Key Legal and Industry Changes Shaping the Construction Sector in 2026 (Part 1)

Although the UK construction sector displayed pockets of greater stability in 2025, the last year delivered key legal, regulatory and market developments that should not be overlooked. Staying ahead of these shifts is essential for compliance and will help to inform competitive tendering strategies, effective contract positions and to also protect project outcomes.

In this first instalment of our two‑part series, we spotlight some of the most significant changes from 2025 and provide practical pointers to help you manage risk and prepare for the challenges and opportunities of 2026.

What’s included in Part 1 of our report?

We consider the main developments impacting the construction and engineering sector over the past year and what they mean for your contracts, processes, and projects.

Key topics covered in our report include:

• Major legislative updates: including embedding the Procurement Act 2023 into public sector contracts and supply chains and new corporate duty to prevent fraud under the Economic Crime and Corporate Transparency Act 2023.
• Professional regulatory changes: what the new Architects Registration Board Code means.
• Evolving market and technology trends: including drafting for digital technologies/artificial intelligence and the evolving building safety regime.
• Practical drafting insights: following the Arbitration Act 2025 and recent case law impacting provisions on scope and risk allocation, conditions precedent, collateral warranties, adjudication rights, and termination for non‑payment.
• Other commercial risk considerations: including updates on managing delay and disruption, insolvency risk, and other payment-related issues.

Our analysis highlights the main issues construction companies and professionals should be looking to build into their contract drafting, negotiation, and governance processes for 2026. Find a copy here.

Beale & Co’s Contracts and Project Advisory Team continue to support clients across the sector in navigating these developments. If you have any questions regarding the information discussed in this report, or how Beale & Co can assist you, please contact Andrew Croft.