As we move into 2026, both the construction and procurement landscapes are undergoing significant regulatory and contractual change. Here’s a concise look at the key developments shaping the year ahead and what they mean for industry professionals, contractors, consultants and clients.

 

Construction Outlook
  • Payment Reform: Government responses on late payment and potential retention bans are expected early in 2026, with measures aimed at improving cashflow and supporting SMEs.
  • Contract Updates: JCT 2016 editions will be withdrawn in March 2026. Transitioning to JCT 2024.
  • New RIAI Contract: Ireland’s new RIAI Construction Contract 2025 – developed with input from Dermot Durack, modernises procurement and reflects current industry practices.
  • Digital Communication: Our article on WhatsApp contracts and payment applications highlights how informal channels are becoming part of formal processes. Expect greater scrutiny on digital correspondence and enforceability.

 

Procurement Outlook

UK Public Procurement:

  • Local Authority Flexibility: The Local Government (Exclusion of Non-commercial Considerations) (England) Order 2026 will allow authorities to reserve below-threshold contracts for UK or local businesses, boosting regional supply chains.
  • New Financial Thresholds: From 1 January 2026, revised thresholds under the Procurement Act 2023 come into effect for UK procurements.

Ireland Procurement:

Revised EU Thresholds: From 1 January 2026, new EU thresholds apply under Delegated Regulations (EU) 2025/2150, 2151, and 2152. Key OJEU advertising thresholds:

  • Works: €5,404,000
  • Supplies & Services: €140,000 (Gov Depts), €216,000 (Local Authorities)
  • Light Touch Regime: €750,000
  • Utilities: €5,404,000 (Works), €432,000 (Supplies & Services)
    These changes require careful planning for compliance and tender strategy.

These changes will require careful planning to ensure compliance, manage risk, and optimise tender strategy across Ireland and the EU.

 

Looking Ahead

To support these shifts, we’re launching our new ‘Construction, Procurement and Beyond‘ webinar series , designed to help industry professionals navigate the evolving legal and regulatory landscape. We’ll explore construction law through fresh perspectives, including cyber, aviation, marine and other specialist areas. Our first session ‘Building resilience: everything the construction sector needs to know about overcoming cyber risk‘ will explore why hackers are targeting the construction sector, common attacks and what to look out for, how to manager cyber risk in your supply chain and much more. Join Edward Quigg (Partner and Head of Construction) and Craig Kennedy (Partner and Head of Cyber Consultancy) on 19 February to learn more.

 

Register for the free webinar here.