Subcontractors to take £5m hit in Ardmore administration
Summary
Ardmore Construction Group Ltd has entered administration following a court ruling linked to a £14.9m liability to Crest Nicholson over cladding defects at a Portsmouth residential development. Administrators say unsecured creditors, including subcontractors, are unlikely to recover any funds, while further building liability order claims could expose the group to substantially more liabilities.
Why it matters
The case highlights the financial and legal risks associated with building liability orders, particularly where residential cladding defects are involved. Surveyors should note the potential implications for defect remediation, contractor solvency, and the wider allocation of liability across linked companies.
Key points
- Ardmore Construction Group entered administration after losing a judgment tied to a £14.9m liability.
- Unsecured creditors are owed £10.6m, including £5.1m to subcontractors, with no cash expected to be recovered.
- The judgment related to cladding defects at 19 residential buildings in Portsmouth’s Admiralty Quarter.
- Administrators say there may be 23 further building liability order claims, potentially totalling £300m.
- An appeal against the ruling is still being considered.
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