FEATURE
the BSA now provides (via amendments to the Limitation Act 1980) the potential for claims until 2040. This can be used by tenants to bring a claim for a dwelling that is considered liable to be unfit for habitation through defective construction against principal contractors, sub- contractors, architects, or employers. Claims that have been previously settled cannot be re-opened within the new limitation settings.
“One of the most radical changes in force since the 28th June 2022 is the extension of limitation periods for claims involving dwellings unfit for habitation.”
The Act also introduces a new section 2A to the DPA 1972, extending the scope of potential claims from those related to the original construction or conversion of a dwelling to work ‘in relation to any part of’ a dwelling, which will also include repair works.
The previously dormant section 38 of the Building Act 1984 has also been brought into force, providing a statutory right to compensation for physical damage caused by those in breach of building regulations. The section is not limited to dwellings or residential property as with many other provisions, but covers any building in England and
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Wales. Enforcement does not have retrospective effect, but causes of action accruing after 28 June 2022 will have a limitation period of 15 years.
The Act carries notable significance for all companies that may have ever been part of or associated with a group of companies engaging in the construction or development of a building. The High Court can now issue a Building Liability order (BLO) under section 130, effectively extending liabilities under the DPA 1972, s. 38 BA 1984, or for “building safety risks”, to all companies associated with corporate body. The aim is to circumvent the practice of using temporary corporate structures which are subsequently closed down after completion of works in order to escape potential liabilities.
If you have not done so already, now is the time to review retention policies for contracts, documents, and records for evidential purposes in relation to potential future claims. You may wish to reconsider live contracts in existence, or those that are due to be signed, and to revisit liabilities in historical projects that had previously been considered statute barred. It is important to bear in mind that prospective claims are not restricted to safety matters and may encompass a far wider remit than principal contractors, designers and developers.
www.forbessolicitors.co.uk TOMORROW’S FM | 23
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