The Developer Remediation Contract for Wales

You may have missed that over the summer, as part of a phased introduction of changes, the Welsh Government has published its Developer Remediation Contract. This is the contract that will govern the undertaking of self-remediation works to remedy fire safety risks in residential and mixed-use buildings of 11 metres and over by participating developers.

Those developers are:

• Barratt Redrow,
• Lovell,
• Vistry,
• Countryside,
• Persimmon,
• McCarthy Stone,
• Taylor Wimpey,
• Crest Nicholson,
• Bellway,
• Watkin Jones, and 
• Lendlease.

The Developer Remediation Contract adopts the approach in England and is similar to the Developer Remediation Contract published by the Department for Levelling Up, Housing and Communities in 2023 – albeit it is 20 pages shorter. It is understood that the process for agreeing the Welsh terms with the developers has taken longer. 

In addition to the Contract, the Welsh Government has also published dispute resolution guidance and guidance for residents on how the remediation works should be delivered. 

The dispute resolution guidance has been published to assist participant developers and third parties when using mediation to help resolve any disputes that may arise under the Welsh Developer Remediation Contract prior to the execution of project specific building contracts. In this context, a third party is any entity or individual who is responsible for a building requiring remediation and is involved in the remediation process. 

It is noteworthy, that the Welsh Government’s view is that it is reasonable for developers to pay 100% of the meditation fees. The reason being that such costs should not be passed down to leaseholders and residents or be a discouraging or a preventive reason when the aim of the building contracts is to remediate life-critical fire safety defects. However, this principle does not extend to the party’s own costs which the Welsh Government considers should be their own. 

Central to the guidance for residents is the importance of residents’ needs and experiences. The guidance includes specific requirements covering roles and responsibilities, communication with residents, and the delivery of the remedial solution. The clear expectation is that this guidance should be followed on all projects irrespective of who is delivering the project and how it is funded. 

If you would like more information on this, please contact Lena Barnes.