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Understanding Building Liability Orders Under New UK Law

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What is a Building Liability Order (BLO)?

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    BLO is a legal remedy introduced by the Building Safety Act 2022.

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    It allows the High Court to extend liability for building defects to associated companies.

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    Inspired by the Grenfell Tower tragedy, the BLO aims to address shortcomings in building safety.

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    BLOs can help recover costs from corporate entities responsible for defective premises.

Legal Implications of BLOs

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    BLOs provide a way to pierce the corporate veil, holding parent companies liable.

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    They extend the existing liabilities under the Defective Premises Act 1972.

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    BLOs are applicable for various building safety defects identified in legal proceedings.

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    The court can determine liability based on just and equitable grounds.

Guidance on Applying for BLOs

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    Claimants need to demonstrate the relationship between the companies involved.

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    The legal process for claiming a BLO includes specific tests and requirements.

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    Recent court rulings offer clarification on the application of BLOs.

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    Guidance documents are available for developers and contractors on how to navigate BLOs.

Impact on Developers and Contractors

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    Developers must be aware of extended liabilities under BLOs.

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    Contractors are advised to review their contractual obligations and relationships.

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    BLOs could influence insurance and risk management strategies in construction.

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    Awareness of BLOs is essential for compliance with the Building Safety Act.