Construction

Contact: Ben Goodier

Construction

First Building Liability Order made against developer's parent company

The Court made what is believed to be the first Building Liability Order (BLO) under section 130 the Building Safety Act 2022. A BLO enables the court to extend a company's liability for remedying building safety issues to an associated company if the court considers it just and equitable to do so. In 381 Southwark Park Road RTM Company Limited & Ors v Click St Andrews Ltd & Anor [2024] UKHC 3569 (TCC), a group of tenants in a right to manage company obtained an BLO against the parent company of the insolvent developer and current freeholder. The court took the view that it should have regard to the purpose of the BSA and to all relevant factors when deciding whether to exercise its jurisdiction to make a BLO. Mr Justice Jefford quoted with approval some of the reasoning in Triathlon Homes LLP and Stratford Village Development Partnership [2024] UKFTT 26 (PC) in which the court described the BSA's purpose as seeking to ensure that "where a development has been carried out by a thinly capitalized or insolvent development company, a wealthy parent company or other wealthy entity which is caught by the association provisions cannot evade responsibility for meeting the cost of remedy in the relevant defects by hiding behind the separate personality of the development company." The insolvent developer in 381 Southwark was a special purpose vehicle and it was relevant that the developer and its parent company both had a common directing mind. As such, the court in 381 Southwark granted the BLO, holding the developer's parent company liable to the leaseholders.

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Building Safety Levy delayed

The government confirmed on 24 March 2025 that the Building Safety Levy, which was due to be introduced later this year, will not now come into force until autumn 2026. The government announced its Remediation Acceleration Plan in December 2024, which included a target date for the levy of autumn 2025, but the government's latest announcement pushes this back to give local government, the BSR, Registered Building Control Approvers and developers sufficient time to prepare and, for developers, to factor this into their financial planning. The levy is one of the few provisions of the Building Safety Act 2022 that has yet to be implemented. The rationale behind it is to ensure that the cost of remediating safety defects is not borne by the taxpayer and that, instead, developers will pay via a fee on new housing developments which require building control approval. The levy is expected to raise £3.4bn over ten years and imposes a levy per square-meter of chargeable floorspace depending on the local authority area and whether the land has previously been developed or not. The rates publishes with the government's response to the its consultation in March range from £6.35 per m² on previously developed land in County Durham to £100.25 per m² for not-previously developed land in Kensington and Chelsea.

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Construction

New guidance on higher-risk buildings

The Health and Safety Executive which incorporates the Building Safety Regulator (BSR) released a suite of new guidance on higher-risk buildings (HRBs) on 27 March 2025. The guidance covers applications for completion certificates, building control approval (here and here) and change control on HRB projects. The new guidance on changes set out which changes are notifiable (ie must be communicated to the BSR before the works take place, but do not require prior consent) and which are major changes; these require permission from BSR before work can start. The new building control guidance covers emergency repairs, making clear that these can be carried out without building control approval provided certain criteria are met. The guidance highlights that the emergency repair provisions should not be relied upon to remedy issues that occur due to a lack of foresight or planning by the client or a contractor.

The guidance goes some way to allay concerns of developers who reported difficulties understanding what information and documents are required for applications under the gateway regime for HRBs. However, it has been described by some as "unhelpful" as it appears to contradict some case law and is inconsistent with the legislation in place. It also does not address in detail the most complex aspects of the regime, which tend to be the areas giving rise to the most uncertainty.

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RICS consultation explores responsible AI implementation in surveying

The Royal Institution of Chartered Surveyors (RICS) has published a consultation on its draft professional standard "Responsible Use of Artificial Intelligence" aimed at guiding RICS members and regulated firms in adopting AI within surveying practice. The standard covers key areas including: referencing AI use in engagement terms, maintaining transparent client communications, ensuring output reliability, addressing privacy concerns, developing necessary AI knowledge, establishing governance frameworks, and conducting proper procurement due diligence. The standard seeks to help surveyors maintain professional judgement while using AI technologies, build confidence in data management practices, and ensure effective client communication. The consultation period has now concluded.

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RICs updates FAQs on Cladding External Wall System (EWS)

The RICS have updated their Cladding External Wall System (EWS) FAQs.

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Construction

Impact of US tariffs on UK construction materials

The Construction Leadership Council Material Supply Chain Group released a statement on 23 April 2025 on the impact of the US tariffs on construction materials in the UK. The statement reports that the materials supply chain remains resilient at present, with product availability generally good despite regional challenges for aircrete, insulation blocks, and timbers. The Construction Products Association observed that:

most UK exports to the US tend to be of higher value and quality, making them less price-sensitive
only around 15% of UK construction materials and products are exported, but tariffs will have a significant impact in the short-term
the majority (around 76%) of materials and products used in UK construction are sourced locally and most imports come from the EU (around two-thirds) and then China
the tariffs are likely to mean higher uncertainty, volatility in pricing, and a shift, over time, towards different trade routes.

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Building Safety Regulator delays continue

Delays at the Building Safety Regulator (BSR) continue to have a serious impact on the industry, in some cases leading to people losing their jobs, the CIC has said. On 24 April 2025, the BSR blamed the delay in the grant of Gateway 2 applications on a lack of industry design expertise, which meant that 75% of applications were being rejected due to missing or flawed information. However, lack of clarity in the government's guidance means applicants are uncertain what information needs to be provided, it has been reported. Gateway 2 is a step in the Building Safety Act regime which requires the BSR to confirm that the planned construction of a higher-risk building (HRB) meets safety standards before construction can begin. Developments must submit detailed plans, including fire safety and structural integrity assessments for approval by the BSR prior to commencing construction.

New guidance on Approved Documents A and B

The BSR's a call for evidence seeking views on the future of Approved Document A (structure), a document which was last reviewed 12 years ago, closed at the end of April 2025. The "Approved Documents" are statutory guidance to the Building Regulations which set out practical ways to comply with the technical requirements of the Building Regulations. The review has been prompted by the expiry of the first generation of Structural Eurocodes (European structural design standards), but the BSR intends to take the opportunity to carry out a wider revision of the document to coincide with the date of withdrawal of the Eurocodes on 30 March 2028. This represents the first step in a root and branch review of building regulations which was one of the recommendations of the Grenfell Inquiry.

In the meantime, the government has issued updated guidance on Approved Document B (fire safety). The updates including making provision for sprinklers in new care homes and withdrawing the outdated national classes fire testing standard, leaving the more robust European standard (BS EN 13501) in place.

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