Construction Law: December 2025

Editor’s comment
Planning changes may be aiming 
at the wrong target 
Editor Nick Barrett says planning changes that threaten to undermine local democracy could be aiming at the wrong target.

News
This month’s news round up looks at the decision to give a default approval to planning applications near railway stations; ‘Factories of the Future’ sites to support a ramping up of defence investment identified; and a delay to implementation of the Building Safety Levy in Scotland.  

Legal terms explained     
Gayatri Gogoi of Herbert Smith Freehills Kramer LLP explains Expert Determination.

Guest editor
Artificial Intelligence has potential legal risks among the benefits
Guest Editors Andrew Croft and Joseph Roberts of Beale & Co Solicitors LLP say construction is at a turning point with the uptake of AI but there are potential legal risks to watch out for among the undoubted potential benefits. The UK’s most significant piece of AI legislation, the Artificial Intelligence (Regulation) Bill, is now on its second reading in the House of Lords, and changes in the landscape should be watched for.

Legislation state of play table   
Our regular update on the progress of regulations and legislation affecting construction and procurement compiled by Alignment Media.

Reports from the courts
Our regular analyses of the court cases of most interest to construction from Andrew Croft, Ben Spannuth and Daniela Parfitt of Beale & Company Solicitors LLP focusses on  a judgment that is the first occasion where the HSE has sought an injunction in the exercise of its statutory functions under the BSA; and a decision emphasising that where parties have entered into bespoke agreements, the court will endeavour to uphold their intentions whilst ensuring that the interpretations of the terms do not contradict the Construction Act.

Analysis
Developments infringing rights-to-light: injunctions move into the shadows    
Dev Desai and Rachel Belinfante of Watson Farley & Williams LLP explore the Court’s increasing drive towards the pragmatic grant of damages rather than injunctions to protect operational assets. Rights to light are no longer a complete barrier to development, they conclude.

CL guides
Construction Law Guide to Design Liability
In this month’s CL Guide Lotte McGuire considers design liability of both contractors and consultants.

Building Safety
BSR: putting powers into practice     
Ruth Armstrong and Lauren Bennett of Gateley Legal examine the enforcement options that the Building Safety Regulator has available for breaches of the safety legislation, and ask whether the regulator is up to the task. Tension between safety and delivery remains unresolved and is stopping both remediation and new build projects in their tracks, they warn.

The Building Safety Act in 2025: a legal roundup of the reforms and key decisions  
Lewis Couth and Alex Jones of Walker Morris look at what has happened in 2025 in relation to the Building Safety Act. Three key court cases that helped clarify key enforcement powers of the much criticised Building Safety Regulator are examined.

Good faith
Matière SAS v ABM Precast Solutions Ltda good step for good faith?
Chris Bryden and Rachael Hyde of 4 King’s Bench Walk examine a court ruling that advances the law relating to express good faith terms in contracts. Analysis sheds light on the process of evaluation the court will undertake when considering a claim for breach of good faith.

Collateral warranties
Collateral warranties from certifiers – or all that glisters is not gold   
Jess Burke and Jane Hughes of Bird & Bird LLP ask whether collateral warranties from an Employer’s agent or contract administrator are worth anything? Examination of the relevant case law suggests they may have some value, but are over-sold and over-demanded.

Insurance
Insuring plant and equipment  
Insurance expert John D Wright of JD Risk Associates explains some of the difficulties relating to insuring plant and equipment. The use of hired plant has grown significantly, but hire agreements can place onerous burdens on hirers, he warns.

Alternative dispute resolution
GenAI in [alternative] dispute resolution?  
Tracey Summerell of Dentons UK and Middle East LLP examines how generative AI has fast tracked dispute resolution. Human oversight is still required, she warns.

Scottish building safety levy Bill passes first parliamentary hurdle

Scotland’s post Grenfell tragedy safety legislation has cleared its first hurdle in the Scottish Parliament against opposition from the Labour and Conservative parties.

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Tough new legal duties on water companies to cut pollution

Water companies are being legally required to produce pollution reduction plans for the first time, using detailed instructions published this week. 

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‘Sticking plaster’ approach all that keeps planning system working

Almost all local authorities in England would fail to meet government targets on planning decisions without the use of ‘sticking plaster’ time extensions, says a Financial Times (FT) analysis of official data.

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Poor Contract Management caused prison ‘disgrace’ 

The Public Accounts Committee (PAC) has slammed the Ministry of Justice (MoJ) over commercial failings in leasing a prison for £4 million a year that is unusable because high levels of radon gas could damage prisoners’ health. 

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Former Carillion finance chiefs have fines reduced

Two former finance chiefs of Carillion, which collapsed eight years ago, have had their fines from the Financial Conduct Authority (FCA) reduced after appealing. 

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Contractor fined £60,000 after collapsing wall knocks worker through floor opening

A contractor has been fined £60,000 after a wall collapsed, knocking an employee through an open stairwell onto a concrete floor below. General labourer Mark Jones suffered multiple fractures and a dislocated shoulder, spending a month in hospital as a result.

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Treasury Chief Secretary appoints experts to lead review of Green Book discount rate

The Chief Secretary to the Treasury James Murray has appointed Professor Mark Freeman and Professor Ben Groom to lead an independent review of the Green Book discount rate. The Review is to ensure that government is taking a fair view of the long-term benefits that arise from transformational investments.

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‘Landmark’ Planning and Infrastructure Bill becomes law

The Planning and Infrastructure Bill received Royal Assent this week, on 18 December, holding out the hope of cutting delays and costs for housing and infrastructure projects.

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Consultation has been launched on plans to revamp the National Planning Policy Framework.

Hundreds of thousands of new homes will be built under the biggest housebuilding surge in a generation, says the Ministry of Housing, Communities and Local Government (MHCLG), thanks to what it says would be ‘the most significant rewrite of planning rules in more than a decade’.

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Single construction regulator consultation launched

Consultation has been launched on proposals to establish a single construction regulator, as recommended in the Grenfell Tower Inquiry’s Phase 2 report. Consultation will run until 23.59 on 20 March 2026.

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