Developer remediation contract: resident factsheet
This factsheet provides a summary of key information about the contract for residents living in buildings where developers have pledged to remediate historic fire safety defects.
Applies to England
Background
1. What is the developer remediation contract?
In 2023, the government asked major developers to sign a developer remediation contract committing them to:
- Take responsibility for all necessary work to address life-critical fire-safety defects arising from the design and construction of buildings 11 metres and over in height that they developed or refurbished in England over the 30 years ending on 4 April 2022.
- Keep residents in those buildings informed about progress towards meeting this commitment.
- Reimburse taxpayers for funding spent on remediating those buildings for which they are responsible.
As of 6 December 2023, over 50 developers have signed the contract.
The terms of the contract reflect the commitments in an earlier public pledge made by major developers.
2. My developer was invited to sign the contract and has refused to do so. What happens now?
Any invited developer that refuses to sign the contract faces significant consequences.
In July 2023, the government launched a statutory Responsible Actors Scheme under sections 126 to 129 of the Building Safety Act 2022. Developers that are eligible for the Scheme must sign the contract and comply with its terms if they wish to join and remain in the Scheme.
Any eligible developer that is invited to join the Scheme and opts not to join (or who joins the Scheme and has its membership revoked because it has failed to comply with its conditions) will be prohibited from carrying out major development, and from securing building control sign-off for buildings already under construction in England. They will not be allowed to build the homes of the future until they commit to fixing the problems of the past.
There are also other routes to remediation, such as obtaining funding for works through the Cladding Safety Scheme (CSS) or Building Safety Fund (BSF).
See more information on the Responsible Actors Scheme.
3. How do I know if my developer was invited to sign the contract and join the Responsible Actors Scheme?
If it becomes apparent to government that a developer is likely to meet the eligibility criteria set out in the Regulations, the department will write to the developer and invite it to join the Scheme and to sign the contract. The government has published and keeps up to date a list of developers who signed the contract and developers who have joined the Responsible Actors Scheme, having signed the contract. There are also details of a small number of developers who signed the pledge but were subsequently found not to have developed buildings within its scope.
The department does not disclose the identity of developers who have been invited to join the Scheme until such time as they have either joined or been prohibited, and we do not disclose the identity of developers who have not been invited to join the Scheme or whose representations refuting eligibility (following an invitation) have been accepted.
4. What happens if the developer for my building cannot be identified, traced or held responsible? Will I need to pay?
In the case of buildings covered by the developer remediation contract, leaseholders are not required to pay to fix any life-critical fire-safety defects arising from design, construction or refurbishment of buildings covered by the contract, as these costs will be covered by the developer.
For buildings not covered by the contract, leaseholders are protected in law from paying to remediate all historical building safety defects (both cladding and non-cladding) if, on 14 February 2022, their building owner or landlord was – or was associated with – the developer. This is called the developer test. This provision applies regardless of whether or not the leaseholder holds a qualifying lease.
If the leaseholder holds a qualifying lease and their landlord is not associated with the developer, but the landlord or their associated companies has a net worth of more than £2 million per relevant building, the landlord has a legal obligation to pay for all costs associated with remediation and associated interim measures. This is called the contribution condition.
In cases where neither the developer nor the contribution condition are met, qualifying leaseholders are still fully protected from the costs of historical building safety defects if the value of their property on 14 February 2022 was less than £325,000 (in Greater London) or less than £175,000 (elsewhere in England).
Landlords and building owners are also responsible for paying to remediate unsafe cladding in relevant buildings where there is at least one leaseholder who owns a qualifying lease, or where the landlord or building owner is – or is associated with – the developer.
In the instances where non-cladding and interim costs can be passed on to qualifying leaseholders, these contributions are firmly capped and spread over time, This means that, for the majority of qualifying leaseholders, their maximum cap for non-cladding remediation and interim measures is £15,000 in Greater London or £10,000 elsewhere in England, spread over 10 years, with costs already paid since 28 June 2017 counting towards that cap (including waking watch costs).
This framework is set out further here: Remediation costs: what leaseholders do and do not have to pay.
There are also other government-funded routes to make sure that buildings over 11 metres or more in height are remediated or have mitigations put in place to protect against life safety fire risks linked to external wall systems, such as the Building Safety Fund (for buildings in London over 18 metres). Only those with a legal responsibility for the safety of a building can apply to the BSF (Building Safety Fund 2022 Application Form-R1). They include:
- building freeholders
- head leaseholders
- resident management companies
- right to manage companies
- registered providers of social housing, notably housing associations and local authorities
There is also the Cladding Safety Scheme for buildings between 11 metres and 18 metres or over 18 metres outside London. These schemes are available to all leaseholders, irrespective of qualifying lease status.
