The Week That Was - 14 March 2025

Welcome to the week that was, a round-up of key events in the construction sector over the last seven days.

The first Building Liability Order has been made under the Building Safety Act 2022

In the case of 381 Southwark Park Road RTM Company Ltd and others v Click St Andrews Ltd and another [2024] EWHC 3569 (TCC), a Building Liability Order (BLO) was made for the first time.  Under section 130 of the Building Safety Act 2022 (BSA), a BLO is an order that provides that the liability of one company can be treated as the liability of an associated company. 

The key issue for Jefford J was to decide whether it was 'just and equitable' to make a BLO.  She considered Triathlon Homes LLP v Stratford Village Development Partnership [2024] UKFTT 26 (PC) and agreed that the Court should have regard to the purpose of the BSA, which is to ensure that the original developer and its group companies do not escape liability for building safety defects simply because of its corporate structure. 

It was argued that a BLO would be inappropriate because the party against whom the BLO would apply had not been identified in the pleadings or joined into proceedings.  Jefford J rejected this argument, explaining that this is not required by the BSA, but added that it would be sensible to join the party into ongoing proceedings to ensure that all issues are dealt with.  

For the judgment, please click here.

Increase in business failures for the month of February 

February saw three times as many construction sector firms enter administration than in January, according to the latest data from Creditsafe. Acheson Construction, a Dorchester based firm, established in 1976 and specialising in industrial, commercial and leisure projects, was the highest turnover firm to enter administration this month. 

Paul Reidy, Head of Construction Banking at merchant bank Arbuthnot Latham, suggested that there would be difficult times ahead for the industry. Reidy told Construction News that “recent high-profile insolvencies have had a significant impact on the market, continuing into this year”. 

For more information, please click here.

Architects Registration Board to publish new Code of Conduct this summer 

Following a three-month consultation concluding in December, the Architects Registration Board (ARB) is to publish its new Code of Conduct this summer.

The consultation saw broad support for the ARB's proposed standards and guidance topics, with particular strength of feeling for building safety. How this will affect the proposed Code remains to be seen, with the ARB currently focusing on drafting suggestions.

Prior to the Code's publication, the ARB is holding further consultations on eleven guidance topics. The first tranche of these – relating to professional indemnity insurance, terms of engagement and complaint handling – has been published and a consultation is currently open.

You can read more here.

Revised JCT contracts published

The Joint Contracts Tribunal (JCT) has published the final contracts from its 2024 edition.

Among them are the Construction Management Contract, the Management Building Contract and the Framework Agreement, along with supporting agreements relating to adjudication and accounting. The key changes are aimed at addressing the Procurement Act 2023, with references in the contracts updated from the Public Contracts Regulations 2015.

You can read more here.

With thanks to:  Emma Caro, Daniel Goh, Joe Towse.

Disclaimer: The information in this publication is for guidance purposes only and does not constitute legal advice.  We attempt to ensure that the content is current as at the date of publication, but we do not guarantee that it remains up to date.  You should seek legal or other professional advice before acting or relying on any of the content.