Contents

Editor’s comment
Hinkley Point C hit by new delay and rising costs
Further significant damage to the well tattered reputation of the UK’s infrastructure delivery capabilities is being delivered by news that Hinkley Point C will now cost nearly £50 billion and will be delivered much later than originally planned.

News  
Our regular news round up focusses on Hinkley Point C cost rises and timetable delay; agreement on a fine for Carillion’s former Chief Executive; and trial dates set for Hinkley Point C health and safety prosecutions.

Legal terms explained
Catherine Huntley of Herbert Smith Freehills Kramer LLP explains Design Life.

Guest editor
UK data centre projects – delay and mitigation
Guest Editors Dom Turner-Harriss and William Lister of Watson Farley & Williams LLP look for answers as to why Data Centres, increasingly recognised as critical infrastructure, are so prone to delays. Practical steps can be taken to minimise the risks, they discover.

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 review of the court decisions of most interest to construction comes from Andrew Croft, Ben Spannuth and Daniela Parfitt of Beale & Company Solicitors LLP who examine an Upper Tribunal ruling that will have significant implications for building safety claims; and one that provides helpful guidance regarding the transfer of rights under an assignment.

Analysis
Delayed schemes now being brought forward
Some good news on the industry forecasts front comes from Gardiner & Theobald whose latest Tender Price Inflation Report sees tender price inflation expectations edging higher but with early signs that delayed schemes might be being progressed.

Commitment made to modernise railways in Wales
The government has made what it describes as a generational commitment to modernise Welsh railways with a pipeline of 43 projects that it says will deliver £6.3 billion in economic benefits and support 12,000 jobs.

CL guides
CL Guide to Appointments
In our latest CL Guide Lina O’Gorman of DLA Piper UK LLP discusses the key provisions of an appointment and looks at some of the various forms of appointment available for use, contrasting the key areas of risk allocation under some of the most commonly used standard forms against a typical bespoke appointment.

Risk
Better risk decisions by using clean language?
The construction industry must modernise the gathering of project risk information, say barrister Rudi Klein, Principal of KleinLegal, and Risk Management Consultant Stephen Woodward. Better outcomes depend on radically changing how risk-elicitation questions are asked and responses are collected and examined, they argue.

Alliancing
Alliancing demands behavioural change
Building on an article from last year examining whether the Design and Build model remains fit for purpose, Dan Haley and Daniel Grondin of Watson Farley & Williams LLP have teamed up with Kate Kennedy of Laing O’Rourke to consider alliancing forms of contracts and their potential benefits for major construction and infrastructure projects.

Data centres
Bit barns and the battle for the grid
Jake Owen of Vinson & Elkins LLP reports that the pace of investment in data centres and related digital infrastructure is throwing up legal and procurement challenges that have contributed to growth of an approvals backlog. Old force majeure clauses need to be closely scrutinised.

Liability caps
Limitless or limited: liability caps in construction contracts
Linzi Hedalen and Alysha McMillan of Dentons UK and Middle East LLP analyse the use of liability caps in contracts which a one-size-fits-all approach no longer suits. The challenges and arguments appear limitless, they warn.

Insurance
The Employer’s Responsibilities
Insurance expert John D Wright of JD Risk Associates highlights that the responsibilities and risks facing Employers shouldn’t be underestimated. Gaps in the Employer’s protection can easily arise, he warns.

Alternative dispute resolution
When in-person hearings trump remote
In our latest Alternative Dispute Resolution series article Tracey Summerell and Akin Akinbode of Dentons UK and Middle East LLP argue that sometimes in-person hearings can lead to better and more cost effective outcomes.

Editor’s comment
Competition regulator could earn the thanks of an entire industry 
The recent interim report from the Competition and Markets Authority into the civil engineering market for roads and railways highlights issues like uncertain and short-term funding, a risk-averse culture, and regulatory barriers to entry and growth as causes of poor industry performance. Editor NIck Barrett says other sectors would also benefit from any reforms.

News 
Our regular news round up reports on government’s launch of a Water White Paper that represents a once-in-a-generation plan to overhaul the industry; a notice of appeal filed at the Supreme Court in the long-standing ‘whistleblowing’ controversy; and a survey showing that costs are not the biggest concern for companies in bringing claims.

Legal terms explained
Kevin Halim of Herbert Smith Freehills Kramer LLP explain what is meant by a repudiatory breach of a construction contract.

