The Week That Was - 1 May 2026

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

NAECI pay deal reached after year-long dispute

A dispute between unions and their employers under the National Agreement for the Engineering Construction Industry (NAECI) has ended with a pay deal agreed between over 150 employers represented by the Engineering Construction Industry Association (ECIA) and workers represented by Unite and GMB.

Under the new agreement, hourly rates and radius payments will each increase by 4.5 per cent. Accommodation allowances will rise to 5.07 per cent (subject to HMRC approval), and welding proficiency payments will increase by 7.2 per cent.  Unite estimates that workers who include those working at oil refineries, power stations and pharmaceutical and petrochemical plants will see their annual pay rise by around £2,000 on average.

The settlement follows the earlier rejection of an offer that included a 3.6 per cent hourly rate increase.  Both unions have highlighted the closeness of the vote and signalled an early start to negotiations for the 2027 pay round, with a focus on further pay improvements, welfare standards and work/life balance.

To find out more, please click here.

Building Safety (Wales) Act 2026 received royal assent

The Building Safety (Wales) Act 2026 (BSWA 2026) received Royal Assent on 27 April 2026, introducing a new building safety regime for most occupied residential buildings in Wales with two or more units.  It broadly mirrors many principles in Part 4 of the Building Safety Act 2022 but has a wider scope.

Buildings are categorised by height and storeys, with Category 1 and 2 buildings subject to registration and extensive structural and fire safety duties, and Category 3 mainly to fire safety.  Certain HMOs also fall within the regime.

Local authorities (structural safety) and fire and rescue authorities (fire safety) will enforce compliance, with powers to issue notices, enter premises and prosecute offences. The substantive provisions will commence on dates appointed by the Welsh Government.

You can read more here.

RBH Building Contractors Ltd v James and another [2026] EWCA Civ 511

The Court of Appeal dismissed RBH Building Contractors Ltd’s appeal against the refusal to enforce an adjudicator’s decision awarding £663,016.16 arising from construction management services for a luxury house in Devon.

Two issues of general importance in construction adjudication were considered. 

Firstly, whether the employers were “residential occupiers” for the purposes of section 106 of the Housing Grants, Construction and Regeneration Act 1996, which would exclude adjudication.  The Court held the judge was entitled to find they had a realistic prospect of showing an intention to occupy at the time of contracting, and that the Development Loan terms and non-occupation undertakings were not a “trump card”. 

Secondly, the Court held that the employers’ letter of 27 November 2024 was a valid pay less notice under section 111(3) and (4), as it clearly set out what was being withheld and why, identifying eleven disputed items totalling over £1.2 million.

You can access the case summary here. 

Skills mission board outlines regional model to tackle training gap

The Construction Skills Mission Board (CSMB) is developing a regional “hub and spoke” model aimed at closing the construction skills gap by aligning training more closely with employer demand.  Chaired by former Mace chief executive Mark Reynolds, the board is working on a workforce plan centred on regional networks bringing together employers, trade bodies, colleges and training providers, including the 12 new Construction Technical Colleges funded from last year’s £600m skills package.

A key feature is the use of project pipeline data to map upcoming schemes and identify the skills, competencies and locations where labour will be needed.  Existing training hubs linked to major infrastructure projects such as Sizewell C, HS2 and the Lower Thames Crossing are seen as templates to expand and connect, rather than leaving them to operate in isolation.  The CSMB is also exploring whether Construction Skills Certification Scheme cards could be issued at the start of training to support better tracking of trainees’ progress. 

To access the full article, please click here.

Naeem and another v Abacona Investments Ltd [2026] UKUT 154 (LC)

A recent Upper Tribunal (Lands Chamber) decision in Naeem and another v Abacona Investments Ltd [2026] UKUT 154 (LC) underscores the high threshold leaseholders must meet when challenging service charges for major works. Leaseholders at Endwood Court, Birmingham, disputed some £75,000 in scaffolding costs for 2019 external works, arguing that cradles or scissor lifts could have been used more cheaply, as had been done in 1992.

Although permission to appeal was granted on the narrow issue of whether the First-tier Tribunal had misapplied the burden of proof, the Upper Tribunal ultimately upheld the FTT’s reviewed decision.  The landlord’s detailed 43-page specification, including extensive repairs such as window removal, timber replacement and render works, showed scaffolding was necessary to provide a firm platform and weather tight enclosure. 

The case highlights that once leaseholders raise a prima facie challenge, robust documentary evidence will usually suffice for landlords to justify substantial service charge expenditure. 

Click here to read more [may require you to sign up].

Stamp Duty Land Tax on periodic tenancies

The Government has announced plans to legislate to prevent tenants being unexpectedly caught by Stamp Duty Land Tax (SDLT) on rent following the Renters’ Rights Act 2025 (RRA).  From 1 May 2026, fixed term assured shorthold tenancies will be abolished and all tenancies will become periodic, with tenants able to remain indefinitely subject to giving two months’ notice.

Under existing SDLT rules, tax is charged where the net present value (NPV) of rent exceeds £125,000.  Historically, for assured shorthold tenancies, the NPV was calculated over a relatively short fixed term.  Under the RRA regime, however, the NPV of rent on a continuing periodic tenancy would be calculated on an indefinite basis, potentially pushing tenants over the £125,000 threshold without any real change in their arrangements.

To address this, Finance Bill 2026 27 will retrospectively exclude rent under affected assured tenancies from SDLT from 1 May 2026, with HMRC not collecting SDLT on such rents in the interim. 

Please find further information, here.

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.

With thanks to Rebecca Phipps, Nishtha Guha and Jessica Hill

If you have any queries please do get in contact with a member of the team, or your usual RPC contact.