The Week That Was - 10 October 2025

Welcome to The Week That Was, a round-up of key events in the construction sector over the last seven days.

Limitations under collateral warranties - a cautionary reminder

Collateral warranties are often heavily negotiated, but the recent Scottish case Legal & General v Halliday Fraser Munro highlights just how important the wording of limitation clauses can be.

In their latest article, Arash Rajai and Claire Wilmann of RPC explore:

• Why a “no greater duty” clause does not automatically import limitation defences from the underlying contract;
• How courts have distinguished between “no greater duty,” “no greater liability,” and “equivalent rights in defence” clauses; and
• Practical lessons for employers, contractors and consultants when negotiating warranties.

Read the full analysis here.

Important decision on remediation orders

On 16 September 2025 the First-Tier Tribunal Property Chamber (Residential Property) handed down an important decision on the correct interpretation of s123 (Remediation Orders) of the Building Safety Act 2022 (the Act) in the matter between Kieft and Other v Hyde Housing Association Limited (case ref. LON/00AE/BSA/2024/0503).

The Tribunal concluded "that s.123(2) empowers us to make a remediation order that contains a schedule of specified defects that need to be remedied, but not one that requires compliance with a particular specification of works. How the landlord goes about remediation must be a matter for it" (at paragraph 59). In other words, a remediation order can only specify the 'relevant defects' to be remedied, it cannot specify the remediation scheme to repair those defects. It identifies what needs to be remedied but it cannot say how those defects should be repaired.

In coming to this conclusion, the Tribunal held that 'relevant steps' in relation to a 'relevant defect', as defined at subsection 140 4A of the Act, are distinct from the remediation of defects. The Tribunal said an example of 'relevant steps' is a 'waking watch' whilst fire safety works are being carried out. However, the remediation works themselves, are not 'relevant steps' for purposes of the Act.

Read more here.

Building Safety Regulator streamlines Gateway 2 approvals

The Building Safety Regulator (BSR), chaired by Andy Roe, has announced ambitious measures to reduce gateway 2 approval times for high-rise residential schemes. Currently, firms wait an average of 43 weeks for approval across the UK, rising to 48 weeks in London. Roe aims to cut this to 12 weeks by batching up to 20 applications for review by multi-disciplinary teams and recruiting up to 10 dedicated account managers for major developers and regions.

Roe acknowledged, “it’s a system that’s not been working for the regulator or for you in the industry,” and committed to overhauling the BSR’s IT system, stating, “data, digital, access [all] has to be better.” Presently, 156 new-build applications are at gateway 2, with 26 in the batching process, alongside 276 remediation and over 400 refurbishment schemes awaiting approval.

These changes are expected to accelerate project delivery, reduce delays, and strengthen regulatory engagement, benefitting developers and the wider construction sector.

You can read the full article here.

CIOB sets out blueprint to fix UK construction volatility

The Chartered Institute of Building (CIOB) is urging structural reforms to address volatility in the construction sector, warning that instability undermines the industry’s ability to meet government housing and infrastructure targets. The report highlights that the sector may need to expand by up to 40% to deliver Labour’s 1.5 million homes pledge and support decarbonisation, but persistent labour shortages, frequent insolvencies, and fragmented delivery models present major obstacles. CIOB recommends five key reforms: 1. reducing boom-bust cycles through consistent pipelines and transparent funding; 2. improving real-time data for planning; 3. aligning national policy goals with delivery mechanisms; 4. creating a unified government strategy; and 5. incentivising innovation through procurement reform. The report stresses that without lasting change to the business environment and better coordination across government, the industry risks repeating past failures and will struggle to scale up to meet future demand.

Read the Construction News here or access the CIOB Report here.

Fragile recovery: PMI reveals mildest construction in months

The SP Global UK Construction Purchasing Managers’ Index (PMI) rose to 46.2 in September 2025, up from 45.5 in August, signalling the slowest rate of decline in three months. Although still below the neutral 50 mark, the reading indicates a mild contraction and some easing in sector downturn. Residential building improved to 46.8, commercial activity slipped to 46.4, and civil engineering lagged at 42.9, though its rate of decline softened. New work fell for the ninth consecutive month, mainly due to subdued client demand, economic uncertainty, and delays ahead of the Autumn Budget. Employment dropped for a ninth month, with hiring freezes and reduced workloads, though apprenticeship recruitment saw a modest rise. Input cost inflation accelerated, driven by wage, transport, and energy costs. Experts noted fragile conditions, persistent skills shortages, and planning delays, but expressed hope for recovery through infrastructure investment and adoption of modern construction methods.

Read the full article here.

With thanks to Jonathan Carrington, Oliver Clarke, Amraj Biring and Brendan Marrinan

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.