Guest editor
If it’s not broke don’t fix it
Guest Editors Jess Burke and Jane Hughes of Bird & Bird LLP take a sceptical look at proposed government reforms to retentions. While retentions are imperfect, the government’s solutions risk creating more problems than they resolve, they argue.

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 report of the most important construction law court decisions comes from Andrew Croft, Benjamin Spannuth and Daniela Parfitt of Beale & Company Solicitors LLP includes one which provides useful guidance regarding the courts’ assessments of defects under the Defective Premises Act 1972; and one which emphasises the transparency required and care that must be taken when referring an adjudication to a nominating body.

Analysis
The Employment Rights Act 2025: the effect on employers in the construction industry
Laura Oxley and Hollie Firth of Walker Morris analyse the likely effects of the Employment Rights Act 2025 that has just received Royal Assent on construction. It will significantly transform the UK employment landscape, they warn.

CL guides
Construction Law Guide to Liquidated Damages
In our latest Construction Law Guides series article Rachel Chaplin of DLA Piper LLP examines a relevant Supreme Court ruling in this explanation of how liquidated damages work.

Review of 2025
Review of Construction Law in 2025
This article by Ben Spannuth, Daniela Parfitt and Anna Benz of Beale & Company Solicitors LLP considers key developments in UK construction law covered in our Reports from the Courts throughout 2025. The decisions present familiar themes from previous years with rapidly developing jurisprudence under the Building Safety Act 2022 and the Defective Premises Act 1972.
Scottish Construction Law review of 2025
Shona Frame and Helena Wilson of CMS Cameron McKenna Nabarro Olswang LLP review the main developments in construction law in Scotland during 2025. The year saw a number of significant developments, with new and amended legislation and a number of significant court rulings shaping the landscape.

Carbon management
Fidic’s new Carbon Management Guide
Jane Hughes of Bird & Bird LLP examines FIDIC’s new carbon management guide and carbon management clause. The Guide sets out guiding principles for use on projects, and the flexible clause is designed to integrate easily into standard forms without significant amendment elsewhere in the contract, she notes.

Concurrent delay
Can we codify concurrency?
Robbie Allport of Turner & Townsend Contract Services recommends incorporating defined terms and clearer procedural steps within standard forms in relation to concurrent delay. As well as removing uncertainty the need for judicial interpretation would be reduced, he argues.

Insurance
Measuring the loss
Insurance expert John D Wright of JD Risk Associates looks at how insurers view indemnity, which underpins property and liability insurance. Specialist construction insurance brokers could be consulted for advice, he advises, some of whom will also assist in the negotiation of claims.

Alternative dispute resolution
When is the best time to mediate in construction litigation?
In our latest ADR series article Tracey Summerell and Akin Akinbode of Dentons UK and Middle East LLP ask when is the best time to mediate?

Editor’s comment
Same old, same old for the post Cunliffe construction sector?   
A step change in how water infrastructure is managed and delivered is promised by the Cunliffe report. Editor Nick Barrett asks if it will result in the changes the construction sector needs for the second biggest infrastructure programme in the UK.

News    
Our regular news round up looks at a final investment decision made for Sizewell C; new Treasury business case guidance for major projects; and new subsidy contracts for wind and solar projects that promise to reduce risk.

Legal terms explained   
Hao Zhou of Herbert Smith Freehills Kramer LLP explains Price Adjustment Clauses.

Guest editor
Battle of the forms still rages
Guest Editors Ben Jolley and Gayatri Gogoi of Herbert Smith Freehills Kramer LLP take a close look at a TCC decision that at first glance seems to displace the ‘last shot’ principle in contract formation. On examination, they argue, parties still have to be aware that contracts can be formed before formal documents are signed.

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 round up of the court cases of most interest to construction comes from Andrew Croft, Ben Spannuth and Daniela Miklova of Beale & Company Solicitors LLP who examine a  decision  that shows the TCC’s commercial approach to interpreting payment applications rather than entertaining overly complicated interpretations of the Scheme; and one showing that the courts will look to uphold good faith obligations; parties will need to show that a breach is causative of an alleged loss.

Analysis
Remoteness of damages in construction disputes  
Barry Hembling, Caroline Rossmann and William Stewart of Watson, Farley & Williams LLP examine a long running dispute that has already been before the Supreme Court. This latest TCC judgment provides useful guidance about the law on remoteness of damages and how these principles are applied in construction law claims. 

