Francis Ho writes in Building magazine about the process of remediation for residential buildings with unsafe cladding.
min readThe Building Safety Act identifies who should pay for historic defects, such as unsafe cladding. However, it does not outline what should happen when culpable parties simply don’t have the money.
Writing in Building magazine, Francis Ho considers how a government-backed remediation loan facility could help bridge the gap. In cases where responsibility for building safety defects is established or accepted, but the party cannot manage their immediate cost without jeopardising financial survival, finance could be made available to them.
Francis Ho, Partner in our Construction, Engineering & Projects team, writes in Building magazine:
Building safety defects are often highly expensive and their remediation consumes labour, management time and supply chain resources that can’t then be deployed on the new and ongoing projects necessary for the business to continue.
Commercial lenders could assess creditworthiness and administer the loans, with the government sharing or guaranteeing the risk. The culpable party would repay the loan, with interest, from future income.
Read the full article in Building here (subscription required).
