Bellway uncovers concrete frame defects in Greenwich flats

Aaron Morby 6 months ago

Bellway has uncovered structural defects in the concrete frame of a block of apartments built in London 12 years ago.

This morning the house builder revealed it had aside around £31m to remediate what was described as an isolated design issue with the unnamed Greenwich building’s reinforced concrete frame.

The firm said it intended to seek recoveries from the firms involved in the scheme.

Bellway said it was carrying out a review of other buildings constructed by the same third parties responsible for the design of the frame. 

And to date, no other similar design issues with reinforced concrete frames have been unearthed. 

The latest problem building takes the amount Bellway has set aside for legacy buildings in England, Scotland and Wales since 2017 to £613m.

On this sum, there is still a remaining provision of £508m to be drawn down.

The firm is now ramping up legacy building retrofit works after signing the Government’s self-remediation contract.

In the present year ahead, Bellway expects to spend up to £80m on building safety works compared with £33m in 2022.

Bellway’s dedicated Building Safety division has so far completed nine developments.

Further works are underway on a dozen other schemes and works are due to commence on a further two developments before the end of this year.

The latest legacy job problem was revealed as the volume house builder revealed underlying pre-tax profit for the year to July 2023 had slipped 18% to £533m on revenue down just 4% to £3.4bn.

Despite the present market challenges, Bellway remained resilient with completions sliding by just 2% to 10,945 homes.

Underlying operating margin dipped to 16% (2022 – 18.5%), with the reduction mainly reflecting the effect of build cost and overhead inflation, extended site durations because of slower reservation rates and the increased use of targeted selling incentives.

The firm said it would now be delivering more timber frame homes going forward at it sought to contain cost inflation.

Despite the resilient performance Bellway finance director Keith Adey confirmed a round of job cuts with 150 roles going from the 3,000 strong workforce.

Adey said: “Given the uncertain outlook, we have conducted a review of overheads during the year and continued with a freeze on recruitment. 

“Two operating divisions have also been closed as part of our wider workforce planning, and it is anticipated that this difficult decision will result in a headcount reduction across the group of around 5%.”


Latest news

More Osborne companies file administration notices

Three more divisions lodge notices with court
34 mins ago

McLaren wins multi-storey urban logistics contract

South London win with British Land is pioneering urban logistics hub
15 mins ago

Big social housing schemes at risk over funding uncertainty

Housing associations warn uncertainty over public funding beyond 2026 is curbing new schemes
18 mins ago

Kier wins Worcestershire town centre renewal

Firm secures Bromsgrove commercial and cultural hub project
30 mins ago

BAM signs Kent school contract at £42m

Sevenoaks school rebuild signed off at £8m more than first estimates
10 mins ago

RG Group signs £121m Newcastle rental homes job

Developer Olympian Homes advances 519 flats plan at Pottery Lane site
3 days ago

Geoffrey Osborne files administration notice

Contractor in talks to save parts of the business
3 days ago

Winners named for £260m Manchester Uni framework

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

Shed specialist Benniman rides out market lull

Worcestershire warehouse builder says industrial and logistics work is picking up again
3 days ago

Another contractor cleared after high profile immigration raid

Adana Construction employees were working legally on site swooped on by Home Office
3 days ago

McAleer & Rushe wants to meet new London suppliers

Contractor holding Meet the Buyer event in London: Register now
3 days ago

McAlpine signs £500m Broadgate dual towers deal

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

Worker rescued from collapsed four metre deep trench

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

Gove puts another major building scheme on hold

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

Greenwich University tenders £300m framework

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

Work starts on Manchester 26-storey Obsidian tower

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

Race for £1.3bn West Midlands social homes framework

The Community Housing Group reboots tender race for new build housing
4 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
5 days ago

Winners revealed for £150m fire safety framework

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

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

Consultation starts on London 60 Gracechurch Street tower
5 days ago

Severfield ends year on high with record order book

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

Second senior director exits National Highways

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

New scheme fuels London lab building boom

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

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

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

£55m Sheffield build-to-rent scheme approved

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

London back as most expensive place to build in world

Capital leapfrogs Geneva to top costliest construction rankings
6 days ago

Gas supplier Regent to buy TClarke for £90m

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

Steel contractor Billington launches into bridge market

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

McGee employees benefit from rise in profits

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

Lendlease veteran is latest new McAlpine director

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

Contractor services