Pick Everard has urged developers to act now to protect their projects from unexpected costs and programme delays by factoring the Building Safety Levy into schemes well before the 1 October implementation date
Developers expecting to have schemes ready for submission before 1 October may have less time than they think to progress to the technical design stage and a building control application, which means some schemes may not be processed or lodged before the Building Safety Levy deadline.
Additional costs may need to be factored in to account for such delays.
Gateway 2 buildings must act early
For higher-risk buildings already in the Gateway 2 approval process under the building safety regime, a refusal could lead to a resubmission, which is associated with time and complexity issues that compound the risk to project delivery.
Vaso Vaina, building safety act associate at Pick Everard, said understanding the mechanisms of the levy and engaging early with competent principal design for building regulations for Gateway 2 submissions, prior to the deadline, can help to avoid delays in approvals that lead to unanticipated charges that could impact planned margins.
She explained: “Considering the effects of the Building Safety Levy on projects now will result in better quality applications, for a better likelihood of a successful pre-deadline submission.
“It is vital that developers seek clarity and support to navigate the levy if they are only just starting to consider its implications. The upcoming implementation of the levy may introduce uncertainty for projects regarding time and resources. Early compliance planning resulting in robust building control applications is the most effective way to address these risks.”
Charges for new developments under the Building Safety Levy
The Building Safety Levy introduces an additional up-front statutory charge on new residential developments to fund building safety remediation costs. It will apply to building control applications and initial notices submitted on or after 1 October and must be paid before a completion certificate can be issued.
Local councils will act as the collecting authorities for the levy, regardless of the building control route. From 1 October, applicants must provide levy information with their submission, such as the number of residential units and planning permission reference, to trigger the levy calculation.
A Levy Liability Notice is then issued within five to eight weeks. These may be revised and recalculated if the scheme changes.
Vaina added: “The levy can have an impact on everything from cash flow to project viability.
“Failing to plan for this additional tax or the potential effects of administrative delays could prove particularly damaging.
“In what is an economically challenging landscape for construction at the moment, early engagement is the key to mitigating delivery risk and additional cost exposure, helping to stormproof project delivery as much as possible.”
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