BuildLaw Issue 39 April 2020 | Page 7

appeal. To commence works without the necessary construction certificate was held to be a fundamental breach incapable of remedy. As such the contract was validly terminated. The lack of a notice period was no bar to the termination of a contract when the defects were such that they could not have been properly remedied.

UK Government to fund replacement of all Grenfell-style cladding
After the tragedy of the Grenfell fire, all eyes turned to finding the cause of the disaster. It was discovered that the aluminium composite material cladding (ACM cladding) used was highly combustible and resulted in the rapid spread of the fire. Over 400 tower buildings with similar cladding have since been identified by the United Kingdom Government. Despite the obvious risk, building owners have been slow to replace ACM cladding. Determining who should bear the cost of such replacement has been complex. In response, the Government has announced a $200 million fund to speed up the process of removing and replacing the ACM cladding on privately-owned high-rise buildings.
As a pre-requisite to the use of the fund, entities responsible for removing ACM cladding must apply at the earliest possible juncture and must continue to pursue any available claim under latent defect insurance policies.
To make use of the fund, applicants must meet three eligibility criteria. First, the fund must be used for the benefit of lease holders of residential buildings which are over 18 metres tall. Second, applicants will need to confirm that they are replacing cladding with materials of limited flammability. Finally, owners will still be expected to actively pursue ‘all reasonable claims’ against any party involved in the original cladding installation, and to pursue warranty claims ‘where possible’.