Part 5: Other provisions about safety standards, etc. Building industry schemes Section 126: Building industry schemes Proposed use of power
This provision gives Government a wide power to establish a building industry scheme. Such a scheme may distinguish between building industry actors that have committed to act responsibly and make buildings safe, and irresponsible actors who have failed to do so. A scheme supports the objective of holding industry to account with regard to fixing building safety defects and in respect of other obligations which may be prescribed in connection with membership of a scheme.  Conditions for membership may include, for instance, conditions relating to the remedying of defects in buildings to which an industry actor has a connection and making financial contribution towards remediation of defects in other buildings. The existence of a scheme and its membership will enable the Government and other parties to identify industry actors who are acting in a responsible way with respect to building safety, including in connection with remedying historic safety defects.
	Secondary legislation will be laid as soon as practicable. Regulations to establish a scheme will define who is eligible to be a member and set out membership conditions which may include conditions relating to the matters mentioned above; conditions restricting or prohibiting members’ use of prescribed construction products; conditions relating to the provision of information to the Secretary of State; and to the competence or conduct of individuals connected with a person who is eligible for scheme membership. This section also allows for differential membership categories and for the maintaining of lists, including in relation to scheme eligibility and scheme membership.
Example
The Secretary of State may set up a building industry scheme for residential property developers (or a specified group of residential property developers).
The Secretary of State may in regulations set the eligibility criteria and membership conditions for this scheme. Developers who meet the eligibility criteria but who elect not to join the scheme because, for example, they do not wish to comply with the applicable membership conditions may be subject to the measures in Sections 128 and 129.