At a glance
Civil engineering and residential workloads are forecast to rise in 2026, but insolvencies and planning drag will cap overall growth.
Four near-£200m-plus UK schemes are mobilising this month, from a £997m aqueduct upgrade to a 400MW Scottish storage project.
Legal and regulatory updates are reshaping adjudication, energy performance and low-carbon hydrogen compliance for projects starting now.
Materials giant Heidelberg is expanding its UK footprint while pushing ahead with carbon capture at Padeswood.
Pipeline analysis highlights Gatwick’s £2.2bn Northern Runway as one of the standout projects due to start later in 2026.
Today’s update: with few headline announcements on the day, February’s data and legal updates still point to a sector edging back into growth while wrestling with cost, insolvency and compliance risk. Major civils and energy schemes are moving forward alongside tighter energy and hydrogen rules and continued pressure to turn 2025 infrastructure promises into delivery. Here’s what you need to know to stay ahead today.
Ongoing Stories
Following earlier coverage of UK infrastructure delivery risks, fresh analysis this month reiterates that government must convert 2025 infrastructure pledges into real 2026 progress, reinforcing concerns over cost, supply chain and skills constraints. (Source: ICE)
Building on recent construction law updates, new commentary confirms that statutory adjudication remains available even where contracts are silent, strengthening contractors’ and clients’ options for rapid dispute resolution. (Source: Osborne Clarke)
Top 5 Headlines
🚆 £997m Haweswater aqueduct upgrade gets underway
STRABAG UK has started work on the £997m Haweswater Aqueduct Resilience Programme in North West England, a nine‑year scheme expected to create around 1,200 peak jobs. The project focuses on securing a key water supply asset and will run well into the next decade. For civils contractors, consultants and suppliers, it represents a long-duration framework-style opportunity in strategic water infrastructure. (Source: Barbour ABI)
🚆 £1.7bn A5 Western Transport Corridor advances in Northern Ireland
The £1.7bn A5 Western Transport Corridor scheme is listed among the major projects starting in February 2026, signalling movement on one of Northern Ireland’s largest road investments. The corridor is intended to improve connectivity and safety on a key strategic route. Its scale makes it a significant pipeline anchor for highways and civils teams targeting work in the region. (Source: Barbour ABI)
🌱 400MW Kincardine Grid Services Complex set to boost Scottish storage
A 400MW energy storage facility at the Kincardine Grid Services Complex in Scotland, valued at around £200m, is among the top projects starting this month. The scheme will provide large-scale grid flexibility to support intermittent renewables. It underlines the emergence of battery and storage infrastructure as a mainstream workstream for energy, civils and M&E contractors. (Source: Barbour ABI)
🏗️ Weston Avenue £200m logistics hub kicks off in East of England
The £200m Weston Avenue Logistics Hub in the East of England is moving into delivery, adding another large shed and distribution scheme to the national pipeline. The project reflects sustained occupier and investor demand for modern logistics space despite wider market uncertainty. For developers and contractors, it points to continued regional opportunities in well-located industrial and last‑mile assets. (Source: Barbour ABI)
💰 Sector outlook: modest 1.5% output growth amid price and insolvency pressures
Industry research for February indicates UK construction output is expected to rise by about 1.5% in 2026, with civil engineering forecast to grow 5.4% after 6.1% in 2025 and residential activity up 3.5% against a 1.5m homes-by-2030 target that analysts question as achievable. Insolvency rates remain high but are improving, while tender prices have risen by roughly 3.5% for real estate and 5% for infrastructure work. This mix of gradual volume recovery and elevated pricing means clients will remain highly cost‑sensitive, while contractors face margin pressure and ongoing counterparty risk. (Source: Atradius)
Also in the news
🏗️ Residential growth projections of 3.5% this year sit against a stretched ambition of 1.5m homes by 2030, with commentators questioning whether planning and capacity constraints make that target realistic. (Source: Atradius)
🏛️ Legal commentators confirm that statutory adjudication can proceed even where construction contracts lack explicit adjudication clauses, reinforcing the regime’s role as a default dispute mechanism. (Source: Osborne Clarke)
🌱 Updated government regulations are tightening Energy Performance requirements and setting out Low Carbon Hydrogen Standards, adding new compliance considerations for building design and energy projects. (Source: Osborne Clarke)
⚙️ Heidelberg Materials is acquiring Maas Group’s construction materials business while progressing its Padeswood CCS-ready cement plant, signalling continued consolidation and decarbonisation moves in heavy materials. (Source: Heidelberg Materials)
🚆 Barbour ABI ranks London Gatwick’s £2.2bn Northern Runway scheme among the top UK projects for 2026, with a start currently expected in August and significant multi-year aviation work to follow. (Source: Barbour ABI)
The Daily Build is written for people shaping the UK’s construction and infrastructure pipeline, from boardrooms to site offices. If this briefing is useful, consider forwarding it to colleagues who are planning bids, budgets or delivery strategies this quarter.