TRW & Co · Real Estate & Construction
Construction Lawyers in London
Construction lawyers London developers, contractors, consultants and funders instruct structure projects and resolve the disputes that follow. That means choosing the right contract form, building a reliable security package, managing payment notices and adjudication, and meeting Building Safety Act duties. With new Supreme Court rulings, a standalone Building Safety Regulator and a proposed ban on cash retentions, 2026 brings real change.
Key pointSince the Supreme Court's 2024 ruling that a typical collateral warranty is not a construction contract, funders, purchasers and tenants have no automatic right to adjudicate under their warranties and must write one in expressly.
At a glance
Adjudication in 28 days
Section 108 of the Construction Act requires an adjudicator's decision within 28 days of referral, extendable by 14 days with the referring party's consent.
Extended defects limitation
Defective Premises Act claims that accrued before 28 June 2022 now have a 30-year limitation period; later claims have 15 years.
Standalone Building Safety Regulator
The Building Safety Regulator left the HSE to become a standalone body under MHCLG in January 2026, controlling higher-risk building gateways.
Arbitration Act 2025 in force
The Arbitration Act 2025 came into force on 1 August 2025, updating the framework for London-seated construction arbitrations.
Cash retentions under review
The Commercial Payments Bill would ban cash retentions in construction contracts after a transition period; it was still before Parliament in 2026.
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What construction lawyers London developers and contractors instruct actually do
Construction lawyers London developers, contractors, consultants, funders and public bodies instruct put projects on a sound legal footing and keep them there. The work covers procurement, building contracts and professional appointments, security packages, payment and variations, building safety compliance and, when things go wrong, adjudication, arbitration and litigation.
A construction project becomes a legal question well before anyone breaks ground. The procurement route, the standard form and its amendments, and the allocation of design and ground risk fix who pays when costs rise or programmes slip. Most expensive disputes can be traced back to a contract that was signed in a hurry, left unsigned, or amended inconsistently.
This page covers England and Wales. Scotland applies the same core payment and adjudication legislation with its own Scheme, and Northern Ireland has separate construction contracts legislation, so projects across the UK need jurisdiction-specific drafting. Contested matters are handled with our construction disputes team.
The legal and regulatory framework
The Construction Act: payment and adjudication
Part II of the Housing Grants, Construction and Regeneration Act 1996 (the Construction Act), as amended by Part 8 of the Local Democracy, Economic Development and Construction Act 2009, applies to most construction contracts. It gives each party a right to refer a dispute to adjudication at any time and imposes a framework of payment notices and pay less notices.
Under section 108, the adjudicator must reach a decision within 28 days of referral, extendable by up to 14 days with the referring party's consent, or longer if both agree. The decision binds until the dispute is finally determined by litigation, arbitration or agreement. Contracts made with a residential occupier about their own home are outside the Act, as are some operations such as certain process plant and extraction work.
Where a contract does not comply, the Scheme for Construction Contracts (England and Wales) Regulations 1998 fills the gaps. Under the Scheme, the referral notice must follow within seven days of the notice of adjudication. Our article on construction adjudication explains the timetable in detail.
Building Safety Act 2022
The Building Safety Act 2022 transformed liability and regulation for residential buildings. For higher-risk buildings (in general, at least 18 metres or seven storeys with at least two residential units), the Building Safety Regulator is the building control authority, and work cannot start without approval at Gateway 2 or be occupied without completion approval at Gateway 3.
The Building Safety Regulator became a standalone body under the Ministry of Housing, Communities and Local Government in January 2026, having been set up within the Health and Safety Executive. Section 135 of the Act extended the limitation period for claims under section 1 of the Defective Premises Act 1972 to 30 years for claims that accrued before 28 June 2022 and 15 years for later claims. See our article on the Building Safety Act.
Health and safety, procurement and arbitration
- Construction (Design and Management) Regulations 2015: place duties on clients, principal designers and principal contractors, enforced by the Health and Safety Executive.
- Procurement Act 2023: governs public sector procurement from February 2025, replacing the previous EU-derived regulations for new procurements.
- Arbitration Act 2025: in force from 1 August 2025, amends the Arbitration Act 1996, including a default rule on the law governing the arbitration agreement and a power for tribunals to make summary awards.
Recent case law and reform
Construction lawyers London clients consult now work in a changed liability landscape. Two Supreme Court decisions and a pending Bill are the headline changes.
- URS Corporation Ltd v BDW Trading Ltd [2025] UKSC 21: the Supreme Court held that a developer could recover remedial costs from its engineer even where it had not been compelled to carry out the work, that the extended limitation period in section 135 can reach related negligence and contribution claims, and that a developer can be owed the Defective Premises Act duty.
