The Week That Was - 29 August 2025

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

The cost of building safety

The Building Safety Levy (BSL), effective from October 2026, is a new levy on qualifying major residential schemes in England, introduced following powers granted under the Building Safety Act 2022, to fund remediation of building defects.  Applicable to schemes of 10+ units or 30+ student bedspaces, the BSL is calculated per square metre of gross internal area, with relief for affordable housing. Rates vary by location and site type, with brownfield sites typically discounted by 50% compared to greenfield.  Care homes, hotels, and minor developments are excluded. 
The levy must be paid upfront, potentially posing cashflow challenges for SME developers who lack economies of scale, compared with plc housebuilders. Combined with other planning obligations — such as second staircases and biodiversity obligations — the BSL may constrain scheme viability and further slow housing delivery, prompting calls for targeted relief or threshold adjustments.

Please click here to read more.

Government announces environmental reforms to speed up planning process

The Department for Environment, Food and Rural Affairs (DEFRA) has announced reforms to the planning system aimed at accelerating project delivery while protecting the environment.

£500m has been allocated to fund the reforms which will include the creation of the Nature Restoration and Marine Recovery Funds.  Money will also be invested into the planning system to help planning applications be processed faster.

Some of the current projects which stand to benefit are the Lower Thames Crossing, which will now have Natural England as the single point of contact for environmental matters.  The planning process is also due to accelerate on Hinkley Point C, East West Rail and the Heathrow Airport expansion.

Click here to read the press release.

"Fair And Reasonable Rates" - Guidance on an Adjudicator's Power to Consider the Rates Applicable to Variations

In Clegg Food Projects Ltd v Prestige Car Direct Properties Ltd [2025] EWHC 2173 (TCC) (Clegg Food Projects) the Claimant Contractor applied for summary judgment to enforce an adjudication decision against the Employer.  The Contractor and the Employer had entered into a JCT Design and Build contract with amendments in November 2022 for the construction of a leisure and retail centre.  A dispute arose over Payment Application 37 regarding the valuation of eight variations.  The Adjudication was determined in favour of the Contractor.  However, when the Contractor sought to enforce the Adjudication decision by way of summary judgment, the Employer argued that the adjudicator's decision was unenforceable, alleging that the adjudicator's use of new rates and different measurements was a breach of natural justice and inadequate reasoning had been provided. 

The Court held that the adjudicator's task was to provide a gross valuation for Payment Application 37, which included disputed items.  The use of 'fair and reasonable' rates fell within the adjudicator's discretion.  Additionally, the intermediate figures used were within the range established by the parties.  The adjudicator's provision of additional workings after the decision was handed down showed a willingness to clarify matters, rather than providing inadequate reasoning. The Court found that a breach of natural justice must be substantial to render the adjudicator's decision unenforceable and found that in the present case any procedural irregularity was immaterial.  Summary judgment was granted to the Contractor to enforce the adjudication decision. 

Read the full decision on Bailii here. 

'Building Safeguards' – Overview of The Institute of Civil Engineers Review 

The Institute of Civil Engineers (ICE) has recently released a review of safety risk management in civil engineering entitled 'Building Safeguards'.  That review has found that in the past eight years safety risks have risen, rather than fallen as the prevailing wisdom suggests.  Building Safeguards finds that issues such as ageing infrastructure, climate change, constrained maintenance budgets and more frequent use are urgent issues which must be considered in the design, construction maintenance and re-purposing of infrastructure in the United Kingdom. 

The review includes various recommendations, including an action plan prioritising competence, learning from failure and culture change within the industry.  Other recommendations include a further review into high risk sectors, the appointment of a trustee to oversee progress of the action plan and promoting the use of confidential reporting systems like Cross-UK which allows professionals to report safety concerns and other insights throughout the construction industry.  Separately, Cross-UK has also been appointed by the Building Safety Regulator as the official voluntary reporting system for structural and fire safety until at least 2028. 

Read more at the New Civil Engineer here. 

Delays caused by the Building Safety Act 'beginning to ease' 

Tendering activity within the UK construction sector demonstrated notable improvement in the second quarter of 2025, with tender workloads rising by 2% compared to the previous quarter and 3.2% year-on-year.  This positive trend reflects the gradual easing of project delays attributable to the Building Safety Act, enabling more projects to progress through the tendering process. 

The recent National Association Contribution Frameworks' Q2 market intelligence report indicates robust demand, particularly in infrastructure and housing-related works.  Window fitting led the recovery, registering a 12.3% increase, while groundworks and steel frame packages collectively rose by 6.75%. Conversely, mechanical and electrical trades declined by 4.6%, with marginal reductions observed in concrete frame and drylining trades. While subcontractors have maintained a selective approach to bidding, and despite ongoing concerns regarding US tariffs and geopolitical tensions, industry sentiment remains cautiously optimistic, with a steady pipeline anticipated as safety-driven delays continue to abate.

Please click here to read more.

Southern Construction Framework restructure

The new SCF6 framework is due to launch in May 2027 and will combine high and low value projects which are split under the existing framework.  
For the first time, the framework will be open to 2-stage and single-stage tenders for lower value projects to meet client demand.
The framework will run for 4 years and will remain open for all public sectors bodies in England.

Click here to read more.

With thanks to: Laura Sponti, Arthur Prideaux and Ryan Loney.