The Building Safety Act 2022 introduced Building Liability Orders to provide leaseholders and homeowners with more protection against contractors and developers regarding the remediation of historical defects affecting building safety.
Building Liability Orders under the Building Safety Act 2022 aim to prevent house builders from circumventing liability for development projects by creating special-purpose vehicles (SPVs), subsidiary shell companies or joint ventures to be used to develop specific sites and dissolved when the project is completed. This is usually done to secure investment in a project, but it can also limit or avoid liability if the construction works are defective after the project is completed.
Building liability orders remedy this situation by extending accountability for historical defects in buildings to associated companies and imposing joint and several liability, meaning that the claimant can take action against any of the associated companies or against all of them together in respect of the entire damage.
Summary
This article covers:
• What Building Liability Orders are and how they operate under the Building Safety Act 2022.
• The legislative background was shaped by post‑Grenfell reforms and accountability measures.
• Who may be held liable, including developers, contractors and associated companies.
• How applications are made to the High Court and the evidence typically required.
• Key judicial decisions offering guidance on interpretation and enforcement.
• The impact on stakeholders such as landlords, leaseholders, developers and insurers.
• How BLOs differ from Information Orders and when each is used.
• Common queries addressed in the FAQs.
What is a Building Liability Order (BLO)?
Section 130 of the Building Safety Act 2022 defines a building liability order as
“an order providing that any relevant liability (or any relevant liability of a specified description) of a body corporate (‘the original body’) relating to a specified building is also—
(a) a liability of a specified body corporate, or
(b) a joint and several liability of two or more specified bodies corporate.”
In practice, a Building Liability Order under the Building Safety Act 2022 is a court order that extends liability for building safety defects to associated companies. This mechanism ensures that developers and contractors remain accountable for defective or unsafe construction, even where the original company has been dissolved or liability might otherwise be avoided through complex corporate structures.
Why They Were Introduced
In legal terms, BLOs empower the High Court to extend liability for defective premises or building safety risks beyond the original developer to associated companies, thereby preventing the use of complex corporate structures to shield assets or dissolve liability.
The measure forms part of the government’s wider redress framework under the Building Safety Act 2022 and reflects the post-Grenfell commitment to accountability and systemic reform. As confirmed in the government’s response to the Grenfell Tower Inquiry, the reforms were designed to ensure that those responsible for unsafe construction practices bear the cost of remediation, rather than leaseholders or residents.
In practice, Building Liability Orders under the Building Safety Act 2022 provide a robust statutory mechanism to disregard corporate separateness where just and equitable, reinforcing the principle that accountability for building safety cannot be avoided through dissolution or restructuring.
Who Can Apply for Building Liability Orders under the Building Safety Act 2022
Applications must be made to the High Court by parties with a direct interest in a defective building. This commonly includes long leaseholders in multi‑occupied residential blocks, residents’ management companies, freeholders, building owners, and building managers.
The Act is not limited to these groups but requires that the applicant have a claim arising from a “relevant liability” connected to building safety defects.
The Role of the Regulator
The Building Safety Regulator complements this process by overseeing compliance across higher-risk buildings and supporting enforcement where duty holders fail to meet their obligations.
Its role ensures that Building Liability Orders operate within a wider system of accountability, strengthening the statutory framework designed to secure remediation and protect residents.
Legal Framework: Building Safety Act 2022
The High Court can make a building liability order against a parent or sister company at its discretion if it considers it “just and equitable” to do so.
The applicant needs to show that:
- There is a ‘relevant liability’
- The company is ‘associated’
- The company was associated in the ‘relevant period’
Relevant Liability
A ‘relevant liability’ is a liability that is incurred either:
- Under the Defective Premises Act 1972 (breach of duty of care on landlords and people involved with constructing or working on a dwelling)
- Under section 38 of the Building Act 1984 (breach of building regulations)
- As a result of a building safety risk (a risk to the safety of people in or about the building arising from the spread of fire or structural failure)
In simple terms, if a company caused unsafe housing through poor building work, breaking regulations, or creating fire or structural dangers, that company can be made liable for fixing the problem.
