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Construction Contracts

UK Construction Legislation: Key Acts for QSs

UK construction legislation sets the legal framework for every project: how contracts are paid, how buildings are made safe, how sites are run, what planning and environmental rules apply and how public work is bought. For a quantity surveyor, each law has a practical effect. It changes what must be priced, how long things take, who carries the risk and how long a claim can be brought.

This guide is a reference to the key Acts and regulations, grouped by theme. For each one it explains what the law requires and what it means for QS practice. It shows where the law differs across England, Wales, Scotland and Northern Ireland, works through the laws that drive the cost plan on a conversion project and answers common questions. It is general information, not legal advice.

Last reviewed: November 2026. This guide covers England unless stated. Always check the current legislation on legislation.gov.uk.

How This Guide Fits with Other ProQS Guides

This page is the overview of the legislation. Several topics have their own detailed guides, so this page keeps to the essentials and points you on.

Key UK Construction Legislation by Theme

Select a theme to see the laws in it.

1. Contracts and Payment

Housing Grants, Construction and Regeneration Act 1996 (the Construction Act)

Part II of the Act applies to most construction contracts. As amended by the Local Democracy, Economic Development and Construction Act 2009, it gives every party:

  • a right to interim payments, on contracts lasting 45 days or more
  • an adequate mechanism for due dates and final dates for payment, with payment notices and pay less notices
  • a ban on pay-when-paid clauses, except on insolvency higher up the chain, and on pay-when-certified clauses
  • a right to suspend work for non-payment, with time and costs
  • a right to refer a dispute to adjudication at any time

If a contract does not comply, the Scheme for Construction Contracts fills the gaps. The Act does not apply to contracts with residential occupiers for work on their own home, or to some excluded operations, such as certain process plant work.

Why it matters to QSs: every valuation, payment notice and pay less notice depends on it. A missed notice can mean paying the notified sum in full. The detail is covered in Construction Law for the Quantity Surveyor.

Late Payment of Commercial Debts (Interest) Act 1998

Where a contract has no substantial remedy for late payment, the Act implies statutory interest at 8% above the Bank of England base rate, plus fixed compensation of £40, £70 or £100 depending on the size of the debt.

Contracts (Rights of Third Parties) Act 1999

The Act allows a person who is not a party to a contract to enforce a term that is intended to benefit them. Most construction contracts exclude it by default. Where it is used, it gives rights to funders, purchasers and tenants as an alternative to separate collateral warranties, for example through the JCT third party rights schedules.

Corporate Insolvency and Governance Act 2020

The Act restricts a supplier from terminating a contract for the supply of goods or services just because the customer enters an insolvency procedure. Construction contracts can be affected, so a subcontractor may not be able to stop work and terminate simply because the main contractor has gone into administration.

Why it matters to QSs: insolvency is one of the biggest supply chain risks. Check what the contract and the law allow before advising on termination.

2. Building Safety and Building Regulations

Building Act 1984 and the Building Regulations 2010

The Building Act provides the framework for building control in England and Wales. The Building Regulations 2010, made under it, set the functional requirements for structure, fire safety, ventilation, access, energy and other matters. The Approved Documents, such as Part B (fire safety), Part L (conservation of fuel and power) and Part M (access to and use of buildings), give practical ways to comply.

Building Safety Act 2022

The most significant construction law in a generation, passed after the Grenfell Tower fire. Its key provisions are:

  • a stricter regime for higher-risk buildings, at least 18 metres or seven storeys high with at least two residential units, with the Building Safety Regulator as building control authority and approval required at Gateway 2 (before work starts) and Gateway 3 (before occupation)
  • duty holder and competence requirements for all building work, set out in amendments to the Building Regulations
  • the golden thread of building information for higher-risk buildings
  • regulation of the building control profession
  • longer limitation periods under the Defective Premises Act (see theme 6)
  • remediation orders, remediation contribution orders and building liability orders, which can make associated companies pay for safety defects
  • the Building Safety Levy, which applies to new residential buildings in England from 1 October 2026
Why it matters to QSs: the Act affects cost, programme and long-term liability. Gateway timing, fire engineering, golden thread information and the levy all need allowing for. See UK Construction Regulatory Bodies for how the regime is enforced.

