How UK Building Liability Orders Reshape Building Safety Claims

Section 130 of the UK Building Safety Act 2022 introduces Building Liability Orders (BLOs), enabling courts to extend safety liabilities to associated companies.

The Building Safety Act 2022 represents the UK’s most ambitious overhaul of building safety law since the Grenfell Tower tragedy. Central to these reforms is Section 130, which creates Building Liability Orders (BLOs) — a judicial remedy aimed at holding complex corporate groups accountable for historical safety failings.

• BLOs empower the High Court to extend a 'relevant liability' from one company to its associated entities when it is "just and equitable." (Explanatory Notes)
• 'Relevant liability' covers obligations under the Defective Premises Act 1972, Section 38 of the Building Act 1984, and liabilities resulting from building safety risks—specifically, fire spread and structural failure. (Explanatory Notes, Part 5)
• The judiciary can grant what’s termed an "anticipatory BLO"—even before a full trial establishes liability. This was confirmed in Crest Nicholson v Ardmore . Here, the court clarified that an adjudicator’s decision can establish a relevant liability under the Act.
• The first High Court application of a BLO was in 381 Southwark Park Road RTM Co Ltd v Click St Andrews Ltd , holding a rooftop developer responsible for fire and structural breaches. This case set a precedent for establishing a 'relevant liability' for building safety risks.

The legislative intent, as noted by sector specialists, is to prevent developers from sidestepping accountability through complicated structures: "The rationale behind the introduction of Building Liability Orders is to address this issue and prevent developers from escaping liability for safety defects by hiding behind complicated legal structures." (Gowling WLG)

For legal and insurance professionals, BLOs broaden the pool of potential defendants and may influence how insolvency risks and settlement strategies are managed in legacy claims.