In our first article, we explored the new requirements of the Building Safety Act (BSA) and how they impact projects, particularly higher-risk buildings (HRBs). While the safety benefits are welcomed by all, the uncertainty and complexity of the regulations and duty-holder responsibilities significantly increase the risk of project delays.
In addition, while costs in other areas, such as materials and labour, are beginning to stabilise, this is still a time of squeezed margins, and passing on the cost of delay is simply not an option with stagnant house prices and high mortgage rates. Minimising the risk of setbacks at the planning and project completion stages is critical to avoiding significant financial impacts and challenges for both lenders and developers.
In this second part, we discuss how engaging multi-disciplinary support can help remove uncertainty and ensure compliance with the BSA, as well as the role of insurance in this new regulatory environment. A collaborative approach, bringing technical expertise, will streamline navigating the Building Safety Regulator (BSR) Gateways 2 and 3 and reduce risks across the project lifespan.
Why navigating BSR requires a collaborative approach
The speed of legislative and regulatory change has left even experienced developers struggling to keep up with new obligations. Engaging with the regulator is undoubtedly beneficial, but doubts have been raised that the BSR have sufficient resources to speak to all developers on an ongoing basis. Compounding the challenge of navigating a new process is the change in the role of Building Control Inspectors. As these professionals take on a purely regulatory role, the loss of their advice on site will be huge.
At every stage, the BSR puts an emphasis on collaboration and communication, from the focus on competence and duty holder responsibilities, to its emphasis that a multi-disciplinary team will review applications and the requirement of a “golden thread” of information across the building’s life span. In response, developers will benefit from making this the centre of their approach.
Major Projects—particularly those identified as HRBs—are complex; bringing many different elements together, and to meet the new BSR requirements, a team of competent experts needs to be in place to ensure the project runs smoothly.
How multi-disciplinary support can help remove uncertainty
Collaboration and proactively seeking out multi-disciplinary technical support will be vital to mitigating potential setbacks. Reputable advice ensures smooth project progression under the new regime, allowing developers to address compliance proactively and avoid costly delays.
Major Projects need bespoke solutions as each project is unique. To navigate the BSR different projects will require different technical support, including building control, fire engineering, structural and civil engineering, energy consultancy, waterproofing, Building Safety Cases/golden thread inspection software, structural warranty, geotechnical, mechanical and electrical services (M&E), and sustainability. As a developer, finding and securing the engagement of these experts during a project could cause additional delays, and proving competency is a vital requirement. Retaining experts for the duration of the project would be prohibitively expensive in most cases.
Recommendations are vital – and insurance brokers are uniquely placed to support clients in seeking early expert advice on BSA regulations, ensuring financial stability. As impartial advisors, we can help developers get the right support at the right time.
Recognising this, London Belgravia offers a tailored approach, combining specialised insurance expertise with thorough technical support through collaboration with multi-disciplinary partners.
Developers may require a complete service or specific support at different project stages. Ultimately, our approach, gives clients access to specialist technical, bringing together a range of complementary skills and competencies, which means clients can ‘pick and mix’ the support they need, depending on their requirements.
Why timing is key when it comes to insurance
Engaging a multi-disciplinary team will not only help developers navigate the new planning approval process, but it also streamlines securing insurance coverage. Insurers often seek added reassurance regarding the progress and quality of complex or partially completed projects, particularly those considered higher risk.
Without a thorough understanding of the warranty provider’s technical standards, developers might risk passing Gateway 2 only to find that a particular material does not meet the insurance requirements and would then have to upgrade materials or components. With the new requirement to submit significant changes back to BSR, developers and contractors must avoid deviating from the approved plans as much as possible.
At the same time, insurers do not want to put policies in place prematurely, so developers are often at the final stages of project planning and about to begin construction before they submit an application.
Engaging early with a broker and working with technical experts, we can advise developers on what will not only meet the BSR standards but also what they need to comply with future policy and what the right coverage is for their project – long before they need to put it in place.
Our relationships with all warranty providers mean we always stay up to date with their technical standards. This allows us to work with developers in an advisory capacity, ensuring each project is ready to put insurance in place at the right time and from the right provider at the most competitive price.
Risky business or prime opportunity?
While the new regulations pose significant hurdles, they also present an opportunity to enhance building safety and quality. The BSA aims to ensure high standards, and through proactive measures and strategic partnerships, the industry can work together for a safer future. However, to continue building those projects, developers must continue to thrive.
Amid complex economic pressures, this added regulatory burden leads to uncertainty and reduces already narrow margins. While some may steer away from going over 18 m or from residential, others may even consider going up higher to increase the number of units and improve margins.
With the right support, developers can navigate this new landscape effectively and continue to deliver successful projects that positively impact our communities and skylines.
Your expert team
At this moment, developers of higher-risk and high-value projects, which often have complex requirements, need a trusted advisor to support them in accessing the expertise they need.
Drawing on decades of experience working on a wide range of projects, from flagship high rises, historic refurbishments and long-term regeneration to supporting large-scale residential projects and house builders and trusted relationships with insurers, our Major Projects team is ready to help clients confidently overcome changes in regulation and succeed in a challenging market.
For further guidance and to discuss your specific project needs, you can connect with the team through our contact page.