Responsibilities
5. What does a developer who has signed the developer remediation contract need to do?
Developers who have signed the contract are required to:
- Take responsibility for all necessary work to address life-critical fire-safety defects arising from design and construction of buildings 11 metres and over in height that they developed or refurbished in England in the 30 years prior to 5 April 2022.
- Keep residents in those buildings informed on progress towards meeting this commitment.
- Reimburse taxpayers for funding spent on remediating buildings that they were responsible for developing.
The government is closely monitoring developer compliance and publishes data on the progress that each signatory developer is making (see the latest building safety mediation data) and will act if a developer is failing to meet its contractual obligations.
Possible sanctions will range from official level monitoring to removal of the developer from the RAS and prohibition from carrying out major development and from securing building control sign-off for buildings already under construction in England.
If a developer is prohibited, their name will be added to a public Prohibitions List. The relevant legislation is the Building Safety Act 2022 (see sections 126 to 129) and the Building Safety (Responsible Actors Scheme and Prohibitions) Regulations 2023.
6. My building is currently in a government scheme, such as the Building Safety Fund (BSF). Will the developer take over the work? Will this now delay or stop the work?
Government wants to make sure that buildings are remediated properly and as quickly as reasonably possible.
If the developer of your building has signed the developer remediation contract, one of two things will happen:
- either, the developer will take over responsibility for the remediation works, in which case the building will exit the BSF
- or the building will remain in the BSF and the works will be completed by the Responsible Entity as per the Grant Funding Agreement, and the developer will reimburse the BSF for the final cost of the works
Whether the Developer can request to transfer responsibility to remediate to themselves, or have to reimburse the BSF in full, depends on what stage in the BSF application process the building is at. The different stages have different transfer/reimbursement options and requirements prescribed to them.
If a building is assessed as being at stage A, B or C then the developer can request that the building be taken out of the BSF and transferred to them for remediation. In the case of stage B and C buildings DLUHC expects the developer to commit to meet pre-identified remediation timelines. Any building assessed as having reached stage D will remain in the BSF and the developer will be expected to reimburse the costs of repairs at project completion. The 4 stages are laid out below and full details can be found in the developer remediation contract:
- Stage A Buildings are where the applicant has started the application process, but the department has not yet awarded funding for the full costs of the project via the BSF and the works have not yet started. We expect these buildings to transfer to the developer.
- Stage B Buildings are where the department has not communicated an award of funding for the full costs of any remediation and/or mitigation work and at least one tender has been returned to the Responsible Entity. The Developer is expected to commit to the completion of works dates identified in the BSF application if the building is transferred to the developer.
- Stage C Buildings are where the department has communicated an award of funding for the full costs of remediation and/or mitigation work, but no Grant Funding Agreement has yet been signed. In order to transfer, the Developer is expected to commit to the commencement and completion of works dates identified in the BSF application.
- Stage D Buildings are where the department has communicated an award of funding for the full costs of remediation and/or mitigation work and a Grant Funding Agreement has been signed. These do not transfer to the developer.
We acknowledge that there may be instances where the developer may postpone works dates if circumstances are genuinely beyond their control or have been agreed with the Responsible Entity.
7. I am concerned that the works will be slower now that the developer is doing them.
The government expects developers to carry out remedial works at pace and will hold developers to account against this contractual obligation. The developer remediation contract provides that for Stage B and Stage C buildings, the developer is expected to meet the expected start and/ or end dates for works had they remained in the BSF, allowing for reasonable adjustment. Your building owner (normally the freeholder, owner of the headlease or their managing agent) should be able to confirm the timeframes to which your developer is expected to undertake the remedial works.
Those target dates should be met, but the contract recognises that there may be circumstances that are outside of the developer’s control where this may not be possible. It also recognises that the developer may need longer if works are required which had not been anticipated at the time of the application/ commitment to target dates. If there are changes to those dates following the transfer, the developer will be required to justify them.
8. When will remediation works begin and how long will they take?
The timetable will depend on the circumstances of the building. Developers have already begun to carry out assessments and remediation works. See the latest building safety remediation data. The developer remediation contract requires developers who signed it to identify, assess and remediate and/or mitigate buildings as soon as reasonably practicable. It also requires developers to establish effective processes to receive and promptly respond to communications to keep residents informed about the progress of the works.
9. When and how will I hear about the remediation plans for my building and who can I contact?
If your building requires remedial work and is covered by the contract, the developer is required to inform the building owner (normally the freeholder, owner of the headlease, or their managing agent) within 40 business days of signing the contract that the building is covered by the contract, the next steps it intends to take, the target dates for carrying out and completing the work, and how leaseholders and residents can contact the developer.
