It’s arrived: what the Building Safety Levy means for contractors
Summary
The article explains that the Building Safety Levy has now come into force in England and will apply to certain residential developments, with the aim of helping fund remediation of unsafe buildings. It argues that although developers are the direct payers, the cost is likely to be passed through the supply chain via tighter pricing, greater risk transfer and increased pressure on project viability.
Why it matters
Residential property surveyors may see the levy affect scheme viability, land values and the pace of residential development, particularly on marginal projects. It also reinforces the need to understand how building safety-related costs and risks may influence valuations, development appraisals and negotiations.
Key points
- Building Safety Levy now applies to certain residential developments in England.
- The levy is intended to help fund remediation where costs cannot be recovered from a viable responsible party.
- Developers may seek to offset the cost through tender pricing, contract terms and value engineering.
- Marginal schemes may become unviable, potentially reducing residential development activity.
- Contractors and consultants are advised to review pricing, risk allocation and contract wording.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
