Clark expects developers to sign building safety contracts 'within a month'

Clark expects developers to sign building safety contracts 'within a month'

Government plans to enforce the Building Safety Act have become slightly clearer as the current Levelling Up Secretary Greg Clark announced that contracts to turn the Building Safety Pledge into legally binding requirements have been sent to major housebuilders. Clark expects these to be signed 'within a month'.

Under the Building Safety Act, which came into force last month, leaseholders are now protected in law from unfair bills to make their homes safe and a regulatory regime is planned.

Following the Grenfell Tower tragedy, which marked its 5th anniversary last month with a silent march, the government has been clear that it expects developers to bear the brunt of recladding costs.

However, in all probability, this will be closer to a 50/50 split between developers and the taxpayer.

In April, agreements were reached that will see industry contribute £5 billion - an estimated £3m through the Building Safety Levy and a further £2m through the Building Safety Repairs pledge - a commitment by major developers to remediate life critical fire safety works in buildings over 11 metres. List of developers who have signed building safety pledge

Developers making this commitment have also agreed to reimburse any funding received from government remediation programmes in relation to buildings they had a role in developing or refurbishing.

These agreements were reached following constructive discussions with developers and the Home Builders Federation and will protect leaseholders from the costs of remediation of life-critical fire safety defects.

In moves to turn the pledge into legally binding contract, Greg Clark announced the Developer Remediation Contract and said:

"I will make it available for comment for 4 weeks, after which the contract will be finalised. The faithful translation of these pledges into action is essential to the reputation for dependability that such an important sector of our economy must maintain.

"Nor will there be backsliding on the £3 billion building safety levy. The taxpayer is contributing £5 billion towards fixing those buildings which have been left orphaned by absentee developers: the industry must pay its share too. The levy will be raised against all qualifying projects in England, and companies and firms who headquarter themselves overseas will pay it, as well as home-grown developers. Ensuring that this funding is available to all affected buildings is essential to re-building confidence in the sector.

"The approach to industry contributions and leaseholder protection has the strong and unambiguous support of all parties in parliament."

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