House builder to pay for fire and building safety works on Welsh block

Richard Keogh, special projects director at Redrow, explained that the cladding replacement would include the installation of non-combustible insulation, a cladding framework and cavity barriers.

He said the developer plans to appoint a main contractor for the works through a “competitive tendering process”. It will also enter into an agreement with CMC, a draft of which it said would be circulated “shortly”.

Negotiation of work contracts will begin this month, Mr Keogh said, after which a planning application will be submitted in May. The preferred contractor would be selected by October and works will start on site in early 2025, with an estimated two-year build period.

CMC welcomed Redrow’s offer to pay for the remediation works. It said the offer came six months after investigations by architects, fire engineers and structural engineers confirmed defects originally identified over five years ago. These investigations were carried out amid High Court proceedings between CMC, Redrow and contractor Laing O’Rourke.

“We understand Redrow’s intention is to continue to seek an indemnity in respect of the costs of the work from Laing O’Rourke, who built Celestia for Redrow,” CMC said.

“However, we have been assured that resolution of the outstanding legal claim will not delay the work.”

Redrow contracted Laing O’Rourke to build the 450-flat development between 2005 and 2007. At Celestia, a settlement agreement of £1.5m was reached between Redrow and the management of the complex in 2020.

Some remedial works have been carried out, but claimants argued that fixing them fully could cost up to £20m.

CMC continued: “Redrow has already provided for the costs… in its accounts and will finance the cost from its own resources. It has taken far too long, but it is a very significant step. Although there are some important omissions in Redrow’s offer, we believe these can be addressed satisfactorily with goodwill.”

The target completion date of early 2027 means leaseholders “have to endure another three years of disruption and being unable to sell”, CMC said. The timetable “must not slip” and “we need the support of the Welsh government, Cardiff City Council, planning authorities and others, including the freeholder, to ensure it does not do so”, it added.

The Welsh government said: “We were pleased with the positive outcome between Redrow and CMC that happened in a meeting facilitated by the Welsh government, and look forward to progress being made.”

Under the Welsh government’s developers pact, house builders have signed up to remediate buildings with fire safety issues they originally developed and set out plans for completing the work.

In July 2023, the Welsh government told Inside Housing that Redrow, along with Lovell, Vistry, Persimmon, McCarthy Stone, Taylor Wimpey, Crest Nicholson, Barratt and Bellway, had submitted plans for fire safety work.