Landmark Building Safety Act Case Reshapes Corporate Liability in UK Construction

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A landmark case between Crest Nicholson and Ardmore Construction is reshaping how the UK construction industry views corporate accountability for building safety issues. The £14.9m dispute over fire safety defects in a Portsmouth development has led to a court granting a Building Liability Order against the entire Ardmore group, challenging the industry's long-standing practices around insulating liabilities through corporate restructuring. This ruling suggests the Building Safety Act 2022 is being interpreted more broadly than expected, with major implications for how contractors, developers, and insurers manage historic defects.

Why it matters

This case highlights a significant shift in how the courts are applying the Building Safety Act, expanding its reach beyond just future developments to also cover historic defects. The willingness to pierce the corporate veil and hold parent companies liable for their subsidiaries' failures sends a clear message that clever corporate maneuvering will no longer shield companies from accountability. This could lead to a wave of claims as developers seek to recover remediation costs, forcing the industry to confront its past mistakes.

The details

At the heart of the dispute is a £14.9m adjudication award against Ardmore Construction for fire safety failures in the Admiralty Quarter development in Portsmouth. What makes this case particularly noteworthy is how Crest Nicholson leveraged the Building Safety Act to pursue not just the contractor, but the entire Ardmore group. The court's decision to grant a Building Liability Order across the group challenges the industry's long-standing practice of using corporate restructuring and insolvency to isolate liabilities.

• The Admiralty Quarter development was completed nearly two decades ago, in the early 2000s.
• The £14.9m adjudication award against Ardmore Construction was issued in 2026.
• The court's ruling granting the Building Liability Order against the Ardmore group was handed down in April 2026.

What’s next

Ardmore Construction has announced plans to appeal the court's ruling, arguing that the Building Safety Act was not intended to be applied retroactively to historic projects. The outcome of the appeal will be closely watched by the construction industry, as it could set a precedent for how liabilities are pursued across corporate structures.