Housing developer plans to recover cladding costs

Housing developer plans to recover cladding costs

REDROW HAS announced it is planning to recover some remedial costs for cladding replacement from contractors that it paid to build affected developments.

Construction News reported on the plans by Redrow to ‘recover some of its remedial costs on cladding replacement’ from contractors that it ‘paid to build the developments’ affected, adding that while executive chairman John Tutte ‘would not say’ what the overall cost of the remediation work would be to the company, he told the news outlet that Redrow high rises were built by contractors under ‘design-and-build contracts’, so liability for the works ‘needed to be clarified’.

Among the developments requiring works related to fire safety in the sense were the Celestia tower block in Cardiff, built by Laing O’Rourke, and the Ropeworks development in Barking, built by Ardmore – both of which were ‘completed more than a decade ago’. At this point, Redrow has ‘avoided making any provision’ for cladding related works, but Mr Tutte said that it intended to cover any such costs with reserves, as the number of schemes affected was ‘very small’.

The news outlet pointed out that this approach ‘differs’ from those of competitors Barratt and Crest Nicholson, who have set aside £13.3m and £18.4m respectively for cladding works. Mr Tutte added: ‘You can imagine it is quite a complex situation legally. And it’s a case of how much [Redrow] will end up contributing and how much we will be able to recover from those contractors. We’re comfortable that we don’t need to make provisions.’