Contractors will be fined for delays in project implementation

Deputy Prime Minister Angela Rayner has presented a new fines system for building companies. According to it, the UK Government may apply a penalty to construction companies. It`s that fall 10% or more behind agreed-upon build-out schedules without a valid reason. The local authorities will send this money to fund their planning work. But what is the reason for that decision, and how will it influence the building industry?

The main source: House builders to face fines for dragging feet on site starts

The reasons for that decision

The main reasons for this decision are changes in government policy in the building industry and the increasing rate of building new structures. This is because many companies receive approval for creating new objects and do not perform their duties. As a result, some families waste decades of their lives waiting for their apartments.

Now, to receive planning permission, developers must commit to delivery timelines and provide regular updates through annual progress reports.

Angela Rayner has warned: “No more sites with planning permission gathering dust for decades while a generation struggles to get on the housing ladder. This government has taken radical steps to overhaul the planning system to get Britain building again after years of inaction. In the name of delivering security for working people, we are backing the builders, not the blockers.”

How will new fines influence the building industry?

This mechanism of penalties must stimulate the building industry to grow, but only if its implementation is correct. The point is that sometimes building companies really may delay the final date of creating an object due to different reasons. It may be malfunctioning supply chains, climate change, world crises, or other unpredictable circumstances. By the way, there are real stories when construction companies break building processes. It happen even in a time when all conditions are good. So, it is a sensitive question that must be highly regulated, taking into account all conditions. A technical consultation is now open for schemes of 50 homes or more, proposing mandatory build-out plans, commencement notices, and tracking reports as part of the planning process.

Fencyx, as one of the leaders of the UK building industry, is happy that the UK Government will be seriously involved in the building industry. But as we already mentioned, all necessary conditions must be accounted for so as not to worsen the industry’s activities.

Read also: BBA certifies a new low-carbon brick