Carris Peacey and Sylwia Jatczak write for R3 RECOVERY Magazine on the Building Safety Act 2022 and the obligations on IPs
The Building Safety Act 2022 (BSA) was enacted following the Grenfell Tower fire to enhance the design, construction, and management of higher-risk buildings. Since its inception, the BSA has undergone various amendments, implemented in stages to address evolving needs and challenges in building safety.
One significant amendment introduced by the Leasehold and Freehold Reform Act 2024 (LFRA) is the repeal of section 125 of the BSA, replaced by section 125A. This new section applies when an Insolvency Practitioner (IP) is appointed over a ‘responsible person’ for either a ‘higher-risk building’ or a ‘relevant building’. The term ‘responsible person’ is defined differently from other building and fire safety legislation, necessitating careful interpretation.
Carris Peacey, Associate in the Corporate Restructuring and Insolvency team and Sylwia Jatczak, Associate in the Real Estates Disputes team write for R3 RECOVERY Magazine on new building safety laws and the increased notification requirements for IPs.
Section 125 of the BSA, which allowed IPs to seek court orders for remediation costs from associated corporate bodies or partnerships, has been repealed. This repeal aims to prevent funds recovered in insolvency from being distributed to creditors instead of being used for building remediation. IPs must now explore other remedies, such as contribution orders or building liability orders, on a case-by-case basis.
While section 125A imposes mandatory reporting obligations, the consequences of non-compliance remain unclear, leaving room for future legal interpretation. The BSA continues to evolve, and IPs must stay informed about their obligations under the Act and related legislation.
Read the full article in R3 RECOVERY Magazine below:
