One of the outcomes of the tragic events at Grenfell Tower is likely to be greater accountability and harsher penalties within the sector for non-compliance, but establishing how the “universal shift in culture” identified by Dame Hackitt is put in place is less than straightforward.

In a previous post, we looked at the need for clearer lines of responsibility in order for the sector to be able to move forward. The draft Building Safety Bill, for which more detail is expected by the end of November, sets out the new framework required to create a safe system and to begin introducing any sort of clarity to the market.

Although the draft bill has been generally well-received by the industry, it raises more questions nobody has the answers for. The aim is for the bill to be in place by the end of 2021, however the reality is that it could be a lot longer before the plans, which rely on a significant cultural change, come into force.

Where does this leave the sector in the meantime?

With an evolving landscape and changing regulations, insurers are nervous and ‘cladding’ coverage restrictions, or even total exclusions, are becoming standard when firms come to renew their professional indemnity insurance. The definition of what constitutes ‘cladding’ also varies, sometimes encompassing all elements of fire safety.

Not only are restrictions becoming broader, the cost of professional indemnity insurance is rocketing. Reports of premiums quadrupling are common, and research that took place after Grenfell found that PI insurance premiums for some envelope specialists had risen by 900 per cent[2].

With the increasingly restrictive and expensive PI market looking unlikely to change in the foreseeable future, our sector is hamstrung by the lack of clarity. At Eden Facades our concern is that smaller, less knowledgeable firms, could decide to take a risk and go ahead with work they may not have adequate cover for.

Architects and consultants

The situation is becoming complex for consultants and design teams. One associate at an independent property consultancy commented, “Cladding and fire safety might be the biggest technical challenge the profession has faced since the dangers of asbestos became publicised”.[3]

In December 2019, the government announced the release of the EWS1 (external wall system) form for properties above 18m, designed to assess the safety of external cladding and with the aim of putting in place a standard approach across the industry.

In fact, the form has been controversial and the concern around the potential risk for the consultant, along with forms that are frustratingly binary to complete and then difficult to sign off, has resulted in delays and more confusion. Ultimately, it could narrow the field in terms of consultants willing to take on future high-rise projects.

Contractors and subcontractors

Subcontractors could well be forced into a position where they are taking on work with exclusions they are unsure about.

A subcontractor faced with a significant claim not covered by insurance would be likely to cease trading and, as the liability passes up the chain, the insurer would look to the main contractor to cover the claim. Larger contractors might be able to cover the claim, but smaller firms, perhaps without the necessary staff or lawyers, might have decided to take a risk. So a claim could also cause them to cease trading, which would ultimately see the liability ending with the building owner.

Contractors should be assessing their current and future approach to projects and asking questions such as:

• Are we taking on work within our capability?
• Do we have the systems in place to record the work?
• Do we have a detailed contract?
• Have we taken our insurance broker’s advice?

How can we move forward?

The Hackitt Report’s intention was to be progressive, this should be our opportunity to move away from the “race to the bottom” culture. In the biggest change to building safety regulation in over 40 years, this is the chance for our sector to nurture a new culture and begin changing attitudes and practices.

However, exactly how we achieve these objectives is unclear and it is time for government to bring about some longed-for clarity.

At Eden Facades we are taking a proactive role in driving best practice, from more specific quotes, to the engagement of specialist fire consultants and insurance brokers. Call us on 01268 744199 to find out more about our processes or to discuss a specific project.

[1] https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/668831/Independent_Review_of_Building_Regulations_and_Fire_Safety_web_accessible.pdf

[2]  Construction News 

[3] RICS