A housebuilder has agreed to pay for safety defects at a building complex in Wales.
As reported by Inside Housing, developer Redrow has confirmed that it is “willing and prepared” to pay for remediation works at the Celestia development in Cardiff.
The 450-flat complex was built under contract by Laing O’Rourke between 2005 and 2007. As previously reported by the FPA, tests carried out in 2019 revealed that firestopping and compartmentation in the building were “very poor” or “non-existent” and that there were “missing or defective” external fire cavity barriers. Additionally, the insulation “did not meet the required standards”.
As reported by BBC Wales the following year, a settlement agreement of £1.5 million was reached between Redrow and the management of the complex. While it is understood that some remedial work has been carried out since then, the cost of repairs could be “up to £20 million”.
In a letter dated 9 April 2024, the developer wrote to Celestia Management Company Limited (CMCL) informing them they would “undertake works to address the fire safety defects and non-fire safety external façade defects at its own expense”.
According to WalesOnline, Redrow confirmed the news in a statement: "Redrow previously funded the management company’s internal fire safety works at Celestia, which we are advised are now completed.
“We have recently written to the management company outlining our proposals to undertake fire safety works to the external building facade as defined by independent fire safety experts.
"Once we receive the management company's agreement to these works and confirmation they will grant the necessary access licences, we will progress the project with expert remedial contractors as soon as possible.
"This accords with our commitment under the Welsh government's deed of bilateral contract, which we signed last year."
As reported by End Our Cladding Scandal, CMCL said that Redrow’s offer to address the safety issues extended to all the buildings at Celestia, which had been identified as “high-priority buildings” in the Deed of Bilateral Contract (DBC) that had been signed by the developer and the Welsh Government in 2023.
“The offer comes six months after intrusive investigations by architects, fire engineers, and structural engineers representing each of CMCL (and leaseholders), Redrow and Laing O’Rourke confirmed the existence of defects originally identified over 5 years ago.
“These investigations were undertaken in the course of High Court proceedings between the parties. Those proceedings are currently outstanding and will continue pending further clarification by Redrow of its offer and in relation to other issues,” CMCL added.
“We understand Redrow’s intention is to continue to seek an indemnity in respect of the costs of the work from Laing O’Rourke, who built Celestia for Redrow. However, we have been assured that resolution of the outstanding legal claim will not delay the work. Redrow has already provided for the costs (which we estimate to be around £20 million) in its accounts and will finance the cost from its own resources.
“It has taken far too long, but it is a very significant step. Although there are some important omissions in Redrow’s offer, we believe these can be addressed satisfactorily with goodwill. We are – and always have been – ready to move forward to facilitate with the remediation of Celestia at pace.”
The Wesh Government said: “We were pleased with the positive outcome between Redrow and Celestia Management Company that happened in a meeting facilitated by the Welsh government and look forward to progress being made.”
The completion date for all works has been earmarked for early 2027.