Defective cladding cost contractor millions
1 January 2023
This article was first published on the Batchelor’s Solicitors website prior to its merger with Birketts.
Specialist housing contractor Mulalley is facing a potential bill of £8 million in damages to Martlet Homes who is part of Hyde Housing as Judge Stephen Davies found that they had breached their contract.
This breach was found in the specified cladding which included combustible material and the installation, which was proven to be defective.
The faulty work was carried out on the Gosport Towers complex in Portsmouth over the course of three years from 2005 to 2008.
As a result of the shocking Grenfell fire that took place in June 2017, an investigation by Martlet found that there were defects in the installation of the work which posed the risk that they would not be functional at preventing the spread of a fire.
After this discovery, Martlet set up a fire patrol but in November of that year, they decided to remove the defective cladding and replace it, which was carried out by Axis between 2018 and 2020.
Martlet continued to have the fire patrol on-site during this time for additional protection. The damages they have been awarded are to cover both the costs of the work carried out by Axis and the implementation of the fire patrol.
The housing association sent a claim to Mulalley in the summer of 2017 after the defects were found but ended up taking the case to court after adjudication in 2019 which found against the claim.
The judge said that the breach of specification was interesting as it called into question whether the same fire safety standards applied in the early to mid-2000s as they do now.
This case will have implications on the ongoing debate of who can be liable when it comes to defective cladding: the contractor or the client.
Hyde Group have claimed to be the first housing association to win against a contractor for the installation of defective cladding. They stated that this ruling is a crucial example that contractors can be held accountable for the costs to remove damaging cladding.
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The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at January 2023.