Therefore, the building owner (or their official managing agent), should keep leaseholders and residents informed of how the works are progressing.
If this does not happen, the developer is required to share the information with leaseholders, residents, occupiers and other users directly. DLUHC expects developers to provide updates as often as reasonably necessary (and not less than twice annually) in respect of plans to commence works, and every 3 months once works have begun.
DLUHC is closely monitoring the quarterly data reports from developers, which include detail on contact with leaseholders and residents. See the latest building safety remediation data.
If you do not get a response from either your building owner or the developer, or if your questions have not been sufficiently addressed, you can contact DLUHC so that we can raise this with the developer on your behalf. To do this please provide the name and address of your building, details of the attempts you have made to contact the developer, including the contact details that you used, and a short summary of your concerns. You can send this to building.safety@levellingup.gov.uk.
10. I want my building to return to the Building Safety Fund.
Those who are responsible for building safety defects should fix them. Where we have transferred responsibility for remediating a building to the responsible developer, we will hold the developer to account for completing the works at pace in line with its contractual obligations.
Quality
11. My building used to be in the BSF, and now responsibility for the works has been transferred to my developer. I’m concerned that the remediation proposals put forward by my developer do not go as far as previously proposed.
Under the developer remediation contract, the developer must complete any necessary work to reduce any fire-safety risks caused by the original design, construction, or refurbishment of the building to a tolerable level. External remedial works must be completed in line with the PAS 9980 standard, and internal remedial works must be completed in line with all relevant industry standards. Remedial works must also be approved by building control in the usual way.
The works required to meet those standards may not be the same as work approved under BSF. Buildings that applied to the BSF before 28 July 2022 were assessed against the Consolidated Advice Note (CAN). The CAN was, in some cases, used to justify instances of an excessively risk-averse approach to building safety. The CAN was therefore withdrawn in January 2022, and was superseded by PAS 9980.
PAS 9980 provides guidance on how to assess the risk of fire via an external wall of an existing multi-storey, multi-occupied residential building. PAS 9980 sets out steps that can be taken to identify and assess risk factors as well as mitigation steps that might improve the risk rating of a building via a holistic and fact-based assessment of a building’s construction.
Where it is determined that a detailed assessment of an external wall is required, PAS 9980 should now be used for these assessments. It does not contain ‘off the peg’ solutions to specific wall types and materials but is intended to enable a consistent approach to evaluating the fire risk when considering the external walls of buildings.
If responsibility for remediating a building has been transferred from BSF to a developer that has signed the developer remediation contract, that developer is contractually required to carry out remediation works in line with the standards set out in the contract: external works must be completed in line with PAS 9980, and internal works must be completed in line with all relevant industry standards.
12. How will the department check the quality of the developer’s assessments and that they are conducted by suitably experienced, qualified, independent, and competent assessors?
The Developer is contractually required to use a suitably experienced, qualified, independent, and competent fire risk assessor (in the case of a Fire Safety Assessment), external wall assessor (in the case of a FRAEW (Fire Risk Appraisal of External Walls)).
Assessments will be independently audited. As part of the auditing process, the information that the developer is required to provide will be reviewed, including that the assessor is independent from the developer. The auditors will scrutinise the methodology followed by the assessor in reaching conclusions as to the level of risk and the nature of the recommendations for remediation, to check that these are justified and in line with industry norms. If the audits raise concerns about the independence of assessors or the quality of assessments provided, we will raise this with them and agree what is necessary for them to meet an acceptable standard.
Following practical completion of the works, the signatory developer is contractually required to obtain and share with the Department a Qualifying Assessment confirming that fire-safety defects that arose from the developer’s construction or refurbishment of the building have been mitigated to the standard set out in the developer remediation contract. The Qualifying Assessment may take the form of a Fire Safety Assessment and/ or a Fire Risk Appraisal of External Walls. Qualifying Assessments will be independently audited. If this audit finds that the Qualifying Assessment and/ or the works do not meet the requirements set out in the contract, then the developer will be contractually obliged to go back and put things right.
13. How do I raise concerns or put in a complaint about the remediation work done to my building if I do not think it is up to standard?
If you are concerned about an aspect of the remediation works you should in the first instance raise this with the building owner (normally the freeholder, owner of the headlease or their managing agent), and/or the developer.
If you do not get a response from your building owner or the developer, you can contact the department so that we can raise this with the developer on your behalf. Please provide the name and address of your building, details of the attempts you have made to contact the developer, including the contact details that you used, and a short summary of your concerns. You can send this to building.safety@levellingup.gov.uk. Please allow your developer some time to respond first. We can only escalate queries where the developer has failed to provide a sufficient reply.
Practical implications
14. How disruptive will the remediation works be?
Significant remedial works can be disruptive, and it is important that developers and contractors do everything possible to minimise the negative impacts on residents.
