FIS CEO Iain McIlwee has called for a more fair and proportionate approach, raising concerns that new Government announcements regarding cladding issues and retrospective legislation could derail future work.

In an interview with Construction News Iain said it was right to take the remediation burden off leaseholders, but that pushing costs onto developers, contractors and manufacturers would “run the risk of derailing future work”. He warned the policy could lead to years of legal disputes as well suggesting that a levy-based Building Safety Fund culd be a better alternative.

Companies will have to contribute around £4bn to replace dangerous cladding on medium-height buildings, housing minister Michael Gove said yesterday. But groups representing those in the construction industry have said it could place an unfair burden on some.

Finishes and Interiors Sector (FIS) chief executive Iain McIlwee said it was right to take the remediation burden off leaseholders, but that pushing costs onto developers, contractors and manufacturers would “run the risk of derailing future work”. He warned the policy could lead to years of legal disputes as well.

“The only winners will be the lawyers and the administrators and the real losers will be the small and medium-sized contractors and subcontractors, who are bound by heavily amended contracts and are operating in exceptionally difficult circumstances,” McIlwee said. “[They] will be left holding the bill when the music stops.”

The FIS said a levy-based Building Safety Fund could be a better alternative.

Iain’s concerns were echoed in a response to the article from an FIS Member who stated:  

“We have real concerns regarding contracts amended in favour of contractors and developers.  We already have various clients pointing contracts at us regarding specification and design when in reality they were responsible.  The legal route could destroy half of the businesses in our trade sector with the loss of expertise and jobs.”

The full article, which includes comments from other trade bodies and NBS is available here.  ‘Neither fair nor proportionate’ – industry reacts to £4bn cladding clawback

Source: Construction News

Further comment by FIS and a copy of the original letter from Michael Gove is available here.