Counting the cladding costs

The legislation requires, among a range of changes, that building owners and landlords cover the costs of rectifying defects, something that collectively is likely to run into many billions of pounds. Assessing the costs involved, which party is liable to cover them and how to represent them in a company’s financial accounts poses a significant challenge for the firms affected. However, directors have a legal duty to represent the financial risks of the remediation accurately in their accounts.

Watch the interview with Property Week contributing editor Andy Hillier to find out what steps you should be taking now.

Read the full write-up of the interview

Published in Property Week here.

The discussion covers

• Key grey areas remaining from the Building Safety Act
• If firms need to put the money aside or whether it can be recorded as a financial risk
• How the cladding scandal has affected the stance of insurers 
• How firms arrive at the right value for potential building repairs
• A message for developers on the best approach to take to this legislation