Building Safety Act: How Will it Affect Architects?

Are you an architect feeling the financial pinch of the recent UK building regulation changes? This article will explore the key financial implications of these changes and, more importantly, how A4G can help you navigate them and ensure your practice thrives. 

The UK building industry has undergone significant regulatory changes over the past 18 months. These changes, the most substantial since the 1980s, represent a crucial step towards a safer built environment following the tragic Grenfell Tower fire in 2017. These changes have likely impacted your daily work, perhaps requiring significant adjustments to your activities. By now, you’re probably familiar with Building Safety Act’s requirements and may even have discovered new opportunities arising from these changes.

This blog post won’t rehash the details of the Building Safety Act. You’re likely already operating within these regulations, and plenty of online resources offer practical guidance on compliance. Instead, we’ll focus on the less-discussed aspect: the financial impact of these changes on your practice. Let’s explore what these implications could be.

The Financial Implications to Architects of the Building Regulatory Changes

Increased Compliance Costs

Expect increased costs due to the extra considerations required for the Principal Designer role and the methods for sharing project information. This may include:

• Staff training on new standards and ongoing competency development
• Investment in updated design tools or software. This could be a costly investment (although now is a good time to do this as you will be able to claim tax relief before the end of an accounting period)
• Changes to internal processes, especially for Higher Risk Buildings (at least 18m high or seven stories, with two or more residential units), to ensure you can evidence the “Golden Thread” of information for all relevant projects.

How I Can Help: I can provide detailed cost analysis and budgeting support to identify and plan for these expenditures.

Client Expectations

The client, now defined as the person commissioning the work, may require more of your time to ensure them that projects are proceeding smoothly.

You must educate clients on how these changes might increase project costs and how you will collaborate with them for successful project delivery. Effective budget management, always crucial, is even more important now to prevent scope creep and its associated costs.

How I Can Help: I can help you develop tools and templates to calculate project costs under the new regulations and explore suitable accounting software enhancements. Reliable management accounts will provide up-to-date financial information for informed decision-making.

Opportunities for Growth

Whenever there is change, there are always opportunities to be taken. This could be:

• New business opportunities in retrofitting older buildings to meet updated standards
• Offering compliance consultancy services as an additional revenue stream

How I Can Help: I can assist in developing financial models to assess the profitability of new services or projects, ensuring the cash flow can sustain growth.

The Financial Implications to Architects of the Building Regulatory Changes

• Strategic Planning: I can analyse your current position and forecast future costs to help you understand the financial impact of regulatory changes
• Cash Flow Management: I can help develop robust cash flow strategies to manage upfront compliance and training costs
• Tax Efficiency: I can identify tax relief opportunities, such as capital allowances on new equipment or training expenses
• Grant and Funding Advice: I can help identify available grants or funding for compliance upgrades, particularly those related to sustainability
• Client Communication: I can help develop clear financial reports and forecasts that you can share with clients to justify project cost adjustments

Practical Tips for Navigating These Changes

• Focus on continuing professional development (CPD) to keep up to date
• Engage with industry groups or forums to share knowledge and resources
• Leverage financial forecasting tools to assess the impact on cash flow and profitability