Remediation Funding Options

The Building Safety Fund is designed to cover the costs of removing and replacing unsafe non-ACM cladding from residential high rise buildings of at least 18 metres in height, with a 30cm tolerance.

The fund covers ‘reasonable’ capital costs for eligible works necessary to remove the cladding, it also covers Cladding Consulting’s fees plus:

• Direct access related to qualifying works (e.g. scaffolding, mast climber, etc.),
• Removal and disposal of existing non-ACM cladding
• Replacement materials
• Labour and reasonable contractor overheads
• Professional fees for qualifying items
• Managing agents’ fees for administering qualifying expenditure
• Extraordinary technical requirements which incur extra costs essential to but not normally associated with removing and replacing unsafe cladding systems

Cladding is the outer layer of a building that has been added to provide insulation, weather proofing and improve the appeal of a building. Some cladding systems have been found to contain combustible material, which could lead to the rapid spread of fire. Once an intrusive inspection has been undertaken, other defects are often uncovered, such as missing fire breaks, which can increase the spread of fire.

Some cladding, however, has been found to be less fire resistant than is considered safe. Wood and high pressure laminate cladding is more prone to catching fire, whilst Aluminium Composite Material (ACM) cladding, particularly when it has flammable insulation, is considered to be the most combustible.

Aluminium composite material (ACM) is a flat panel made from two thin aluminium sheets bonded to a non-aluminium core, between three and seven millimetres thick. The panels have a painted or metallic finish, for example a copper or zinc effect.

ACM with unmodified polyethylene filler with any type of insulation presents a significant hazard on any building, and should therefore be replaced. As of 1 June 2022, there has been an outright ban on the use of these types of panels on all new buildings of any height.

Our service is designed to support leaseholders, managing agents and other parties with an interest in or responsibility for a building that has fire safety defects such as unsafe cladding. There is nothing to pay upfront and all fees will be covered by the cladding remediation fund if the building is eligible.

Our long term experience in the property sector led us to identify a need for guidance through the process of applying to the cladding remediation fund, which is renowned for its complexity and known to be very time consuming.

We take applicants through the entire process, from finding out whether their building has fire safety defects and arranging the necessary documentary proof, to receiving the funds to rectify the problem and appointing and managing the contractors who will undertake the remediation works.

We will also put together an expert team that ensures the project runs smoothly from inception to completion – this is often a lengthy process as our projects generally take a minimum of a year and sometimes up to three years to process. Teams consist of various experts, including façade designers, surveyors, fire engineers, specialists in measured surveys, contractors who can do intrusive inspections and contractors who can price the
work.

In order to secure the money from the government cladding remediation fund we’ll compile a team that will need to be on board to get the specifications of the work, reports that need doing and then the surveyors will bring in contractors who will tender the work and report to the client. We will assist in the administrative aspects of putting all of that to the Building Safety Fund, including legal support.

Once the money is paid, Cladding Consulting will handle the entire sum, where we retain it in client trust accounts, pay it out and account for it on a regular basis with regular reports. Contractors are paid once a payment certificate has been issued by the surveyors. We have robust structures in place so that we can carefully manage the money and ensure contractors and other parties are paid accordingly.

Applicants are provided access to a secure online portal where they can view documentation in real time for complete transparency. Through regular video calls, we keep applicants up to date on progress, with all meetings minuted and shared on the portal.

On completion, we hand over an electronic file containing all the drawings, warranties, plans, consents and any other documentation relating to the project. Minutes for all meetings are also shared on the portal.

Whilst we manage everything on behalf of the applicant, we ensure that direct contracts are signed between them and all the individual parties involved, so that they have direct access to the collateral warranties once the project is finalised.

Leaseholders are protected from contributing to any costs relating to cladding, so the Cladding Remediation Fund will cover our fee. There aren’t any other upfront costs as we can also apply for pre-tender support where needed. This is a fund designed to give applicants the funds they need to get all the relevant experts on board. These costs can quickly add up and the earlier pre-tender support is applied for, the better. There is no risk to you, and with our expertise and extensive experience, the chance of a favourable outcome is maximised.

A number of the UK’s largest house builders have pledged to do the right thing by leaseholders, by taking responsibility for all the necessary work required to address fire safety defects on buildings of 11 metres and over that they had a role in developing or refurbishing over the past 30 years. Cladding Consulting will assist and advise on the entire process.

If you are applying to the cladding remediation fund through Cladding Consulting, you can leave all of this detail to us, and we will ensure that the appropriate process is followed. If you are entering into negotiations with a developer under the Developer Pledge, we can help you by appraising your agreement via our highly specialised contract lawyers who have specific experience in this area. Give us a call and we’ll happily talk through your case and any concerns and/or questions you have.