Understanding Building Liability Orders Under New UK Law
What is a Building Liability Order (BLO)?
BLO is a legal remedy introduced by the Building Safety Act 2022.
It allows the High Court to extend liability for building defects to associated companies.
Inspired by the Grenfell Tower tragedy, the BLO aims to address shortcomings in building safety.
BLOs can help recover costs from corporate entities responsible for defective premises.
Legal Implications of BLOs
BLOs provide a way to pierce the corporate veil, holding parent companies liable.
They extend the existing liabilities under the Defective Premises Act 1972.
BLOs are applicable for various building safety defects identified in legal proceedings.
The court can determine liability based on just and equitable grounds.
Guidance on Applying for BLOs
Claimants need to demonstrate the relationship between the companies involved.
The legal process for claiming a BLO includes specific tests and requirements.
Recent court rulings offer clarification on the application of BLOs.
Guidance documents are available for developers and contractors on how to navigate BLOs.
Impact on Developers and Contractors
Developers must be aware of extended liabilities under BLOs.
Contractors are advised to review their contractual obligations and relationships.
BLOs could influence insurance and risk management strategies in construction.
Awareness of BLOs is essential for compliance with the Building Safety Act.