Construction Law: October 2025

Editor’s comment
Why is one project ‘mega’ and another one not, PAC asks 
Editor Nick Barrett suggests that the Treasury could start with a clearer definition of why one multi-million pound project is to be regarded as ‘mega’, yet another isn’t, when it responds to Public Accounts Committee criticism of how it proposes to oversee their delivery.

News
This month’s news round up reports on consultation opening on infrastructure planning; a Public Accounts Committee report on the Treasury’s response to Office for Value for Money recommendations for governance of mega projects; and the Energy Secretary’s vision for Great British Energy.

Legal terms explained
Luke Wagner of Herbert Smith Freehills Kramer LLP explains third party rights

Guest editor
Crude awakening: The strain on construction as the demand for data surpasses oil
Guest Editor Robert Eadie of consultants Rimkus explains the impact of the current surge in data centre development on construction. A rise in disputes is likely as the industry struggles to meet the scale and pace of the new demands; but bringing the right expertise to the table early will help avoid disputes, he argues.

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
In our latest reports of the cases of most interest to construction Andrew Croft, Benjamin Spannuth and Daniela Miklova of Beale & Company Solicitors LLP examine a judgment demonstrating how the residential occupier exception under s106 of the Construction Act 1996 can be raised in adjudication proceedings as a jurisdictional challenge; and one providing another reminder that the courts will seek to enforce adjudication decisions wherever possible and that parties are not entitled to commence a true value adjudication until a previous award has been complied with.

Analysis
New rights Bill raises bar for employers
Lucy Gordon of Walker Morris LLP examines the Employment Rights Bill, currently making its way through the legislative process. It places a significant burden on employers, who will need to fundamentally reassess their approach to workforce management, she warns.

CL guides
Construction Law Guide to Defects provisions in construction contracts
The latest in our Construction Law Guides series comes from Rachel Chaplin of DLA Piper LLP who explains the contractual provisions in the industry’s standard form contracts for dealing with defects.

Retentions
Revenue is vanity, profit is sanity, but cash is king.
The current government consultation on reforming retentions and tackling poor payment practices, that closes in October, is examined by Jane Hughes and Amina Al Wazzan of Trowers & Hamlins LLP.

Building safety
Two Court of Appeal judgments offer clarity on the Building Safety Act
Richard Flenley and Michael O’Connor of Charles Russell Speechlys explore how two recent Court of Appeal judgments shed much-needed light on the evolving interpretation of the Building Safety Act. Developers could face extended liability as a result of the judgments, they warn.

Building safety
The Building Safety (Wales) Bill: a new blueprint for risk, responsibility and reform
Dev Desai, Rupi Chandla and Joshua Bancroft of Watson Farley & Williams LLP explain the key changes being introduced to building safety in Wales. Expect legal friction when planning, building control and housing law interact, they warn.

Adjudication
True Value Adjudications – pushing the boundaries
Karen Gough of 39 Essex Chambers examines true value claims and possible defences. The goal posts may be moving in favour of adjudicator’s ability to award payments to responding parties, she argues.

Insurance
Claims and the Notification Trigger
Insurance expert John D Wright of JD Risk Associates warns about problems that can arise when notifying insurance companies about claims and potential claims. Basic risk management procedures can prevent many of the issues arising, he suggests.

Alternative dispute resolution
Mediation and compulsory mediation in the English courts
In the latest article in our Alternative Dispute Resolution series Linzi Hedalen and Alysha McMillan of Dentons UK and Middle East LLP examine why mandatory mediation is becoming a preferred tool for dispute resolution.

Lawyers divided on impact of planning reforms

Lawyers are divided on whether reforms to the government’s National Planning Policy Framework are delivering on promises to unleash a wave of housebuilding, says a research report.

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Minister urges planning flexibility

Housing and Planning Minister Matthew Pennycook MP has written to the Planning Inspectorate outlining his expectation that local plans submitted in the current plan-making system should be treated with an appropriate degree of flexibility.

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Contractor fined after accident kills worker

Contractor Lanes Group Limited was fined £800,000, after pleading guilty to health and safety breaches that led to the death of a worker on a construction site in Leeds.

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Report attacks construction analyses that produce short term fixes that do not work

The Chartered Institute of Building (CIOB) has published new research on the construction industry’s capacity to meet key targets, including the delivery of 1.5 million new homes by 2029.

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Small nuclear reactor consultation launched

A consultation has been launched by the Department for Environment, Food and Rural Affairs (Defra) on an application for a regulatory justification decision on the ‘Rolls-Royce SMR’ (small modular reactor).

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Construction Law latest print issue published

The latest issue of Construction Law’s print edition is arriving on subscriber’s desks, and articles can be accessed by subscribers now on the Construction Law website. Editor Nick Barrett suggests that the Treasury could start with a clearer definition of why one multi-million pound project is to be regarded as ‘mega’, yet another isn’t, when it responds to Public Accounts Committee criticism of how it proposes to oversee mega project delivery. 

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Government commits to creating new towns after potential locations identified

The government has confirmed it will go ahead with the next generation of new towns across England, following publication of an independent report from the New Towns Taskforce that recommends twelve locations as potential sites.

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Housing minister denies peer is preparing another planning bill

Housing minister Matthew Pennycook has denied reports that a Conservative peer has been asked to write another planning bill containing stronger measures to block judicial reviews of major planning decisions.

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Use of Competitive Flexible Procedure for public sector procurement rises, finds report

Pre tender notices are being published at record levels and large contracts and frameworks are driving use of the Competitive Flexible Procedure, according to a report on the first six months of the Procurement Act 2023.

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Bigger role predicted for ADR in dispute resolution

Ashurst’s 2025 Mediator Survey, which captures the perspectives of 20 leading mediators, suggests that early scepticism over the impact of compulsory mediation is likely to be overcome.

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