Construction

Contact: Ben Goodier

Construction

More legislation aimed at cladding remediation on the way

The government announced its Remediation Acceleration Plan (RAP) on 2 December 2024, which aims to ensure that remediation work is carried out faster, all buildings with unsafe cladding are identified and residents supported. The RAP proposes a deadline of 2029 for certain remediation and its proposed target is that developers start or complete remedial works on 80% of the buildings for which they are responsible by July 2026, and on 100% of those buildings by July 2027. Severe penalties, including criminal liability, are threatened against defaulting landlords who fail to comply with the proposed new legal duty to remediate unsafe cladding.

Along with new legislation to implement the legal duty to remediate cladding, the government also proposes legislation to create a comprehensive buildings register, including details of the beneficial ownership of buildings of 11 metres or more in height. The RAP also confirms that the Building Safety Levy will come into force in autumn 2025.

HMRC clarifies VAT rules for cladding remediation

HM Revenue & Customs (HMRC) has issued guidance to clarify its policy on the VAT treatment for remedial building works, including cladding replacement. The issue of cladding remediation has been significant for developers following the discovery of fire safety defects in numerous residential buildings. There has been confusion regarding the VAT treatment of these works and whether developers can reclaim the VAT incurred. To address this, HMRC has released a brief along with compliance guidelines to provide clarity on its policy.

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How far have we come? A discussion on the RICS 2024 Sustainability Report

A recent webinar examining the RICS Sustainability Report 2024 revealed a complex landscape of progress in sustainable building practices. The report indicates growing demand for environmentally conscious construction, with European markets leading adoption due to regulatory frameworks. However, significant challenges persist across the sector, particularly in carbon measurement and biodiversity considerations.

The findings highlight that more than half of industry participants are not effectively monitoring embodied carbon in construction projects. Additionally, only a small proportion of respondents incorporate biodiversity measures comprehensively. The report identifies three key barriers to progress: cost perceptions around sustainable practices, insufficient professional expertise, and entrenched industry customs. Despite some integration of sustainability measures, the sector's advancement towards decarbonisation goals remains below required trajectories.

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Construction

OPSS investigates challenges in construction product supply chains

A recent study commissioned by the Office for Product Safety and Standards (OPSS) examined supply chain practices in the construction products sector. The independent research, conducted jointly by Risk and Policy Analysts and BWL Consulting, evaluated whether existing practices required additional guidance or regulatory enhancement.

The investigation centred on five essential construction components: cables, cladding, fire barriers, fire doors, and insulation. Drawing on input from key UK stakeholders - gathered through questionnaires, interviews, workshops, and a literature review - the report summarised its findings, highlighting that “information about products and their proper installation methods was often poorly communicated throughout the supply chain.” The study has also uncovered industry “uncertainty” regarding the definition of specific construction products, such as cladding systems and fire doors.

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Buildings regulations review and changes to Approved Documents

The government announced a root and branch review of the building regulations on 2 December 2024, which will be carried out by a panel of the BSR in early 2025. This is likely to result in changes to the Approved Documents which provide detailed guidance for contractors, architects, and other professionals on how to meet the requirements of the building regulations in common building situations. The Approved Documents have been criticised for being overly complex and difficult to use, the Hackitt Review calling them “complex, ambiguous and not user-friendly” and the Grenfell Inquiry report recommending that they are the subject of continuous updating. The new Approved Documents (or their replacement) are likely to be available digitally.

In the meantime, Parliament is currently considering the Building Regulations (Minimum Standards) Bill 2024-25 which will set minimum standards for the building of new homes in relation to quality and energy efficiency and place requirements on developers of new homes.

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Construction

Building Safety Act 2022: implementation and confusion arising from guidance

The Building Safety Act 2022 is now fully in force with the following exceptions, which may be the subject of legislation in 2025:

s38 Building Act 1984 to introduce civil liability for breaches of the building regulations
making new home warranties mandatory and requiring them to provide cover for 15 years
implementing the Building Safety Levy (aka the "gateway two developer levy")
measures aimed at forcing construction products manufacturers to pay towards remediation work.

The government has issued guidance on the new legislation but there is confusion about how much this guidance can be relied upon as an accurate representation of the law. In the case of Smoke House & Curing House, 18 Remus Road, London E3 2NF, the Tribunal noted the sheer volume of overlapping guidance, challenges in navigation, confusing and unsourced content, problems tracing amendments, disclaimers about its reliability and usage within the documents, and instances where the guidance exceeded or contradicted the legislation.