Building quotes Francis Ho on the implications of Building Liability Orders for contractors
min readThe collapse of Ardmore has intensified concerns about the reach of Building Liability Orders (BLOs) under the Building Safety Act 2022. Following a High Court judgment extending liability for historic cladding defects across multiple companies within the Ardmore group, the case has become a significant test of how courts may allocate responsibility for building safety remediation across associated corporate entities.
Growing uncertainty around future liabilities is creating challenges for contractors attempting to assess their long-term exposure to historic defects claims. With BLOs capable of extending liability beyond the original contracting entity to parent companies, subsidiaries and sister companies, businesses face increased financial risk while developers and homeowners continue to await remedial works.
A difficult balance faces claimants seeking recovery for building safety defects. Pursuing claims aggressively through BLOs may maximise the prospect of remediation funding but also risks pushing entire corporate groups into insolvency. Accepting a lower settlement may secure a quicker outcome, particularly while homeowners continue to wait for essential remedial safety works to be completed.
Francis Ho, Partner in our Construction, Engineering & Projects team, comments in Building:
Where the liabilities of one group company have the potential to bring down all the others, claimants have an unenviable choice. They can pursue claims aggressively, through BLOs for instance, and risk pushing the whole group into insolvency. Or they can accept a lesser settlement and at least walk away with something.
Read the full article in Building here.
