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Trinity Horizon

Business and built environment intelligence

Liability is longer, competence must be proved, and sustainability claims are now tested. The question is whether your organisation is built for that world.

About Trinity Horizon

Trinity Horizon is our quarterly intelligence publication. It covers market developments and updates we consider most material for developers, contractors, consultants, investors, and professional services firms.

We do not reproduce every development in the market, but only those that warrant active attention from boards, commercial teams, and advisors. Items are flagged Act now, Watch, or Horizon depending on proximity and certainty. Each carries a Trinity's view panel setting out what we think you should do about it.

The regulatory cycle that followed Grenfell is now producing consequences that extend far beyond fire safety. Building liability is pursuing corporate groups into administration. Sustainability claims are being tested for legal enforceability. Competence is shifting from a professional expectation to a statutory requirement. Payment obligations that were once contractual courtesies are becoming criminalised. The employment relationship, including who bears liability for harassment on a multi-employer site and what a dismissal costs when the compensation cap no longer exists, is being reset.

These are not sector-specific concerns. They are governance concerns. The questions they raise about how decisions are documented, how liability is allocated, how sustainability commitments are evidenced, and how workforce obligations are managed are the same whether your organisation builds things, funds them, designs them, or advises on them.

This edition covers developments across building safety, planning, commercial contracts, property, ESG, governance, and workforce. Some require action now. Others are coming faster than most organisations are ready for. The editorial thread running through all of them is that the tolerance for ambiguity in contracts, governance, and professional responsibility is narrowing.

Precision is no longer optional.

Forward calendar

Forward calendar of regulatory and market developments
Date Development
Jan 2026Procurement Act 2023: updated thresholds in force under PPN 023.
Jan 2026Construction Products (Amendment) Regulations 2025: CE marking recognised alongside UKCA.
27 Jan 2026BSR formally transitioned to an independent body under MHCLG.
24 Feb 2026UK Arbitration Act 2025 in force. Summary award powers and enforceable emergency arbitrator orders.
6 Apr 2026Employment Rights Act 2025, first phase. Day-one SSP rights and whistleblowing protection for sexual harassment disclosures.
May 2026Biodiversity Net Gain: 10% mandatory BNG extends to NSIPs.
30 Jun 2026Money Laundering and Terrorist Financing (Amendment) Regulations 2026 in force. Enhanced due diligence requirements updated for high-risk jurisdictions and complex transactions.
1 Jul 2026TCC Guide 2026 published. New sections cover BSA proceedings, Procurement Act 2023 procurement cases, and AI use in litigation.
2 Aug 2026EU AI Act Article 50 transparency obligations for AI systems take effect. Synthetic content labelling required.
30 Sep 2026Second staircase: Approved Document B amendment in force for residential buildings of 18 metres or more.
1 Oct 2026Building Safety Levy live for all new residential development in England.
1 Oct 2026Employment tribunal claim time limit increases from three to six months.
30 Oct 2026Employment Rights Act 2025, second phase. Third-party harassment liability and all reasonable steps duty, and fire and re-hire restrictions in force.
Late 2026Commercial Payments Bill Royal Assent anticipated. 60-day payment cap, mandatory statutory interest, and SBC enforcement powers.
1 Jan 2027UK Sustainability Reporting Standards mandatory for listed companies, replacing TCFD and SECR.
Jan 2027Employment Rights Act 2025: six-month unfair dismissal qualifying period and removal of compensation cap. Applies where the effective date of termination falls on or after 1 January 2027.
Mar 2027Future Homes Standard 12-month transition period begins.
After 3 Apr 2027Martyn's Law notification requirements to the Security Industry Authority commence.
2027Commercial MEES: EPC C required for all new commercial tenancies.
2027Equality action plans mandatory for employers with 250 or more employees.
2027 (TBC)Upwards-only rent review ban under the English Devolution and Community Empowerment Act 2026. Commencement by regulations.
Mar 2028Future Homes Standard full commencement. No new gas connections; low-carbon heating mandatory for all new homes.

The above calendar is a forward planning reference and covers more ground than the briefing notes that follow.

Status key

Horizon
Emerging or monitor
Watch
Near-term development
Act now
Immediate action

Building safety and regulation

Act now

Building safety levy: live October 2026

A new levy on all new residential developments in England requiring building control approval takes effect 1 October 2026, regardless of building height. The government estimates around £4.3bn raised over a decade, collected by local authorities at rates that vary by area. A surge in building control applications before the deadline is anticipated.

