Key Lessons for Property Managers and Landlords as Adjudicator’s award £14.5 million in damages in Landmark Case
Published: 03/02/2025
As specialists in fire safety and cladding remediation, Harris Associates closely monitors legal developments that impact property managers, landlords and our wider stakeholders. The recent case of BDW Trading Ltd v Ardmore Construction Ltd [2024] EWHC 3235 (TCC) reinforces the rights of property owners to recover costs associated with fire safety defects, even decades after project completion.
BDW successfully enforced an adjudicator’s award of £14.5 million in damages plus cost for historical fire safety defects in a building completed between 2003 and 2004. This is believed to be the first successful (adjudication) case against a contractor where the Building Safety Act and Defective Premises Act 30-year liability ‘look-back’ was successfully invoked by the ‘owner’ setting a precedent for similar claims and highlighting the importance of the 30-year defects rule.
This case is a reminder for landlords and property managers about their potential liabilities, the importance of thorough documentation, and the role of adjudication in recovering remediation costs.
What Does This Mean for Property Owners and Managers?
Adjudication is a Viable Route for Fire Safety Claims
This ruling demonstrates that adjudication can be used to resolve historic fire safety disputes, even where the defects relate to statutory obligations under the Defective Premises Act 1972 (DPA). This means landlords and property managers may be able to claim remediation costs from contractors and developers responsible for unsafe buildings.
Adjudication is not limited to contractual breaches; statutory claims under the DPA can also be adjudicated as it provides a quicker and more cost-effective alternative to lengthy and expensive court proceedings.
If your property has historic fire safety defects, adjudication may be a powerful tool to recover costs from those originally responsible if you engage experienced surveyors and legal professionals early in the process.
Challenges in Proving Historic Fire Safety Defects
One of Ardmore’s main defences was the unfairness of its position due to the length of time since construction and the lack of historical documentation. However, the Court rejected this argument, reinforcing that poor record-keeping is not a valid defence against fire safety claims.
The adjudication process was extended to allow for disclosure of evidence and the Court ruled that Ardmore’s inability to provide records was due to its poor file management.
Property managers and landlords should maintain detailed records of past and ongoing remediation works, even for older buildings. If documentation is incomplete, independent surveys and expert reports can still provide a strong evidential basis for claims.
Surge in Claims for Historic Fire Safety Defects
The combination of extended limitation periods under the DPA and growing awareness of fire safety issues means we are experiencing an increase in claims against contractors and developers for historic defects, particularly cladding issues. In this case the defects centred around defective/missing fire breaks behind the cladding, the extended retrospective liability that now exists under the Defective Premises Act, and the search for relevant documents.
Property owners who have already paid for cladding remediation may now have stronger grounds to recover damages and costs and insurers and contractors are likely to face more claims, leading to greater scrutiny over liability and developers challenging claims based on evidential and jurisdictional grounds.
If you manage buildings with historic fire safety defects, now is the time to assess potential claims. Work with experienced chartered surveyors to document existing defects, identify responsible parties, and explore adjudication options.
Navigating Complex and High-Value Claims
Despite the complexities and high value of this claim, the Court upheld the adjudicator’s decision, reinforcing adjudication as a practical dispute resolution method. For property managers and landlords, this means:
- High-value claims for historic fire safety defects can succeed through adjudication.
- Courts are increasingly supportive of landlords and property owners recovering costs for fire safety defects.
- Engaging the right experts at the right time – surveyors, fire safety specialists, and legal advisors – is critical for a strong case.
If pursuing a claim, ensure you work with a building and project consultancy like Harris Associates that is experienced in cladding remediation and fire safety disputes. We can help assess liability, compile technical evidence, and navigate the adjudication process effectively.
What To Do Now
Audit Your Buildings for Fire Safety Risks: Conduct a full review of past and present fire safety defects, particularly concerning external wall systems and compartmentation.
Gather Documentation: Collate all available records, including contracts, inspection reports, remediation work records, and correspondence with contractors.
Engage a Chartered Surveyor: Harris Associates can help identify defects, assess liability, and provide expert witness testimony if needed. We also have an in-house facade team of experienced chartered engineers and technicians who can assess the fire safety capabilities of your building.
Consider Adjudication: If defects exist and the responsible party is known, explore adjudication as a way to recover costs.
Stay Informed on Legal Developments: Fire safety legislation and case law are continually evolving; staying up to date can help you make informed decisions on risk management and claims.
If you are managing buildings with historic defects, and need advice, please get in touch. With national coverage, we offer bespoke solutions are experienced in dispute resolution and can provide claims analysis, evidence collation and expert witness services to help safeguard your properties against future liabilities.
We are experts in statutory compliance and fire safety-related matters with experienced and qualified technicians, surveyors, engineers, and project managers. For building owners and managers, collaborating with an experienced consultancy like Harris Associates can streamline the adjudication process, ensuring that buildings are safe and owners are compensated for defective buildings.