CL guides
Construction Law Guide to: Adjudication
Our latest Construction Law Guide series article comes from Jenny Harrison of DLA Piper LLP who examines Adjudication.   

Artificial Intelligence
AI in Construction Dispute Resolution   
Chiara Pieri and Keith Robertson of CMS Cameron McKenna Nabarro Olswang LLP analyse the opportunities, risks, and guidance of using Artificial Intelligence (“AI”) when resolving disputes in construction. Despite the valuable contribution of AI, human oversight is still needed, they argue.

Arbitration
Reducing the carbon footprint of international arbitrations    
Fatma Guney, Partner at Hamish Lal Partners, London, seeks to point to the elephant in the room and explore the concept of ‘Greener Arbitration’. Has arbitration strayed too far off a suitably green path, she asks.

Building safety
Reforming the Building Safety Regulator: A new dawn?  
Alex Jones of Walker Morris examines why the House of Lords is undertaking a formal inquiry into the effectiveness of the Building Safety Regulator regime, which is widely agreed to need significant overhauled. Hold ups to high rise housing projects in particular need to be overcome. 

Defective premises
‘Dwelling’ further on the Defective Premises Act 1972   
Nicholas Zeolla of Atkin Chambers analyses what is meant by a ‘dwelling’ under the Defective Premises Act. Premises that are predominantly commercial or industrial are not dwellings, he suggests.

Insurance
The Design Liability Minefield   
Insurance expert John D Wright of JD Risk Associates explains why design liability cover is such a minefield for insurers. The problems are mainly of their own making however, due to poor policy drafting, he argues.

Alternative dispute resolution
Easing the procedural challenge of resolving safety disputes  
Our latest ADR series article comes from Tracey Summerell and Akin Akinbode of Dentons UK and Middle East LLP who report that court procedure for Building Safety Act related claims is creating quandaries for parties and judges.

Editor’s comment
End promised to northern neglect
The north has for long complained that it is largely ignored when it comes to government funding and infrastructure investment. Could those days be over thanks to newly announced reforms, asks Editor Nick Barrett.

News 
Our regular news round up reports on the Stewart review of major project delivery; consultation opening on procurement reforms; and a competition regulator inquiry into the roads and railways construction sector.

Legal terms explained
Mukuma Kawesha of Herbert Smith Freehills Kramer LLP explains how emergency arbitration relates to bond calls.

Guest editor
New NEC acquisition to improve project delivery?
Guest Editor Professor David Mosey, King’s College London Centre of Construction Law, welcomes an unprecedented collaboration between competing publishers of standard forms – fittingly for contracts designed to promote collaboration.

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 regular look at the court decisions of most interest to construction, Andrew Croft, Ben Spannuth and Daniela Miklova of Beale & Company Solicitors LLP examine a case that reinforces the fact that losses claimed must be adequately pleaded and have legal merit; and one that highlights the uncertainty surrounding determining building height under the High Risk Building classification.

Analysis
Government promises more joined up approach to infrastructure investment
A raft of recent initiatives look like they represent a serious attempt to confront challenges to adequate and efficient infrastructure investment and delivery that have bedevilled the UK for many years, Nick Barrett reports.

CL guides
Construction Law Guide to: Price and Payment
The latest in our CL Guides series comes from Clare Rushton of DLA Piper LLP who explains how contracts deal with the the essential matters of price and payment.

Building safety
Supreme Court clarifies building safety liability issues
Stephanie Geesink, Counsel, and Dom Turner-Harriss of Watson Farley & Williams LLP analyse the landmark ruling from the Supreme Court that clarifies significant issues regarding liability for building safety defects. The decision highlights the potential liability that can arise many years after project completion.

“From Shed to Shard”: Why the BSA applies more broadly than you think
“From Shed to Shard” – that was the message delivered by the Building Safety Regulator (BSR) at the BSR Conference in March 2023, to emphasise the wide reach of the Building Safety Act. Lauren Bennett, Senior Associate at Gateley Legal looks at what that means in practice – whether you are working on the Shard or a ‘shed’.

Payments
The Construction Act payment regime: what about the VAT?
Matthew Thorne and Caroline Ziebart of 4 Pump Court examine a court decision with important implications for the industry’s payment regime. They argue that it creates a situation not required by the Construction Act and that it should be reversed.

Projects
Steering complex hospital builds to completion
Andrew Drennan of Alvarez & Marsal Disputes’ London office and Haris Katostaras of Alvarez & Marsal Disputes and Investigations in Athens, share their experiences of what causes such a high incidence of delays and disputes on hospital projects. Key strategies to mitigate the problems are suggested.