Act now

Second staircase: now in force for 18m+ residential buildings

Amendments to Approved Document B require two separate staircases in residential buildings 18 metres or more in height where a building control application was not sufficiently progressed by 30 September 2026. The requirement is now in force. Any scheme at or above 18 metres where the application did not meet that threshold is subject to the dual staircase requirement. Dual staircases reduce saleable floor area materially and require design rework on schemes already in planning or under construction.

Watch

BSA case law: liability shifting across the supply chain

Five decisions in 2025/26 have materially changed how Building Safety Act liability flows:

  1. Triathlon Homes LLP v Stratford Village Development Partnership [2025] EWCA 846 confirmed Remediation Contribution Orders against original developers and parent companies.
  2. Almacantar Centre Point Nominee No.1 Ltd & Ors v Penelope De Valk & Ors [2025] UT 298 (LC) broadened the definition of cladding remediation beyond fire risk.
  3. Crest Nicholson v Ardmore [2026] EWHC 789 (TCC) held that anticipatory BLOs can be granted before liability is finally established and that adjudicators' decisions constitute relevant liabilities under section 130.
  4. URS Corporation Ltd v BDW Trading Ltd confirmed in the Supreme Court that a developer can recover remedial costs from third parties even where it no longer owns the building, and that reputational concerns are a legitimate factor in assessing whether remedial works were voluntary.
  5. Mulalley v Sto [2026] EWHC 1552 (TCC) is the first High Court assessment of quantification of a contractor's section 149 contribution claim against a defective cladding product supplier. The Court fixed contribution at 87.5% against Sto and made a Building Liability Order against Sto's German parent under section 130, establishing that BLOs extend to foreign parent companies.

Act now

Principal Designer liability: architects and D&B contracts

Under the Building Safety Act, the Principal Designer (Building Regulations) role is held by the designer in control of the design, irrespective of procurement route. On design and build projects, the PD role should formally transfer to the contractor when they take over the design. Where that transfer does not happen clearly in writing, the architect continues to carry statutory liability for design work they may have limited control over. Building Liability Orders can also pierce the corporate veil. If an architect's design leads to a relevant liability, associated companies can be held jointly and severally liable.

Watch

Building Safety Regulator: independence and Building Regulations review

The BSR became an independent body on 27 January 2026. An expert panel is conducting a fundamental review of Building Regulations guidance, including Approved Documents and BS 9414, with a final report expected by summer 2026. A separate Building Control Independent Panel is examining whether commercial building control functions should be moved to a national authority model.

Planning and infrastructure

Horizon

Data centres: a rapidly growing pipeline with distinct risk and procurement challenges

Demand for UK data centre capacity has surged by nearly 300% since 2023, driven by AI workloads and hyperscale expansion. The government is targeting at least 6GW of AI-capable data centre capacity by 2030. Data centre construction presents procurement and delivery challenges materially different from conventional commercial development: extreme programme pressure, complex M&E specifications, and acute grid connection constraints. Reforms from DESNZ and Ofgem are actively reshaping how electricity network connections are prioritised for strategic demand users.

Commercial, procurement and contracts

Watch

UK Arbitration Act 2025: modernising construction dispute resolution

The UK Arbitration Act 2025, in force from 24 February 2025, is the first major reform to UK arbitration law in almost thirty years. Two changes are directly relevant to construction. Arbitral tribunals can now make summary awards, dismissing claims with no real prospect of success at an early stage. Emergency arbitrators can now issue enforceable orders, including interim measures, rather than non-binding recommendations, making urgent relief meaningfully available for the first time.

Act now

Commercial Payments Bill: late payment reform and the retention ban

The Small Business Protections (Late Payments) Bill had its first reading in the House of Lords on 19 May 2026. The government estimates late payments cost the UK economy £11bn a year and close 38 businesses every day. The Bill introduces a mandatory 60-day maximum payment term for large firms paying smaller suppliers; a 30-day limit for raising invoice disputes; mandatory statutory interest at 8% above Bank of England base rate; board and audit committee reporting obligations; and financial penalties for persistent late payers.

On retentions, the Bill signals intent to amend the Construction Act 1996 to prohibit retention clauses. The scope is broad, and the statutory definition of a construction contract encompasses facilities management and maintenance arrangements. Standard form contracts including NEC4 Option X16 and JCT D&B 2024 clauses 4.16 to 4.18 will need to be amended. A transitional period and further consultation are anticipated before this measure takes effect.

