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Government tells social landlords to pursue claims against flammable cladding contractors
The government expects social landlords to “actively pursue” all “reasonable” claims against contractors who installed flammable cladding on tower blocks they own.
The call to pursue claims is included in a guidance published today, setting out how social landlords can access a £400m fund to remove flammable cladding from tower blocks they own.
The guidance stated: “We expect building owners to actively pursue all reasonable claims against those involved in the original cladding installations, and to pursue insurance and warranty claims where possible.”
Social landlords applying for the fund will be expected to show they are taking steps to pursue legal action and claims. If building owners successfully recover costs relating to cladding then the government expects to recoup this money, minus the legal costs faced by the owner.
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The guidance said “reasonable” costs will be covered, which includes putting up scaffolding to access the cladding, removing the cladding, replacement materials and labour.
The fund will not cover internal works to a building, interim fire safety measures, revenue costs or structural works which are not directly related to aluminium composite material cladding systems.
“Extraordinary technical requirements” which are essential but not normally associated with the removal and replacement of cladding but the government will require “additional detail and justification”.
In order to be eligible for the fund, social landlords will have to confirm they are replacing the cladding with material that is European Class A1 or A2.
Payments will be made as cash grants and will be payable in two tranches. The government expects to pay out the grants in 2018/19 and 2019/20.
In the first stage of the process building owners must provide information and cost estimates of the work that needs to be done. One application will need to be made for each building that needs cladding removed “as we expect building owners to have carefully considered the right solution for each building,” the guidance said.
Once building owners confirm that they have tendered for the removal and replacement of cladding systems and work has started on site, the first payment will be made.
The government will check on the progress of the removal and replacement work on a quarterly basis. A sample of building owners will be selected for a final audit at the end of the process and any building owner whose costs “significantly vary” from stage one applications or the independent estimates will automatically be audited.
Outside Greater London, Homes England is handling the bids for the fund, and the Greater London Authority will look after Greater London bids. The government expects the bidding process to open around mid-July. Applications should be made by the end of August.
