Developer remediation contract: resident factsheet

What’s happened?

On Monday 30 January 2023 the government published a developer remediation contract that it expects major developers to sign by 13 March 2023.

What is the developer remediation contract?

Last year, 49 of the largest developers signed a public pledge committing to fix life-critical fire safety defects in residential buildings 11 metres or more in height which they developed or refurbished in England over the last 30 years.

The developer remediation contract turns the pledge commitments into a more detailed, legally binding document. Once the contract is signed by the Department for Levelling Up, Housing and Communities and the developers, the contract will require developers to take responsibility for addressing life-critical fire-safety defects arising from the design and construction of buildings 11 metres and over in England that they developed or refurbished over the last 30 years. Developers will be expected to keep residents in those buildings informed of progress towards meeting this commitment. And developers will be expected to reimburse taxpayers for money that has been spent to fix the buildings through government funds.

When will developers sign the contract?

The government has asked all the developers who signed the pledge and several developers that have yet to do so to sign the contract by 13 March 2023.  See the list of developers who signed the pledge.

The government will publish the names of developers who have signed the contract in due course. The government also wrote to developers on 30 January saying that any developer that refuses to sign the contract by 13 March can expect that fact to be made public, and will face significant consequences.

My developer has refused to sign the contract. What happens now?

Developers that refuse to sign the contract will face significant consequences.

In Spring 2023, the government will lay regulations to establish a Responsible Actors Scheme. Under the regulations, developers that are eligible for the Scheme would have to sign and comply with the terms of the developer remediation contract if they wish join and remain in the Scheme. Any eligible developer that opts not to join and remain in the Scheme would be prohibited from commencing new developments for which they have planning permission, and from securing building control sign-off for buildings already under construction. They would not be allowed to build the homes of the future until they commit to fixing the problems of the past.

What happens if the developer for my building cannot be identified, traced or held responsible?

This should not be a cause for immediate concern. There are other government-funded routes to make sure that buildings over 11m tall are remediated or have mitigations put in place to protect against life safety fire risks linked to external wall systems. Building owners are responsible for applying to these funds, not residents. They include the Building Safety Fund for buildings over 18m and the Cladding Safety Scheme for buildings between 11m and 18m.

When will remediation works begin and how long will they take?

Some developers have already begun assessment and remediation works. The developer remediation contract requires developers who sign it to identify, assess and remediate and/or mitigate buildings as soon as reasonably practicable, and to report to the department on progress quarterly. It also requires developers to take steps to keep residents informed about the progress of the works.

What do I need to do?

If the developer of your building is taking responsibility for remediation work under the contract, you don’t have to take any action now. Your building owner will be in touch to advise you of what will happen next. If you would like more information on the progress of remediation works, you can get in contact with your building owner or their official managing agent, who will be able to provide you with further information.

My building is currently in the Building Safety Fund (BSF). Will the developer take over the work? Will this now delay or stop the work?

The government wants to make sure that buildings are remediated properly and as quickly as possible.

If the developer of your building has made the pledge and/or signed the contract, one of two things will happen:

• the developer will take over and become responsible for the remediation works, in which case the building will exit the BSF or
• the building will remain in the BSF and the developer will reimburse the BSF for the cost of the works.

The building owner (or their official managing agent) will become responsible for keeping leaseholders and residents informed of how the works are progressing. Under the contract, developers are also encouraged to provide updates on works and may provide contact details so that questions or concerns about the works can be raised.