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Ardmore’s construction business collapses into administration
Contractor Ardmore’s construction business has gone into administration following a “landmark” High Court ruling in April.
Contractor Ardmore’s construction business has gone into administration following a “landmark” High Court ruling in April #UKhousing The group, which includes Ardmore Hotels & Commercial, Ardmore Major Projects, Ardmore Fitout, Landmark Facades and Ardmore Regeneration, went into administration on 11 June following “the profound impact” of a recent court order.
In April, the Technology and Construction Court ordered Ardmore Group to pay a £14.9m Building Liability Order (BLO) under the Building Safety Act.
Ardmore Group was the parent company of the lead contractor on Portsmouth’s Admiralty Quarter development.
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Ardmore Construction Ltd was ordered to pay the same sum last year after it was taken to court by Crest Nicholson, the developer and leaseholder on the project, but it entered administration the day before the order was handed down and did not pay the fine.
The ruling was a significant step in the implementation of the Building Safety Act and could impact more contractors if historic safety issues are found on their projects.
The act extends future building safety liabilities beyond insolvent contractors, and means other companies within the same group could be held liable.
In a statement, Ardmore said the administration followed “the profound impact of the recent Building Liability Order judgment relating to the Admiralty Quarter project, which completed in 2009”.
It said the judgment had “affected client confidence, payment terms and certified values” across a number of live projects, “materially affecting the construction group’s ability to continue trading in the normal way”.
Ardmore also said that the wider Ardmore Group had not entered into administration, but had applied to enter into a moratorium process, which will allow it to continue trading while its position is reviewed.
“This step is intended to allow Ardmore to continue preparing its appeal against the BLO judgment. Earlier this week, Ardmore was granted permission to appeal to the Court of Appeal, with the court also granting expedition, given the importance of the issues raised,” the statement said.
The firm added that it believed the appeal “raises issues of wider public importance for the construction industry”.
A spokesperson for Ardmore said: “This is a deeply disappointing outcome for the construction group, its employees and its stakeholders.
“Our focus is now on preserving value in the wider group, protecting the continuing businesses where possible, and pursuing the appeal against a judgment which we believe raises important questions for the wider industry.”
Ardmore said it would continue to work with the administrators, employees, clients and other stakeholders during this process.
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