The UK construction sector is deeply reliant on global supply chains. From steel and timber to cladding and mechanical systems, materials are sourced from dozens of jurisdictions—each with its own regulatory standards, documentation practices, and legal exposure.
In 2024, the industry faced unprecedented disruption. Rising interest rates, inflationary pressures, and geopolitical instability triggered widespread shortages and price volatility. According to Kennedys Law, supply chain issues were among the top drivers of construction disputes in 2024 and have remained a critical risk in 2025.
As projects stalled and costs escalated, disputes emerged over:
In 2024, the industry faced unprecedented disruption. Rising interest rates, inflationary pressures, and geopolitical instability triggered widespread shortages and price volatility. According to Kennedys Law, supply chain issues were among the top drivers of construction disputes in 2024 and have remained a critical risk in 2025.
As projects stalled and costs escalated, disputes emerged over:
- Delayed deliveries and project overruns
- Defective materials and product substitutions
- Inflation-linked pricing and contractual ambiguity
Litigation Over Shortages, Defects, and Inflation
Construction materials litigation is no longer confined to local parties. Legal teams are now navigating:
- Claims against overseas manufacturers for defective products
- Disputes over force majeure and price escalation clauses
- Allegations of misrepresentation or breach of warranty across jurisdictions
Legal teams must now manage evidence across borders, languages, and formats—often under tight adjudication or arbitration timelines.
Cross-Border Discovery: Jurisdiction and GDPR
Cross-border discovery introduces legal and operational complexity. Key challenges include:
- Jurisdictional conflict: Differing disclosure rules between UK, EU, and non-EU suppliers.
- Data protection: GDPR restricts transfer of personal data outside the UK/EU without adequate safeguards.
- Format fragmentation: Inconsistent documentation standards across suppliers and manufacturers.
In Cleary Gottlieb’s 2025 UK Disputes Outlook, the firm highlights the growing role of the Hague Convention on the Recognition and Enforcement of Foreign Judgments, which entered into force in July 2025—potentially easing enforcement across contracting states.
Legal teams must now build workflows that respect privacy laws, enable multilingual review, and maintain defensibility across jurisdictions.
AI-Driven Multilingual Review
Artificial intelligence is transforming cross-border document review. AI-powered platforms can:
- Translate and analyse documents in multiple languages
- Identify key clauses and communications across jurisdictions
- Cluster similar documents for efficient review and coding
This is especially valuable in disputes involving overseas suppliers, where technical specifications, compliance certificates, and correspondence may span Mandarin, German, Spanish, or Polish.
AI-driven multilingual review enables faster early case assessment, consistent privilege coding, and defensible production—without relying solely on human translators or fragmented workflows.
Strategic Implications for Legal Leaders
General counsel and heads of litigation in the construction sector must now treat supply chain disputes as a strategic litigation risk. This means:
- Embedding AI into cross-border review workflows
- Partnering with providers who understand construction materials and international discovery
- Preparing for a future where global supply chains demand local legal agility
As inflation, regulation, and geopolitical risk continue to shape the construction landscape, legal teams equipped with modern review capabilities will be better positioned to manage disputes, protect reputation, and enforce rights across borders.
Sources:
[1] Kennedys Law: The UK Construction Sector – What’s on the Cards for 2025?[2] My Commercial Lawyers: Construction Disputes in 2025 – What Contractors and Developers Need to Know
[3] Cleary Gottlieb: Developments in UK Disputes – Implications for 2025 and Beyond
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