SCOTTISH CLADDING BILL: WHAT PROPERTY OWNERS AND DEVELOPERS NEED TO KNOW

Scottish Cladding Remediation Bill: What is the impact on Property Owners and Developers?

On 14^th May the Scottish Parliament approved the Housing (Cladding Remediation) (Scotland) Bill, which gives Scottish ministers new power to directly commission remediation work dangerous cladding without the property owners’ permission.

The new legislation has the potential to impact many property owners and developers, with 105 buildings identified as needing remediation and new requirements set out for all property developers in Scotland. Professional Indemnity Insurance cover for cladding and fire safety may also be impacted, which is a key protection for property developers.

Key points from the new legislation:

Scottish ministers now have the power to directly commission remediation work on buildings with dangerous cladding.

Property owners can be given only seven days’ notice that work will be arranged, after this notice period ministers can directly arrange for the work to be carried out.

The Scottish Government has identified 105 buildings in need of fire safety remediation, and had already commenced remediation work on two of these buildings as of February 2024.

Property Developers in Scotland will also be required to join a responsible developers’ scheme. They will face sanctions if they fail to remediate their own buildings if these are identified as having defective fire safety features.

Firms that refuse to join the scheme will also face other sanctions, such as being barred from carrying out development work in Scotland and will be unable to get permission to commence building work or acquire building sign-off once projects have been completed.

A cladding assurance register will be set up, establishing a register of buildings and their remediation status. The register will be accessible to the public and record when safety assessments were carried out, if any remediation was needed and when this remediation work was carried out.

The legislation will also allow Scottish ministers to set up a building safety levy similar to the one already in place in England, compelling developers to make a “fair contribution” to the Scottish Government’s cladding remediation programme.

Cladding and the new regulations: Does this impact my insurance?

In order to maintain Professional Indemnity (PI) cover for cladding and fire safety risks, we recommend you discuss any information requirements with your insurance broker well in advance of your cover start or renewal date. This will ensure both you and your broker have adequate time to review and provide assistance with the effective presentation of this information to your insurers.

In the current PI market conditions it is now more important than ever to provide detailed evidence of project reviews covering all aspects of façade systems and fire safety risks as part of any detailed and qualitative submission, in order to secure terms.

Please contact our specialist construction team for more information or advice on Professional Indemnity Insurance. Our industry focussed team of specialists including brokers and claims colleagues have the capability and capacity to deliver a proactive service and obtain suitable insurance terms.