RAAC to the future

This article was authored by Dominic Deery, Trainee Solicitor.

This overview of reinforced autoclaved aerated concrete (“RAAC”) considers the scale of the problem following its widespread use as a building material from 1950’s - 1990’s, and in turn, the risks to building owners and their insurers in the wake of mass media hysteria following the UK Government’s 2021 communication that “RAAC is now life expired and liable to collapse”.

RAAC in overview

RAAC is an aerated lightweight cementitious material with no coarse aggregate, containing steel reinforcing bars. As such, it was favoured as a cheaper and lighter alternative to traditional concrete that provided better thermal and noise insulation.

RAAC is widely reported to only have a life expectancy of 30 years. However, it is an inert material that when correctly installed, not cut, and free of water ingresses is capable of lasting in excess of the much publicised 30-year period. But, in cases where the panels are porous water penetration can cause the reinforcement to corrode, compromising the material causing it to spall and break apart resulting in collapse with little or no warning.

The Public Sector

RAACs use in the public sector has been much publicised with 231 schools confirmed to have RAAC-related issues of which 119 require major reconstruction. For the schools identified to date, the total cost of repair is estimated to reach £140 million.

RAAC has also been identified at 47 NHS hospital sites across England. The repair and replacement of these buildings is the subject of a backlog of maintenance and repairs for NHS hospital buildings and equipment totalling £10.2 billion in 2024.

A further consideration is the presence of asbestos in buildings where RAAC repair works is necessary. Department for Education data in 2019 revealed that approximately 81% of English schools are believed to have asbestos. Any remedial works dealing with RAAC might also have to deal with asbestos in those buildings which would otherwise have been left in situ as the safest thing to do. If asbestos is found and also needs to be removed the additional costs can be prohibitively expensive.

The Private sector

Whilst much has been made of its public sector use, RAAC is understood to be a prominent building material in the private sector. The Manufacturing Technology Centre estimate that at least 3.5 million RAAC panels have been sold in the UK.

In one housing development in Aberdeen 504 homes were identified as containing RAAC, 366 of which were council owned and 138 privately owned. Private owners and tenants, in this instance, have have been able to receive the same ‘rehoming’ support as council tenants following intervention by the Scottish Government. The estimated cost of demolition is £20-25 million over 4 years and the cost of rebuilding including financing is estimated to reach £130m over a 5-15 year period. This circumstance is illustrative of scenarios in the private sector where owners will look to insurers for assistance. 

Where claims might arise

Grounds for a claim might arise under the Health and Safety At Work Act 1974 under which building owners are responsible for identifying and addressing RAAC-related risks. Where a building is purchased with a survey, the surveyor could be liable for breach of contract and or negligence should the presence of RAAC be overlooked. The appointment of a surveyor will likely be subject to the 6-year limitation period to bring a claim.

Under a tenancy agreement it is unlikely that the presence of RAAC itself would give rise to liability under the repairing obligations. There must be some form of disrepair to engage a repair covenant. Where RAAC is found within a tenants premises, it will need an analysis of the terms of the lease. Repair works could be considered an improvement and fall outside the scope of a repair covenant. If the tenant is responsible for repair, their liability might engage on termination of the lease even if the landlord has not enforced this during the lease term. This might result in a dilapidation claim. If the landlord is responsible under its repair obligations, or chooses to undertake remedial works, it may be able to recover costs via the service charge. This will depend on the type of works and the service charge provisions including any exclusions and caps. 

Comment

RAAC is a maintenance and repair crisis, but the ultimate question remains as to who is going to pick up the liability and the cost.

Parallels have been drawn between the RAAC crisis and the ACM Cladding revelations post-Grenfell which had significant ramifications for the insurance market. For ACM Cladding, the Government extended the limitation period stated in the Defective Premises Act 1972 (through the Building Safety Act 2022) to 30 years, to allow claims to be brought against developers outside of the original limitation period. A similar approach could be taken to extend limitation for RAAC claims.

The problems with RAAC are, and have been, well known for decades. The question is whether we are currently assessing the tip of the iceberg for private building owners and their insurers.

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