Ardmore Construction Limited has filed for administration as the parent group moves to draw a line under mounting costly claims linked to fire safety remediation work on legacy residential schemes.

The former contracting arm has not taken on new jobs since 2021 but remained weighed down by litigation after regulatory changes under the Building Safety Act triggered a spate of claims.

Several major house builders, including Barratt, Taylor Wimpey and Bellway are pursuing legal action against Ardmore Construction Ltd to recoup remediation costs.

Barratt alone has claimed in the High Court that it is owed £85m in damages from five developments completed by Ardmore Construction at various times between 1999 and 2005.

Mounting litigation ultimately forced group directors to seek the administration as the final step in winding down the dormant contracting entity.

Ardmore said that no live projects, client contracts or supply chain agreements would be affected by the closure of the old contracting entity.

The administration being handled by Begbies Traynor affects only Ardmore Construction Limited, which for decades acted as the group’s flagship contracting arm.

Other Ardmore Group businesses: Major Projects; Hotels & Commercial; Regeneration; and Fitout remain unaffected and continue to trade profitably.

Over the past six months, Ardmore said it had worked proactively to reduce ACL’s remaining liabilities, including negotiating the closeout of multiple performance and retention bonds, any impact of which is contained within the group.

One subcontractor told the Enquirer that Ardmore had been working to minimise disruption in the supply chain.

He said: “They’ve novated contracts across to other group companies, so the impact has been limited. The live projects are still going and payments are being made as normal.”

Chairman Cormac Byrne said the move was part of a restructuring strategy, designed to de-risk operations and focus future delivery through specialist trading subsidiaries.

He said the group was set to post a £2.5m pre-tax profit for 2025, following losses of £15.7m in 2023 and £7.7m in 2024, with turnover running consistently above £350m. Revenues are forecast to rise beyond £400m in 2026.

Byrne said: “After a difficult period for the whole industry, we’re pleased to be forecasting a return to profit.

‘We’ve made the structural changes needed to deliver more selectively, with better control and fewer risks, and it’s paying off.

“ACL played a huge role in our story, but it no longer reflects how the group operates today, and this is simply the final step in that journey,” he added.

Despite the legacy liabilities dogging ACL, the parent group has pressed ahead with major London schemes across the residential, hospitality and regeneration markets.

The administration highlights how the Building Safety Act continues to send shockwaves through the sector, reopening liabilities long after projects were completed.

Ardmore’s move follows other contractors facing similar legal headwinds as house builders pursue wide-ranging fire safety remediation claims.