The legal challenges of Brexit for construction projects (2017) 28 6 Cons.Law 18 [Archived]
The legal challenges of Brexit for construction projects (2017) 28 6 Cons.Law 18 [Archived]

The following Construction guidance note provides comprehensive and up to date legal information covering:

  • The legal challenges of Brexit for construction projects (2017) 28 6 Cons.Law 18 [Archived]
  • Contract procurement
  • Negotiating and drafting
  • Changes in relevant law
  • Materials and labour costs
  • Allocating Brexit risks
  • More disputes
  • Brexit disputes
  • Adjudication enforcement and declarations
  • Conclusion

ARCHIVED: This Practice Note has been archived and is not maintained.

This article appears as originally published in Construction Law on 1 July 2017 and is not maintained.

Brexit poses particular challenges for those drafting and negotiating contracts for construction projects in the UK, explain Peter Kitson and Mark Fletcher of Russell-Cooke LLP in this overview of the risks.

Key Points

  1. Brexit amplifies the risk of economic, political and legal factors that had previously been taken for granted

  2. Increased materials cost and reduced access to specialist and general labour from the EU may be caused by changes in law and/or general economic effects caused by Brexit

  3. Parties will need to consider the appropriate allocation of risk and their pricing strategy

  4. Brexit will potentially lead to fewer projects that are more challenging to deliver and increase the likelihood of traditional construction disputes

  5. Brexit may create novel disputes about contractual interpretation that will raise important tactical and procedural issues for parties

Following a change of Prime Minister, a Supreme Court decision, a snap General Election and 12 months of waiting, on 19 June 2017 Brexit negotiations between the UK and EU finally commenced. The final form Brexit will take will remain unclear for some time. At least the full two-year period under art 50 is likely to be needed to settle the terms of the