Part 5: Other provisions about safety standards, etc. Remediation of Certain defects Section 124: Remediation contribution orders Proposed use of power
The power at subsection (5)(f) will allow the Secretary of State to prescribe further persons who can apply for a remediation contribution order, should the need to do so become apparent.
Example 1
The freeholder for a building is liable for the costs of remediating it under Schedule 8. Having forward funded the remediation, they apply for a remediation contribution order against the parent company of the developer who developed the building. The Tribunal considers that it would be just and equitable to order the developer to make payments to the freeholder in connection with the remediation of the building. The Tribunal issues an order against the company, ordering it to make payments in connection with fixing specified relevant defects. The order specifies that the payments must be made within a specified timeframe.
Example 2
The freeholder for a building is liable for the costs of remediating it under Schedule 8. Two years after the identification of the relevant defects, the freeholder has failed to commission or pay for the work that is needed. The freeholder is a thinly capitalised shell company which is part of a wider group of companies that own multiple freeholds. The fire and rescue authority applies to the Tribunal for a remediation contribution order. The Tribunal consider that it is just and equitable to issue a remediation contribution order and orders the freeholder’s parent company to make payments to remediate the defects in the building.