- Abbey Healthcare (Mill Hill) Ltd v Simply Construct (UK) LLP [2024] UKSC 23: the Supreme Court held that a typical collateral warranty is not a construction contract, so there is generally no statutory right to adjudicate under it. Beneficiaries who want adjudication must provide for it expressly.
- Cash retentions: the Commercial Payments Bill, before Parliament in 2026, would prohibit cash retentions in construction contracts by amending the Construction Act and set maximum payment periods. It is not yet law and includes a transition period, but it should already influence how new contracts and security packages are drafted.
Most construction disputes are decided by the paperwork created while the project was running: notices served on time, variations instructed in writing, and records of who knew what and when.
Choosing the contract: standard forms compared
Most London projects use a standard form with a schedule of amendments. The choice affects risk allocation, change management and how disputes are resolved.
| Form | Typical use | Strengths | Points to watch |
|---|---|---|---|
| JCT (Design and Build, Standard Building Contract, Intermediate) | Private commercial and residential building | Familiar to the UK market; clear procurement-specific variants | Heavy bespoke amendments; payment and notice provisions must stay Construction Act compliant |
| NEC4 (Engineering and Construction Contract) | Infrastructure, public sector and framework projects | Active project management; early warnings and compensation events | Strict time bars and administrative burden; choice of main option matters |
| FIDIC (Red, Yellow, Silver Books) | International and engineering projects, including EPC | Internationally recognised; suited to cross-border parties | Must be adapted for English law and the Construction Act; dispute board procedures |
| Bespoke contracts | Complex energy, process and data-centre projects | Tailored to unusual risk profiles | Higher drafting cost; less market certainty on interpretation |
Procurement route
Traditional procurement keeps design with the employer's team and gives price certainty only if the design is complete. Design and build transfers design risk to the contractor, often through novation of the employer's consultants. Two-stage tendering brings the contractor in early but leaves the final price to negotiation. Construction management gives the client more control and more risk.
For large energy and infrastructure schemes, an EPC or EPCM structure may be used, often alongside project finance. These are handled with our infrastructure and energy teams.
The project document package
A building contract is only one part of the package. Construction lawyers London funders and purchasers rely on will check that every link in the chain is in place.
- Professional appointments for architects, engineers, quantity surveyors and the principal designer, with consistent scope, standards and liability caps.
- Collateral warranties or third-party rights under the Contracts (Rights of Third Parties) Act 1999 in favour of funders, purchasers and tenants.
- Performance bonds and parent company guarantees to secure the contractor's obligations, with clear call conditions.
- Insurance, including contractors' all risks, professional indemnity and, where relevant, latent defects cover.
- Novation agreements moving consultants from the employer to the design and build contractor.
- Development, funding and agreement for lease documents that tie practical completion to the building contract.
The package should be read as a whole. A liability cap in a consultant's appointment that is lower than the cap in its warranty, or a bond that expires before the defects period ends, can leave a funder without the protection it thought it had. Construction lawyers London lenders instruct will usually produce a report on the full package before the first drawdown.
Step-in rights deserve particular attention. They let a funder or purchaser take over the contract if the employer defaults, but only if the notices and procedures in the warranty or third-party rights schedule are followed precisely.
How construction lawyers London clients engage support a project
- Strategy and procurement. Agree the procurement route, standard form, programme and risk appetite with the client team and funders.
- Tender documents. Prepare the contract schedule of amendments, employer's requirements interface and appointment terms; for public bodies, comply with the Procurement Act 2023.
- Negotiation and execution. Negotiate contracts, warranties and security; make sure documents are signed before work starts, not months later.
- Regulatory approvals. Coordinate planning conditions, building control and, for higher-risk buildings, Gateway 2 applications to the Building Safety Regulator.
- Contract administration. Advise on payment notices, variations, extensions of time, loss and expense claims and early warnings as they arise.
- Completion and handover. Manage practical completion, defects, retention release, Gateway 3 completion certificates and the building safety information handover.
- Defects period and beyond. Advise on latent defects, warranty claims and limitation, including Building Safety Act exposure.
Payment, variations and adjudication in practice
Cash flow is the main source of construction disputes. The Construction Act requires an adequate mechanism for determining what is due and when, with payment notices and pay less notices served within contractual or Scheme deadlines.
If the payer fails to serve a valid pay less notice, it may have to pay the notified sum in full and argue about the true value later. Courts have limited the use of a "true value" adjudication until the notified sum has been paid, so the timing of notices is critical on both sides.
Adjudication decisions are usually enforced quickly by the Technology and Construction Court, which hears building, engineering and professional negligence claims. GOV.UK notes it does not normally hear claims worth less than £250,000 without good reason. Before issuing in the TCC, parties should follow the Pre-Action Protocol for Construction and Engineering Disputes, which expects a response within 28 days of the letter of claim, though adjudication enforcement is exempt.