Associated Company
An ‘associated company’ is defined by section 131 of the Building Safety Act 2022 as a body corporate where either:
- One of them controls the other
- a third body corporate controls both of them
This means that an associated company is a business that is linked to another because of control. In practice, this happens in either of two ways:
- One company is in charge of the other (for example, a parent company owns or directs a subsidiary), or
- A third company is in charge of both of them (for example, a holding company owns two separate businesses)
So, “associated company” refers to companies that are connected through ownership or control, rather than being completely independent.
Relevant Period
The ‘relevant period’ means any time after the commencement of the building works to which the relevant liability was incurred and before the building liability order is made. In other words, the relevant period is the stretch of time that counts for liability. It starts once the building work begins and runs up until the court makes a Building Liability Order under the Building Safety Act 2022. It is the window between the start of construction and the point when the order is issued, during which any problems or breaches can be treated as liabilities.
It is important to note that the sale of projects or companies will not affect the High Court’s power to make a building liability order against both sellers and purchasers.
“Just and Equitable” Test
The Building and Safety Act does not define the meaning of “just and equitable”. What this means in practice is a question of judicial interpretation in each case. The High Court might consider a variety of factors when deciding whether to grant a BLO, including the severity of the defects, the conduct of the parties, and the availability of alternative remedies.
In the case of Willmott Dixon Construction Ltd v Prater & Others [2024], the High Court noted that it would be “just and equitable” to impose a building liability order on related companies where the primary company had disposed of assets, even if such a disposal was entirely innocent and not done to “asset strip” that company. See The Building Safety Act: 2024 in review for more on this case.
When passing the Act, the House of Lords also suggested that, among other factors, the Court might want to consider the extent of the damages being sought and whether a fair trial can take place.
Who Can Be Targeted by a BLO?
As explained above, a Building Liability Order (BLO) allows the High Court to extend responsibility for building safety defects beyond the original developer.
Any associated company during the relevant period can be targeted. Liability does not stop with the company that carried out the construction. It can also reach parent companies, subsidiaries, or sister companies under common control.
For example, imagine a property developer, Company A, constructs a block of flats but later dissolves. If Company B controlled Company A during the relevant period, a BLO could make Company B jointly liable for defects. Similarly, if Company C owned both Company A and another subsidiary, Company D, the court could extend liability to Company D, even if it did not directly carry out the works, because both companies were under Company C’s control.
Another scenario might involve a contractor, Company E, that built unsafe cladding. If Company E were part of a wider group, for example, Company F, the BLO could attach liability to Company F. This ensures that large corporate groups cannot shield assets in one company while leaving leaseholders or residents exposed to risks.
In short, BLOs are designed to disregard corporate separateness where necessary, ensuring that associated companies linked by control during the relevant period can be held accountable for building safety failures. This reinforces the principle that liability follows the group, not just the single company name on the construction contract.
How to Apply for a Building Liability Order
Applications for a Building Liability Order under the Building Safety Act 2022 can be made to the High Court using Court Form N244 by parties directly affected by building defects or safety risks.
The Process of Making an Application
To seek a Building Liability Order (BLO), the applicant must first show what liability exists and which associated company should share responsibility. An application may be brought either within ongoing proceedings or as a separate claim.
The steps usually involve:
1. Prepare Form N244 (Application Notice): This is the general High Court form used when no specific form is prescribed.
2. Specify the Order Requested: Make clear that the application is for a Building Liability Order under the Building Safety Act 2022.
3. Give Supporting Reasons: Explain why the order is necessary, pointing to the liability and the company connection.
4. Provide Evidence: Submit contracts, company records, expert assessments and information orders that demonstrate the defects and corporate links.
5. Lodge the Application: File the completed form and evidence bundle with the High Court, together with the applicable fee.
6. Attend the Hearing: The High Court will consider the application and decide whether granting the BLO is fair and appropriate.
Court Fees
As of April 2025, the fee for filing Form N244 is £313 for a general application on notice, or £119 if made by consent or without notice.
Where the BLO application is tied to wider proceedings, such as a damages claim, further fees may be payable depending on the nature of the case.
Burden of Proof
The responsibility for proving the case lies with the applicant. They must demonstrate that a relevant liability exists, that the company in question was an associated company during the relevant period, and that it is just and equitable for the court to extend liability.
The High Court will not assume these points. Instead, it requires clear and persuasive evidence before granting a BLO. This means the applicant must present a well‑supported case, showing both the legal basis of the liability and the factual connection between the companies.
