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Manager of block with Grenfell-style cladding launches legal claim against NHBC
The property manager of a 1,000-home private development in London with similar cladding to Grenfell Tower has launched a legal claim against the National Housing Building Council (NHBC).
Leaseholders in New Capital Quay in Greenwich could face huge bills to pay for the removal and replacement of the building’s aluminium composite material (ACM) cladding.
The leaseholders have 10-year warranties with the NHBC to cover building defects. The NHBC also signed off the development in its role as a building control organisation.
Property Management Matters manages New Capital Quay and is a subsidiary of Galliard Homes, which built the development. Galliard also owns the building through another subsidiary and has launched the legal action to try and force the NHBC to pay out to leaseholders under their insurance claims.
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However, a spokesperson for the NHBC said the legal action is “premature” because it cannot determine whether any warranty claims are valid without further information on the development, which the property manager has failed to provide.
The NHBC has now commissioned an independent expert “to help us progress the claim as swiftly as possible for residents”.
“Any court claim would be premature until the claim under the warranty has been assessed,” the spokesperson added.
A Galliard Homes spokesperson said at the time of construction the cladding material was “widely used and approved for buildings like those at [New Capital Quay]” and was installed “on the understanding that it was in full compliance with the building regulations” and was signed off by the NHBC in their building control role.
They added: “Whatever was approved and signed off at the time, it is clear that today – ‘now’ in the ‘post-Grenfell’ world – the cladding does not comply.”
The Galliard spokesperson said the NHBC had received claims from leaseholders but it is waiting for information from the property manager to prove that the cladding does not meet building regulations.
They added: “That untenable assertion is being robustly challenged and legal proceedings have been instigated to force the NHBC to honour their insurance obligations.”
The NHBC has now been served with a notification of claim to be brought to the High Court of Justice. However, an NHBC spokesperson said it is a “fundamental misconception” that a particular product or material complies with the building regulations. Instead, it is the building as a whole which must comply.
The spokesperson added: “A building does not automatically fail to comply with building regulations just because it uses category three ACM cladding. The fact that ACM category three cladding has failed the government’s fire tests does not automatically mean that applicable building regulations have not been complied with or that claims made under the NHBC Buildmark policy are automatically valid.”
They said Property Management Matters is legally responsible for the safety of the buildings and the NHBC warranty does not absolve it of this duty.
It is the responsibility of a developer to make sure buildings comply with building regulations and a building control organisation “does not confirm, guarantee or approve that buildings comply with building regulations”, the spokesperson added.
The NHBC spokesperson said: “We understand that the situation at New Capital Quay is very concerning for residents and we are committed to making an assessment of their claim as swiftly as possible once we have the necessary information.
“We have asked the managing agent [Property Management Matters], which legally responsible for the ongoing safety of New Capital Quay and is a subsidiary of Galliard Homes, to provide evidence that the buildings did not comply with the building regulations in force at the time, annual fire risk assessments and maintenance records so that we can assess the claim.
“Since [Property Management Matters] has failed to provide this information and has not responded to our offers to assist, we have now stepped in to commission an independent expert.”
Never Again campaign
Inside Housing has launched a campaign to improve fire safety following the Grenfell Tower fire
Never Again: campaign asks
Inside Housing is calling for immediate action to implement the learning from the Lakanal House fire, and a commitment to act – without delay – on learning from the Grenfell Tower tragedy as it becomes available.
LANDLORDS
- Take immediate action to check cladding and external panels on tower blocks and take prompt, appropriate action to remedy any problems
- Update risk assessments using an appropriate, qualified expert.
- Commit to renewing assessments annually and after major repair or cladding work is carried out
- Review and update evacuation policies and ‘stay put’ advice in light of risk assessments, and communicate clearly to residents
GOVERNMENT
- Provide urgent advice on the installation and upkeep of external insulation
- Update and clarify building regulations immediately – with a commitment to update if additional learning emerges at a later date from the Grenfell inquiry
- Fund the retrofitting of sprinkler systems in all tower blocks across the UK (except where there are specific structural reasons not to do so)
We will submit evidence from our research to the Grenfell public inquiry.
The inquiry should look at why opportunities to implement learning that could have prevented the fire were missed, in order to ensure similar opportunities are acted on in the future.
