Construction Law: August/September 2026

Editor’s comment
DfT and Treasury on naughty step over Northern Powerhouse Rail costing 
Editor Nick Barrett looks forward to hearing DfT and Treasury responses to the Public Accounts Committee challenge to explain how they arrived at a £45 billion cost cap for the long awaited and desperately needed Northern Powerhouse Rail project.

News  
Our regular news round up looks at a government procurement review ordered by a Minister; a switch in NHS investment to a long term focus; and an Appeal Court ruling against an HS2 tunnel being significantly extended without planning permission.

Legal terms explained 
Maria Avram of Herbert Smith Freehills Kramer LLP explains how the Civil Liability (Contribution) Act 1978 works.

Guest editor
Do payment and retentions reforms do what they say on the tin? 
Guest Editor Dan Warren of DLA Piper LLP analyses the impact of government reforms of payment practices and retentions, asking if if they will achieve the desired outcomes. Look out for loopholes, especially with retentions, he advises.

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 latest reports of the court decisions of most significance to construction comes from Andrew Croft, Ben Spannuth, Daniela Miklova and Ben Boulter of Beale & Company Solicitors LLP who report on a case highlighting that cladding product manufacturers and suppliers may face significant contribution exposure going forward; and another reaffirming the court’s robust approach to adjudication enforcement.

Analysis
When retention becomes payable – and why interim Is usually too soon
Anjali Shrivastava of Michael Gerard Solicitors cautions that practical completion (PC) is not the end of the contract story. Under the JCT Minor Works Building Contract with contractor’s design 2016, for example, PC is not the point at which the whole of retention automatically becomes payable.

CL guides
CL Guide to The Building Regulations Part 2a Dutyholders’ Requirements
CL Guides to construction law series article comes from Sofia Sportelli of DLA Piper LLP who explains the responsibilities of Building Regulations Dutyholders,

Arbitration
The 2026 ICC Arbitration Rules and Construction Disputes
Leading arbitral jurisdictions are introducing reforms to promote simplicity and efficiency. Vijay Bange and Gordon Chan of Irwin Mitchell LLP explain some of the positive impacts likely to result, but also highlight some potential pitfalls as the reforms are introduced to construction.

Design
Design Liability: when choice of law really matters
Owen Newman and Justin Li of Duane Morris examine the difference that choice of law can make when designs turn out to be defective or deficient and exposure starts to cascade. Comparison between the United States and the UK which start from different premises, is instructive.

Adjudication
Adjudication – when the pay now argue later principle fails to deliver the goods
Barrister Karen Gough of 39 Essex Chambers asks why some people are not being paid despite succeeding in adjudications. For contractors seeking payment the system works well – but it can be a different story when an Employer tries to recoup overpayments.

Contracts
Contracts on the Clock
Contract management and procurement specialist Carolle Vallee of VaLex Consulting warns that traditional contracts were never designed for programmes where design, procurement and construction happen simultaneously, as they do on hyper scale data centres. Contractual models might be evolving, but can that happen fast enough?

Insurance
The Contractor’s Design Risk
Insurance expert John D Wright of JD Risk Associates examines Contractor’s Design Risk policies. Contractors can be exposed to design claims even when not parties to some contracts, he warns.

Alternative dispute resolution
ADR’s place in the case management toolkit confirmed
Tracey Summerell of Dentons UK and Middle East LLP finds strong support for ADR in the new edition of the TCC Guide.

TCC and Tribunal align for joint case management in building safety dispute

In Wallace Estates v Durkan Estates, the Technology and Construction Court (TCC) and First-tier Tribunal (FTT) held their first joint hearing to manage overlapping building safety claims. The decision establishes a practical framework for handling concurrent litigation involving remediation contribution orders and breach of contract.

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High Court rejects summary termination of BSA remediation agreement

The Technology and Construction Court (TCC) has refused reverse summary judgment in Durkan Estates v Wallace Estates, ruling that time is not automatically of the essence in Building Safety Act remediation contracts. The decision confirms that delays in completing cladding repairs do not automatically grant freeholders an immediate right to terminate.

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BSR completes guidance review as second staircase deadline nears

The Building Safety Regulator (BSR) has established its technical working group to oversee revisions to Approved Document B following more than 500 industry consultation responses. The update comes as mandatory second staircase rules for residential buildings over 18 metres take effect on 30 September 2026.

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High Court sets October deadline for Building Safety Levy rollout

Ministers have confirmed that the new Building Safety Levy will come into force across England on 1 October 2026, applying a direct square-metre tax to new residential developments. Local authorities will oversee collection, with completion certificates withheld until all levy liabilities are cleared.

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Government targets retention ban in Commercial Payments Bill

The Government has introduced the Commercial Payments Bill, proposing a complete statutory ban on cash retentions across all UK construction contracts. The legislation aims to end the practice of withholding 3% to 5% of project funds to secure post-completion defect rectification.

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Supreme Court limits freeholder challenges to Right to Manage claims

In Avon Freeholds Ltd v Cresta Court, the Supreme Court has allowed a landmark appeal restricting the grounds on which freeholders can challenge Right to Manage (RTM) claims.

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BCIS warns of contractor margin squeeze as material costs rise

The Building Cost Information Service (BCIS) and Construction Products Association (CPA) have highlighted growing margin pressures, with contractor input costs rising faster than tender prices.

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High Court rejects late payment claim after missed contract deadline

The Technology and Construction Court (TCC) has refused summary judgment in a high-value payment dispute, ruling that payment applications served outside contractual schedules fail to create enforceable "notified sums".

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BSR approves £286m Manchester student scheme

The Building Safety Regulator (BSR) has granted Gateway 2 approval for the first 1,000-bedspace phase of the £286m Cambridge Halls development in Manchester.

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SCAPE issues tender notice for £8bn construction framework

Public sector procurement body SCAPE has officially issued the Tender Notice for its flagship £8bn Construction Works & Services Framework, setting a submission deadline of October 9, 2026 for participating contractors.

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