Crest Nicholson v Ardmore [2026] EWHC 789 (TCC)
The High Court has delivered an important judgment in Crest Nicholson v Ardmore, confirming the expanding reach of the Building Safety Act 2022 (“BSA”) and the circumstances in which Building Liability Orders (“BLOs”) will be made against associated companies.
The proceedings arise from extensive fire safety defects at Admiralty Quarter, a major residential development in Portsmouth constructed between 2007–2009 by Ardmore Construction Ltd (ACL) under the JCT 1998 Standard Form of Building Contract with Contractor’s Design incorporating Amendments. Following investigations, widespread defects were identified in both the external wall system and internal fire safety measures.
ACL participated in the dispute for several years but entered administration on 28 August 2025, the day before an adjudicator awarded Crest Nicholson approx. £14.9m for the external wall defects. Crest subsequently sought two orders against companies within the Ardmore group: (1) an anticipatory BLO, making group companies jointly liable for any future DPA or building‑safety liabilities of ACL, and (2) a BLO making those same group companies liable for the adjudicator’s £14.9m award. The Ardmore group accepted that it was an associated group but opposed the making of both orders.
Key findings
The Court granted both orders sought by Crest. The Judge confirmed that the statutory wording and purpose of the BSA clearly permit the making of anticipatory BLOs. This means the Court may determine, in advance, that an associate company will be liable if and when the original body is found liable.
In considering whether it was just and equitable to make the anticipatory BLO, the Court emphasised that the Ardmore group had restructured specifically to ringfence historic liabilities, and that ACL’s entry into administration was driven, in material part, by exposure to BSA claims. It was also noted that ACL could not possibly satisfy any future judgment and the group companies (being under common control of the same directors) had long been aware of the defects.
The Court further concluded that an adjudicator’s decision can constitute a “relevant liability” for the purposes of the BSA. Despite Ardmore’s argument that adjudicator’s decisions are “interim” and therefore unsuitable to form the basis of a BLO, the Court concluded that adjudicator’s decisions create binding liabilities unless and until finally overturned, and that nothing in the wording of s.130 BSA excludes adjudication, so to do so would undermine both the adjudication regime and the BSA.
Lastly, even though Ardmore argued that paying £15m would cause “profound problems” for the group companies, the Court was sceptical of the evidence. More importantly, the Judge emphasised that it is only in unusual cases that a respondent’s financial position will carry significant weight when deciding whether to make a BLO.
Implications
This is now the leading authority on BLOs. It establishes that BLOs can be made before trial, even before liability is established, and that adjudication decisions are “relevant liabilities” and can form the basis of a BLO. Paired with the confirmation in BDW Trading Ltd v Ardmore Construction Ltd [2024] that adjudication can be used to determine claims under the DPA, and the extended 30-year limitation period for claims under s1 of the DPA provided by the BSA, Crest v Ardmore dramatically increases the utility of adjudication in building safety disputes.
The Court was also clearly alert to ringfencing and restructuring aimed at isolating legacy liabilities, therefore developers and contractors need to be aware that such group restructuring will not shield associated companies from historic liabilities. With Wren Insurance Association, one of the last insurers willing to offer cladding‑related PII cover, now withdrawing from the market due to the surge in post‑Grenfell claims, the Court’s decision in Crest Nicholson v Ardmore is likely to heighten concern for contractors and developers who already face a shrinking insurance market and growing exposure under the BSA.
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