The Week That Was - 1 August 2025

Welcome to the week that was, a round-up of key events in the construction sector over the last seven days.

VMA Services Ltd v Project One: TCC enforces Adjudicator's decision on true value adjudication

Leading up to the case of VMA Services Ltd v Project One London Ltd [2025] EWHC 1815 (TCC), Project One initiated an adjudication to determine the true value of VMA’s payment application.  However, it had not issued a payment or pay less notice, nor paid the notified sum.

The adjudicator found that, under Section 111 of the Construction Act 1996, a true value adjudication could not proceed without prior payment of the notified sum and instead awarded the full amount to VMA.

In enforcement proceedings, Project One argued that the adjudicator lacked the jurisdiction to make such an award.  The court rejected this, affirming that the adjudicator had jurisdiction and that both parties were bound by the decision. Attempts to challenge the award were dismissed as meritless.

The judgment serves as a reminder of the importance of payment obligations.

Click here to read the judgment.

The Regulator of Social Housing will alert the Building Safety Regulator ahead of any building safety concerns involving social landlords

The Regulator of Social Housing (RSH) and the Building Safety Regulator (BSR) have signed a memorandum of understanding to formalise their cooperation and information sharing concerning building safety.  The agreement outlines that the RSH will, where possible, notify the BSR in advance of regulatory judgments involving building safety concerns, particularly for higher-risk residential buildings.

Both regulators have committed to sharing data and insights on registered providers and accountable persons, especially in cases of suspected or identified serious failures.  They will also exchange intelligence on emerging sector risks and developments relevant to building safety.

The BSR will inform the RSH when serving compliance notices or before seeking special measures orders.  The memorandum further commits both parties to early communication, regular meetings, consistent messaging and mutual input on relevant publications, reflecting their statutory duty to cooperate under the Building Safety Act 2022.

You can read more here.

The Environment Agency unveils £1bn push for coastal protection projects

The Environment Agency is launching a six-year marine maintenance framework extendable to 2034, with an estimated value of £1.2bn. The framework is intended to safeguard England’s coastlines from increasing flood risks.

Beginning in May 2026, two marine specialists will be appointed to carry out routine and emergency works, including shingle redistribution, importation, and coastal defence repairs.  The framework spans all English coastal frontages and is classified under a range of civil engineering and flood prevention Common Procurement Vocabulary codes often referred to as CPVs.  These are standardised numerical codes used across the UK and EU public sector to classify the subject matter of contracts. CPVs help ensure consistency in public procurement tender notices and make it easier for suppliers to identify relevant opportunities.

This initiative aligns with recent warnings from UK Green Building Council (UKGBC) and DEFRA about the UK’s lack of flood preparedness amid climate change concerns. Experts are urging the government to adopt a more strategic response, with the UKGBC developing a Climate Resilience Roadmap to address escalating threats such as flooding, wildfires, and overheating. The framework aims to enhance national flood readiness and improve emergency response capability as extreme weather becomes increasingly common.

The initiative is likely to increase funding for coastal areas which, traditionally, may not have seen large scale projects.

Click here to read more.

The European Commission: a call for evidence

The European Commission has launched a call for evidence to aid in its upcoming strategy to tackle the ever-increasing housing crisis. Due to demographic shifts and declining building permits, there has been a shortage of affordable housing. The aim of this strategy is to identify why the construction ecosystem is not reaching its full potential.

As of 24 July 2025, the Commission has declared that it will be seeking feedback on existing bottlenecks and potential initiatives at all levels of governance to address these challenges.  The feedback period will run until 18 September 2025, with the final strategy expected to be adopted in early 2026. The ultimate goal of this strategy will be to aid in closing the supply and demand gap for housing.

Click here to read more.

UK Construction industry hit by global tariff wars

A report by QBE titled 'Trade Tensions and the Construction Sector' suggests that global tariff wars are significantly impacting the construction sector by increasing import duties, which directly raise material costs and erode contractor profit margins. These tariffs, particularly those imposed by the US and retaliatory measures from other countries, have led to higher prices for essential materials such as timber, aluminium, copper and steel.

The resulting cost pressures are compounded by delays at ports and customs due to more complex trade procedures, causing project timelines to slip.  The report suggests that, for UK construction firms, the situation is further complicated by the country’s reliance on imported materials, its net-zero commitments driving demand for specific (and now more expensive) materials and ongoing skilled labour shortages exacerbated by reduced immigration post-Brexit and an ageing workforce.  
These factors combine to create a complex risk environment, threatening project continuity and financial stability.  Industry experts recommend that firms proactively engage with insurers and seek specialist solutions to manage these heightened risks.

Click here to read more.

With thanks to Josh Ovens, Emma Donovan and Sam Attwood.

Disclaimer: The information in this publication is for guidance purposes only and does not constitute legal advice.  We attempt to ensure that the content is current as at the date of publication, but we do not guarantee that it remains up to date.  You should seek legal or other professional advice before acting or relying on any of the content.