Documents and records that win construction disputes
When a dispute reaches adjudication or the TCC, the tribunal reconstructs the project from its records. Construction lawyers London clients bring in late often find that the key evidence was never created. The records worth protecting from day one are:
- The signed contract, all amendments, the employer's requirements and the contractor's proposals, with the version actually agreed.
- Instructions and variations, ideally in writing and numbered, with any oral instructions confirmed promptly.
- Programmes, including the baseline and each update, and progress reports showing actual against planned work.
- Payment applications, payment notices, pay less notices and proof of service.
- Meeting minutes, site diaries, photographs and correspondence that show when issues first arose and who knew.
- Design change logs, technical queries and responses, and test and inspection records.
Good records do more than help win disputes. They make it easier to agree extensions of time and final accounts without a formal process at all.
Put every notice deadline in the contract into a shared calendar on day one: payment notices, pay less notices, early warnings and time-barred claims. Many disputes we see are lost not on the merits but because a notice was served a day late or to the wrong address.
Risks and common mistakes
Starting work on a letter of intent
Letters of intent are meant to cover a short period while the contract is finalised, but many projects run for months on them. Disputes then arise over whether a contract exists, what its terms are and whether the cap on expenditure applies.
Keep letters of intent short, capped and time-limited, and push to sign the full contract quickly. If the project has moved on, record the agreed terms in writing before relations deteriorate.
Inconsistent amendments to standard forms
Heavy amendment schedules can create conflicts between clauses, or between the contract and the employer's requirements. Courts then have to decide which provision prevails, and the result may not reflect either party's commercial intention.
Check that amendments work together, that the order of precedence clause is deliberate, and that payment and adjudication terms remain compliant with the Construction Act.
Missing notices and time bars
NEC4 compensation events and many amended JCT forms contain time bars that can extinguish a claim if notice is not given within the stated period. Under the Construction Act, a missed pay less notice can mean paying a notified sum the payer disputes.
Train site teams on notice requirements and keep records of when issues were first known. A short, timely notice is always better than a detailed late one.
Underestimating building safety liability
The Building Safety Act extended limitation periods, created new orders that can make associated companies liable, and imposed regulatory duties for higher-risk buildings. Following the Supreme Court in URS v BDW, developers have more scope to pass remediation costs down the chain.
Contractors and consultants should review historic project records, insurance cover and liability caps. Developers should keep evidence of decisions and costs on remediation work.
Assuming warranties carry adjudication rights
After the Supreme Court's decision in Abbey Healthcare v Simply Construct, a standard collateral warranty is generally not a construction contract. A beneficiary who wants fast dispute resolution must include an express adjudication clause.
Funders, purchasers and tenants should review their warranty templates, and consultants should consider the effect of any express adjudication rights before signing.
Cross-border construction projects
London is a common seat and governing law for international construction contracts, including projects in Bangladesh, the Gulf, Africa and Asia. FIDIC forms with English law and London arbitration are frequent choices, and the Arbitration Act 2025 now governs London-seated arbitrations.
Where the project is in Bangladesh, local law will still govern permits, land, labour and some public contracts, and enforcement of an award in Bangladesh runs through its own courts. Our Dhaka and Chattogram offices advise on local requirements, while the London team handles the English law contract and any London arbitration. Our Bangladesh arbitration in London page explains how this works.
Gulf, Singapore and Chinese contractors working in the UK must adapt to the Construction Act, which overrides contrary contract terms on adjudication and payment. Our Dubai and Singapore offices can help parent companies understand their UK subsidiaries' exposure.
Parent company guarantees and on-demand bonds issued by banks outside the UK raise their own questions: which law governs them, where a call must be made, and whether local courts will restrain payment. These points are best settled at the drafting stage rather than when a call is imminent.
How TRW & Co helps as construction lawyers London projects rely on
We act for developers, employers, contractors, subcontractors, consultants and funders. We conduct adjudication, arbitration and litigation from our London office; where advocacy in the higher courts is required, we instruct specialist counsel.
Contracts and appointments
We draft and negotiate JCT, NEC4, FIDIC and bespoke contracts, professional appointments and amendment schedules, keeping them consistent and Construction Act compliant.
Security packages
We prepare collateral warranties, third-party rights schedules, bonds and parent company guarantees for funders, purchasers and tenants.
Building safety
We advise on Building Safety Act duties, Gateway applications, remediation obligations and historic liability exposure.
Contract administration support
We help project teams with payment notices, variations, extensions of time and loss and expense claims before they become disputes.
Adjudication and disputes
We bring and defend adjudications, enforcement proceedings, TCC claims and arbitrations, including international arbitration.
