The Building Safety Act 2022 received Royal Assent on 28 April 2022 and is now law. The Act brought in a range of measures to increase safety measures and has made significant amendments to the Defective Premises Act 1972.
The Defective Premises Act was originally enacted to ensure safety and quality in constructed buildings. It protects individuals from personal injury or damage to property caused by defects in the state of premises.
The Act outlines the duty of care owed by those involved in the construction process to ensure that the work done is free from defects. It not only covers the original construction work but also any repairs, maintenance, or demolition of a building.
The scope of the Act is therefore broad, encompassing virtually all aspects of construction works.
Limitation period extended
The Defective Premises Act previously allowed claims for six years after the date of the completion of construction works whereby a property was unfit for habitation.
This time period could be extended, but only if further works took place on the on the property.
However, since the amendments to the Act, this limitation period has been extended to 15 years for claims accruing after 28 June 2022, and most significantly, 30 years for claims accruing before 28 June 2022.
This amendment may alarm many in the construction industry, who now find themselves open to an influx of claims against them going back to 1992.
A further amendment to the Act meant that claims could be brought in relation to defective work in existing premises, and not just in the creation of new premises as was the case under the Act previously.
Amendments to the Defective Premises Act pose plenty of risks for contractors and construction professionals. For example, not only do they have to consider historical claims to projects long completed, but they could also face future claims within the next 15 years in relation to projects that are currently ongoing.
With these potential problems on the horizon, what can those in the construction industry do to mitigate potential claims going forward?
Storage of Documentation
Most construction businesses usually destroy paperwork after the old limitation period has ended. However, as the limitation period has now been extended, it is advisable that documents are held securely for at least 15 years after the completion date of a project to ensure that all documentation is accessible should a claim arise.
Further, construction businesses should conduct a thorough review of documentation for projects dating back to 1992, to ensure any documents remain secure and obtainable in the event that a claim should arise.
Quality control
It is advisable to implement a robust quality control process to ensure that all construction works meet building standards and regulations. This can help to minimise the risk of defects that could lead to injury or damage and result in a claim.
Adequate training
Further, it is encouraged that employees are adequately trained and competent to perform their tasks. This will assist in reducing the likelihood of errors or mistakes that could result in construction defects.
Insurance
Consider obtaining lengthy insurance coverage that could help protect your business in the event of a claim under the Defective Premises Act. Insurance can provide vital financial protection if you are held liable for a defect in a building’s construction claim.
Construction business owners should ensure that their policies cover their premises for the next 15 years and they should also review policies on previous projects to ensure they are protected from 1992.
Amendments to the Defective Premises Act have made the risks of claims against construction business owners far more likely. Therefore, it is advised that anyone worried about this situation or is seeking advice to the above, should contact our expert team of construction law experts.
Worried about how the Defective Premises Act amendments could affect you? Please contact us today.