Building Safety Act 2022

154 Costs contribution orders made by the Secretary of State

(1) The Secretary of State may by regulations make provision for the Secretary of State to make costs contribution orders.

(2) The regulations may only make provision for the making of costs contribution orders in cases where—

(a) Conditions A to D are met, and

(b) any prescribed conditions are met.

(3) Condition A is that a person (“the defaulter”) is convicted of an offence consisting of a failure to comply with a construction product requirement in relation to a construction product.

(4) Condition B is that, after the failure to comply referred to in subsection (3), the construction product is installed in, or applied or attached to, a relevant building in the course of works carried out in the construction of, or otherwise in relation to, the building.

(5) Condition C is that, when those works are completed—

(a) in a case where the relevant building consists of a dwelling, the building is unfit for habitation, or

(b) in a case where the relevant building contains one or more dwellings, a dwelling contained in the building is unfit for habitation.

(6) Condition D is that the failure to comply referred to in subsection (3) was the cause, or one of the causes, of the building or dwelling being unfit for habitation.

(7) A “costs contribution order” under this section is an order requiring the defaulter to make a payment to a person with a prescribed interest in the building or any dwelling contained in the building.

(8) Regulations under this section must provide for the amount to be paid to a person under a costs contribution order under this section to be such amount as the Secretary of State considers just and equitable in respect of the costs that the person has reasonably incurred, or in the view of the Secretary of State is likely to reasonably incur, in respect of works to make the building or dwelling fit for habitation.

(9) The regulations may make provision as to the matters which may or must be taken into account by the Secretary of State in determining—

(a) whether, against whom, and in favour of whom, to make a costs contribution order under this section;

(b) the amount required to be paid by a person under a costs contribution order under this section.

(10) The regulations may make provision for the Secretary of State to issue a warning notice to a person before determining whether to make a costs contribution order under this section against that person.

(11) The regulations may make provision requiring that a costs contribution order under this section—

(a) be made in a prescribed form;

(b) contain prescribed information.

(12) The regulations may make provision about service of a costs contribution order under this section including—

(a) how an order is to be served;

(b) when an order is to be taken as having been served;

(c) the persons on whom an order must be served.

(13) The regulations may make provision in relation to—

(a) enforcement of a costs contribution order made under this section (including enforcement by the Secretary of State);

(b) powers of the Secretary of State to order the defaulter to pay any costs incurred by the Secretary of State under section 155 in respect of a costs contribution order under this section.

(14) The regulations may make provision about how a costs contribution order under this section relates to other remedies, including in particular—

(a) provision to secure that, taking a costs contribution order under this section together with other remedies—

(i) a person does not incur liability more than once in respect of the same costs;

(ii) a person is not entitled to be reimbursed more than once for the same costs;

(b) provision preventing a person to whom any amount is payable under a costs contribution order under this section from pursuing any other legal remedy for the recovery of such an amount.

(15) The regulations may make provision for persons to apply to the Secretary of State for a review of a costs contribution order under this section.

(16) The regulations may make provision for appeals to a court or tribunal in relation to—

(a) a decision of the Secretary of State to make or not make a costs contribution order under this section;

(b) a refusal by the Secretary of State to review a costs contribution order under this section;

(c) the outcome of a review by the Secretary of State of a costs contribution order under this section.

(17) The regulations may in particular include provision suspending a requirement to pay an amount due under a costs contribution order under this section pending the determination or withdrawal of an appeal or the determination of a review.

(18) In this section “prescribed” means prescribed by regulations under this section.