The impact of the Building Safety Act on the construction and trades industry

Originally granted Royal Assent in 2022, the Building Safety Act was created in response to the tragic events which took place at Grenfell Tower, aiming to overhaul existing practices and reinforce regulatory building safety frameworks. Gov.uk shares how the Act seeks to create lasting change, uphold the highest safety standards, and make it clear how residential buildings should be constructed, maintained and made safe to protect residents and prevent such tragedies from recurring.

Now the Act has completed enacting its secondary legislation as of April 2024, our guide will discuss the various impacts on the construction and trades industry.

Regulatory bodies

One of the most significant impacts of the Building Safety Act is the strengthening of regulatory compliance. There are now stricter safety standards in place, with the Building Safety Regulator playing a pivotal role in monitoring compliance. This regulatory body is tasked with overseeing the safety and performance of buildings, ensuring compliance with safety standards, and enforcing regulations – putting construction at a constant heightened scrutiny. If existing processes fail to adhere to the new legislation, implementation of further safety measures will require significant investment in training and upskilling for construction professionals.

The Act assigned the Office for Product Safety and Standards (OPSS) with the national regulation of construction products, aiming to provide more effective regulatory processes for construction products, in addition to leading and co-ordinating market surveillance and enforcement across the UK construction industry. Establishing this regulation focuses even more attention on safety, with OPSS’s primary aims stated to include preventing any construction products which pose a safety risk from entering the market, as well as educating and informing the construction industry. The availability of further education and upskilling for construction workers is able to benefit the industry, decreasing the necessity and enforcement of severe repercussions.

Complaint platforms

A service named the New Homes Ombudsman (NHO) was introduced to deal with complaints made by customers about their new home. When complaints are eligible, the service is able to enforce sanctions on the respective developer, ranging from requesting a formal apology to issuing compensation up to £75,000. As the service are reported to be urging the government to make it mandatory that new build developers become a member of the New Homes Quality Board, construction workers must ensure they are consistently delivering a high standard of new home quality. If the construction industry fails to produce homes of the best quality, they are at risk of experiencing financial distress and work disruptions.

Housing professionals’ publication, Inside Housing, shared that the first NHO report called for pricing structures to be set to prevent undue hardship for small and medium-sized builders, a consideration which shows the NHO are striving to improve industry operations for trades people.

Manage building safety risks

Under the Act, duty holders such as the Principal Designer and Principal Contractor will be required to manage building safety risks, with specific responsibilities during the design, construction and completion of all buildings. For example, the Principal Contractor must ensure that when building work is planned, it matches up with approved designs and complies with relevant regulatory requirements.

The Act places a focus on safety case reviews and enhanced competency, aiming to considerably improve building safety standards. Construction professionals are required to demonstrate their expertise and commitment to safety, which is essential in leading to a new standard of buildings that are designed and constructed to higher specifications. This shift is primarily to enhance the safety of residents, whilst simultaneously boosting the overall quality and work conditions of construction and trades.

Construction and trades workers who fail to meet their specified obligations during these   processes are subject to criminal charges, varying from financial penalties to prison, in the case of gross negligence. It is essential that the industry focus their time on assessing safety risks and preventing any potential damage, whilst simultaneously upskilling employees to ensure they can implement the compulsory safety measures. As a result of the increased administration associated with safety case reviews and documentation, smaller construction and trades businesses may experience a burden on their resources – a worthwhile undertaking to ensure the highest safety standards are achieved.

Accountability frameworks

The Building Safety Act details an accountability framework, where building safety responsibilities are defined for all parties involved, including developers, contractors and building owners. An Accountable Person or Principal Accountable Person must be appointed, which RICS shares is a role performed by an organisation who owns or is responsible for a high-rise building, or an organisation who is in charge of maintaining common areas – the latter of which is relevant to construction and trades people. The Accountable Person has a responsibility to prevent a building safety risk happening and minimise the impacts in the case of an incident – duties which may necessitate changes in organisational structures and processes.

By clearly defining the roles and responsibilities of all parties involved in the construction process, the Building Safety Act prioritises accountability. Developers, contractors, and building owners must take ownership of safety considerations, ensuring that potential risks are identified and mitigated efficiently and effectively. This accountability framework reduces the likelihood of safety oversights and promotes a more transparent construction process.

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Please note: This article provides guidance for information purposes only. It should not be relied upon wholly when making or taking important business decisions – always seek the services of an appropriately qualified professional. The views expressed by websites referenced to are limited to those of the websites, and do not necessarily reflect the views of Markel Direct.