Construction Products Regulation

The Construction Products Regulations 2013 enforce the retained EU Construction Products Regulation in Great Britain. Products covered by a designated standard must have a declaration of performance and a UKCA or CE marking. CE marking continues to be recognised indefinitely. The government’s 2026 White Paper proposes wider reform, including a general safety requirement for products.

3. Health and Safety

Health and Safety at Work etc. Act 1974

The foundation of health and safety law in Great Britain. Employers must, so far as is reasonably practicable, ensure the health, safety and welfare of their employees (section 2) and of others affected by their work (section 3), including the public. Breaches are criminal offences. Under the Sentencing Council guidelines, fines are linked to the size of the organisation and can be very large.

Construction (Design and Management) Regulations 2015 (CDM)

CDM sets duties for clients, principal designers, designers, principal contractors and contractors. Where more than one contractor will work on a project, the client must appoint a principal designer and a principal contractor in writing. Projects lasting more than 30 working days with more than 20 workers at any one time, or exceeding 500 person days, must be notified to HSE. Domestic clients’ duties normally pass to the contractor or principal contractor. Our CDM guide covers the QS’s role.

Management of Health and Safety at Work Regulations 1999

These set the general duty to carry out suitable and sufficient risk assessments, and to have arrangements for planning, organising, controlling, monitoring and reviewing health and safety.

Control of Asbestos Regulations 2012

Duty holders must manage asbestos in non-domestic premises. Before refurbishment or demolition, a refurbishment and demolition survey is needed so that asbestos can be located and removed. Higher-risk work, including most work on asbestos insulation, coatings and insulating board, must be done by a contractor licensed by HSE. Some lower-risk work is non-licensed but still controlled.

Other Health and Safety Regulations

  • Work at Height Regulations 2005: planning, supervision and equipment for work at height, a leading cause of fatal injuries in construction.
  • LOLER 1998 and PUWER 1998: the safety, maintenance and inspection of lifting equipment and other work equipment.
  • COSHH 2002: control of substances hazardous to health, including silica dust and other construction dusts.
  • Electricity at Work Regulations 1989 and the Control of Noise at Work Regulations 2005.

Corporate Manslaughter and Corporate Homicide Act 2007

An organisation can be convicted where the way its activities are managed or organised by senior management causes a death and amounts to a gross breach of a duty of care. Fines are unlimited.

Employers’ Liability (Compulsory Insurance) Act 1969

Most employers must hold employers’ liability insurance of at least £5 million. See our guide to insurance in construction projects.

Why it matters to QSs: health and safety is priced in the preliminaries, temporary works, access equipment and surveys. Under-pricing it is a false economy, and it is never an acceptable value engineering target.

4. Fire Safety

Regulatory Reform (Fire Safety) Order 2005

The Fire Safety Order applies to non-domestic premises and the common parts of residential buildings. The “responsible person” must carry out a fire risk assessment and put suitable fire precautions in place. Fire and rescue authorities enforce it.

Fire Safety Act 2021 and Fire Safety (England) Regulations 2022

The Fire Safety Act 2021 confirmed that the Order covers the structure, external walls (including cladding and balconies) and flat entrance doors of multi-occupied residential buildings. The Fire Safety (England) Regulations 2022 added duties for responsible persons in those buildings, such as information for residents and, in high-rise buildings, information for fire and rescue services.

Why it matters to QSs: fire safety drives specification and cost in residential and mixed-use buildings, and creates ongoing costs that belong in life cycle costing.

5. Planning, Neighbours and the Environment

Town and Country Planning Act 1990

The main planning statute in England and Wales. Development needs planning permission, either by application or through permitted development rights. Section 106 agreements secure planning obligations such as affordable housing and infrastructure contributions.

