In the ever-evolving landscape of building safety regulations in the UK, few changes have sent ripples through the civils and structures sectors quite like the introduction of Gateway 2 under the Building Safety Act 2022. While the Act itself is a welcome step forward for safety and accountability, the Gateway 2 process is rapidly becoming a major hurdle for design consultancies and, by extension, our clients.

What is Gateway 2?

Gateway 2 represents a critical checkpoint in the construction project lifecycle. It demands that all major residential developments demonstrate robust compliance with new building safety standards before physical construction can begin. The intention is clear: to ensure that designs are fully coordinated, risk-assessed, and compliant with regulations before shovels hit the ground.

However, the reality for consultancies has been far more complicated.

The Issues Gateway 2 is Creating for Consultancies

The Grenfell tragedy justifiably prompted calls for the development of safer, higher-quality buildings. However, the new regulatory framework for high-rise construction appears to have been created with little practical understanding of how the construction industry actually operates. This disconnect is perhaps unsurprising, given that the regulations were largely drafted by civil servants engaging primarily with trade bodies rather than consulting directly with experienced construction professionals.

This raises an important question: what are the implications of the unapproved Gateway 2 applications?

1. Increased Administrative Burden

 Design consultancies must now produce far more detailed designs, safety case reports, and coordinated documentation much earlier in the project timeline. This front-loading of work demands greater time, effort, and collaboration, often without a corresponding increase in fees.

2. Project Delays

Without Gateway 2 approval, construction cannot commence. Delays in obtaining approval – often due to ambiguous guidance or evolving requirements – are causing significant hold-ups across the sector. For consultancies, these delays are frustrating and costly, affecting project timelines and client relationships.

3. Cashflow Challenges

Project delays are increasingly leading to deferred payments, creating significant cashflow challenges for many consultancies, particularly small and medium-sized firms. A major contributing factor is the structure of consultancy fee arrangements, where a substantial portion of the final payment is tied to a project’s formal transition into the construction phase. With Gateway 2 approvals now stalled, access to these critical final payments is effectively blocked, exacerbating financial pressures.

4. Reputational Risk

When projects stall, clients often look to their consultants for answers. Even when delays are regulatory in nature, consultancies risk reputational damage. Maintaining client trust through these challenges requires clear, proactive communication – and even then, frustrations are inevitable.

How Clients are Being Impacted

Our clients – developers, contractors, and investors – are feeling the knock-on effects profoundly:

• Construction Delays mean delayed returns on investment and extended financing costs.
• Uncertainty in Project Planning disrupts supply chains and labour scheduling.
• Budget Overruns are becoming more common as projects stretch beyond initial timelines.

Ultimately, Gateway 2’s challenges for design consultancies cascade down the entire project chain, causing real commercial pain for all parties involved.

Navigating the New Reality

Forward-thinking consultancies are already adapting by:

• Expertise in Gateway 2 Submissions Consultancies with extensive experience in delivering civil and structural engineering services during RIBA Stages 4 and 5 have established themselves as leaders in developing comprehensive design documentation for Gateway 2 submissions. Their depth of knowledge is such that they have also been able to guide and advise other designers on the necessary requirements and best practices for preparing these submissions.
• Investing in bid preparation and compliance expertise, ensuring submissions meet stringent Gateway 2 requirements.
• Strengthening stakeholder engagement, working more collaboratively with clients, contractors, and regulators.
• Leveraging specialist support, such as legal advisors and safety case consultants, to navigate the regulatory maze.

 What the Government Needs to Do

While the industry is working hard to adapt, it is clear that greater support from the government is essential. To ease the transition and ensure that Gateway 2 achieves its safety objectives without stifling development, the government must:

• Provide clearer and more consistent guidance to eliminate ambiguity in the approval process.
• Streamline and expedite the review and approval process to avoid unnecessary project delays.
• Offer financial support or incentives to SMEs struggling with the additional compliance burdens.
• Facilitate open forums and workshops where industry professionals can engage directly with regulators, offering feedback and receiving updates.
• Invest in training and resources for regulators themselves, ensuring they can assess submissions efficiently and consistently.

Recent developments have highlighted how critical these improvements are. According to a report by the Construction Enquirer, the Building Safety Regulator has missed its self-imposed deadline to clear the Gateway 2 backlog. Hundreds of projects are stuck in limbo, awaiting approval, which is compounding delays and deepening cashflow issues across the sector. The backlog demonstrates that the current system is under-resourced and not equipped to handle the volume of applications, making government intervention even more urgent.

By taking these steps, the government can help balance the urgent need for safer buildings with the practical realities of the construction and design sectors.

Let's Tackle Gateway 2 Together

At Alexander Associates, we understand the pressures our partners and clients are under. As specialists in the building, design, and structures sector, we’re committed to supporting consultancies and project teams through this period of adjustment. Whether it's providing access to compliance-savvy talent, facilitating expert-led workshops, or simply helping you scale your teams more flexibly, we're here to help.