Without accurate budgeting, it’s easy to overlook hidden costs, such as routine inspections, equipment replacements, or remedial works recommended off the back of assessments and surveys. Many property managers discover too late that their budgets don’t cover necessary upgrades or maintenance, leading to costly last-minute expenses and unrealistic budget juggling. Last year, we helped a lot of our clients with their fire safety budgeting, giving them clear insights into the necessary costs required for their specific buildings. This meant that they could plan these costs into their budgets before the financial year began.
With no clear idea of the costs associated with building safety and property management, there is no feasible way for every regulation to be accurately met. Stretches in the budget lead to the cutting out of necessary expenses; compliance requirements often fall to the bottom of the priority list. This is understandable, but it is a dangerous way to manage a building.
The world of regulations and legislation is a minefield that is becoming increasingly difficult to navigate. Property managers cannot always budget for new legislation. The only way to be in a position to be able to cover all new legislation is to place large amounts of unallocated costs in the budget. This is impractical and unrealistic. The best strategy building managers can use now is to understand every requirement of all current legislation and the costs associated with these.
Key Legislative Changes
The Regulatory Reform (Fire Safety) Order 2005 was the foundations of legislation for fire-safety. The Fire Safety Act 2021 extended and clarified the scope of the FSO, it did not replace it. The key changes bought about were that the requirements of the FSO now apply to all doors in the building, not just communal areas, as well as to the building’s structure and external walls. The Fire Safety Act functioned as the groundworks for implementing the Fire Safety (England) Regulations. It mandated the changes, so Responsible Persons are now required by law to assess and manage fire risks and safety, including managing compliance of Flat Entrance Doors, which previously was the leaseholder’s responsibility. This key move forward in the fire safety industry has bought a whole host of new expenses, but a whole new level of safety for building residents, massively decreasing the chance of future building catastrophes.
What are the costs of the Fire Safety (England) Regulations?
Regulation 4 – Secure Information Box
This requirement is for a secure box to be installed at the premises to hold all essential information about the building. If you are unsure if your current box is compliant, please reach out to our compliance team who will be happy to advise you free of charge. We just require a picture of your current Secure Information Box.
Regulation 5 – Design and Materials of External Walls
Building managers are required to provide information to the Fire Service about the design and materials of the external walls. If you don’t know this information, you need to conduct a Fire Risk Appraisal of External Walls. A FRAEW is one of the most expensive parts of a building’s compliance requirements, and the cost differs greatly for each building, depending on size, history, access and all known information. It is recommended to research into several quotations before inputting this cost into your budget. If you’re unsure whether your building requires a FRAEW, take a look at this webpage for further information.
Regulation 6 – Floor Plans and Building Plans
When the fire service arrive at your building, they need fast access to information about the building layout. They require an aerial orientation plan, an on arrival information sheet, floor plans and a vertical schematic. Depending on the current status of floor plans, and the size and complexity of the building, you may require some additional base plans, which could be an expensive piece in your budget.
Regulation 8 – Wayfinding Signage
Wayfinding signage is not the same as directional signage; it is to help the fire-fighters navigate into the building to access the fire. There is strict and clear guidance on the design and layout of these signs; it is a simple regulation to comply with. Depending on whether the current signage is compliant, and the size of the building, Wayfinding Signage should not be an extortionate expense, unless you want it gold plated! If you are unsure if your current signage is compliant, please reach out to our compliance team who will be happy to advise you free of charge.
Regulation 10 – Fire Doors – Checks
Due to the mandatory inspections outlined in Regulation 10, a vast number of property managers are finding a large percentage of their doors are non-compliant and very costly. Here are some tips that might help your budget:
- Flat entrance doors would not normally be service charge applicable, these should be a leaseholder cost.
- If the building has been recently built, latent defects could be a cost of a developer.
- Be careful about replacing fire doors; carefully check first if they can be repaired, and if necessary seek the advice of a fire risk assessor.
What are the costs of the Building Safety Act 2022?
High-Rise Building Registration
It is an offence to allow residents to occupy an unregistered high-rise residential building. There is an initial registration fee of £251 with HSE, but Key Building Information must also be submitted. This includes number of doors, lift systems in place, smoke detectors, risers, history of refurbishments etc. You must consider if you have all this information already; if you don’t, it might give you some unexpected costs.
Building Safety Case
There are several key stages to producing a Building Safety Case, including site visits, a gap analysis of all building information, creating drafts and finally applying for a Building Assessment Certificate. One thing you can’t budget for is the fee the Building Safety Regulator charge to review the safety case, which is £151 per hour. Recently one building was charged over £25,000 by the BSR to review their safety case, which is still not approved, but rather was rejected.
Click here for more details on the Building Safety Regulator charging scheme.
Structural Survey
In addition to the costs mentioned above, a structural survey is very likely to be needed to support your Building Safety Case. The BSR have rejected numerous safety cases because of insufficient evidence and information regarding the structural safety of the building. This again could incur unforeseen costs.
Are there any other costs I should consider when budgeting for fire safety?
Fire Strategy
Although a fire strategy isn’t directly specified in any legislation as a requirement, the importance of having one is clearly outlined in the Grenfell Phase 2 Enquiry Report. Many buildings don’t have the fire strategy information from the date of construction; a Retrospective Fire Strategy aims to outline what actions are required to allow the building to meet the requirements of the building regulations at the time of construction. If you have a fire strategy, but you are unsure if it is fit for purpose in your Safety Case, please contact our compliance team who will be able to provide free feedback.
Summary
The cost of under-budgeting can be far higher than the expense of proactive planning. Accurate budgeting can help you plan ahead, allocate funds correctly, and protect your property and residents. We recommend you obtain several different quotes for these types of services to ensure you are confident and comfortable you are budgeting wisely.
Get in touch to find out the likely costs you may need for budgeting for next year.
