects liability limitation period to 30 years are being challenged as unworkable.

The Construction Industry Council has warned that the huge increase in level and extent of liability risked shutting SMEs out of the housing development and wider building market and force competent people to be excluded from providing services due to risk aversion within the insurance sector.

The insurance sector itself could undertake its own analysis of the risks and potential costs and potentially walk away from construction, it warned.

Giving evidence to the Levelling Up, Housing and Communities Committee inquiry scrutinising the approach to fixing the building safety crisis, the CIC also said the plan would jeopardise the levelling up agenda.

The evidence highlighted that the proposal to retrospectively extend the limitation period under section 1 of the Defective Premises Act to 30 years, announced by Michael Gove last month, could have dramatic consequences across the industry.

Currently, the limitation period is 6 years from the completion of the dwelling.

A clause in the Building Safety Bill proposed the retroactive extension of the limitation period under the DPA to 15 years and this is now intended to be doubled.

Graham Watts, Chief Executive of CIC said that the move would further add to the insurance pressures across the sector and could have a deleterious impact on the capability to remediate unsafe buildings and build new housing.

He said: “We desperately need to remediate hundreds of buildings across the country and increase the rate of building new homes. Yet these proposals could put this work at risk by making it impossible for companies and people to continue in the sector.

“It is vital these very late amendments must be given greater scrutiny to allow for the passage of a Bill that provides great recompense for consumers but ensures the viability of the construction sector and its ability to help deliver on the levelling up agenda.”

The CIC said that it agreed with the principles set out by Gove that leaseholders should not have to pay to remediate buildings that are unsafe and that those clearly responsible for profiteering at the expense of fire safety should be removed from government schemes that provide them with work or that provide grants, subsidies or loans to their customers.

 

Latest news

Balfour Beatty terminates Danny Sullivan labour deals

Around 500 workers on HS2 will be moved to alternative agencies or be taken on direct
21 hours ago

Trio face prosecution after Hinkley site death

Main contractors and client to face charges over death of site supervisor
22 hours ago

Buyers see recovery in house building sector

But civil and commercial work still in the doldrums
1 day ago

Apprentice saws-off thumb on hotel refurb site

Court hears how digit was reattached and teenager continued training with another firm
1 day ago

Laing O’Rourke tops June contracts league

£919m animal super lab dominates new orders
2 days ago

TSL turnover smashes £500m as profit almost trebles

Data centre and logistics contractor rises high on surging demand
2 days ago

Gleeson Homes chief exec leaves business after restructure

Management revamp after "challenging" year
2 days ago

Green light for 1,600-home Oldham town centre overhaul

Plans for over 1,600 homes across six regeneration sites approved
2 days ago

DSM wins Norwich city centre clearance job

Anglia Square shopping centre clearance for £300m scheme
2 days ago

13-year-old becomes UK’s youngest qualified digger driver

Grandson of Gallagher Group chairman sets industry record
2 days ago

Cubby reborn in £12m Svella-backed takeover

£50m revenue target set as 14 firms combine under new Cubby Group banner
3 days ago

North East NHS trusts plot £3bn health estate overhaul

Market engagement begins for major construction push across four trusts
3 days ago

HG goes green on cranes in £1.2m switch to battery power

Diesel-free crane drive cuts fuel bills by 94%
3 days ago

Developer fined £165,000 for fire safety failings

Firm ignored fire safety orders on apartment job in Preston
3 days ago

Bidding to start for £1.8bn North West framework

Contractors invited to bid for latest Procure Partnerships deal
3 days ago

Hill hits record £90m profit as homes pipeline swells

Build-to-rent push and £4.8bn contracting book to fuel next growth phase
3 days ago

Rayner unveils £39bn plan to build 300,000 social homes

Council building revival and rent reform feature in social and affordable homes plan
4 days ago

Keltbray bounces back with £3.2m profit

Tighter controls and smarter project selection fuel strong turnaround
4 days ago

VINCI JV wins 500-home twin town centre revamps

Chester Northgate phase 2 and Northwich Weaver Square schemes move to delivery stage
4 days ago

80 energy projects unlocked as Ofgem backs grid expansion

£24bn energy networks deal gets green light from regulator
5 days ago

How to see your stories on the Enquirer

Join our Suppliers and Buyers directory to get your news published
4 days ago

Henley lands Midland Mill revamp on Leeds tower scheme

Restoration of 18th-century mill kicks off on South Bank regeneration project
4 days ago

New boss at Eric Wright Civil Engineering

Gavin Hulme takes top job as Diane Bourne moves to group role
4 days ago

Pinewood submits £1bn data centre plan

Studio giant adds green and learning spaces to tech hub blueprint
5 days ago

Record results after TClarke goes private

Britain's biggest M&E contractor flourishes after de-listing
5 days ago

Dalkia lands £200m nuclear maintenance deal

1,000 nuclear FM staff to join M&E contractor
5 days ago

Construction comeback to outpace wider economy

Arcadis forecast fueled by spending review optimism
5 days ago

First steel goes up on giant car battery site

Severfield gets to work on McAlpine Somerset site
5 days ago

Permasteelisa wins cladding deal on Bovis city tower

Facade specialist lands package at 60 Gracechurch Street
5 days ago

Fox buys recycled asphalt specialist Fisher

Acquisition adds major recycled asphalt capacity in north west
5 days ago