Community Infrastructure Levy Regulations 2010

Local authorities that have adopted a charging schedule can charge the Community Infrastructure Levy on new floorspace. Liability is triggered when development commences, with payment due under the authority’s instalment policy, so it affects cash flow as well as cost.

Planning Act 2008

Nationally significant infrastructure projects, such as major energy, transport and water schemes, need a development consent order rather than planning permission.

Planning and Infrastructure Act 2025

The Act received Royal Assent on 18 December 2025. It aims to speed up planning and infrastructure decisions, including limits on repeated legal challenges to major infrastructure decisions, changes to planning committees and a Nature Restoration Fund allowing developers to pay into strategic environmental measures. Many provisions need secondary legislation before they take effect.

Environment Act 2021

Introduced mandatory biodiversity net gain. Most new development in England must deliver at least a 10% gain in biodiversity, on site, off site or, as a last resort, through statutory credits.

Environmental Protection Act 1990 and Control of Pollution Act 1974

The Environmental Protection Act sets the duty of care for waste and the regime for contaminated land. The Control of Pollution Act allows local authorities to control construction noise. Contractors can apply for prior consent for their working methods and hours under section 61.

Party Wall etc. Act 1996

Applies in England and Wales to work on party walls, new walls on the boundary and excavations near neighbouring buildings. The building owner must serve notice, usually two months before work to a party structure and one month before excavation or building on the boundary. If the neighbour does not consent, surveyors make a party wall award setting out how the work will be done. The building owner normally pays the surveyors’ fees.

Why it matters to QSs: planning obligations, CIL, biodiversity net gain, party wall costs and noise restrictions can all be significant, and are best captured early in the feasibility study and development appraisal.

6. Liability, Limitation and Disputes

Limitation Act 1980

Sets how long a claim can be brought. For breach of an ordinary contract, it is six years from the breach. For a contract executed as a deed, it is twelve years. Negligence claims usually run for six years from when the damage occurred. For hidden damage, the claimant has three years from when they could have known about it, subject to a 15-year longstop.

Defective Premises Act 1972

Anyone taking on work in connection with providing a dwelling owes a duty to make it fit for habitation. The Building Safety Act extended the limitation period for these claims from six years to 15 years for claims arising on or after 28 June 2022, and to 30 years, retrospectively, for claims arising before that date. A new section 2A applies a similar duty to work on existing dwellings, prospectively, with a 15-year limit.

Arbitration Act 1996 and Arbitration Act 2025

The 1996 Act governs arbitration in England, Wales and Northern Ireland. The 2025 Act, in force from 1 August 2025, updated it, including rules on the law governing arbitration agreements, a statutory duty of disclosure for arbitrators and a power to decide issues summarily.

Why it matters to QSs: limitation periods affect how long records must be kept, how final accounts are closed and how long liability lasts. See our guides to construction dispute resolution and final accounts and settlement.

7. Procurement, Tax and Corporate Compliance

Procurement Act 2023

In force since 24 February 2025, the Act governs public procurement in England, Wales and Northern Ireland. It introduced the competitive flexible procedure, award to the most advantageous tender, greater transparency, a central debarment list and 30-day payment terms that flow down the supply chain. See UK Construction Papers and Playbooks.

Finance Act 2004 (the Construction Industry Scheme) and VAT legislation

The Construction Industry Scheme requires contractors to deduct tax from payments to subcontractors for labour, at 20% for registered subcontractors and 30% for unregistered ones, unless the subcontractor has gross payment status. Since 1 March 2021, the VAT domestic reverse charge applies to most construction services between VAT-registered businesses in the supply chain.

Bribery Act 2010

Creates offences of bribing, being bribed and bribing a foreign official, and makes a business liable if it fails to prevent bribery by people acting for it, unless it had adequate procedures in place.

Economic Crime and Corporate Transparency Act 2023

Introduced a “failure to prevent fraud” offence, in force from 1 September 2025. Large organisations can be liable if an employee or agent commits fraud intended to benefit them, unless they had reasonable fraud prevention procedures. Inflated claims and misleading valuations are obvious risk areas in construction.

