Taylor Wimpey fire safety work costs soar to £333m

Aaron Morby 4 months ago
Share

Taylor Wimpey has been forced to increase provisions for expected fire safety work after an escalation in costs on recent tenders.

The house builder had previously set aside £245m to cover the full fire safety remediation of its building portfolio. But this morning Taylor Wimpey said the expected cost had now soared by over a third.

In a statement alongside lacklustre results for the first six months of the year, chief executive Jennie Daly said: “We have reassessed the remediation costs based on tenders received in the first half.

“Based on this updated information and enhanced cost appraisal, the expected fire safety remediation cost has increased by £88m, taking the total provision to date to £333m.

“The increase is due to escalation of costs based on recent tenders, increased project delivery administration costs, including the funding of the Building Safety Fund pre-tender costs and a small number of new buildings being added.”

The soaring cost of fire safety remediation work to the housing industry amid Government changes in scope of buildings requiring work is illustrated by the sharp rise from initial estimates.

Just three years ago, Taylor Wimpey expected recladding and fire remediation to cost £125m.

During the first half Taylor Wimpey continued to progress work with building owners, management companies and leaseholders and remained committed to resolving issues as soon as practicable for its leaseholders.

The house builder said 211 buildings were within the scope of the provision, all of which have been now assessed by its specialist team.

The hike in provisions contributed to a 58% plunge in pretax profit to £100m in the first six months of this year.

Underlying margin for the first half was lower, given residual build cost inflation in the order book and weaker pricing, however this was partly offset by higher profit from land sales.

Taylor Wimpey said that prevailing build costs on new tenders were now flat, with its self-help value improvement measures leading to slight cost deflation.

Daly welcomed the new government’s planning reforms unveiled yesterday as a “recognition that planning is a major barrier to economic growth”.

“Though we expect changes to take some time to impact, we see the planning reforms outlined by the new Government as key to unlocking future years land supply and the investment in skills and resources necessary to support future housing need.

“We have been actively preparing for planning changes and focused on developing high-quality planning applications from the strategic pipeline.

“We have around 30k applications in the planning process and additional applications ready to go if we see the proposed grey belt changes come through.”

Latest news

Ridge buys rival consultant Jubb

Acquisition will see 100 new staff join Ridge
5 hours ago

Enabling works to start £130m Huyton town centre regen

Phase one includes a new council HQ, hotel and 72 flats
5 hours ago

Grainger build to rent pipeline rises to £1.4bn

Rental specialist buys sites in Sheffield and Cardiff to build 600 rental homes
5 hours ago

Kier wins Cambridgeshire County council estate upkeep

Firm will provide building and M&E services to 106 buildings across the county
5 hours ago

Louvres and solar shading specialist files for administration

Hampshire based ALPS lodges court notice after 25 years in business
6 hours ago

Speedy Hire posts a loss in latest results

Hire giant confident of better performance in next six months
6 hours ago

Esh to lead next phase of Riverside Sunderland regeneration

Infrastructure work will allow further development of Sheepfolds area
5 hours ago

Green light for £1.3bn Edinburgh coastal town revamp

First phase of Granton Waterfront scheme will see Cruden Homes create a new community
22 hours ago

Vistry chief operating officer steps down

Earl Sibley exits as his COO role axed for more direct reporting to CEO
1 day ago

House builder Camstead goes into administration

Work stopped on three current sites
2 days ago

Death of piling legend Roger Bullivant

Industry innovator dies after long illness aged 85
1 day ago

ESS Modular went down owing suppliers £7m

Modular specialist owned by ISG owner Cathexis
1 day ago

Builders back farmers in inheritance tax protest

"A rethink is desperately needed" say National Federation of Builders
1 day ago

Willmott Dixon wins £36m leisure centre upgrade

Work to start on historic Westminster 1930s Grade II listed Seymour Centre
1 day ago

Graham wins £100m Cardiff Crossrail phase 1

Work on route to Cardiff Bay to start before end of next year
2 days ago

Laing O’Rourke appoints new European MD

Peter Lyons to take-up new role in February
3 days ago

Profits dip at Stepnell ahead of demerger

Turnover and secured workloads up ahead of restructure
3 days ago

HS2 green bridge deck takes shape

100m-wide wildlife bridge to carry hedgerows and country lane over HS2
2 days ago

1,000-home Wolverhampton city centre scheme in for planning

ECF and council advance City Centre West build to rent scheme
3 days ago

Sisk clinches £54m North London council HQ revamp

Haringey's iconic Grade II listed civic centre to be brought back into use
3 days ago

Ofgem approves £2.5bn Eastern Green Link 1

Work to start next Spring on cable project from Scotland to the north of England
3 days ago

Anglian Water hunts for £1bn delivery partner

Programme delivery partner wil integrate with client team over 15-year plan
3 days ago

Hadden collapse costs supply chain £6.7m

"Highly unlikely" subcontractors will receive anything for their unpaid invoices
3 days ago

Management buyout at M&E specialist

£25m turnover Kimpton in second MBO in its 60-year history
3 days ago

BAM finalises £71m deal to replace first major RAAC school

Work to start on new St Leonards Catholic School in Durham
3 days ago

Scaffolder hit by two tonne weight at nuclear plant

Court hands out £633,000 in fines after Dungeness B decommissioning incident
3 days ago

Go-ahead for 860,000 sq ft East London medical campus

Whitechapel Road scheme of six new and repurposed buildings
3 days ago

Site labour rates hit record high as cost inflation returns

Industry's biggest payroll firm says rates rose nearly 5% last month in London
6 days ago

Morris & Spottiswood acquires part of ISG fit-out division

ISG Cathedral acquisition saves 111 jobs and expands presence across England
7 days ago

New work drives Q3 construction output uplift

Third quarter activity up 0.8% despite slowdown in September
6 days ago

Contractor services