Landmark £15m Building Safety Act Ruling: Ardmore Appeals & What It Means for Construction

Got story updates? Submit your updates here. ›

A recent court ruling in the case of Crest Nicholson v Ardmore has far-reaching implications for the construction industry. The case centers around alleged fire safety defects in a Portsmouth development dating back to the late 2000s. When Ardmore Construction entered administration, Crest Nicholson leveraged the new Building Safety Act 2022 to pursue other Ardmore group companies, leading the court to grant an "anticipatory" Building Liability Order to enforce a previous adjudication award. This signals the courts' willingness to look beyond corporate structures to ensure accountability for serious safety issues, even years after project completion. The ruling has sparked anxiety across the industry, as contractors and developers face the prospect of greater long-term liability for legacy building defects.

Why it matters

This case highlights a fundamental shift in how the construction industry will be held accountable for building safety issues, even long after projects are completed. The court's decision to pierce the corporate veil and extend liability across the Ardmore group sets a precedent that could have far-reaching implications for contractors, developers, funders, and insurers. It signals that insolvency or administrative hurdles are no longer insurmountable barriers to ensuring accountability for serious safety lapses.

The details

The core dispute centers around alleged fire safety failures, including combustible insulation and missing cavity barriers, in a Portsmouth development completed in the late 2000s. When Ardmore Construction entered administration, seemingly sidestepping a substantial adjudication award, Crest Nicholson leveraged the new Building Safety Act 2022 to pursue other entities within the Ardmore group. The court granted an "anticipatory" Building Liability Order, allowing the adjudication award to be enforced against the broader Ardmore group, citing factors like insolvency of the primary construction entity, strategic restructuring, common ownership, and the gravity of the alleged safety defects.

• The Portsmouth development was completed in the late 2000s.
• Ardmore Construction entered administration in recent years.
• The Building Safety Act 2022 was enacted last year.

What’s next

Ardmore Construction is preparing to appeal the court's decision, arguing that the Building Safety Act 2022 was not intended for such application. The outcome of this appeal will be closely watched by the construction industry, as it could set a precedent for how far the Act can be used to pursue historic building safety liabilities.