The government has sent initial warning letters to 49 organisations involved in the Grenfell Tower tragedy, including firms that ministers want to ban from public sector work.
In September, responding to the phase two report of the Grenfell Tower Inquiry, prime minister Keir Starmer told MPs that the government would write to all firms “found… to be part of these horrific failings as the first step to stopping them being awarded government contracts”.
In a statement to Parliament last week, junior housing minister Alex Norris confirmed that all have now been contacted.
He said: “The prime minister has committed to writing to all companies, including product manufacturers, found by the inquiry to have been part of these horrific failings, as the first step to stopping them being awarded government contracts.
“This process is being led by the minister for the Cabinet Office.
“Initial letters have now been sent to all 49 organisations named in the report, each of which bear different levels of responsibility for the failings that led to the Grenfell tragedy, including those that are construction product manufacturers.”
The Cabinet Office refused a request from Construction News to release the names of the organisations that have been contacted, along with the letters’ contents.
However, CN understands that the letters have told the recipients that the government believes they should face sanctions and are considering the scope of any such action.
A spokesperson for Kingspan Insulation Limited (UK), which provided a small amount of insulation used on Grenfell Tower, said: “We can confirm Kingspan Insulation UK has received correspondence from the UK government.
“We have responded accordingly, welcoming the opportunity to continue its previous constructive engagements with government officials.
“We further restate our commitment to respond to the inquiry’s findings and recommendations and to explaining the comprehensive measures that have been taken to address the historic failings that occurred in the business.”
Arconic, the manufacturer of the external aluminium composite material cladding used on Grenfell Tower, also confirmed that it had received a letter.
It is unclear whether the government intends to ban the Grenfell companies’ parent companies and their subsidiaries that were not involved in Grenfell from being awarded public contracts.
One source told CN that bans on firms could impact thousands of jobs and push materials prices up, harming the government’s growth agenda.
It is also unclear how long firms would be banned for, the source said.
Banning firms from public contracts will not be simple under procurement law, according to experts.
In 2019, after Grenfell contractor Rydon was included on a Cabinet Office housing framework, the Cabinet Office confirmed that, under existing EU rules, it was not legally allowed to preclude the firm from bidding for government contracts.
The Procurement Act, due to come into force in April, will introduce a debarment list, a centrally held register of suppliers that have been named following an investigation by authorities.
However, the act contains “look back” provisions limiting the time period in which events must have taken place to the previous three to five years.