Insurance
Pros and Cons in Employer’s Liability Insurance
Insurance expert John D Wright of JD Risk Associates reviews the development of employer’s liability insurance over the past century. Despite efforts to minimise the dangers of injuries at work, the incidence of claims continues to rise, especially in construction.

Alternative dispute resolution
Approaches to choosing a dispute resolution forum 
In our latest ADR series article Tracey Summerell and George Harris-Rowe of Dentons UK and Middle East LLP report from a recent disputes conference in London.

Editor’s comment
Anti-cartel enforcers warn of focus on public procurement using AI tools 
Editor Nick Barrett reports that the Competition and Markets Authority enforcement head has warned that it is using AI tools to spot evidence of collusive behaviour.

News 
Our news round up of major events affecting construction reports on government threats to seize builder’s land banks if they don’t build-out fast enough; a proposal to licence builders; and a new model proposed for privately funded infrastructure.

Legal terms explained
Himani Patel of Herbert Smith Freehills LLP explains Transferred Loss.

Guest editor
Contracts need more careful preparation to avoid conflicting provisions 
Guest Editor Dom Turner-Harriss of Watson Farley & Williams LLP laments the inadequate contract preparation that is often found to lie at the heart of construction disputes. A recent case highlights what can go wrong, and points towards ways to avoid problems from conflicting contract provisions.

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 round up of the court decisions of most interest to construction comes from Andrew Croft, Ben Spannuth and Daniela Miklova of Beale & Company Solicitors LLP who examine a case that warns parties to monitor digital communications carefully and ensure that contractual negotiations are ‘subject to contract’ so that the signed contractual documents represent the agreed contractual terms; and a judgment that demonstrates the difficulties that parties face in using jurisdictional challenges to resist enforcement of adjudicator decisions.

Analysis
Infrastructure looks like a main beneficiary from change in government investment attitude
Hopes are high that a combination of pension fund reforms and revision to the Treasury’s Green Book could help unleash a new wave of infrastructure investment to be announced in the Spending Review and the Ten-Year Infrastructure Strategy, reports Nick Barrett.

CL guides
Construction Law Guide to: Time in Construction Contacts
The latest in our CL Guides series comes from Rachel Chaplin of DLA Piper LLP who explains some of the key time-related provisions relating to construction works.

Supreme Court
Voluntary Loss and Negligence: URS v BDW in the Supreme Court
Barrister Chris Bryden of 4 King’s Bench Walk looks at the landmark Supreme Court ruling that confirms the general principle that the wrongdoer should pay, regardless of whether money has been paid, or remedial works carried out in kind, without a claim having been intimated. There is no “bright line” rule of law preventing recovery of losses where claims could not be brought due to a time bar.

Arbitration
Modernising and streamlining English-seated arbitration
James Barratt, Bradley Lindsay and Iona Gilby of Vinson & Elkins examine several of the principal changes being introduced by the Arbitration Act 2025 which received Royal Assent in February. Enacting Regulations are likely be made soon, so parties should familiarise themselves with the changes, they advise.

Contracts
Has Design & Build outlived its usefulness in a post-Grenfell world?
Design & Build received implicit criticism in the Grenfell Inquiry report and the number of disputes involving them is on the rise. Barry Hembling, Dan Haley and Sam Gunnewicht of Watson, Farley & Williams LLP argue that this popular procurement route might no longer be fit for purpose.

Warranties
Does the Building Safety Act 2022 remove the value of building warranties?
Pauline Lam, Mark Fletcher and Aaron Walder of Russell-Cooke LLP ask whether the Building Safety Act is in need of reform following a First-tier Tribunal decision that could give insurers opportunities to avoid liability for remediation works under new build warranties.

Insurance
The Insurance Market – Meeting Today’s Challenges
Insurance expert John D Wright of JD Risk Associates predicts major challenges ahead for the stability business needs from the insurance market. Technological change, cyber crime and climate change are among the risks that need to be managed more rigorously than ever.

Alternative dispute resolution
No time for complacency in tech adoption
The latest in our alternative dispute resolution series comes from Tracey Summerell of Dentons UK and Middle East LLP who warns against complacency in face of the increasing use of new technologies like AI. The same standard of professionalism has to be applied to their implementation as in lawyer’s expert fields, she says.