The Building Safety Act 2022 (‘BSA’) introduced several mechanisms to protect leaseholders from bearing the costs of historic building safety defects. Where the statutory criteria are met, leaseholders and other interested parties can apply for orders compelling responsible parties to remediate certain defects or contribute financially to remediation works.
Understanding the remedies is therefore crucial for risk management and project planning as developers, landlords and construction professionals could face enhanced exposure.
Building Safety Act 2022: BLOs, RCOs and ROs Explained
The three key remedies created under the BSA are:
- Building Liability Orders (‘BLO’)
- Remediation Contribution Orders (‘RCO’)
- Remediation Orders (‘RO’)
Building Liability Orders
A BLO allows the High Court to declare that any relevant liability of a body corporate in relation to a specified building is also the liability of one or more associated companies – if the court considers it just and equitable to do so.
A BLO effectively pierces the corporate veil, enabling claimants to pursue associated companies for liabilities arising from building safety defects.
Once a BLO is made, associated companies become jointly and severally liable, so claimants may enforce the order against the assets of all companies named in the order, and companies may be liable even if they were not directly involved in the construction work.
A relevant liability includes liability under the Defective Premises Act 1972 (DPA), section 38 of the Building Act 1984, or liabilities arising from a building safety risk (a danger to people in or about a building, primarily stemming from the spread of fire or structural failure of all or part of a building).
A company is associated with another where one controls the other, or both are controlled by a third body corporate. Control usually means holding or being entitled to more than half of the issued share capital or voting rights.
Importantly, BLOs are not limited to higher‑risk residential buildings, so they may be sought in relation to any building, including commercial properties.
Remediation Contribution Orders
A RCO, made by the First‑tier Tribunal (‘FTT’), requires a specified corporate body or partnership to make payments to meet costs incurred (or to be incurred) in remedying relevant defects in relevant buildings, where it is just and equitable to do so.
RCOs are designed to protect leaseholders with qualifying leases, meaning a lease of over 21 years, granted before 14 February 2022, with a service charge liability.
An interested person may apply to the FTT for a RCO. This includes anyone with a legal or equitable interest in the building, such as leaseholders or mortgage lenders.
Respondents who can be ordered to pay may include the landlord, a past landlord (as at 14 February 2022), the developer, or associated companies.
A relevant building is one over 11 metres in height or with 5 or more storeys. A relevant defect is something done or not done, or material used or not used, in connection with relevant works that creates a building safety risk (a danger to people in or about a building, primarily stemming from the spread of fire or structural failure of all or part of a building).
If granted, a RCO may require payment of a specified sum, payments towards remediation costs generally, payments by a specified date, or payments triggered by a future event.
Significantly, parties who have since disposed of their interest in the building may still be required to contribute under a RCO. This includes parent companies or companies linked only by shared directors. Responsibility follows involvement, not ownership.
Remediation Orders
A Remediation Order (RO) compels a relevant landlord to remedy relevant defects in a relevant building by a deadline set by the First‑tier Tribunal.
A relevant landlord is any party who has, under the lease or any statutory obligation, the responsibility to repair or maintain the parts of the building affected by the defect.
A relevant defect must give rise to a building safety risk (a danger to people in or about a building, primarily stemming from the spread of fire or structural failure of all or part of a building), arise from works carried out during construction, conversion, or other building works, and have been created within 30 years before the leaseholder protections came into force (i.e. between 28 June 1992 and 27 June 2022). A RO can cover the remediation of relevant defects created from 28 June 2022 onwards, provided the defect itself was created between 28 June 1992 to 27 June 2022.
Once granted, an RO legally requires the landlord to fix the defect by the date specified. The FTT has shown a willingness to grant ROs and has adopted a proactive approach in ensuring remediation takes place.
Comments
Taken together, these remedies represent a significant shift in how responsibility for historic building safety defects is allocated. The BSA has created a far more robust framework for ensuring that the cost of addressing serious defects does not fall on leaseholders but instead on those who developed, owned, or profited from the building.
The combined effect of BLOs, RCOs and ROs is that:
- Corporate structures can no longer be relied upon as a shield to avoid liability, with associated companies and parent companies now exposed to claims where it is just and equitable to do so.
- Parties who have divested their interest in a building may still be held accountable, preventing organisations from escaping responsibility by restructuring or disposing of assets.
- Landlords face direct obligations to remediate defects, enforced by the FTT.
- Leaseholders have stronger protections and clearer avenues to compel action and can shift the financial and legal burden up the chain to those best placed to fund remediation.
- The FTT has adopted an interventionist approach, demonstrating a willingness to impose wide‑reaching orders to ensure timely and effective remediation.
Overall, the remedies provided for by the BSA mark a decisive cultural and legal shift towards accountability, transparency, and the protection of leaseholders. They create meaningful enforcement tools that can reach across corporate groups, revisit historic liabilities, and ensure that buildings are made safe without unfairly burdening those who live in them.
If you would like further information or require advice in relation to the Building Safety Act 2022, please contact a relevant member of our Building Safety team.
Please note that the above does not constitute legal advice.
