The Week That Was - 17 April 2025

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

Government takes control of British Steel's Scunthorpe plant

Last Saturday (12 April 2025), MPs were recalled from Easter recess to pass a law enabling the Government to direct British Steel's workforce, manage operations, and order materials to keep the blast furnaces running at the Scunthorpe plant.  This unprecedented move effectively transfers control of the plant from its Chinese owner, Jingye, to the Government.  The Scunthorpe plant employs 2,700 people and is the last facility in the UK producing virgin steel, a vital material for major construction projects.

Starmer acknowledged the extraordinary nature of the law but emphasised its importance in safeguarding the future of British steel.  If British Steel is nationalised, as the Government has suggested is likely, it would represent the largest state rescue since several banks were nationalised in 2008 during the financial crisis.

To read more, click here.

Architect found not liable for water ingress damage in construction management project

In Vitsoe Ltd v Waugh Thistleton Architects Ltd [2025] EWHC 850, it was held that the defendant architect was not liable for water ingress damage that occurred during the construction of a timber building. 

The claimant sought £4m in damages from the defendant, who was the architect for its factory and office complex which completed in 2017.  The claimant alleged that the defendant had breached its contract by failing to provide a moisture content control plan, failing to recommend a temporary protective roof and failing to act when construction did not take place according to the planned timetable. 

Despite the architect being the "design team leader," the judge found the construction manager's role crucial, as they were expressly tasked with site management and protecting the works during construction.  The judge also referenced Royal Brompton Hospital NHS Trust v Hammond (No 9) [2002] EWHC 2037 (TCC), which noted that the construction manager will usually be regarded as the "co-ordinator and guardian of the client's interests."

While this case was decided on its fact, it highlights how the architects' duties were limited by the client choosing to adopt a construction management procurement structure.

You can read the Judgment here.

Procurement for Housing – decarbonisation framework agreed

Procurement for Housing (PfH) is an organisation that supports social housing providers by offering frameworks and solutions to drive cost efficiencies, sustainability, and social value.  PfH has recently moved forward with decarbonisation and retrofit works for social housing around the UK.  Since 31 March 2025, members of PfH are able to procure upgrades including heating (including district heating and heat pumps), insulation (including roof, cavity and external wall works), windows and doors, energy efficiency consultancy and up to full property refurbishments.  This is part of a 4-year, £500 million procurement framework, compliant with Public Sector Decarbonisation Funding with an aim to reduce emissions from public sector buildings by 75%, by 2037. 

For details of the Public Sector Decarbonisation Scheme, click here.  For details of the PfH framework, click here.

Allies and Morrison to design area surrounding Old Trafford

Alongside the Old Trafford regeneration taskforce, architectural firm, Allies and Morrison will create a design that will transform the Wharfside area around the stadium.  This news comes a month after the plans for a new home stadium for Manchester United were unveiled.  The council views this regeneration as a large growth opportunity for the borough and will shape the future of the area.  Allies and Morrison partner, Paul Eaton, believes that Trafford Wharfside has the potential to become a thriving new neighbourhood.  

Around 2000 homes are planned to be developed along with 25,000 square meters of office, light industrial, and research and development space.  The key aims of the project are identifying regeneration opportunities, promoting a sense of identity for Wharfside, and maximising sustainability.  The masterplan study is aimed to be completed in early 2026.

To read more, click here. 

US tariffs hit UK construction parts firm

Plant Parts, a Hadleigh based construction machinery company, which sells hydrostatic gearboxes, has been caught in the crossfires of international trade tensions after a client withdrew a £350,000 order, days before it was meant to be shipped to the US.  The client allegedly cancelled their order in light of the increased import duties resulting from the US's new tariffs.  Plant Parts predicts their client could have been hit with an import duty bill in excess of £80,000.  

Since Brexit reduced the proportion of business done with the EU, the company has become increasingly dependent on cross-Atlantic trade.  The Construction Products Association reported that 15% of UK construction products were exported last year, and the US was the second largest market.  The prolonged uncertainty over tariffs is becoming a concern for the industry.    

To read more, click here.

With thanks to Emrys Moore, Abbie Dyas and Maddie Ward

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.