Remediation Contribution Order

A Remediation Contributiion Order (RCO) is issued by the First Tier Tribunal (FTT) against certain corporate entities on the application of an interested person, so associated entities as such which may be required to contribute to the costs of remedying the relevant defects in the building within a specified time.

By example the government can, under section 123 give 21 days notice for a freeholder to commit to remedying fire safety defects. If this isn't agreed to then an application can be made to the courts for a Remediation Order. Concurrent to this under section 124, a Remediation Contribution Order can also be applied for against entities whom are associated with the freeholder or the building, such as the developers of the building or its previous landlords.

As such, on the other hand and potentially prior to an RCO, a Remediation Order (RO) is an enforcement mechanism for use where landlords are not fulfilling their obligations in relation to the safety of a building, also made by the First Tier Tribunal (FTT). If granted, an RO can require a landlord to remedy specified relevant defects in a specified time on a building. Remediation orders can be made in respect of self-contained residential buildings that are at least 11 metres high or have at least five storeys and contain at least one relevant defect. Terms referred to under a RO's are defined under teh Building Safety Act further informaton can be found in the article Remediation Order .

Note that Building Liability Orders (BLO) also introduced as part of the Building Safety Act, 2022 (part 5, section 130) is a mechanism that allows recovery rights relating to building defects to extend beyond that of a subsidiary company (sometimes referred to as a special purpose vehicle) to its associated companies, giving yet wider reach of powers under the Act.

For further guidance on the process and definitions relating to Remediation Contributiion Orders visit the government page Apply for a remediation contribution order under the Building Safety Act 2022: Form BSA2, regarding Remediation Orders visit Guidance on the use of remediation orders, and for Building Liability Orders refer to Redress measures: information sheet.

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