Thu 06 Mar 2025

Reinforced Autoclaved Aerated Concrete implications for commercial landlords and tenants

Understanding Reinforced Autoclaved Aerated Concrete

Reinforced Autoclaved Aerated Concrete (RAAC) is a building material that was widely used in construction between the mid-1950s and mid-1990s. Unlike traditional concrete, RAAC is produced in planks or panels, making it suitable for use in roofs, walls and floors. During its peak usage, RAAC was favoured for its lightweight nature, excellent thermal properties, cost-effectiveness and ease of installation. However, the material has a typical lifespan of around 30 years. Consequently, many buildings incorporating RAAC have now surpassed this lifespan and may require urgent repair or replacement. A notable example is the Denburn Health Centre in Aberdeen, which was vacated in September 2023 due to RAAC-related issues.

Identifying RAAC in commercial properties

To determine if RAAC is present in a commercial property, it is essential to review building plans and related documentation. As RAAC is often concealed behind the building's structure, visual identification may be difficult. Engaging a qualified structural engineer or surveyor to assess the property will help determine the extent of RAAC usage and any potential risks.

Failing to conduct an assessment could not only present safety hazards but also lead to significant legal liabilities. While tenants of commercial buildings may be entitled to investigate RAAC concerns in leased properties, landlords must be cautious about entering the premises for inspections. Tenants have the right to peaceful enjoyment of their leased space, so landlords should carefully review lease terms firstly, to ensure they have permission to enter the premises for inspection and secondly, to determine the extent of their rights of inspection and any restrictions on the exercise of those rights. If no such provision exists, the landlord may need to wait until the lease expires before conducting an inspection.

Who is responsible for addressing RAAC issues?

Determining responsibility for rectifying RAAC-related issues in a commercial lease can be complex. Several key factors must be considered:

  • Is the tenant or landlord responsible for keeping the property in good and substantial repair and condition?
  • If the property forms part of a larger building, is RAAC present in the communal areas of the building?
  • Who is responsible for dealing with repairs to communal areas?
  • Who is responsible for paying for the cost of any repairs to the communal areas?

It is important to note that the presence of RAAC does not automatically necessitate repairs. Remediation obligations are only triggered if the RAAC is found to be in poor condition and requires intervention.

Repair responsibilities: what are the legal implications?

The implications of RAAC-related issues in commercial properties are still being assessed, however, it is clear that the cost of addressing RAAC defects can be significant.

In determining responsibility for repairs, it is crucial to ascertain who is responsible for latent and inherent defects arising from the defective design, materials, construction, or installation of the building or its components at the time of its construction, and extraordinary repairs that are not part of the regular maintenance of a property or building and that may be caused by an unexpected event, catastrophic failures, latent and inherent defects, or repairs associated with long-term deterioration.

Each case should be reviewed individually in view of the type of property concerned and specific lease terms. The wording of the lease plays a pivotal role in determining whether the landlord or tenant is responsible for addressing RAAC issues. Under common law, landlords are typically responsible for extraordinary repairs. However, in full repairing and insuring (FRI) leases, this responsibility is often passed on to the tenant, although there may be specific carve-outs from the tenant's FRI obligations for example, for latent and inherent defects. Therefore, a thorough analysis of the lease is essential to establish the correct legal responsibility for RAAC repairs.

Once the responsible party is determined, they may be issued with a formal notice requiring them to remedy the defect and bring the property up to the required repair standard outlined in the lease. If the responsible party fails to undertake the necessary repairs, the issuing party may be entitled to take further legal action.

Conclusion: addressing RAAC defects in commercial properties

Both landlords and tenants must carefully consider their respective liabilities concerning RAAC defects and the potential risks associated with leaving the material untreated. Understanding the specific terms of your lease agreement is crucial in determining who is responsible for addressing RAAC-related issues and how to proceed with repairs. If you have any questions or need expert legal advice regarding RAAC in your commercial property, please do not hesitate to contact us.

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