Modern Slavery Act 2015

Businesses with a turnover of £36 million or more must publish an annual statement on the steps they take to prevent modern slavery in their business and supply chains. Construction’s reliance on labour supply chains makes this a live issue.

Equality Act 2010

Protects people from discrimination and requires employers and service providers to make reasonable adjustments for disabled people. It does not set technical accessibility standards for buildings. Physical access is covered by Part M of the Building Regulations.

Why it matters to QSs: these laws affect tender evaluation, supplier selection, payment and the honesty of every valuation and claim. QSs should know their firm’s procedures and raise concerns where something looks wrong.

8. Land and Compulsory Purchase

On infrastructure and regeneration schemes, land acquisition can be a major cost. Compensation for land taken by compulsory purchase is governed mainly by the Land Compensation Act 1961 and the Compulsory Purchase Act 1965. The Land Compensation Act 1973 allows claims for the loss in value of nearby property caused by the use of new public works, such as noise or vibration from a new road. Recent reforms, including the Levelling-up and Regeneration Act 2023 and the Planning and Infrastructure Act 2025, have changed some compensation rules for schemes in the public interest.

Why it matters to QSs: land and compensation costs belong in the scheme estimate and risk allowance, often with specialist valuation advice.

Where the Law Applies

Much construction legislation differs across the UK. The table summarises the main points.

TopicEngland and WalesScotlandNorthern Ireland
Payment and adjudicationConstruction Act 1996, Scheme for Construction Contracts (England and Wales)Construction Act 1996, Scottish SchemeConstruction Contracts (Northern Ireland) Order 1997
Building controlBuilding Act 1984 and Building Regulations 2010 (separate regulations in Wales)Building (Scotland) Act 2003Building Regulations (Northern Ireland) 2012
Health and safetyHSWA 1974, CDM 2015HSWA 1974, CDM 2015Health and Safety at Work (NI) Order 1978, CDM (NI) 2016
PlanningTown and Country Planning Act 1990Town and Country Planning (Scotland) Act 1997Planning Act (Northern Ireland) 2011
Party wallsParty Wall etc. Act 1996Title conditions, common law and, for tenements, the Tenements (Scotland) Act 2004No equivalent statute
Public procurementProcurement Act 2023Scottish procurement regimeProcurement Act 2023

Worked Example: Which Laws Drive the Cost Plan?

A developer is converting a six-storey 1970s office block in an English city into 40 flats. At about 17 metres, it falls just below the higher-risk building threshold. It shares a wall with a neighbouring building. Here is how the legislation feeds into the QS’s cost plan and programme.

LawWhat it requires hereWhat the QS allows for
Town and Country Planning Act 1990, CIL RegulationsPlanning permission for the change of use and new façade; section 106 agreementSection 106 contributions, CIL on any new floorspace, consultant fees
Building Regulations 2010A material change of use to dwellings, so regulation 6 applies: the fire safety requirements of Part B, sound insulation (Part E), ventilation (F1) and energy (L1), among others. Part M does not apply to this type of change of use, although planning conditions may still require accessible flatsFire compartmentation and sprinklers where required, acoustic separation, ventilation, energy upgrades, any accessibility standards set by planning
Building Safety Act 2022Duty holder and competence requirements; not higher-risk, so no BSR gateways, but the height should be confirmed by measurementPrincipal designer and principal contractor competence, compliance records
Control of Asbestos Regulations 2012Refurbishment and demolition survey; licensed removal of any asbestos foundSurvey costs, removal costs, programme time, a provisional sum or risk allowance
CDM 2015Notifiable project; principal designer and principal contractor appointedHealth and safety costs in the preliminaries, design risk management
Party Wall etc. Act 1996Notices to the neighbour; a party wall award if no consentSurveyors’ fees, condition surveys, time for the notice period
Control of Pollution Act 1974Possible section 61 consent for noisy strip-out workRestricted hours, quieter methods, longer programme
Environmental Protection Act 1990Waste duty of care for strip-out wasteWaste disposal and landfill tax
Defective Premises Act 1972Duty to make the flats fit for habitation, with a 15-year limitation periodQuality assurance, records, latent defects insurance and warranty requirements
Construction Act 1996Statutory payment and adjudication rights in the contract and subcontractsCompliant payment terms and an administrative process to issue notices on time
Fire Safety Order 2005 and Fire Safety Act 2021Fire risk assessment and fire safety duties once occupiedHandover information, ongoing costs in the life cycle cost model

