Market Intelligence

The UK Construction Market in 2026: What It Means for Construction Lawyers

John Davies··6 min read

The UK construction market is entering an interesting period.

After several difficult years, the industry is beginning to show signs of renewed momentum, although the recovery is far from uniform. Infrastructure, energy, utilities and major public investment are creating substantial long-term opportunities, while parts of residential and commercial construction continue to operate against a more difficult economic backdrop.

For construction lawyers, that distinction matters.

The legal market tends to follow the underlying shape of construction activity. Where projects become larger, more technically complex and more heavily regulated, the demand for lawyers capable of navigating sophisticated contracts, procurement arrangements, disputes and regulatory obligations tends to follow.

The question for lawyers is therefore not simply whether construction is growing. It is where the growth is taking place, what is driving it and what legal expertise those projects require.

Infrastructure is becoming increasingly important

The UK's infrastructure pipeline represents one of the clearest long-term opportunities.

The Government's March 2026 Infrastructure Pipeline update identified 734 planned projects representing approximately £718 billion of public and private investment over the next decade. The Government estimates that delivering this pipeline will require an average construction and infrastructure workforce of between 629,000 and 706,000 people each year over the next five years.

For lawyers, the significance extends well beyond the sheer volume of construction.

Large infrastructure programmes bring complex procurement processes, joint ventures, framework arrangements, development agreements, funding structures, environmental considerations, contractual risk and potentially substantial disputes.

Energy and water are particularly significant areas. PwC's 2026 outlook anticipates infrastructure growth strengthening from 2026 onwards, with electricity generation and transmission and increased investment in water and sewerage among the principal drivers.

That creates potential demand across several legal disciplines, including construction, projects, infrastructure, procurement, planning, real estate, environmental and disputes.

The legal complexity of major projects is increasing

The modern construction lawyer is increasingly required to understand more than the contract in front of them.

Major projects can involve multiple tiers of contractors and consultants, intricate allocation of risk, sophisticated financing structures and increasingly demanding regulatory requirements. The ability to understand how those different elements interact is becoming an important part of high-level construction practice.

The revised Technology and Construction Court Guide, published in July 2026, illustrates how the legal environment itself is evolving. The updated Guide contains specific material addressing Building Safety Act proceedings, artificial intelligence, alternative dispute resolution, public procurement cases, expert evidence and other aspects of construction and technology litigation.

That is indicative of a broader shift towards a more multidisciplinary construction legal practice.

Building safety remains a significant area of legal activity

Few developments have changed the legal landscape surrounding construction more profoundly than the post-Grenfell regulatory environment.

The Building Safety Act continues to influence contractual relationships, professional responsibility and disputes, while the Government is also pursuing wider reform of the construction products regime.

In February 2026, the Government published its Construction Products Reform White Paper, proposing a substantial reform of the regulatory framework covering construction products, including stronger requirements around safety, testing and certification, information, traceability and enforcement.

For lawyers, this creates an environment in which technical understanding and regulatory knowledge increasingly intersect.

It also illustrates why construction law is becoming relevant to a wider range of practitioners. Product liability, regulatory law, professional negligence, insurance, disputes and commercial contracts can all become engaged when questions arise around the safety or performance of construction products.

Disputes remain an important part of the market

Construction will always be a sector in which disputes arise.

Projects can change considerably from the assumptions contained within the original contract. Delays, variations, payment issues, design responsibility, defects, unforeseen conditions and additional costs can all create tension between project participants.

Adjudication remains particularly significant because of its role in providing a relatively rapid mechanism for resolving construction disputes. Recent industry analysis indicates continued activity in adjudication, with payment disputes, final accounts, delay and disruption among recurring areas of contention.

For construction disputes lawyers, therefore, the attraction of the market is not dependent upon every part of construction being in expansion.

Indeed, periods of economic pressure can produce their own legal requirements as parties seek to manage cost overruns, contractual exposure and project failure.

The result is a market in which lawyers with genuine experience of major disputes, adjudication, arbitration and complex contractual claims can bring considerable value.

Public procurement is another important consideration

The introduction of the Procurement Act 2023 has also changed the environment in which many significant public construction projects are procured.

The Act came substantially into force on 24 February 2025, replacing the previous procurement framework and introducing a new statutory regime governing public procurement.

For construction lawyers, this has created another area in which commercial construction knowledge and procurement expertise overlap.

Projects involving public authorities can require lawyers to advise not only on the underlying construction arrangements, but also on procurement strategy, tender processes, contractual modifications, termination, exclusion and potential challenges.

For practitioners who have developed genuine expertise in both construction and procurement, that combination can be particularly valuable.

The market is becoming more specialist

Perhaps the most important trend for lawyers is the increasing specialisation of the construction market itself.

A lawyer advising on a major energy project may require a substantially different skill set from someone primarily acting for housebuilders or developers. The issues arising on a large infrastructure programme can differ materially from those encountered in commercial development or residential construction.

This is increasingly reflected in the way firms build their construction practices.

Rather than simply seeking a generic construction lawyer, firms may be looking for particular combinations of experience: energy and infrastructure, major projects and disputes, procurement and public sector work, building safety and defects, or development and construction.

For lawyers considering their own careers, understanding where their expertise sits within this wider market can therefore be as important as understanding the firms themselves.

What does this mean for lawyers considering their next move?

The construction legal market in 2026 is not a straightforward story of expansion or contraction.

It is a story of reallocation.

Some areas are under greater pressure, while others are being supported by significant investment and long-term programmes. At the same time, regulatory change is creating new areas of complexity, and established areas such as construction disputes and adjudication remain active.

For an experienced construction lawyer, that can make the market particularly interesting.

A move may not necessarily be about leaving one firm for another. It may be about moving closer to a particular type of work, developing a specialism, gaining exposure to major infrastructure projects, strengthening a disputes practice or joining a team with a particular strategic ambition.

For partners and senior lawyers, the questions become even broader: What is the firm trying to build? Where does it want to grow? What clients and projects is it targeting? And, importantly, is there a genuine opportunity for an individual practitioner to play a meaningful role in that strategy?

Looking beyond the headline figures

Construction remains one of the UK's most economically significant sectors, but headline output figures tell only part of the story. ONS data shows that construction output had fallen by 0.5% over the three months to July 2026, following four consecutive periods of growth, underlining the uneven nature of the recovery.

Behind that volatility, however, sits a substantial pipeline of infrastructure investment and a legal environment that is becoming more complex.

For construction lawyers, that may ultimately be the more important story.

The strongest opportunities are likely to be found not simply where there is more construction, but where projects are becoming more sophisticated, more heavily regulated and more commercially significant.

For lawyers with the right combination of technical expertise, sector knowledge and commercial understanding, the evolving construction market presents a range of possibilities worth watching closely.

At Ogilvie & Davies, we believe the most valuable career conversations often begin before a lawyer has decided to move. Understanding where the market is developing, which firms are investing and how a particular practice might translate onto another platform can provide useful perspective — entirely confidentially and without any obligation to proceed.

John Davies

Managing Director, Ogilvie & Davies

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