Development interface
We align building contracts with development, funding and lease documents, working with our commercial property and planning teams.
See all our practice areas or contact the London office at Holborn Gate, 330 High Holborn, London WC1V 7QH (info@trw.co, +880 1779 127165).
Checklist for project sponsors and contractors
- Choose the procurement route and standard form before tendering.
- Sign the building contract, appointments and warranties before work starts.
- Check that payment and adjudication terms comply with the Construction Act.
- Calendar every notice deadline and train site teams on them.
- Confirm whether the building is higher-risk and plan Gateway 2 and 3 timings.
- Review liability caps, insurance and limitation in light of the Building Safety Act.
- Add express adjudication clauses to collateral warranties where wanted.
- Track the Commercial Payments Bill and plan alternatives to cash retentions.
- Keep contemporaneous records of instructions, delays and costs.
- Bring in construction lawyers London projects need at the first sign of a dispute.
Frequently asked questions
01Which construction contract should we use?
It depends on the project, the procurement route and the parties. JCT forms are widely used for private commercial and residential building, NEC4 is common on infrastructure and public sector work, and FIDIC suits international and engineering projects. Bespoke contracts may be needed for complex process or energy schemes. Whatever form is chosen, the amendments should be consistent, risk should sit with the party best able to manage it, and payment and adjudication terms must comply with the Construction Act.
02How does construction adjudication work?
A party to a construction contract can give notice of adjudication at any time. The referral follows quickly (within seven days under the Scheme), and the adjudicator must decide within 28 days of referral unless the time is extended. The decision is binding until the dispute is finally resolved by litigation, arbitration or agreement, and the Technology and Construction Court usually enforces it promptly. Adjudication is fast and relatively cheap, but it rewards parties who prepare their case before starting.
03What is a pay less notice and why does it matter?
Under the Construction Act payment regime, if the payer intends to pay less than the notified sum, it must serve a pay less notice within the period set by the contract or the Scheme, stating the sum it considers due and the basis of calculation. If no valid pay less notice is served, the payer may have to pay the notified sum in full and argue about the true value later. Missing the deadline is one of the most common causes of adjudication.
04How has the Building Safety Act changed liability?
The Building Safety Act 2022 extended the limitation period for Defective Premises Act claims to 30 years for claims accrued before 28 June 2022 and 15 years for later claims. It created new remedies, including orders that can extend liability to associated companies, and a regulatory regime for higher-risk buildings. The Supreme Court in URS v BDW confirmed that developers can recover remediation costs from consultants in many circumstances, increasing exposure across the supply chain.
05Can we adjudicate under a collateral warranty?
Usually not as of right. In Abbey Healthcare v Simply Construct [2024] UKSC 23, the Supreme Court held that a typical collateral warranty, which promises performance of obligations under the building contract, is not a construction contract for the purposes of the Construction Act. So there is no statutory right to adjudicate. A beneficiary who wants adjudication must include an express clause, and consultants and contractors should consider the implications before agreeing to one.
06Are cash retentions being banned?
The Commercial Payments Bill, before Parliament in 2026, would prohibit cash retentions in construction contracts by amending the Construction Act and would also set maximum payment periods. It is not yet law, and it provides for a transition period, so existing retention clauses remain valid for now. Parties negotiating new contracts should consider alternatives such as retention bonds and keep an eye on commencement, because longer projects may straddle the change.
07Do we need to follow a protocol before suing in the TCC?
Generally yes. The Pre-Action Protocol for Construction and Engineering Disputes applies to construction and engineering disputes, including professional negligence claims against construction professionals. It requires a letter of claim, an acknowledgment within 14 days, a response within 28 days, and normally a pre-action meeting. There are exemptions, including proceedings to enforce an adjudicator's decision and claims for urgent interim relief. Non-compliance can lead to costs consequences.
Sources and official materials
- Housing Grants, Construction and Regeneration Act 1996, Part II — Construction contracts: payment and adjudication
- Scheme for Construction Contracts (England and Wales) Regulations 1998 — Default adjudication and payment terms
- Building Safety Act 2022 — Building safety regime and extended liability
- Construction (Design and Management) Regulations 2015 — Health and safety duties on construction projects
- Pre-Action Protocol for Construction and Engineering Disputes — Pre-action steps for construction claims
- Technology and Construction Court — Specialist court for construction and engineering disputes
- Arbitration Act 2025 — Reforms to the Arbitration Act 1996
- Building Safety Regulator — Regulator for higher-risk buildings
General information only, current as at 21 October 2026. It is not legal advice and does not create a solicitor–client relationship. It reflects the law of England and Wales unless stated otherwise; Scotland and Northern Ireland have separate legal systems, and the law changes frequently. Check current official sources and take advice on the facts of your matter.