The Week That Was - 7 August 2026

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

Judgment in Durkan Estates Ltd v Wallace Estates Ltd [2026] EWHC 2003 (TCC)

In Durkan Estates Ltd v Wallace Estates Ltd [2026] EWHC 2003 (TCC), the TCC dismissed Wallace’s application for a summary judgment dismissing Durkan’s claim (challenging termination of a remediation agreement) and summary judgment on Wallace’s counterclaim.  Wallace argued Durkan was in repudiatory/anticipatory breach for failing to start or finish by the contractual Completion Date, justifying termination after the First-tier Tribunal (FTT) refused to extend Wallace’s remediation order deadline. 

The Court held Durkan had a real prospect of success and the issues required trial.  Time was arguably not of the essence, so delay “without more” was not automatically repudiatory.  There was an arguable case that the Completion Date was at large, including via estoppel by convention as to how the parties treated the date.  Causation of delay and responsibility were fact-sensitive and disputed.  Wallace’s conduct immediately before termination also raised arguable affirmation issues.

Read the full judgment here in Durkan Estates Ltd v Wallace Estates Ltd [2026] EWHC 2003 (TCC)

Contractors sign deals for 11 hospitals under £37bn programme

Eleven contractors have signed long-term agreements to deliver hospitals across England under the first wave of the government’s £37bn New Hospital Programme, moving schemes (first trailed in May 2026nto delivery via the Hospital 2.0 Alliance launched in March. The model is designed to replace project-by-project tendering with longer-term trust contractor partnerships, using repeatable “Hospital 2.0” designs, modern methods of construction and centrally managed procurement. 

NHS statements suggest around 80% of each hospital will follow standardised principles, with trusts retaining responsibility for local requirements. 

Read more about contractors signing deals for 11 hospitals.

Severn Trent launches engagement on £25bn capital works frameworks

Severn Trent Water and Hafren Dyfrdwy have launched market engagement on capital works frameworks valued at an estimated £25bn (ex VAT), covering Yorkshire and Humber, the East Midlands, the West Midlands and East Wales.  The procurement is expected to establish multiple frameworks (rather than a single award), with lots spanning managed services, design-and-build and directed delivery, and with some suppliers potentially required to support early-stage design alongside detailed design. 

The frameworks could run for up to 12 years from 2028 to 2040, with an initial period to 2036 and an extension of up to four years.  The scope spans building and civils, pipelines and water infrastructure, ME installation, plant, maintenance and specialist works, plus site preparation, roofing/insulation, plumbing, fencing, lifting equipment and water distribution services. 

A market engagement day is planned for 29/09/2026; engagement closes 30/11/2026; a tender notice is expected on 01/02/2027. 

Read more about Severn Trent launching engagement on £25bn capital works frameworks

Torsion Construction Limited enters administration

Torsion Construction Limited (a £165m turnover firm) has appointed Joint Administrators James Clark and Howard Smith due to liquidity pressures (the Directors were unable to raise additional funding).  The majority of its 115 staff based in Leeds have been made redundant.  

Read more in Business Live.

Taylor Wimpey slashes dividend policy

Taylor Wimpey has cut its annual shareholder distribution policy from 7.5% to 4% of net assets to preserve balance sheet strength and financial flexibility.  Half-year results showed net cash fell 48% to £169m from £327m a year earlier.  Adjusted operating profit dropped 19% to £130m on revenue that upped 2% to £1.68bn.  Taylor Wimpey expects to end the year with c.£250m of net cash after absorbing c.£100m of cladding-related payments.

Read more in Construction Enquirer.

Steel specialist posts record revenue

Taziker has posted record revenue for the year to 31/03/2026, with turnover rising to £87.5m (from £81.8m) and pre-tax profit jumping to £4.8m (from £1.5m).  The growth came despite the closure of its fibre-reinforced polymer division, initiated in March 2024; stripping that division out, the company said prior-year pre-tax profit would have been £3.9m.  

Managing director Neil Harrison credited an upturn in Control Period 7 (CP7) work (Network Rail’s seventh multi‑year funding and delivery period for maintaining and enhancing Great Britain’s rail infrastructure) in the second half of FY26, with Taziker on three regional CP7 frameworks, and continued positive performance on the £11bn Transpennine Route Upgrade.  During the year it was also appointed replacement contractor to repair the Grade II listed, 100-year-old Corporation Road Bridge in Grimsby.  Industrial services and structural fabrication utilisation improved, while average staff numbers increased to 392 (from 377).  Management expects CP7 momentum to support further growth into FY27.

Read more about steel specialist posting record revenue.

With thanks to Zack Gould-Wilson and Jessica Hill

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.

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