The Week That Was - 21 February 2025

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

TCC dismisses inadequately pleaded professional negligence claim: Firdous v Ecclesall Design Ltd and others [2025] EWHC 90 (TCC)

The claimant claimed that various defendants, including a construction contractor (Fifth Defendant), development company (First Defendant), and insurer (Fourth Defendant), were liable for losses relating to the collapse of a retaining wall during building works at a residential property allegedly owned by the claimant.  The defendants raised concerns about the claimant's lack of clarity, particularisation, and compliance with procedural rules, including a failure to follow the Pre-Action Protocol for Construction and Engineering Disputes. 

The Court found that the claimant's Amended Particulars of Claim and proposed Re-Amended Particulars of Claim were deficient in multiple ways, including failing adequately to particularise the alleged breaches of each defendant and how this linked to the claimant's losses.  The claimant's Re-Amended Particulars of Claim did not resolve these deficiencies.  The Court struck out the claimant's claims against the First, Fourth and Fifth Defendants and granted summary judgment in their favour.

The judgment serves as a reminder that proceedings must be well-formulated and Pre-Action Protocols must be followed.  Absent of this, the Court will strike out claims.

To read the judgment, please click here.

Construction of new towns by 2029

The Government has announced that works on constructing 'new towns' will commence before the next general election in 2029.

The majority of new towns will be extensions to existing towns and cities.  The goal is for each new town to have at least 10,000 new homes alongside supporting infrastructure.  These homes are part of the Government's wider housebuilding target, of 1.5 million homes in 5 years, to address the housing crisis. 

Over 100 potential sites across England were proposed to a special taskforce after the Government requested expressions of interest from councils, housing developers and landowners.  The taskforce will identify specific locations by the Summer.

Housing Minister, Matthew Pennycook, said last week that the aim is to build "well-designed, affordable, attractive homes" that would "eventually house millions of people, just as the post-War waves of new towns did."

To read more, please click here.

Government hopeful apprenticeship changes will benefit construction sector

Following recent changes, businesses can now decide whether applicants aged over 19 will need to complete GCSE English and Maths (or equivalent) to qualify for apprenticeship.  From August 2025, the minimum duration of an apprenticeship will also shorten from one year to eight months.  As a result of these changes, the Government hopes that 10,000 more apprentices will qualify per year and that this will benefit various sectors including the construction sector.   

Education Secretary, Bridget Phillipson, who announced the reforms, stated that: “Businesses have been calling out for change to the apprenticeship system and these reforms show that we are listening.  Our new offer of shorter apprenticeships and less red tape strikes the right balance between speed and quality, helping achieve our number-one mission to grow the economy."

To read more, please click here.

Bristol flats to be demolished following collapse of ISG

Residents of a Bristol development built by ISG Pearce have been told they must find somewhere else to live by March 2026.  Bouverie Court, a former pub building, was redeveloped into 14 self-contained flats and 7 houses for affordable rent in 2011.  However, ten years after its construction, an external wall fire safety survey carried out in 2021 identified a number of issues with the structure and build quality at Bouverie Court and its adjoining properties.  As a result, it needs £4m worth of repairs – a bill that housing association Elim Housing says it cannot afford.

The building was inspected upon completion in 2011 and passed building regulations; but Elim have since been told that it shouldn't have.  Elim's CEO, Paul Smith, has stated: “Unfortunately, the inherited repairs, poor efficiency and structural issues identified at the scheme, along with the unviable potential long-term disruption for residents means we have taken the hard decision to demolish the properties after exhausting all other possible solutions."

You can read more here and here.

Construction is the worst-hit sector for insolvencies in 2024

Figures published this week from the Insolvency Service have shown that construction was the worst-hit sector for insolvencies in the year to December 2024.  4,032 building businesses became insolvent, accounting for 17% of all cases in England and Wales.  The next worst-hit sectors were wholesale and retail (3,572), and accommodation and foodservice (3,464).

Kelly Boorman, head of construction at accountancy firm RSM UK, blamed various factors, including delays in project starts and the amount of debt burden and distress in the building supply chain. 

However, month-by-month figures also released by the Insolvency Service are slightly more positive.  They show 103 construction insolvencies in December, down from 118 in November.  It is hoped that the Government's plans to slash red tape (to accelerate the training of workers) and to build 1.5 million homes, as well as falling interest rates, will improve the overall picture.

You can read more here.

Ray O'Rourke named chairman of Laing O'Rourke

Ray O’Rourke, founder of Laing O’Rourke, will step into the chairman role from 1 April, following Sir John Parker’s decision to step down after eight years. Parker, who turns 83 in April, will continue in an ambassadorial role to provide guidance to the company.  O’Rourke, previously deputy chairman, expressed his commitment to driving innovation in modern construction alongside his son, CEO Cathal O’Rourke, and the board.  The leadership transition comes as Laing O’Rourke strengthens its European operations, with Peter Lyons recently taking over as CEO of its Europe hub. Laing O’Rourke, the UK’s largest private contractor, posted an £18m pre-tax profit on £4.3bn turnover for the year ending March 2024, marking a recovery from a £288m loss the previous year.

For more information, please read here.

With thanks to: Emily Snow, Victoria Sessions, Natalie Chan, Sophie Hudson

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.