On March 18th, Willis hosted a Building Safety Act Roundtable, bringing together clients and industry professionals to discuss the BSA’s evolution and its transformative impact on the construction industry. The panel featured industry expert Matt Hornsby from Baily Garner, professional indemnity insurance specialist Callum English from Sompo International, and legal expert David Walsh from CMS. The discussion covered the development of building safety legislation and its industry impact, with a focus on key milestones from the Grenfell tragedy in June 2017 through to the BSA in April 2023.
"The BSA regulations and changes are all necessary and important, but they have caused confusion and uncertainty within the industry as we all work to understand the new roles and responsibilities of the duty holders. The fact that the CDM and Building Regulations Principal designer share the same name still confuses many.”
“There is much bad press around the Gateway process and the performance of the BSR, however when you review the BSR statistics, it is clear that the industry, professionals and project teams within it need to do better and provide correct and more robust design and compliance information in the first instance.”
"Construction, as a class within professional indemnity, has historically been considered as being susceptible to severe losses but not necessarily frequent ones. The breadth and volume of fire safety and cladding notifications altered those perceptions. The Grenfell tragedy also occurred at the end of a 10-year soft market cycle and was a catalyst for the hard market that followed. This raised concerns among insurers and reinsurers about the scale of potential losses. This led to some Professional Indemnity insurers choosing to exit the construction sector, while the majority scaled back their appetite."
“Most underwriters are working to understand the potential exposures and liabilities construction professionals now face under the new legislation. There will be a strong emphasis on clients to demonstrate their competency and understanding of the liabilities the new dutyholder roles pose. Investment in training for employees and in technology solutions will be viewed positively. On a positive note, fire safety coverage is now more widely available in the market."
"The involvement of the Building Safety Regulator has added an element of uncertainty as to whether cladding remedial schemes will be approved. Claimants are cautious about putting forward narrower remedial schemes when they are uncertain about the Regulator’s response and are reluctant to often wait 5-6 months for the Regulator’s decision. If Claimants adopt a cautious approach and propose a broader remedial scheme (in the hope that a broader scheme is more likely to obtain Regulatory approval), this has the potential to make claims more expensive.”
"We can expect another wave of new claims driven by two recent government developments: the Remediation Acceleration Plan (which includes a deadline of 31 July 2027 for developers to begin remedial works) and the establishment of the Remediation Enforcement Unit which has a mandate to enforce the remediation of Higher Risk Buildings clad with ACM and HPL. Both will likely lead to a surge in claims over the next 18 months or so."
As the session progressed, the panellists discussed the roles of the 5 duty holders in building safety, raising the debate around the BRPD role and whether it stems from the designer or the client. Our attendees shared their insights, stating:
"The initial nervousness about architects or contractors taking on the PD role for a period of time stems from a lack of clarity and understanding of what is required or expected of them. However, as we transition, we will become more comfortable with understanding what’s needed and how to approach it."
The session concluded with the question: What changes would make the BSA more successful? Panel responses included:
Thank you to our panel, clients, and all who attended. Stay tuned for the next update on the legislation, and we look forward to hosting a follow-up roundtable on this principal issue.
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