Changes to law and regulation are creating uncertainty within the construction sector. As the industry undergoes some of the biggest reforms in a generation, never before has it been more important to work with reliable and professional partners who can be trusted to complete their duties in a safe and lawful manner.
The importance of working with a reliable, risk-free subcontractor
The Building Safety Act
The Building Safety Act 2022, passed in response to the Grenfell disaster, will have a significant impact on the construction sector – putting more stringent measures in place to ensure that buildings and their occupants are kept safe, and that homeowners are not left with large bills from remediating any errors during construction or refurbishment.
Among other changes, the act permits Defective Premises claims for a period of 15 or 30 years (up from 6), depending on the circumstances. Of course, the party ultimately required to foot the bill after error will depend on contracts and court process, as well as underlying law, with developers and main contractors very likely to seek to recoup costs from specialist subcontractors.
Whether they can succeed in that goal is another matter. Small, specialist subcontractors may not in practice be able to support large legal liabilities, with former partners bearing costs in case of liquidation. Avoiding poor subcontractor work in the first place is a much stronger route to financial security than redress.
Construction News recently reported on a case in which an owner was paid £17.7M by main contractor George Downing Construction after defective cladding was fitted. The judge ultimately ruled that the subcontractor who actually installed the cladding should reimburse George Downing and also pay the owner further damages, but the subcontractor had already entered liquidation.
In another case ,“Willmott Dixon is suing five subcontractors and consultants as it attempts to recover the cost of fixing defective cladding on a residential scheme in Woolwich, south London.” Two of those parties are now suing Willmott Dixon back, claiming contributory negligence, with dispute between Willmott Dixon and owner Tesco preceding all of this.
Proceedings are still ongoing, but the only likely winner in such extended litigation are the law firms involved. It has never been more important to choose a long-established partner with a consistent track record of attention to detail and regulation. “HSE came to the site, looked at what we were doing, what Eden were doing, and went away happy that everything was being done correctly. It’s a good endorsement and we wouldn’t hesitate to work with Eden Facades again on future projects,” commented our client RG Carter, after completion of a recent project.
Retained EU Law
A separate area of legal uncertainty relates to Brexit. The Retained EU Law bill will automatically revoke most EU law on the last day of 2023. Ministers would have broad powers of delay and exemption, but, unless used, several thousand current laws, including construction-related legislation such as Working at Height, would cease to apply. The law society feels that this “could have a devastating impact on legal certainty in the UK”, adding that “several years of great uncertainty are likely to follow”.
A joint statement supported by industry bodies including IOSH and the British Safety Council opposes the bill in the strongest terms, with other parties criticising the lack of clarity and certainty that would follow this law. Our own SHEQ Manager, Terry Box, comments: “Concerns have been raised within the industry about how the sunsetting of these EU laws might impact health and safety standards in the UK. The UK is well known for having a world-leading health and safety framework and culture, with a system that has proven to be successful.
“The duty to comply with the Acts and with best practice guidelines will still remain, even without the EU-derived regulations.
“At Eden Facades, we hold certifications in ISO 9001, 14001 and 45001 and are accredited by CHAS and Constructionline. We are an accredited PAS2030:2019 installer of EWI and a full Installer Member of the Solid Wall Insulation Guarantee Agency (SWIGA). As a business, we always ensure best practice and the highest standards.”
Some ways of mitigating risk are overt in nature, such as agreeing protective clauses in contracts, but which may provide little protection in real-world cases where partners cannot fulfil the obligations involved. Don’t overlook the obvious route to risk reduction – carefully picking partners whose track record demonstrates they can be relied on to deliver.
To find out more about us, please call 01268 744199 or email office@edenfacades.co.uk.