Building Safety Act 2022: RELEVANT DEFECTS
Published: 12/08/2024
The Building Safety Act 2022 (BSA 2022) is a landmark piece of legislation in the UK, aiming to significantly improve building safety standards, particularly in high-rise residential buildings.
Understanding the Act, especially the concept of "relevant defects," is crucial for asset managers responsible for the upkeep and safety of such buildings.
Promptly identifying and addressing relevant defects is essential for Asset Managers.
It ensures the safety of residents and helps avoid legal and financial repercussions.
This article will provide a comprehensive overview of the BSA 2022 and its implications for relevant defects, empowering asset managers to make informed decisions for their buildings, including:
- An explanation of the Building Safety Act 2022
- A definition of Relevant Defects under the Building Safety Act 2022 2022
- The implications of Relevant Defects for Asset Managers:
- How to identify Relevant Defects
- How to resolve Relevant Defects
- Key compliance and best practices
What Is the Building Safety Act 2022?
The Building Safety Act 2022 was introduced to address systemic failures in building safety, highlighted by the Grenfell Tower fire tragedy 2017.
The Act aims to enforce stricter safety standards, enhance accountability, and ensure that buildings are safe for occupants throughout their lifecycle.
The Act introduces a new regulatory framework for building safety, focusing on high-rise residential buildings.
Its key objectives include:
- Strengthening fire safety standards
- Ensuring resident safety
- Improving building oversight and accountability
What Are Relevant Defects Under the Building Safety Act 2022?
A "relevant defect" under the Building Safety Act 2022 refers to any defect in a building resulting from work carried out in the 30 years before June 2022 that significantly affects the building's safety and integrity, posing risks to its occupants, particularly in terms of fire spread or structural collapse. These defects can stem from poor design, construction, or maintenance practices.
The Act outlines criteria for identifying relevant defects, including:
- The nature of the defect
- The location of the defect within the building
- The potential severity of the risk posed by the defect
- Examples of common relevant defects in buildings
Types of Relevant Defects
The following are some examples of common relevant defects that may be encountered in buildings:
Structural Defects:
Foundation issues, and problems with load-bearing elements which could lead to significant structural instability and potential collapse.
Fire Safety Defects:
Faulty or ineffective fire doors, inadequate fire-stopping, and malfunctioning fire detection and alarm systems can fail to contain fire and smoke, endangering occupants.
Health and Safety Defects:
Combustible or non-compliant cladding materials can exacerbate fire spread, posing severe risks.
Inadequate ventilation can lead to poor indoor air quality, affecting the health of the occupants.
Other Significant Defects:
Any defect that threatens the overall integrity, structural stability and safety of the building, such as water ingress or electrical hazards, is considered significant.
Implications of Relevant Defects for Asset Managers
Legal and regulatory implications:
Asset managers must ensure compliance with the BSA 2022 to avoid legal penalties and liability for safety breaches. Failure to address relevant defects can lead to legal repercussions for asset managers, including fines and prosecution.
Impact on building insurance and liability:
The presence of relevant defects can affect building insurance premiums and coverage and unaddressed issues can increase potential liability for asset managers.
Financial implications, including costs of rectification:
Rectifying relevant defects can incur substantial costs. Asset managers need to be prepared for the financial implications as failure to rectify defects promptly can result in higher future expenses and reduced asset value.
How to Identify Relevant Defects
Proactively identifying, addressing and managing defects minimises risks and associated costs, helps maintain safety standards, protects asset value, and ensures regulatory compliance.
Relevant Defects can be identified by:
Inspection and Assessment:
Conducting regular inspections is essential for early detection of defects.
Use of Professional Assessors and Surveyors:
Engaging professional assessors and Chartered Building surveyors ensures thorough and accurate identification of defects.
Documentation and Reporting:
Keeping detailed records of inspections and identified defects and maintaining comprehensive records of inspections and identified defects is crucial for ongoing management and compliance.
Reporting Requirements under the BSA 2022:
Adhering to reporting requirements under the BSA 2022 ensures transparency and accountability in managing building safety.
Addressing and Rectifying Relevant Defects
Developing a Remediation Plan:
An effective remediation plan involves detailed assessment, prioritisation of defects, and scheduling of remedial actions.
Prioritising Defects Based on Severity and Risk:
Defects should be prioritised based on their severity and the immediate risk they pose to occupants.
Hire Qualified Professionals:
Hiring Certified Contractors and Consultants bring expertise and ensure compliance with safety standards during remediation.
Roles and Responsibilities in the Remediation Process:
Clearly defined roles and responsibilities facilitate efficient and effective remediation. Depending on whether you are you the building owner, resident, or contractor, each role has specific responsibilities.
