The Week That Was - 3 July 2026

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

High Court clarifies meaning of "Banking Days"

Songa Product and Chemical Tankers v Gardsea Shipping [2026] EWHC 1559 (Comm)

The High Court allowed an appeal by a claimant seller against an arbitral tribunal's interpretation of "Banking Days" in a ship sale contract.  The contract with the defendant buyer required that payment be made by releasing funds in Norway no later than three "Banking Days" after notice of readiness was given.  The term "Banking Days" was defined as days on which banks were open in certain jurisdictions including the USA and Norway.  Whilst the tribunal held that the buyer had until midnight in Hawaii to make payment, the High Court held that the deadline was midnight in Norway, the place of performance, and that time zones should not be taken into account for the purposes of determining when midnight had passed. The High Court favoured commercial certainty over the buyer's interpretation, which would have produced a "Banking Day" lasting up to 38 hours and spanning multiple time zones.

You can read the full judgment here.

Greater London Authority seeks development partner for rebuild of historic markets

The Greater London Authority has launched a hunt for a development partner to deliver a £220m rebuild of London's historic Billingsgate and Smithfield markets at Albert Island in Newham, where the markets are set to relocate.  The new site will house 300,000 sq ft of new wholesale market facilities and supporting commercial space, alongside major enabling infrastructure and site servicing works.  The development is set to lead to a major regeneration scheme beyond the markets, with planning consent for 750,000 sq ft of new development and a new boat yard.  The move also presents large scale opportunities for redevelopment of the original market sites near Canary Wharf and the City of London.  The grade-II listed Smithfield Market halls are to be transformed into an international cultural and commercial destination and the Billingsgate site is lined up for 4,000 new homes and a new pedestrian and cycle bridge.

To read more, click here.

Government to release AI tool with aim of slashing planning decision times

Millions of homeowners seeking permission for extensions, loft conversions and other improvements could soon see faster planning decisions, after the government unveiled two new AI tools to modernise England’s planning system.

The first is a new AI prototype designed to cut the average time for processing householder planning applications from eight weeks to four.  Now in early-stage testing with Barnet, Camden and Dorset councils, the tool triages applications, summarises key information and produces an initial assessment for planning officers to consider.  It is being developed by government in collaboration with Google DeepMind, Google Cloud, Faculty and local planning authorities.

Householder applications make up nearly 70% of all planning applications each year.  Ministers say reducing time spent on straightforward cases will allow planning teams to focus on more complex proposals, including new housing and major developments.  If trials prove successful, the technology is expected to be rolled out nationwide by 2027, with “every assessment reviewed and approved by a qualified planning officer before any decision is made”.

A second tool, Extract, is now available to all councils in England, fulfilling a commitment first made by the Prime Minister last year.  Extract uses AI to convert decades-old planning documents and maps, including handwritten notes, into usable digital data in minutes.

For more information, please read here.

Consultation on proposed change to fire-safety proposal for use of timber in loading bearing structures closed on 1 July 2026 

A proposed update to England’s fire-safety guidance could significantly limit the use of timber in load-bearing structures in mid-rise buildings, prompting concern across the timber and construction sectors.

The government consulted on changes to Approved Document B, the fire-safety guidance used under the Building Regulations in England.  The consultation closed on 1 July 2026.

The proposed change would see changes to load-bearing structural elements in buildings where a storey sits more than 11 metres above ground level.  The structural elements would need to be constructed from materials or products achieving at least class A2-s3,d2 for reaction to fire.  Most structural timber products, including mass timber systems, do not typically meet that classification.

Industry stakeholders say the proposal would broaden the debate beyond external walls and cladding by potentially influencing the structural frame itself.  That could affect a wider range of mid-rise residential, commercial and mixed-use schemes than previous restrictions.

For more information, please read the article here or more information on the government website here.

Leeds City Council appoints contractors to £1.5 billion major works framework

Leeds City Council has appointed 11 contractors to its £1.5 billion YORbuild Major Works 2 framework, which will deliver public-sector construction projects across Yorkshire & the Humber, the North East, Lincolnshire, Nottinghamshire, Derbyshire and parts of Leicestershire. 

Running from July 2026 to July 2030, with an option to extend for a further two years, the framework covers general building, civil engineering, design services, and new-build housing.  This provides a long-term pipeline of investment across the North supporting regional growth and economic regeneration.

The framework also reflects a commitment to the Construction Playbook, emphasising collaboration and modern construction practices that broaden opportunities and help upskill the workforce. 

You can read more here [may require subscription].

TCC rules pay less notices invalid

On 23 June 2026, the TCC handed down Judgment in Deerns UK Ltd v VDC LHR11 Ltd [2026] EWHC 1509 (TCC), a claim concerning two pay less notices served by VDC that Deerns deemed invalid.

Deerns sought £910,501.71 plus VAT, arguing that the consultancy agreement failed to provide an adequate final date for payment under s.110(1)(b) of the Housing Grants, Construction and Regeneration Act 1996.  As a result, the Scheme for Construction Contracts applied, imposing a 17‑day final payment period with pay less notices due five days before that date. 

Justice Eyre agreed, holding that the contract allowed the final date for payment to shift, meaning the period between the due date and final date was not fixed.  Applying Rochford v Kilhan, this does not comply with s.110(1)(b).  Therefore, the Scheme’s 17‑day period applied and the pay less notices were invalid.

Read the full decision here.

With thanks to Fiona Engledow, Georgina Haynes and Carita Hui

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.

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