Building Liability Orders and Developer Remediation

What This Requirement Covers

The Building Safety Act 2022 introduced new mechanisms to hold developers and other responsible parties accountable for building safety defects, particularly in residential buildings with unsafe cladding and other fire safety deficiencies.

Key Requirements

Building Liability Orders (Section 130)

1. A Building Liability Order allows the High Court to extend the original builder's or developer's liability to associated companies
2. This prevents developers from avoiding liability by dissolving the company that carried out the original work
3. The order can be sought by any person with a relevant claim against the original developer
4. It enables claims to be brought against parent companies, successor companies, or other entities in the corporate group

Extended Limitation Periods (Section 135)

1. The limitation period for bringing claims under the Defective Premises Act 1972 has been extended to 30 years for buildings completed before 28 June 2022
2. For buildings completed after 28 June 2022, the limitation period is 15 years
3. This represents a significant extension from the previous 6-year limitation period
4. The extension applies to claims for defective work that makes a dwelling unfit for habitation

Developer Remediation Contracts

1. Major developers have signed legally binding pledges to remediate life-critical fire safety defects in buildings over 11 metres that they developed or refurbished in the past 30 years
2. The pledges are enforceable through the developer's registration with the Building Safety Regulator
3. Developers who do not sign the pledge face restrictions on building control approvals and potential prohibition from carrying out building work

Remediation Contribution Orders (Section 124)

1. The First-tier Tribunal can make a Remediation Contribution Order requiring a landlord or developer to contribute to the cost of remedying relevant defects
2. The order can be made on the application of an interested person (typically a leaseholder or management company)

Leaseholder Protections

1. Qualifying leaseholders in buildings over 11 metres are protected from remediation costs for cladding and other defects that did not arise from their own works
2. Non-qualifying leaseholders (those owning more than 3 UK properties) may still be liable for capped contributions
3. The protections apply where the landlord is (or is associated with) the original developer

Practical Compliance Tips

1. If you own or manage a building with fire safety defects, check whether the original developer has signed the remediation pledge
2. Seek legal advice on the applicability of Building Liability Orders if the original developer has been dissolved
3. Review the extended limitation periods; claims that were previously time-barred may now be viable
4. Leaseholders should check their qualifying status under the Building Safety Act's leaseholder protections
5. Keep all documentation relating to the original construction, including contracts, specifications, and correspondence
6. Monitor the Government's list of developers who have signed remediation pledges
7. If your building requires remediation, explore funding through the Building Safety Fund and Cladding Safety Scheme