Bellway puts cost of post-Grenfell safety upgrades at £187m

Aaron Morby 3 months ago
Share

House builder Bellway has spent or set aside a total of £187m for cladding and fire safety improvements to buildings since the Grenfell Tower fire five years ago.

House builders continue to grapple with full cost of making buildings safe
House builders continue to grapple with full cost of making buildings safe

Of the total sum, around £128m remained to be spent at the start of this year.

The volume house builder this morning revealed the full cost of meeting the Government’s strict new safety regime as it took a further provision of nearly £20m in the first six months of this year.

The latest hike has been driven by both material and labour cost inflation and more detailed assessment of scope of works needed on schemes. 

Since 2017, Bellway has delivered remedial work or identified works are needed to 33 buildings, around a third are below 18m and two-thirds above 18m in height.

So far Bellway has been able to clawback around £30m from suppliers, subcontractors and professional advisors, where they have fallen short of the standards required.

Bellway warned that further provisions may be needed going forward.

Jason Honeyman, group chief executive, said: “This is a highly complex area with judgements and estimates in respect of the cost of remedial works, and the extent of those properties within the scope of the applicable Government guidance and legislation, which continue to evolve.

“Going forward, we are engaging positively with Government to establish a workable, sector-wide solution towards more widespread fire remediation issues and are in ongoing discussions in that regard. 

“We welcome the Government’s commitment to work with lenders, insurers, RICS and others to ensure a more proportionate and risk-based approach is embedded across the system.”

He added: “This is a complex subject, with historical issues often arising through the involvement of several third parties, including building owners and management companies, planning authorities, subcontractors, suppliers, warranty providers, designers and building control authorities, and it is set against a backdrop of evolving building regulations.”

First-half results for 2022, revealed revenue had edged forward 3.5% to £1.78bn, generating an underlying pre-tax profit up 9% to £327m.

Operating margin improved from 17% to nearly 19%.

Honeyman said Bellway continued to manage challenges in the supply chain where materials shortages, rising fuel prices and wage costs are expected to result in continued inflationary pressures in the year ahead.

 

.

Latest news

M&E contractor Kershaw went down owing subbies £10m

More than 400 firms left holding unpaid invoices
5 hours ago

Green light for UK’s first plastic recycling park

£165m park in Cheshire will recycle 367,500 tonnes of plastic
5 hours ago

Go-ahead for two Tilbury Douglas hospital jobs

Wirrall and Stockport hospital A&E jobs together worth nearly £60m
4 hours ago

Eight contractors trailblaze concrete carbon reduction plan

Firms pledge to switch to 30% low emission concrete by 2025
18 hours ago

Red Construction lands London Victoria office overhaul

St James's Park building will be extended up by two floors in overhaul
4 hours ago

Six locations shortlisted for Great British Railways HQ

Site for national HQ narrows to Birmingham, Crewe, Derby, Doncaster, Newcastle and York
22 hours ago

Kit maker Genie fined after M25 work platform death fall

Court hears how calibration error led to death of worker when 40 metre high mobile elevating work platform collapsed
1 day ago

O’Connor Utilities sold to private equity

OCU Group reported to have fetched around £400m
2 days ago

Rolls-Royce shortlists sites for first SMR factory

Three factories will make reactor, civils and MEP modules for SMR nuclear power stations
1 day ago

£233m loan kick starts £3.5bn regen of Royal Docks site

Infrastructure loan paves way for 6,000-home East London Silvertown scheme
1 day ago

Henry Construction wins £33m Oxford housing estate rebuild

Contractor signs off first deal with A2Dominion
1 day ago

Carillion collapse hospital hit by more construction delays

Balfour will take another 18 months to complete Midland Met scheme
2 days ago

Leeds college launches new construction and football course

Students can now combine site and tech skills with learning at a football academy
1 day ago

Willmott Dixon blasts new Building Safety law

Rick Willmott accuses Government of scapegoating construction over its own regulatory failure
2 days ago

£550m plan to redevelop The Galleries centre in Bristol

Shopping centre building to be demolished for major mixed-use scheme
2 days ago

Costain cancels supply chain event on £260m road job

Preparation work for A1 upgrade stalls as Transport Secretary dithers over approval
2 days ago

£170m London Holborn Circus office approved

Demolition work set to start in the autumn for 10-storey office block
2 days ago

City leaders launch net zero construction skills drive

City of London leader warns "skills gap and labour shortage are threats to our net zero ambitions"
2 days ago

Marlborough Highways lands £32m Islington civils deal

Contractor to help with north London borough's green drive
2 days ago

Osborne makes £45m construction loss

Sale of infrastructure business balances books as contractor looks for zero-carbon wins
5 days ago

John F Hunt forecasts record revenue and profits this year

Demolition contractor back on strong financial footing after previously setting aside £5.6m for bid rigging probe
5 days ago

Notting Hill Genesis names £2.8bn framework winners

26 firms land places on main contractor deal: Full list
5 days ago

Green light for dual hotel scheme at Nine Elms

Two new hotel towers will share common basement
5 days ago

Trials start on cement-free pre-cast piles

Aarsleff is hopeful a product will come to the market shortly
5 days ago

Ex-Telford Homes boss to run green house builder

Jon Di-Stefano takes helm at M&G backed Greencore Construction
5 days ago

Subcontractors told to stop work on Brymor sites

£80m revenue southern contractor files letter of intent to enter administration
6 days ago

House builder Chartway sold to private equity firm

Cabot Square Capital signs another major construction deal
6 days ago

Murphy Group appoints new chairman

Capita chairman and investment banker John Cresswell to start in November
6 days ago

Tolent seals £40m Newcastle ‘future-living’ housing job

135-home Vaux scheme will be first of four neighbourhoods totalling 1,000 homes
6 days ago

Cruden takes first job at £1.3bn Edinburgh Waterfront scheme

Preferred bidder named for first 750 net zero homes at new Granton Waterfront coastal town
6 days ago

Contractor services