Undoubtedly (and rightly) the Grenfell Tower fire will have a significant impact on our industry. Grenfell has resulted in the need to reclad a number of high-rise buildings; government figures indicate 312 residential buildings and public buildings in England have ACM cladding. It is a substantial task to remove this flammable material and replace it with a material deemed ‘‘safe’’. According to a government report, by the end of March 2018, only seven out of 160 social housing towers that were identified as dangerous have been reclad with safer materials. Furthermore, about 100 towers that house council tenants have not yet had the dangerous cladding removed. 

The size of the task is, however, not the only factor slowing progress. A major consequence of Grenfell is the increased difficulty in obtaining professional indemnity (PI) insurance and it is this, coupled with the increased demand, that has led to a rise in prices for  recladding work. 

If parties are unable to get cover at market rates and employers are unwilling to pay increased premiums, they could be forced to operate without cover

…