Safety Delays Hammer Van Elle

Summary

Van Elle, a piling contractor, attributes a £5.5m revenue drop to building safety regulation delays. The Building Safety Act 2022 introduced stricter safety checks, causing project delays and impacting revenue. This highlights the financial consequences of enhanced building safety regulations on the construction industry.

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** Main Story**

So, Van Elle, a piling contractor, has announced a £5.5 million drop in turnover – that’s about 4%. And you won’t believe what they’re blaming: delays linked to the Building Safety Act (BSA) 2022. It’s one of the first hard numbers we’ve seen showing the BSA’s real financial bite on the construction sector. Their full-year results are coming out on July 23rd, so we’ll get the full story then. But even so, it’s a pretty telling sign, isn’t it?

Delays Everywhere

According to their trading update, they’re seeing “subdued activity levels and widespread delays” because of these BSA approval holdups. Honestly, I’m not surprised; the news is full of similar stories. Van Elle says over 40 projects are affected! These projects are now pushed back to next year and the biggest issues come from “gateway 2” approvals. Now, if you don’t know, this is that crucial step before you can even start building anything over 18 meters or seven stories. It’s causing a huge logjam.

What’s the BSA All About, Anyway?

The BSA 2022 came about in response to the Grenfell Tower tragedy, aiming to make high-rise buildings much safer in England and Wales. It’s all about making sure these buildings are safe throughout their entire lifecycle.

• The Gateway System: Think of it as three checkpoints: planning, pre-construction, and before anyone moves in. Gateway 2, that’s the sticking point. It’s where the Building Safety Regulator needs to sign off before you can lay a single brick on a high-risk building. But are there enough inspectors to cover all projects? Seems not.
• Higher-Risk Buildings (HRBs): Basically, if it’s residential, over 18 meters, or has seven or more stories, it’s under the microscope. They’re facing much stricter rules, and rightly so, you might argue.
• Who’s Responsible?: The act makes it clear who’s in charge at every stage, hoping to prevent those “it wasn’t my job” situations. Finally.
• The ‘Golden Thread’: This is like a complete safety record for the building, from design to demolition, available to all. Keeping track of everything is the key to prevention, after all.

Knock-On Effects

These BSA delays aren’t just annoying. They’re having a serious ripple effect throughout the entire construction industry. Can you imagine the strain?

• Money Troubles: Contractors are racking up extra costs, waiting for approvals, and potentially facing penalties if they don’t comply. It’s a financial headache.
• Project Stalled: Gateway 2 is causing major bottlenecks, messing with project timelines and pushing back completion dates. Clients are understandably getting antsy.
• Supply Chain Chaos: Subcontractors and suppliers are stuck in limbo, not knowing when projects will actually start. It’s hard to keep prices locked in when you don’t know if a project is 6 months or 2 years away from starting.
• Housing Crisis: Delays in building high-rise apartments are making the housing shortage worse, especially in cities where we need these buildings most. No good!

So, What’s the Fix?

Honestly, it’s going to take everyone working together – industry people and regulators. Maybe some of these ideas could help.

• Speed Things Up: We need clearer guidelines and faster reviews to get these approvals moving. No more waiting months for a simple query.
• Talk More: Better communication between developers, designers, and the Building Safety Regulator could smooth things out. It’s not just about ticking boxes, it’s about working together.
• Take It in Stages: What if we could submit design information in phases, rather than all at once? It might let us spot potential problems earlier. That said, I can imagine problems this approach might also cause.

The BSA is aiming for safer buildings, which is vital. But we need to figure out these approval bottlenecks to avoid damaging the construction industry and further delaying housing delivery. If we do this wrong, the whole industry suffers.