The Week That Was - 4 July 2025

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

TfL commences procurement process for £700m infrastructure improvement framework

Transport for London (TfL) has launched a procurement process for a new infrastructure improvement framework worth up to £700m.  The four-year framework, with a possible two year extension, will cover both design and construction services using a collaborative, multi-stage NEC contract model with early contractor involvement.  

Key projects expected under the framework include the £60m Elephant & Castle Station upgrade, the £80m South Kensington Station improvement scheme, and approximately £200m in step-free access initiatives - all subject to funding approvals.

A maximum of four suppliers will be selected, with work allocated based on performance and equitable distribution, and the possibility of mini competitions. TfL will act as the sole contracting authority, aiming to enhance collaboration across its capital works programme. Interested firms must apply via SAP Ariba by 30 September 2025.  The contract award decision is scheduled for 1 December 2025, with work commencing from 8 December 2025.

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Government reveals plan to deliver 300,000 homes

 On 2 July 2025, the Government has unveiled plans to deliver around 300,000 social and affordable homes through a new £39bn Social and Affordable Homes Programme.  It's said that at least 60% of these homes will be for social rent (c. 180,000).  This programme almost doubles the previous 5-year Affordable Homes Programme which was worth 12.3bn and targeted 130,000 homes by 2026.  Homes England will oversee most of the funding, with up to 30% of the funding being allocated to the Greater London Authority.

Angela Rayner, Deputy Prime Minister and Housing Secretary, has stated " We are seizing this golden opportunity with both hands to transform this country by building the social and affordable homes we need, so we create a brighter future where families aren’t trapped in temporary accommodation and young people are no longer locked out of a secure home. "

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Ofgem's £24bn electricity grid upgrade

The Office of Gas and Electricity Markets (Ofgem) has provisionally approved a £24bn investment to strengthen the UK's energy infrastructure and support the transition to cleaner energy.  The plan includes over £15bn for the safe operation of gas networks and £8.9bn for upgrading the high-voltage electricity grid, with an additional £1.3bn available to accelerate project delivery.

This marks the start of a broader £80bn investment programme aimed at decarbonising the grid and reducing reliance on volatile international gas markets. The upgrades will support 80 projects, adding 3500km of new circuits and integrating up to 126 GW of renewable energy by 2030. Ofgem has cut over £8bn from initial proposals to ensure consumer value and has built in cost controls.  By 2031, consumers can expect savings of £80 projected through reduced constraint costs.  The consultation period is now open, with final decisions due by the end of 2025.

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The new Hong Kong Construction Act

The Construction Industry Security of Payment Ordinance, coming into force in Hong Kong on 28 August 2025, will introduce mandatory payment terms and a formal adjudication process to address delayed wages and project fee payments within the construction sector.

Inspired by legislation in England, Wales, and Singapore, the Ordinance aims to protect stakeholders in the supply chain, reduce substantive delays on site, decrease the need for risk-related cost premiums in the procurement process and to expedite the resolution of payment disputes.  The Ordinance applies to eligible public and private construction contracts entered into on or after its enforcement date.  It removes ‘pay when paid’ provisions and includes a claim handling process to analyse and determine liability and payment amount.

The Ordinance applies to Hong Kong construction work, even under contracts that are not governed by the law of Hong Kong thereby broadening the scope of potential construction contracts to which the Ordinance could apply.

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CMA investigates potential Kingspan and Coverworld acquisition

The Competition and Markets Authority (CMA) has recently launched an official investigation into the anticipated acquisition by Kingspan Group Limited (Kingspan) of Coverworld Holdings Limited (Coverworld).

Kingspan is a large international building materials manufacturer, which produces and sells cladding, insulation, panels, roofing and much more. Coverworld on the other hand, is a smaller, Derbyshire-based company which supplies single and twin skin coated steel cladding systems.  

The CMA will now consider whether this acquisition could substantially lessen competition within any market or markets in the United Kingdom for goods or services.  The CMA has until 1 September 2025 to make a Phase 1 decision. If upheld, the merger will then be considered a panel of independent experts.

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The Government's new industrial strategy paper

The UK Government has published its industrial strategy, a plan to drive growth in key sectors whose growth is likely to boost the construction industry.  It includes plans for specific sector strategies in eight identified growth driving sectors.  The eight sectors include, advanced manufacturing, creative industries, life sciences, clean energy, defence, digital and technologies, professional business services and financial services.  

Whilst the construction industry is not identified in the strategy specifically, it refers to construction as a sector that requires action such as modernisation of methods, boosting the number of skilled workers and improving public procurement for it to succeed.

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With thanks to Alisha Jackson and Kristin Smith.

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.