David Savage is a partner and head of construction engineering & projects at Charles Russell Speechlys
Grenfell Tower was an all too typical project for its level of value, procured on the same flawed basis of construction economics and pressures that are still recognisable everywhere. It was also discharged against a backdrop of regulatory confusion, obfuscation and failures that stretched back literally decades.
Its horrific outcome was utterly predictable, and indeed was predicted by several parties. The residents of Grenfell Tower itself, a number of campaigning journalists and architects, the House of Commons’ All-Party Parliamentary Group on Fire Safety were some of those directly implicated by the inquiry who were astonishingly prescient in their predictions.
“Introducing a new contractor licensing system will have significant challenges”
The phase two report of the Grenfell Tower Inquiry, released earlier this month, sheds light on crucial findings to prevent another tragedy of this kind from recurring. One of the report’s key recommendations is the proposed introduction of a single construction regulator that would, among other things, warrant the licensing of contractors to work on higher-risk buildings. The report also recommends that the definition of higher-risk building under the Building Safety Act 2022 be urgently reviewed, with the clear steer it should be broadened, without saying exactly how.
The report goes on to suggest that political responsibility for construction should be unified under a single secretary of state, and that a chief construction adviser be appointed to advise them.
These are important and welcome recommendations. However, there will be some who point to the level of change and adaption still taking place in the construction industry since the introduction of the Building Safety Act 2022, and ask how the phase two recommendations sit with what has already been introduced onto the statute book.
The reality is, the industry is still playing catch-up with that. Once dangerous cladding and insultation has finally been fully removed from taller residential buildings, we will – on current plans, laws and regulations – be left with a materially enhanced building control regime, with clarified and changed building regulations. These will be deployed against what should be a materially lower-risk estate of higher-rise residential housing going forwards.
So the big question is, what more should be done? We now know the answer of the phase two inquiry. This may well succeed in further addressing gaps in building safety oversight, by ensuring that those responsible for construction keep to rigorous safety standards. But how will it impact the wider construction sector and what will be the inevitable further challenges it will bring?
Benefits of licensing contractors
The report states: “One way in which to eliminate shortcomings of the kind we have identified and to improve the efficiency of contractors would be to introduce a licensing system for those wishing to undertake work on higher-risk buildings. That would ensure that those working on the most sensitive buildings are qualified by experience.”
The proposed licensing system would be based on competency and standards. It would ensure that only contractors with verified qualifications and a history of adhering to safety standards are permitted to undertake such projects.
This would also mandate that contractors meet specific criteria related to their qualifications, experience, and adherence to safety protocols. By enforcing these standards, the risk of safety breaches could be significantly reduced.
A licensing framework would also help to create a structured approach to monitoring and regulating contractors. Regular audits and reviews would be part of this process, ensuring ongoing compliance with safety regulations.
More broadly, the hope is that such a system would enhance public trust in building safety. The rebuilding of confidence is much needed following such a significant tragedy that has rocked and shamed the construction sector.
Challenges and impact on the wider sector
Despite the potential benefits of a “super single regulator”, we need to acknowledge that introducing a new contractor licensing system will have significant challenges.
Firstly, developing a licensing framework requires substantial effort, including designing standards, establishing a regulatory body, and creating mechanisms for enforcement. Training programmes and certification processes may also need to be developed to ensure that contractors meet the required criteria. This will require time and resource that many developers simply do not have, which could cause delays to projects and lead to financial losses.
It remains to be seen as to whether industry stakeholders will be opposed to the licensing system. Some may view it as an additional burden, due to the cost and time that will need to be allocated.
In the coming weeks and months, it will be important to address these concerns through cross-sector consultation and collaboration to ensure that the system is practical, accessible, and meets the stated objectives of the inquiry recommendations. As ever, the “law of unintended effects” must also be carefully considered.
The need for simplicity
The Grenfell Tower Inquiry phase two report highlights the need for significant reforms to prevent future tragedies and enhance building safety, and the recommendation to introduce a contractor licensing system is a significant further step towards achieving these goals.
But as the government and industry stakeholders move forward with these recommendations, it is important to ensure that any new processes are communicated effectively, and are accessible for the entire sector, especially given the amount of industry change and adaption already set in motion by the Building Safety Act.
What we really need is for any “super single regulator” to act as an enabler, not a blocker, and for the route to achieving compliance to be as straightforward as possible, and not a guessing game. Clear, unified, higher-profile political leadership should aid that goal.