Recent Court Decisions and Guidance
Recent case law shows that the courts are beginning to shape how Building Liability Orders (BLOs) operate in practice. The first applications, including The Secretary of State for Levelling Up v Grey GR Ltd & Others, illustrate how judges are approaching the concepts of “associated companies” and the discretionary “just and equitable” test.
The First BLO Applications
The earliest BLO proceedings, such as The Secretary of State for Levelling Up v Grey GR Ltd & Others, marked a turning point in applying the Building Safety Act 2022. These cases arose in the aftermath of widespread concerns about unsafe residential developments, where the original developer was either insolvent or structured through special purpose vehicles.
The High Court was asked to extend liability to parent and sister companies, ensuring that leaseholders were not left without remedy.
This was the first time the courts formally tested the BLO mechanism, confirming that it could be used to pierce the corporate veil and hold group companies accountable for defects and safety risks.
How the Courts are Interpreting “Associated Companies”
Judges have taken a pragmatic approach to the definition of “associated companies.”
Section 131 of the Building Safety Act sets out the statutory test, but courts have emphasised that control can be direct or indirect. In practice, this means that a parent company, a grandparent company, or even a sister company under common ownership can be caught.
In recent judgments, the courts have looked beyond formal shareholding structures to the reality of who directs and controls the business. For example, where the same individual or board effectively dictated the affairs of both companies, the court was satisfied that the association test was met.
How the Courts are Interpreting the “Just and Equitable” Test
The “just and equitable” requirement has been treated as a flexible safeguard.
Courts have stressed that the purpose of BLOs is to prevent thinly capitalised or dissolved entities from escaping liability, while ensuring fairness to associated companies. In applying the test, judges have considered factors such as:
- The financial position of the original developer.
- The extent of defects and risks to residents.
- Whether the associated company benefited from the development.
- The broader policy aims of the Building Safety Act.
Importantly, the courts have clarified that the wealth of the parent company is not decisive; rather, the focus is on whether extending liability is necessary to achieve justice and protect residents. This interpretation ensures BLOs remain a powerful tool to close accountability gaps, while still subject to judicial discretion.
In summary, early BLO cases demonstrate that the High Court is willing to extend liability to associated companies where control is evident, and fairness demands it.
The developing case law confirms that BLOs are not just theoretical remedies but practical tools to ensure accountability in the post‑Grenfell building safety regime.
Practical Implications of Building Liability Orders under the Building Safety Act 2022
Building Liability Orders (BLOs) reshape accountability in construction. For developers, they pierce the corporate veil and extend liability across group structures. For landlords and leaseholders, they provide stronger protection against unsafe buildings and remediation costs. For insurers, they introduce new layers of risk assessment and potential exposure. Together, these implications show that BLOs are not just legal tools but part of a wider cultural shift in building safety. Accountability now follows the group, not just the name on the construction contract.
For Developers
BLOs significantly alter the risk landscape for developers. Traditionally, many projects were carried out through special purpose vehicles (SPVs) or joint ventures that could be wound up after completion, leaving little recourse for claimants.
BLOs now allow the High Court to extend liability to parent companies, subsidiaries, or sister companies if they were associated during the relevant period. This means developers can no longer rely on complex corporate structures to shield themselves from responsibility.
The practical implication is that developers must adopt more robust compliance strategies, ensure quality control across their group companies, and anticipate that liabilities may follow the wider corporate family.
For Landlords and Leaseholders
BLOs provide a powerful safeguard to leaseholders. They ensure that residents are not left bearing the cost of remediation when the original developer is insolvent or dissolved.
By extending liability to associated companies, BLOs give leaseholders a direct route to compensation and remediation funding. This reduces the risk of unsafe homes remaining unaddressed and strengthens confidence in the legal framework protecting residents.
In practice, leaseholders can pursue BLOs as part of wider claims, knowing that the court has discretion to hold financially stronger associated companies accountable.
For Insurers
Insurers face new challenges under BLOs. Extending liability across corporate groups increases the potential pool of defendants, which in turn broadens the scope of claims.
Policies covering developers, contractors, or associated companies may now be triggered in unexpected ways. Insurers must therefore reassess risk exposure, premium structures, and policy wording to account for BLOs. They may also need to anticipate higher claims costs, particularly where remediation involves widespread fire safety or structural defects.
