The BSA has been a hot topic since it came into force in April 2022 and implemented in October 2023 albeit with some transitional arrangements.

It aims to improve the consideration of risks at every design, construction, and management stage to deliver safer and more compliant buildings for the future.

It is vital real estate funders stay vigilant on how timeframes, costs, building quality, limitation periods and the composition of the project team, will be affected during this period of change. 

Focusing on these key considerations will make compliance with the BSA easier and ensure less concern amongst all stakeholders.

Timeframes 

The introduction of new rules requires early compliance at the initial stages of development, and this must be factored into any planning and pre-construction timeframes.

Proper planning and design, in conjunction with all parties at these early stages, should help to expedite gateways and avoid costly delays.

The new act introduces the role of the building safety regulator, who will be following the new design and construction regulatory framework.

Detailed plans and inspections are to be expected under ‘the planning stage’, building control and completion.

Funders need to be ready to set realistic timeline expectations with clients, especially with the potential unpredictability of timings as everyone gets to grips with the legislation.

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Being practical about how long each stage will take will help with managing disappointment and frustration over possible project delays especially if there are design changes part way through the project. 

Cost projections

Financial forecasting must account for BSA-specific project delays and setbacks.

For example, under completion all procedures need to be met and approved before occupancy. 

Failing to meet the requirements will add additional cost pressures to a project through prolongation and potential remedial works.

Early communication between stakeholders to deliver precise plans is more important than ever to prevent costly changes and in conjunction with a robustly considered suite of contract documents.

If expensive safety changes are needed for compliance and registration with the regulator then additional funding from investors may need to be sought, which could affect the value of the property.

Building quality

One of the aims of the BSA is to deliver safer high-risk buildings for the future.

While time frames and cost projections are bound to be impacted by this aim for the highest quality and safety requirements, we need a change in mindset in the sector to fulfil the need for quality over quantity, time and cost. 

Funders' mixed-use developments, wholly residential development portfolios and all relevant buildings need to keep fire and structural safety risks front of mind.

The level of detail in the BSA can feel intimidating to unpack but it needs to be understood to achieve successful results.

Having these considerations at the forefront of your mind as a funder means you can provide realistic guidance to your clients and help avoid disappointment and frustration as the industry navigates this new process overhaul.