Source · Select Committees · Public Accounts Committee
Recommendation 15
15
Rejected
Manufacturers of non-compliant construction products have yet to contribute financially to remediation.
Recommendation
Despite promises in 2022 of tough new measures to force industry to pay to remove cladding, MHCLG accepted that it has yet to find a way to secure a financial contribution from manufacturers. We observed that while developers were contributing to the costs of remediation, manufacturers of non–compliant products had yet to pay anything. MHCLG told us that the Grenfell Tower Inquiry had found “stomach–churning approaches to public safety” by manufacturers. We asked about its strategy for securing compensation payments from those product manufacturers. MHCLG told us that Ministers were disappointed that the sector had not come forward with funding and that it would be setting out its views on this matter in due course. MHCLG explained that the Building Safety Act allowed building owners, developers and leaseholders to make direct claims for compensation against manufacturers and suppliers of construction products.24 Under the Act, manufacturers are liable to pay damages if, for example, their product is found to be inherently defective or if a misleading statement had been made in the supply or marketing of that product.25 Skills and capacity to deliver accelerated remediation
Government Response Summary
The government disagrees with the recommendation, stating it is currently consulting on redress routes via the Construction Products Reform Green Paper and that leaseholders are already protected from cladding remediation costs.
Government Response
Rejected
HM Government
Rejected
The government disagrees with the Committee’s recommendation. The government is currently consulting on redress routes as part of the Construction Products Reform Green Paper. Moreover, leaseholders and tenants are protected from the cost of cladding remediation, which is covered either by government remediation schemes or by developers under the government's remediation contract.