Building Safety Is Entering a New Era — And Property Owners Can’t Afford to Stand Still

A New Precedent: Liability That Reaches Up the Corporate Chain

The Technology and Construction Court’s decision to impose a £14.9m BLO on Ardmore Group – the parent company of the insolvent contractor responsible for Portsmouth’s Admiralty Quarter is a watershed moment.

Why? Because the contractor, Ardmore Construction Ltd, had already entered administration. Historically, that would have been the end of the road for recovery. But the court took a different view.

It ruled that it was “just and equitable” to extend liability to the parent company, citing:

• The insolvency of the contractor
• Group restructuring that appeared designed to isolate liabilities
• Common ownership and control
• Evidence of serious fire safety defects

This is the first known use of an anticipatory BLO, and it signals a decisive shift: corporate restructuring will not shield organisations from historic building safety failings.

For property owners and managers, this is a powerful new tool. For contractors, developers, and funders, it’s a strategic risk that can no longer be ignored.

Case Law Is Now Driving the BSA Forward

The BSA was designed to be muscular, but until now, much of its power sat dormant. This ruling activates a key part of the Act and sets a precedent that will ripple across the sector.

This decision strengthens the ability of building owners to recover remediation costs and confirms that accountability can extend across entire corporate groups.

In other words, the courts are prepared to use the full force of the BSA to ensure that those responsible for defects pay for them, even if that means piercing the corporate veil.

It is fair to state that we should expect more case law to follow. Expect more claims. Expect more scrutiny of group structures, historic projects, and risk exposure.

What This Means for Property Owners and Managers

This ruling is not just about fire safety defects on a 20‑year‑old project. It’s about the future of building safety governance.  Property owners and managers now face a landscape where:

• Liability is expanding, not contracting
• Historic defects remain actionable, even decades later
• Corporate groups can no longer rely on insolvency as a shield
• Courts are willing to interpret the BSA broadly and assertively

For owners and managers, this strengthens their hand. But it also raises the bar for due diligence, procurement, and ongoing operational management.

The strategic question is no longer “Are we compliant?”  It’s “Are we resilient to the next wave of legal and regulatory change?”

Building Safety Is Now a Multi‑Dimensional Risk

Fire safety defects may be the headline issue today, but the BSA’s reach is far wider. Property leaders must now consider:

• Structural safety
• Resident engagement
• Golden thread information
• Competence management
• Safety case reporting
• Ongoing operational controls
• Legacy defects across portfolios
• Contractor and supply chain solvency risk

The Ardmore ruling shows that building safety is no longer a technical issue – it’s a strategic, financial, and governance issue.

The Strategic Imperative: Get Ahead, Stay Ahead

For property owners and managers, the path forward is clear:

• Audit your exposure – historic projects, group structures, contractor relationships
• Strengthen your operational controls – compartmentation, fire doors, maintenance regimes
• Interrogate your supply chain – competence, solvency, and group‑wide risk
• Prepare for more litigation and more regulatory assertiveness
• Embed building safety as a core part of corporate governance

In other words, develop and implement a building safety management system that is applicable to your asset, your organisation and your governance approach.

The industry is entering a new phase where the courts, not just regulators, are shaping the rules. Those who treat building safety as a compliance exercise will be left behind. Those who treat it as a strategic capability and manage it will lead.