Building Liability Orders Background It is common practice that property developers set up a subsidiary company with very few assets to own and manage an individual development, and then be wound down once the development is completed. This practice can be used to secure investment in a project, in a long run it can also leave the developer group with no long-term civil liability. Given the current situation, Government has decided to intervene to help those affected find fair redress for building safety issues. What are we going to do?
The Building Safety Bill will grant a power to the High Courts which allows them to extend specific liabilities for one company to any other associated companies and make them jointly and severally liable, should the High Court considers it just and equitable to do so. This will be known as making a Building Liability Order, and will ensure that the original developer can be required to fund remediation work.