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Large global developer signs government’s building safety contract
Giant global developer Lendlease has signed the government’s building safety remediation contract, after being named as one of 11 developers that had missed the initial deadline to do so.
Giant global developer Lendlease has signed the government’s building safety remediation contract, after being named as one of 11 developers that had missed the initial deadline to do so #UKhousingThe Australia-headquartered developer signed the contract following a meeting of its global board this week.
The builder had been one of 11 providers to miss the deadline, with three others – Telford Homes, Ballymore and London Square – signing after being named by housing secretary Michael Gove last week.
The developer has previously put aside a £114m provision to remediate buildings it inherited through its purchase of builder Crosby Homes in 2005.
But the contract will make it liable for life-safety defects across all the homes it has built.
The firm is understood to believe that an “industry-wide” approach is required, but is reassured the government does intend to pursue other parties in the supply chain.
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Lendlease said it has not received any specific claims to date and only has limited information relating to the buildings in the Crosby portfolio.
A spokesperson for the firm said: “As a responsible global developer and investor, we’ve always maintained that leaseholders shouldn’t be held liable for remediation costs and advocated for an industry-wide solution encompassing all of the supply chain.
“We recently announced a £114m provision to pay for remediation on affected buildings, most of which were inherited through our purchase of Crosby Homes in 2005, and have set up a dedicated team which is working with building owners to assess and resolve these issues.
“Our board met this week and confirmed the company has signed up to the UK government’s developer remediation contract. This decision follows a thorough and diligent corporate governance process to ensure it has been given the detailed consideration it deserves in the context of our global business.”
Builders that did not sign the contract face being banned from building new homes in the UK and seeing their existing sites shut down under powerful new legislation introduced by Mr Gove.
The seven remaining firms yet to provide a statement confirming they had signed the contract, as of 22 March, are Rydon Homes (whose contracting arm worked on Grenfell Tower), Galliard Homes, Jones Homes, Inland Homes, Abbey Developments, Dandara, and Avant Homes.
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