The Week That Was - 31 July 2026

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

Adjudicator entitled to find that neither party proved rate of liquidated damages

In BDP Construction Ltd v Cygnet Behavioural Health Ltd [2026] EWHC 1796 (TCC), the Technology and Construction Court enforced an adjudicator’s decision arising from an amended JCT Design and Build Contract 2016.  After practical completion, the employer sought to retain sums for alleged delay and defects, including liquidated damages (LDs).

A central issue was which set of contract amendments had been agreed, as this determined the LD rate.  The adjudicator found that neither party had proved the contractual LD rate and therefore the employer could not recover LDs.

The employer resisted enforcement, alleging the adjudicator exceeded jurisdiction and breached natural justice.  Constable J rejected both arguments concluding that it is generally within an adjudicator's remit to decide that a party has not proved its asserted position, and an adjudicator need not warn parties in advance that neither has discharged the burden of proof where no new case or evidence is introduced.

This case underscores the importance of clear agreement of amendments and LD schedules.

Read the full judgment in BDP Construction Ltd v Cygnet Behavioural Health Ltd [2026] EWHC 1796 (TCC).

Inflation falls to 2.6% but construction cost pressures remain, warns BCIS

The Building Cost Information Services (BCIS) has cautioned that the fall in UK consumer inflation should not be read as a sign that construction cost pressures have eased.  While official data show CPI at 2.6% in June, BCIS says construction faces a different inflation profile, driven less by household goods and more by labour, energy, transport and materials.  Its latest forecast data indicates building costs remain elevated, measured by the BCIS General Building Cost Index, and increased by 4.4% in the year to June.

BCIS also highlighted that June’s CPI reading was helped by a temporary dip in fuel prices during a brief easing of Middle East tensions.  However, renewed hostilities have since lifted oil prices again, increasing the risk of further pressure on energy and transport costs feeding through supply chains.

Looking beyond inflation, BCIS argues the bigger question is whether improving economic conditions will restore confidence and unlock delayed investment decisions, commenting that "Labour, construction materials, plant, transport, energy and contractor pricing all play a significant role in determining rebuild costs, and each can move independently of headline CPI."

Read more about BCIS’s latest analysis of inflation and construction cost pressures.

The climate benefits of choosing timber in building design

West Fraser’s 2025 Sustainability Report highlights the growing role of timber in reducing the climate impact of construction, estimating that its wood products helped avoid 19.8 million tonnes of CO₂ equivalent emissions through material substitution. By replacing more carbon-intensive materials such as steel and concrete, timber can significantly reduce embodied carbon and Scope 3 emissions across a building’s lifecycle.

The report emphasises that early material choices are critical to achieving lower whole-life carbon outcomes, complimenting efforts to reduce operational emissions.  As whole-life carbon assessments become more widely adopted, the findings provide architects, engineers, and specifiers with stronger evidence to support timber as a low-carbon design solution. 

West Fraser argues that decarbonisation will depend not only on cleaner manufacturing and new technologies but also on selecting renewable, responsibly sourced materials.  The report reinforces timber’s potential as a practical, scalable solution for meeting net-zero targets and reducing the construction sector’s overall environmental footprint.

Find out more about West Fraser’s 2025 Sustainability Report on timber’s climate benefits.

The Building Safety Regulator warns it will closely examine subcontractors on higher-risk projects

The Building Safety Regulator (BSR) has warned main contractors that they will be held accountable for the quality and competence of subcontractors working on higher-risk buildings. 

Andy Roe, the chair of the BSR, says that the expectation on contractors is now for stronger oversight as projects move from gateway two design approvals towards gateway three completion.  Roe also explained that when delegating jobs to subcontractors, the expectation is still that the main contractor has the professional expertise and technical knowledge to inspect work across several trades and confirm that construction matched the approved design.  Roe highlighted that in higher risk buildings, given the consequences of unsafe features are so dire, he is taking a preventative approach. 

This focus follows the BSR's success in their goal to reduce delays within the gateway two approval process. 

Read more about the BSR’s scrutiny of subcontractors on higher-risk building projects.

National Highways launching a £7.96 billion to improve maintenance and response work

The tender is expected to be announced next month and includes services such as maintenance, incident response, and renewal.  The framework is expected to be split into seven regional lots, with one supplier appointed per area, spanning more than 4,500 miles of motorways and major A roads.  The Southeast and Eastern lots have the highest estimated value while the Southwest has the lowest, however regional estimates could be shared across lots.

National Highways has suggested a framework lasting more than nine years from early 2028 to mid-2037 with hope that the extended term supports investment in staff, equipment, innovation, and long-term working relationships.  National Highways expects to publish a tender notice on 24 August 2026.  The deadline for enquiries is 21 September, and requests to participate must be submitted by 10am on 5 October.  An award decision is expected on 26 November 2027.

Find more information about National Highways’ proposed £7.96 billion framework.

Judgment in Grosvenor Developments Ltd v Parsons and Another

Grosvenor Estates Ltd appealed against HHJ Karen Walden-Smith's decision from June 2025 concerning the proper construction of an Agreement for Lease.  In the Lease dated 20 December 2011, Mr Peter Parsons agreed to acquire a long lease of a flat in Cambridge, later assigned to Ms von Rabenau.

The central issue heard was whether a document headed "Rider" attached to the agreement created a contractual indemnity protecting Ms von Rabenau from service charge costs that arose from limitations imposed on affordable housing tenants.  Grosvenor, the seller, argued that the lease made clear that any service charge shortfall resulting from a RPI Variation Cap should be borne by all non-affordable housing tenants, including Ms von Rabenau.

The court found, among other things, that the Rider was an indemnity and any shortfall constituted a "cost or expense" which as per the rider, the seller is responsible for.

Read the full judgment in Grosvenor Developments Ltd v Parsons and Another.

With thanks to Maddie Ward and Tess Turner

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.