Govt building safety contract – what it says


Developers have been given a six-week deadline to sign a government contract which commits them to repair unsafe buildings – or else be frozen out of the market. 

POV of buildings in sepia.
by Rory ButlerJanuary 30, 2023

Legislation will be brought forward in the spring giving Secretary of State Michael Gove powers to prevent firms from operating freely in the housing market if they fail to sign and comply with the legally binding remediation contracts issued today. 

This includes carrying out development and receiving building control approval.   

Mr Gove will also ban managing agents and freeholders taking commissions when taking building insurance. He will also make service charges more transparent. 

The contract is designed to protect households facing costly repairs for serious safety defects, including non-cladding related issues, said the Department for Levelling Up, Housing and Communities (DLHC). 

What else does it say? 

  • Developers to commit +£2 billion for repairs to builds they developed or refurbished in the past 30 years 
  • Developers reimburse taxpayers where public money was used to fix unsafe buildings 

With the Building Safety Levy, industry will pay an estimated £5 billion to make their buildings safe. 

So far, 49 firms have pledged to take responsibility to fix their own buildings, including Persimmon. 

“Today marks another significant step towards righting the wrongs of the past and protecting innocent leaseholders, who are trapped in their homes and facing unfair and crippling costs,” said Mr Gove. 

“Too many developers, along with product manufacturers and freeholders, have profited from these unsafe buildings and have a moral duty to do the right thing and pay for their repair. 

“In signing this contract, developers will be taking a big step towards restoring confidence in the sector and providing much needed certainty to all concerned.” 

He added: “There will be nowhere to hide for those who fail to step up to their responsibilities – I will not hesitate to act and they will face significant consequences. 

If you enjoyed this article, we also recommend Russell WBHO £12m pharma win – the delivery team 

Get industry news in 5 minutes!

Get the daily email that makes industry news enjoyable. It’s completely free.