In July 2023, the government published a Code of Practice for the Remediation of Residential Buildings, setting out how the government expects that residents’ wellbeing will be protected during remediation projects.
The Code provides that residents should be informed and engaged throughout a project and the impact of any works must be considered and appropriately managed. Remediation projects should already be acting in accordance with the guidance in the Code. The parties undertaking remediation works should make sure that residents have a clear point of escalation for concerns.
15. There is a dispute holding up remediation works on my building. How is DLUHC helping to resolve these disputes?
The department expects developers and building owners to work together to resolve disputes as quickly as possible. We will support and push parties to do so where necessary, for example by issuing guidance, statements, directions, recommendations or similar. The contract also has provision for the department to instigate dispute resolution procedures in appropriate cases.
16. I’m worried about trying to sell my flat before the remediation works have been done.
On 20 December 2022, the 6 largest mortgage lenders, supported by UK Finance and the Building Societies Association, confirmed that, subject to their normal policy requirements, they would consider mortgage applications on properties in buildings in England of 11 metres or 5 storeys and above in height with building safety issues.
There is no requirement for a building to have been remediated, providing it is being remediated by the developer, is covered by a recognised government scheme, or is protected by the leaseholder protections in the Building Safety Act, as evidenced by a leaseholder deed of certificate. In December 2023 3 further lenders joined that commitment.
See the Industry statement on cladding. You can find out more at Information for residents on fire safety and remediation of buildings.
17. Will I get the money I have spent on interim measures or other increased costs back?
The developer remediation contract makes sure that developers remediate or pay to remediate life-critical fire safety defects in their buildings as quickly as reasonably practicable.
It does not provide for retrospective reimbursement of costs associated with interim safety measures, increases in building insurance premiums or leaseholder compensation. Clause 20.2 of the contract does however make clear that entering into the contract does not affect or prejudice any claim or demand that any Third Party or Responsible Entity may have against the Developer. You may wish to take legal advice on options for seeking redress from the developer by other means. There are protections for interim measures.
18. I am a non-qualifying leaseholder. Am I protected if my building is covered by the Developer Remediation Contract?
Yes. If your building is to be remediated by the developer under the contract, then the developer will be required to remediate the building as a whole, without regard to the identity of the leaseholders.
19. Why am I being charged for remediation as the leaseholder in an under 11 metres building? Why is the developer not paying for this as they are signed up to the RAS?
The Responsible Actors Scheme only focuses on buildings over 11 metres because risk to life from historic fire safety defects is lower in buildings under 11 metres; with safety related remediation works required in only a small number of such buildings. A Fire Risk Appraisal of External Walls (FRAEW) conducted in accordance with the PAS 9980 principles will often find that lower-cost mitigations are more appropriate in low-rise buildings.
The department made a commitment to look on a case-by-case basis where buildings under 11 metres are facing remediation costs. Any resident whose landlord or building owner is proposing costly building safety remediation for a building under 11 metres should raise it with us immediately and we will investigate. You can contact the department at Under11mBuildings@levellingup.gov.uk.
Where work is necessary, we would always expect freeholders to seek to recover costs from those who were responsible for building unsafe homes, and not from innocent leaseholders.
20. Will this result in my insurance premium going down?
The Association of British Insurers and their members have stated that premiums should reduce where buildings have completed remediation, or a PAS 9980-compliant external wall assessment has shown a reduction in risk.
We are working with insurers to build a better understanding of PAS 9980 and building standards. Where buildings comply with Building Regulations or align with industry-accepted PAS 9980 standards, insurers should offer affordable premiums and should not be prescribing additional remedial works. We expect insurers to honour their commitments and ensure that premiums are priced fairly and are appropriate to the level of risk. A general summary of information for residents can be found at Information for residents on fire safety and remediation of buildings.
If you have any questions or concerns please contact correspondence@levellingup.gov.uk.
21. How will you share information on whether developers are fulfilling their obligations?
We intend to publish regular data on the developers’ performance across their portfolio of buildings. This will help the public to understand which developers are doing well and which are making slower progress. See the latest release of data on performance.
22. What are the consequences for a developer who is not fulfilling their obligations?
The department has made it clear that we will enforce the contract signed by developers. We may choose to issue a statutory ‘warning notice’ under the Responsible Actors Scheme (RAS) regulations and require a developer to meet conditions to remain a member of RAS.
Ultimately, a developer who is in the RAS and has its membership revoked because it has failed to comply with its obligations, will be prohibited from carrying out major development, and from securing building control sign-off for buildings already under construction in England. We publish the names of prohibited developers.
Last updated 30 January 2024 + show all updates
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Updated the factsheet.
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First published.