Building Safety Act 2022

Effect of special measures order on relevant contracts and legal proceedings

7 (1) Sub-paragraphs (2) and (6) apply while a special measures order relating to a higher-risk building is in force.

(2) A relevant contract has effect as if relevant rights and liabilities of an accountable person for the building arising under the contract were rights and liabilities of the special measures manager for the building.

(3) A contract is a “relevant contract” if—

(a) it is effective on the date the special measures order is made,

(b) one of the parties to it is an accountable person for the building,

(c) one or more rights or liabilities of that person under the contract are relevant rights or liabilities,

(d) it is specified for the purposes of this sub-paragraph in the special measures order or falls within a description of contracts so specified, and

(e) the manager gives notice in writing to the parties to it stating that sub-paragraph (2) is to apply to it.

(4) A right or liability of an accountable person for the building under a relevant contract is a “relevant right or liability” if it relates to a function of that person under, or under regulations made under, this Part in relation to the building.

(5) The notice under sub-paragraph (3)(e) must state which rights or liabilities under the contract are relevant rights or liabilities.

(6) The special measures manager for the building may bring, continue or defend a relevant cause of action.

(7) A cause of action is a “relevant cause of action” if—

(a) it accrued to or against an accountable person for the building before the date the special measures order was made,

(b) it relates to a function of that person under, or under regulations made under, this Part in relation to the building,

(c) it is specified for the purposes of this sub-paragraph in the special measures order or falls within a description of causes of action so specified, and

(d) the manager gives notice in writing to any person the manager considers would have an interest in the cause of action that sub-paragraph (6) is to apply to it.

(8) Where, by virtue of this paragraph, the special measures manager for the building is subject to a liability to pay damages in respect of anything done (or not done) before the date of their appointment by or on behalf of an accountable person for the building, that person is liable to reimburse to the manager an amount equal to the amount of damages paid by the manager.