Boodle Hatfield Property Insights, June 2023 - Flipbook - Page 5
Boodle Hatfield
Property Insights
The need to evaluate and possibly redesign
schemes, alongside the potential for the height
threshold to be reduced in time, could mean delays
and even the cancellation of some new high rise
residential schemes.
“We recently consulted on proposals for a
second staircase in residential buildings over
30 metres and are reviewing the responses,
which we will analyse to help improve and
strengthen the guidance - Department for
Levelling Up, Housing and Communities.”
Sarah Rock, Construction Partner
Developer Remediation
Contract
The Developer Remediation Contract (DRC) was
produced by the government last Summer and
reflects the pledge made by 49 developers to
commit to remediate life-critical fire safety works
in buildings over 11 meters high on which they
had played a role in developing or refurbishing in
the last 30 years. The DRC has now been heavily
negotiated and, as of May this year, 47 developers
have signed up to the DRC committing themselves
to the government scheme. Developers that
refuse to sign the contract will face significant
consequences.
The DRC sets out an agreement on the part of
each developer to take responsibility for work to
address life-critical fire-safety defects (including
but not limited to external cladding) arising from
the design and construction of buildings 11
metres and over in height that they developed
or refurbished in England over the 30 years prior
to April 2022, keep residents in those buildings
informed as to progress towards meeting this
commitment and reimburse taxpayers for funding
spent on remediating the unsafe buildings.
Some buildings that were initially assessed
under the criteria set out in the now withdrawn
Consolidated Advice Note and issued with
unsatisfactory EWS1 forms, have now been
reassessed under the more proportionate PAS9980
system. In some cases, this has produced differing
results. As a result, many managing agents and
landlords are understandably confused by which
fire risk assessment result applies, and whether
in fact their building requires remediation at all.
The DRC does little to alleviate this confusion
and may in fact open the door for the developers
to reassess the buildings once again. As a result
many leaseholders now face a further wait as
developers carry out further tests.
Whilst the intention was that leaseholders would
benefit from a common framework, the DRC only
places a “reasonable endeavours” obligation on
the developer to enter into a works contract with
the responsible entity (the owner of the superior
leasehold or freehold) rather than an absolute
obligation. In practice this means that leaseholders
and responsible entities are at the mercy of the
developers with no legal recourse unless and until
a works contract is entered into.
Sarah Rock, Construction Partner