The practical implication is that insurers must adapt underwriting practices and consider BLOs as a standard risk factor in construction-related cover.
Building Liability Orders vs Information Orders
Section 132 of the Building Safety Act 2022 defines an order for information in connection with building liability orders as
“An order requiring a specified body corporate to give, by a specified time, specified information or documents relating to persons who are, or have at any time in a specified period been, associated with the body corporate.”
This type of order allows certain parties to demand that a specific company or its associated companies provide the necessary information and documents that the applicant may need to see when considering whether to apply for a Building Liability Order under the Building Safety Act 2022.
Again, the application is made to the High Court, which may make the information order if it is satisfied that:
- The body corporate is subject to a relevant liability as defined in section 130, and
- It is appropriate to require the information or documents to be provided to enable the applicant to make, or consider whether to make, an application for a building liability order.
How BLOs and Information Orders Work Together
Information Orders and BLOs are often used in tandem. An applicant may first seek an Information Order to uncover the structure of a corporate group to identify associated companies, past connections, or dissolved entities. This disclosure provides the evidential foundation needed to demonstrate that liability should extend beyond the original developer. Once the relationships are mapped, the applicant can then pursue a BLO to make those associated companies jointly or severally liable for remediation costs.
In practice, the remedies form a two‑step process: Information Orders compel transparency, while BLOs enforce accountability. Together, they prevent developers from hiding behind opaque corporate structures and ensure that responsibility for unsafe buildings cannot be avoided through complex group arrangements.
How We Can Help
The new legal framework introduced by the Building Safety Act has increased consumer protection against unscrupulous constructors responsible for delivering dwellings so unsafe that they are unfit to live in.
The new measures increase the power of building owners, landlords and leaseholders to seek compensation for historical building safety defects and the use of defective or unsafe products.
However, defending or bringing a claim against huge complex legal entities and applying for Building Liability Orders under the Building Safety Act 2022 against associated companies requires specialist legal knowledge and tailored advice. Instructing a specialist construction lawyer who will advise on the best course of action according to the circumstances and ensure compliance with strict procedural law is essential. They can help consider alternative dispute resolution, like negotiation and mediation, and explore potential funding options, such as government schemes, group litigation, conditional fee agreements, or insurance coverage, to achieve the best outcomes for all parties involved.
As experts in construction law, our solicitors in London, Birmingham, and Northampton frequently collaborate with main contractors, sub-contractors, construction firms, architects, and other stakeholders in construction projects. With extensive combined experience, the Witan Solicitors team has successfully assisted clients in the construction and engineering sectors in managing legal risks, documentation, and any disputes related to their building projects. Additionally, we support building owners, landlords, and leaseholders in bringing claims against unscrupulous developers and provide advice on any aspect of their concerns. Our Construction Law Expertise encompasses both non-contentious matters, such as construction contracts and agreements, and contentious issues, including adjudication and construction disputes.
Contact us at 0330 173 6983 or send us an email at info@witansolicitors.co.uk
FAQ
What is a Building Liability Order?
A Building Liability Order (BLO) is a High Court remedy under the Building Safety Act 2022. It extends liability for building safety defects to associated companies within a corporate group, ensuring accountability even if the original developer has dissolved or lacks sufficient funds.
Who can apply for a BLO?
Applications for a BLO can be made by leaseholders, building owners, or other affected parties. The High Court considers whether it is fair and equitable to extend liability to associated companies, helping those impacted by unsafe buildings secure redress.
What companies can be targeted by a BLO?
A BLO can target companies associated with the original developer during the relevant period. This includes parent companies, subsidiaries, or other entities within the same corporate group that exercised control or ownership, preventing liability from being avoided through complex structures.
What is the difference between a Building Liability Order and an Information Order?
A Building Liability Order extends liability for building safety defects to associated companies. An Information Order, by contrast, compels disclosure of corporate structures and relationships. Together, they form a two‑step process: Information Orders uncover links, while BLOs impose responsibility based on those links.
How does a Building Liability Order help leaseholders?
BLOs protect leaseholders by ensuring developers cannot escape responsibility through corporate restructuring. By extending liability to associated companies, BLOs increase the likelihood that remediation costs are covered by those responsible, rather than falling on leaseholders or residents of unsafe buildings.
