Lendlease has signed the federal government’s remediation contract following “detailed consideration” by its board.
The contractor was one of 11 firms that failed to sign up to the government’s contract by final Monday’s deadline (13 March). Housing secretary Michael Gove warned final week that any companies that didn’t signal the remediation contract could be barred from starting new housebuilding tasks or getting building-control for work which was already underway.
Nonetheless, Lendlease mentioned it had now signed the contract, weeks after it announced a £114m provision for buildings safety provisions, most of which was “inherited by our buy of Crosby Properties [in 2005]”. Lendlease added on the time that it supposed to “maximise third-party recoveries” from its subcontractors.
Development Information understands that whereas Lendlease has accepted legal responsibility for buildings it develops – or that have been developed by corporations it has acquired – it is usually anticipating the federal government to “pursue” different events inside the development provide chain for contributions in the direction of remediation work.
Gove introduced final week that he would do extra to pursue freeholders and builders based mostly in international international locations and construction-product producers to make them pay.
CN additionally understands that Lendlease has but to obtain any particular claims for remediation, regardless of its provision. The availability principally covers work on 56 buildings, although Lendlease has mentioned it now not owns these properties.
Gove mentioned final week that the preliminary commitments to the contract, which was signed by 39 builders in whole, would imply at the very least 1,100 buildings will likely be fastened through £2bn-worth of funding.
Lendlease is considered one of 4 builders to have signed the contract since then. Ballymore, Telford Properties and London Sq. also signed after the deadline.
A spokesperson for Lendlease mentioned: “As a accountable world developer and investor we’ve all the time maintained that leaseholders shouldn’t be held accountable for remediation prices and advocated for an industry-wide resolution encompassing the entire provide chain.
“We not too long ago introduced a £114m provision to pay for remediation on affected buildings, most of which have been inherited by our buy of Crosby Properties in 2005, and have arrange a devoted group which is working with constructing homeowners to evaluate and resolve these points.
“Our board met this week and confirmed the corporate has signed as much as the UK Authorities’s developer remediation contract. This resolution follows an intensive and diligent company governance course of to make sure it has been given the detailed consideration it deserves within the context of our world enterprise.”