Financial Planning for Remediation Costs:
Proper financial planning is essential to allocate resources for defect rectification. This could include:
Scope of Remediation:
- Prioritise repairs: Determining the order in which defects should be addressed based on safety, cost, and impact on residents.
- Regulatory compliance: Ensure that the remediation plan aligns with all relevant building regulations and safety standards.
Cost Estimation:
- Detailed cost breakdown: Preparing a comprehensive budget outlining all potential costs, including materials, labour, equipment, permits, and professional fees.
- Contingency planning: Allocating a percentage of the budget for unexpected costs or changes in scope.
- Inflation and price escalation: Factor in potential increases in material and labour costs over the project timeline.
Financial Impact:
- Cash flow analysis: Assessing the impact of remediation costs on the building's cash flow and financial stability.
- Service charge implications: Determining if any costs will be distributed among leaseholders or property owners.
- Valuation impact: Considering the potential impact of remediation costs and the resulting improvements on the building's value.
Risk Assessment:
- Identify potential risks: Assessing the financial risks associated with the remediation project, such as delays, cost overruns, and unforeseen defects.
- Risk mitigation strategies: Developing a plan to manage and mitigate potential risks.
- Insurance coverage: Reviewing existing insurance policies to ensure adequate coverage for the remediation project.
Project Management:
- Detailed project plan: Creating a clear project timeline with milestones and deliverables.
- Cost control: Implementing effective cost management measures, including regular monitoring and reporting.
- Procurement strategy: Developing a procurement plan for materials, contractors, and subcontractors.
Funding Options and Grants:
Exploring various funding options, including grants, can help mitigate the financial burden of remediation.
Key Funding Options are:
Building Safety Fund (BSF):
- Primarily targets buildings over 18 meters with unsafe non-ACM cladding.
- Covers remediation costs for leaseholders.
Cladding Safety Fund:
- Focuses on buildings between 11 and 18 meters with cladding defects.
- Aims to protect leaseholders from remediation costs.
Developer Contributions:
The government has secured commitments from developers to contribute billions towards cladding remediation on buildings between 11 and 18 meters.
This funding is intended to reduce the burden on leaseholders.
Insurance Claims:
In some cases, building owners or leaseholders may be able to recover costs through insurance claims.
Latent Defects:
Faults and defects caused by failures in design, workmanship or materials, may not become apparent until many years after completion of the project, long after the end of the defects liability period. Such defects are known as latent defects.
Section 14A of the Limitation Act 1980 states that “A claim cannot be brought after the expiration of either:”
- Six years from the date on which the cause of action accrued; or
- Three years from the date on which the Claimant had both the knowledge required for bringing an action for damages in respect of the relevant damage and a right to bring such an action.
Compliance and Best Practices:
Strict adherence to BSA 2022 ensures legal compliance and enhances building safety. An overview of the required steps are:
Engage competent professionals: Employ qualified building safety managers, fire engineers, and contractors with expertise in BSA compliance.
Conduct a thorough building assessment: Identify all safety defects, including those related to fire safety, structural integrity, and other relevant issues.
Develop a remediation plan: Create a detailed plan outlining the necessary works, timeline, budget, and risk assessment.
Engage residents: Involve residents in the process, providing regular updates and addressing their concerns.
Comply with building regulations: Ensure that all remediation works comply with current building regulations.
Obtain necessary consents: Secure any required planning permissions, building control approvals, and other consents.
Maintain accurate records: Document all aspects of the remediation process, including inspections, reports, and correspondence.
Consider long-term building safety: Implement measures to ensure the ongoing safety of the building beyond the remediation works, such as fire safety management plans and regular inspections.
Implementing Best Practices for Ongoing Building Safety:
Continuous implementation of best practices in building safety is essential for long-term compliance and occupant safety.
This includes regular, routine maintenance of:
-fire alarm systems, emergency lighting, fire doors, sprinklers, fire shutters and smoke control systems.
Regular Training and Updates for Property Management Staff:
Ongoing training and updates for staff ensure they are equipped with the latest knowledge and skills in building safety management.
In Summary
Understanding and managing relevant defects is crucial for compliance with the BSA 2022, ensuring occupant safety, and maintaining asset value.
Timely and effective management of relevant defects is vital for legal compliance, financial stability, and the well-being of building occupants.
Asset managers should proactively review and enhance their defect management practices ensuring safety, compliance, and sustainability.
How Can Harris Associates Help
Harris Associates can offer a bespoke solution to enable you to comply with the latest legislation. We are experts in statutory compliance and fire safety-related matters with experienced and qualified technicians, surveyors, engineers, and project managers.
We have national coverage and can help with all aspects of compliance including Building Safety Case Reports or façade remediation from FRAEWs through to the coordination and delivery of complex façade remediation contracts.
Contact our team today for expert support in complying with key legislation.
