Key Legal and Industry Changes Shaping the Construction Sector in 2026 and Beyond (Part 2)

Part 1 of our report outlined how the UK construction sector continues to evolve, including as a result of new and anticipated new legal and commercial developments and shifting market dynamics. For construction professionals and businesses, navigating these changes will be important, not only for ensuring compliance with regulatory or client requirements but also in maintaining a competitive advantage in the market.

In this second instalment of our report, we look ahead to predict some of the significant trends and developments anticipated to arise during 2026 and suggest some practical steps to help you prepare for future opportunities, challenges or risks arising.

What’s included in Part 2 of our report?

We explore the potential industry trends and legal, regulatory, and commercial developments likely to impact the construction and engineering sector this year together with what they mean for your contracts, projects, and processes.

Key topics covered in this update include:

• Core legal and regulatory developments: including protections in light of the continued evolution in the building safety regime, the Carbon Border Adjustment Mechanism, Biodiversity Net Gain, and concerning updates to practices on payment, retention, and specification and use of construction products.
• Further market and technology trends: including drafting for digital technologies/artificial intelligence, collaborative ways of working, construction products, and other ESG considerations.
• Other commercial risk insights: including the continued importance of due diligence and contractual protections in relation to insolvency risk, delay and disruption, and other tax or payment-related points.

This report highlights the main issues that construction companies and professionals should monitor or prepare for in their respective governance processes and contract drafting/negotiations during 2026. Find a copy here.

Beale & Co’s Contracts and Project Advisory Team continue to support clients in understanding and navigating future developments directly impacting in the sector. Please contact the authors should you have any questions or if you wish to discuss any of the items covered in these recent reports or how to incorporate these into your construction contracts or professional appointments.