CONSTRUCTION DISPUTES IN THE UK & EUROPE
CD: What opportunities and challenges are currently affecting the construction industry in the UK & Europe? How would you describe the complexity and scale of ongoing projects?
Sydenham: In the UK, government-backed initiatives for new housing and infrastructure, energy transition, digital innovation and regional growth create opportunities. Sizewell C Nuclear Power Station and airport expansion at Heathrow are among the major projects recently approved or being contemplated. Ambitious projects are also being pursued in Europe, in many sectors including, for example, transport. Italy, for example, has recently approved a multibillion-euro project to build the world’s largest suspension bridge linking the Italian mainland with Sicily. Challenges include planning delays, escalating costs and reducing margins, market volatility and insolvency risk. Regulatory complexity has increased significantly in the housing sector in the UK following new laws introduced after the Grenville fire tragedy. Labour shortages are also a significant challenge. It has been reported that the UK needs somewhere in the region of half a million new workers by the end of the decade, due to retirement of older workers and insufficient younger workers coming into the industry.
Coxworth: The UK and European construction sectors are benefitting from strong public investment in housing, transport and energy infrastructure, ambitious government targets such as the UK’s plan for 1.5 million new homes and robust market growth forecasts. Easing inflation and lower interest rates are improving financing conditions, while the adoption of technologies like building information modelling (BIM) and modular methods is boosting efficiency – enabling delivery of increasingly large and complex projects such as data centres, gigafactories and renewable energy facilities.
Oct-Dec 2025 issue
Hogan Lovells International LLP
Joseph Hage Aaronson & Bremen LLP
Quinn Emanuel Urquhart & Sullivan UK LLP
StoneTurn