Almost every row adds cost or time. The lesson is that legislation is not a single line in the cost plan. It runs through the design, the preliminaries, the programme, the risk register and the client’s long-term liabilities. The risk management guide shows how to capture items such as asbestos and party wall delays in the risk register.

Quick Reference

LegislationMain relevance for QSs
Housing Grants, Construction and Regeneration Act 1996Payment, notices, suspension, adjudication
Late Payment of Commercial Debts (Interest) Act 1998Interest on late payment
Building Safety Act 2022Higher-risk buildings, duty holders, limitation, levy
Building Regulations 2010Technical requirements that drive specification
CDM Regulations 2015Health and safety duties, notification
Control of Asbestos Regulations 2012Surveys and licensed removal
Regulatory Reform (Fire Safety) Order 2005Fire safety in occupied buildings
Party Wall etc. Act 1996Notices, awards, surveyors’ fees
Environment Act 2021Biodiversity net gain
Defective Premises Act 1972Liability for dwellings, extended limitation
Limitation Act 1980Time limits for claims
Procurement Act 2023Public procurement and 30-day payment
Economic Crime and Corporate Transparency Act 2023Failure to prevent fraud

Frequently Asked Questions

Does the Construction Act apply to work on a private house?

Not if the contract is with a residential occupier for work on the home they live in or intend to live in. The Act still applies to contracts further down the chain, for example between the main contractor and its subcontractors on the same job, and to developers building houses for sale.

How long can a client bring a claim for defective work?

It depends on the claim. For breach of contract, it is six years from the breach, or twelve if the contract was executed as a deed. For dwellings, the Defective Premises Act now allows 15 years for claims arising on or after 28 June 2022, and 30 years for earlier claims. Negligence claims can run longer where damage is hidden, subject to a 15-year longstop.

When does a project need to be notified to HSE?

Under CDM 2015, a project must be notified if construction work will last more than 30 working days with more than 20 workers on site at the same time, or will exceed 500 person days. The client is responsible for notifying, using form F10.

Is a building over 18 metres always a higher-risk building?

No. For design and construction, a higher-risk building is at least 18 metres or seven storeys high and contains at least two residential units, or is a hospital or care home meeting the height test. A tall office building without residential units is not higher-risk. Height must be measured in line with the regulations, so borderline buildings should be checked carefully.

Does the Party Wall Act apply in Scotland or Northern Ireland?

No. It applies only in England and Wales. In Scotland and Northern Ireland, rights over shared walls depend mainly on the title deeds and the general law, so specialist advice is needed.

Does the Procurement Act apply to private sector projects?

No. It applies to contracting authorities, such as government departments, local authorities and NHS bodies, and some utilities. Private clients are not covered, although a private project that receives public funding may have to follow some procurement rules as a condition of the funding.

Why should a QS care about the failure to prevent fraud offence?

Because valuations, claims and final accounts are where fraud risk sits in construction. Since 1 September 2025, a large organisation can be liable if someone acting for it commits fraud for its benefit, unless it had reasonable procedures to prevent it. Honest, well-evidenced valuations and claims protect both the QS and their employer.

Conclusion

UK construction legislation shapes almost every aspect of a project, from the payment terms in the contract to the fire safety of the finished building and the time limit for a claim. A QS does not need to be a lawyer, but does need to know which laws apply, what they require and what they cost in money and time. That knowledge produces realistic budgets, compliant contracts and fewer disputes.

For the legal detail on payment and adjudication, see Construction Law for the Quantity Surveyor. For contracts, see our guide to NEC, JCT and FIDIC.

Do you have experience working under any of these legislative frameworks? Share your insights or ask questions in the comments below!

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