Crest Nicholson has been able to recoup more than £32 million for fire safety work from its supply chain, seeing it make a return to profitability in the first half of its financial year
On 12 June 2025, the housebuilder shared details of its fire remediation work as part of its interim results for the six months ending 30 April 2025. It announced an encouraging first half performance, with “good progress” in carrying out necessary fire safety works and around £34 million spent.
As reported by Building Magazine, the developer’s fire safety provision is estimated at £223 million. The developer has 293 buildings in the scope of the government’s Developer Remediation Contract, which the company signed in March 2023, committing it to resolve historical fire remedial work. It confirmed that by the end of May, it had completed 279 external wall surveys and 270 internal assessments, and “as such, the Group is firmly on track to complete all surveys by the July deadline”.
“We are constantly re-evaluating the overall cost of works to be performed, the net result of which is a £2.4m increase in the total cost, which equates to less than 1% of the total expected cost of the programme.”
The housebuilder also announced its target for completing all outstanding fire safety work: “Due to the quantity and nature of the projects, the multiple stakeholders involved, and the availability of appropriately qualified and experienced consultants and contractors, we expect to complete the remedial works within five years.”
In the meantime, the company has successfully recouped significant sums from its supply chain following settlements in respect of three buildings, with total recoveries now totalling over £32 million. The developer is also subject to a legal claim, which is currently ongoing:
“The Group recovered £11.8m from third parties in respect of defective design and workmanship offset by a net combustible materials charge of £2.4m arising from forecast changes in remediation costs, legal fees of £0.5m in respect of a legal claim against the Group relating to an apartment block built by the Group which was damaged by fire in 2021, and £2.0m of restructuring costs.”
The 2021 fire caused extensive damage to the low-rise bespoke apartment block, which was subsequently demolished and is currently being rebuilt by the freeholder. In 2023, the Group received a letter of claim “alleging fire safety defects and claiming compensation for the rebuild and other associated costs”.
As previously reported by the FPA, construction company Willmott Dixon also announced it had successfully recovered £20 million in cladding remediation costs from its third-party contractors. The claim also related to “alleged defects in the design and construction”.