Watch

Sustainability clauses in construction contracts: enforceability risk rising

Pressure from lenders and corporate ESG frameworks is pushing sustainability obligations into construction contracts. The risk is that aspirationally drafted clauses are unenforceable and that uncertainty is generating disputes. CSRD and SFDR supply chain requirements are driving lenders to require demonstrable sustainability performance, not just stated commitments. The Chancery Lane Project's model clauses are gaining traction as a drafting standard.

Watch

TCC Guide 2026: first revision in four years

On 1 July 2026, the Technology and Construction Court published the fourth edition of the TCC Guide, the first comprehensive revision since 2022. It includes new sections on Building Safety Act proceedings, rewrites procurement cases guidance to reflect the Procurement Act 2023, and addresses the use of AI in TCC proceedings for the first time. The Guide also substantially updates guidance on TCC work outside London.

Property and energy performance

Act now

Future Homes Standard: published 24 March 2026, in force from 2027

The Future Homes Standard was published on 24 March 2026 and comes into force in full in March 2028 following a 12-month transition. No new homes will be connected to the gas network. All new homes must have low-carbon heating, principally air-source heat pumps, and solar panels equivalent to 40% of the building's ground-floor area. The Standard significantly affects design specifications, cost profiles, and the viability of schemes currently in planning.

Horizon

UK Net Zero Carbon Buildings Standard Version 1: launched 10 March 2026

Version 1 of the UK Net Zero Carbon Buildings Standard launched on 10 March 2026, providing a consistent industry-backed methodology for defining and verifying net zero buildings. It covers upfront carbon, operational energy efficiency, fossil-fuel-free design, and renewable generation. Verification is now live through Bureau Veritas. The Standard covers 13 building sectors and was developed with input from over 350 experts across nine built environment bodies.

Responsible business and ESG

Watch

Modern Slavery Act: mandatory content and financial penalties incoming

On 30 June 2026, the UK government introduced proposed amendments to the Immigration and Asylum Bill that would bring significant changes to section 54 of the Modern Slavery Act 2015. The amendments would expand the disclosures required in slavery and human trafficking statements and introduce financial penalties for organisations that fail to comply. For commercial organisations with annual turnover of £36 million or more, the Bill would make specified content mandatory. The new financial penalty regime would expose non-compliant organisations to fines of up to the greater of £1 million or 1% of total turnover.

Corporate governance and board advisory

Horizon

AI-washing: when AI claims become a litigation risk

AI-washing describes the strategic overstatement of AI capabilities in external communications: annual reports, procurement submissions, investor presentations, and product marketing. UK boards face exposure across three channels: disclosure risk in annual reports where AI mentions have become ubiquitous but are rarely auditable; procurement risk where pre-contract capability claims can become actionable misrepresentations; and regulatory risk where the UK DMCC Act 2024 allows fines of up to 10% of global turnover for misleading practices.

Workforce and governance

Act now

Unfair dismissal: the new reality from January 2027

From 1 January 2027, the qualifying period for unfair dismissal reduces from two years to six months and the compensation cap for unfair dismissal awards is removed entirely. The change applies retrospectively. Any employee continuously employed on or before 1 July 2026 will already have accrued the requisite six months by the time the change takes effect.

Act now

Harassment law: third-party liability and the 'all reasonable steps' duty from October 2026

From 30 October 2026, the Employment Rights Act 2025 introduces two material changes to harassment law. The employer duty to prevent sexual harassment is elevated from taking 'reasonable steps' to taking 'all reasonable steps', deliberately raising the bar for how tribunals assess employer conduct. Employers also become directly liable for third-party harassment by clients, customers, subcontractors, agency workers, contractors, or visitors where the employer has failed to take all reasonable steps to prevent it. From 6 April 2026, any disclosure about sexual harassment automatically qualifies as a protected disclosure under the whistleblowing framework.

Horizon

Equality action plans: voluntary from April 2026, mandatory from 2027

The Employment Rights Act 2025 introduces a framework for equality action plans, covering gender pay gap reporting and actions to support employees through the menopause. Plans are available for voluntary publication from April 2026 and become mandatory for employers with 250 or more employees from 2027.

Trinity Horizon is produced for informational purposes only and does not constitute legal or regulatory advice.

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If any of the issues covered in this edition are live for your organisation, we would welcome a conversation.