The UK construction industry enters 2026 amid rising dispute volumes and accelerating digital transformation. According to ConstructAI, economic uncertainty, regulatory reform, and supply chain volatility have triggered a surge in claims across payment delays, defects, insurance coverage, and professional negligence. The Technology and Construction Court (TCC) continues to see high-value, multi-party litigation, while adjudication and arbitration remain dominant forums for resolution.
At the same time, the sector is undergoing a profound shift in how projects are planned, executed, and litigated. Modular construction, digital twins, and BIM integration are generating vast volumes of structured and unstructured data. Legal teams must now manage disputes not just with legal acumen—but with technological agility.
eDiscovery and Managed Review: Strategic Imperatives
In complex construction disputes, eDiscovery is no longer a reactive tool—it’s a strategic imperative. Legal teams must be able to:
- Ingest and analyse thousands of documents across contracts, site records, correspondence, and technical reports
- Identify key custodians, timelines, and issues early in the dispute lifecycle
- Apply consistent coding for privilege, responsiveness, and relevance
Managed review services provide the scale and defensibility required for adjudication, arbitration, and litigation. With adjudication timelines often limited to 28 days, and arbitration increasingly adopting procedural efficiency, speed and accuracy are critical.
In URS Corporation Ltd v BDW Trading Ltd [2025] UKSC 21, the Supreme Court reinforced the evidentiary burden in professional negligence claims—highlighting the need for defensible workflows and precise document analysis.
AI for Proactive Risk Management
Artificial intelligence is reshaping how legal teams manage risk. AI-powered platforms can:
- Extract and compare clauses across contracts and insurance policies
- Flag anomalies in site records, safety documentation, and delay notices
- Predict dispute trajectories based on historical data and communication patterns
This enables proactive risk management—identifying potential claims before they escalate, supporting early resolution, and informing commercial strategy.
According to Cleary Gottlieb’s 2025 UK Disputes Outlook, AI and digital assets are now central to regulatory consultation and judicial scrutiny. Legal teams must be prepared to defend not just their arguments—but their data handling practices.
Outlook: Tech Integration in Arbitration and Tribunal Practice
The Arbitration Act 2025 has introduced reforms aimed at modernising UK arbitration. Key developments include:
- Greater procedural flexibility and digital disclosure
- Enhanced recognition of UK judgments under the Hague Convention (effective July 2025)
- Increased use of virtual hearings and digital evidence bundles
Tribunals and adjudicators are also embracing technology. The Competition Appeal Tribunal (CAT) and the TCC have adopted digital filing, remote testimony, and AI-assisted document review in select cases. As these practices become standard, legal teams must ensure their tech stack supports seamless integration with tribunal protocols.
Strategic Implications for Legal Leaders
General counsel and heads of litigation in the construction sector must now build legal tech stacks that support:
- Scalable eDiscovery and managed review workflows
- AI-powered contract and evidence analysis
- Integration with arbitration and tribunal platforms
The future of construction litigation will be defined by digital defensibility, procedural agility, and strategic foresight. Legal teams equipped with modern technology will be better positioned to manage risk, resolve disputes, and protect commercial interests.
Sources:
[1] ConstructAI: The State of the UK Construction Industry in 2025[2] Cleary Gottlieb: Developments in UK Disputes – Implications for 2025 and Beyond
[3] Kennedys Law: The UK Construction Sector – What’s on the Cards for 2025?
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