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

Aaron Morby 2 years 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

Geoffrey Osborne files administration notice

Contractor in talks to save parts of the business
23 hours ago

RG Group signs £121m Newcastle rental homes job

Developer Olympian Homes advances 519 flats plan at Pottery Lane site
20 hours ago

Winners named for £260m Manchester Uni framework

B&K, Henry Bros, Graham, Robertson and Vinci among new line-up
23 hours ago

Shed specialist Benniman rides out market lull

Worcestershire warehouse builder says industrial and logistics work is picking up again
22 hours ago

Another contractor cleared after high profile immigration raid

Adana Construction employees were working legally on site swooped on by Home Office
22 hours ago

McAleer & Rushe wants to meet new London suppliers

Contractor holding Meet the Buyer event in London: Register now
23 hours ago

McAlpine signs £500m Broadgate dual towers deal

Work to start on iconic 36-storey and 21-storey towers
2 days ago

Worker rescued from collapsed four metre deep trench

Fire crews take six hours to save trapped builder near Blackwall Tunnel
2 days ago

Gove puts another major building scheme on hold

Secretary of State starts another planning fight after M&S defeat
3 days ago

Greenwich University tenders £300m framework

Up to five firms will carry out upgrade and newbuild work at three campuses
2 days ago

Work starts on Manchester 26-storey Obsidian tower

Contractor Domis starts Salboy's 10th Manchester scheme in seven years
2 days ago

Race for £1.3bn West Midlands social homes framework

The Community Housing Group reboots tender race for new build housing
2 days ago

Delancey submits £400m King’s Cross lab plans

200,000 sq ft lab/office project will be built above railway and tube tunnels just 4.5m below
3 days ago

Winners revealed for £150m fire safety framework

New deal will help organisations comply with the Building Safety Act
2 days ago

Sellar plans £500m City tower next to Walkie-Talkie

Consultation starts on London 60 Gracechurch Street tower
3 days ago

Severfield ends year on high with record order book

Orders top £500m with strong future pipeline of opportunities ahead
3 days ago

Second senior director exits National Highways

Commercial director Malcolm Dare set to move on to new role
3 days ago

New scheme fuels London lab building boom

Plans in for 160,000 sq ft Whitechapel scheme near Royal London hospital
3 days ago

Contract race starts for next £155m section of A9 dualling

Prior Information Notice published for Tay Crossing to Ballinluig stretch
4 days ago

£55m Sheffield build-to-rent scheme approved

Demolition to start later this year for 158-flat Sheffield Garden project
4 days ago

London back as most expensive place to build in world

Capital leapfrogs Geneva to top costliest construction rankings
4 days ago

Gas supplier Regent to buy TClarke for £90m

£491m turnover listed building services specialist to be sold
4 days ago

Steel contractor Billington launches into bridge market

Steelwork firm hires staff from failed architectural and bridge specialist SH Structures
4 days ago

McGee employees benefit from rise in profits

Pre-tax profit doubles boosting payouts for Employee Ownership Trust
4 days ago

Lendlease veteran is latest new McAlpine director

Paul Sims joins as Operations Director after 40 years at rival contractor
5 days ago

Costain signs site labour supply deal with four firms

Contractor to use only a quartet of providers for temporary labour supply
4 days ago

BAM go-ahead for Leeds 200,000 sq ft office

Latitude Yellow will complete final plot at Doncaster Monk Bridge site
5 days ago

VolkerFitzpatrick wins £30m logistics job

Latest deal to build five distribution units for Prologis UK
5 days ago

Trio win new Scape utilities consultancy framework

Perfect Circle, AtkinsRéalis and Arcadis win places on
4 days ago

Precast firm FP McCann cleared after immigration raid

Home Office takes no action after public raid on construction site
5 days ago

Contractor services