Who is going to pay for the removal and replacement of the cladding on your building?
In the immediate aftermath of the Grenfell Tower tragedy, on 14 June 2017, the Department for Communities and Local Government (“DCLG”) issued initial written guidance on cladding testing. The initial tests, conducted at the British Research Establishment on behalf of the Department for Communities and Local Government, consisted of a screening test to identify which panels contained fillers (in the core of the panels), which were of limited combustibility (Category 1) and which did not (Category 2 or 3).
For those landlords, management companies, RTM companies and managing agents who manage buildings with combustible cladding, and the leaseholders who live in those buildings, one question will have overshadowed all others over the last 18 months: who is going to pay for the removal and replacement of the cladding?
Roger Hardwick, Brethertons Residential Leasehold Partner has written a white paper to explore the extent to which the cost of removing and replacing cladding which has been found to have no fire-retardant properties can be recovered as a service charge, under the terms of the lease.
The contents of the white paper, covers:
- Issues not covered
- General Principles
- Repair or Improvement?
- “Statutory Compliance” Clauses
- “Sweeper” Clauses
- Service Charge Mechanism