Building Liability Orders: court delivers landmark building safety ruling

The court has handed down a keynote judgment on Building Liability Orders (BLOs) which are available under the Building Safety Act 2022.

In Crest Nicholson Regeneration Limited & Ors v Ardmore Construction Limited & Ors [2026], the court provided clarity on when liability for building safety defects can be extended to associated companies within a corporate group, more clearly defining how building safety risks can be enforced across the construction and real estate sector.

The Building Liability Orders regime

BLOs allow the court to extend liability for building safety defects from the original company responsible — typically a developer or contractor — to one or more associated companies, making them jointly and severally liable where it’s just and equitable to do so. The regime is designed to prevent liability being lost through shell companies, special purpose vehicles or complex group structures.

To grant a BLO, the court must be satisfied that there’s a ‘relevant liability’ (under the Defective Premises Act 1972, the Building Act 1984 or arising from a building safety risk), that the defendant company is associated with the original company, and that it’s just and equitable to extend liability.

Background

The dispute concerned serious fire safety defects at Admiralty Quarter, a residential development in Portsmouth constructed by Ardmore Construction Ltd between 2007 and 2009, under a design and build contract with Crest Nicholson Regeneration Ltd.

Following post-Grenfell investigations, Crest pursued Ardmore in adjudication and was awarded approximately £14.9m. Ardmore subsequently entered administration, leaving the award unpaid.

Crest then issued Technology and Construction Court (TCC) proceedings seeking two BLOs against associated Ardmore group companies: an ‘anticipatory’ BLO in respect of any liability ultimately found against Ardmore at trial, and an ‘adjudication’ BLO covering the £14.9m award.

The decision

The TCC granted both orders. It confirmed that it has jurisdiction to make an anticipatory BLO before liability has been finally determined, rejecting arguments that doing so was premature or unfair.

It also held that an adjudicator’s decision constitutes a ‘relevant liability’ for the purposes of section 130 of the Building Safety Act 2022. Although adjudication decisions are only temporarily binding, they give rise to enforceable liabilities unless and until overturned, and excluding them would undermine both the adjudication regime and the Building Safety Act 2022.

Key points

The judgment confirms that BLOs are a real and effective remedy that can be deployed as part of a building safety risk claim strategy, including the use of the 28-day adjudication procedure. It also signals that insolvency and corporate restructuring will not, of themselves, shield group companies from historic building safety liabilities.

Practical takeaways

Claimants can now map defendant group structures early and need not wait for a full trial before seeking a BLO. For corporate groups, ringfencing structures will be scrutinised closely.

For developers, contractors, landlords and funders alike, Crest Nicholson v Ardmore underlines that building safety risk is a live, enforceable and potentially group-wide issue requiring early, informed and strategic legal engagement.