At a Glance
🚆 National Grid’s 2.2 km Grain-to-Tilbury electricity tunnel under the Thames has passed the halfway point, marking a key milestone for UK transmission capacity.
🚆 Charing Cross and Waterloo East have fully reopened after a major rail engineering programme, restoring central London rail connectivity.
🏗️ Build-to-rent housing starts have fallen 79% year-on-year to June 2026, signalling acute stress in a key institutional residential segment.
💰 RICS data shows workloads still marginally negative and construction insolvencies at 3,805 in the year to June, with a spike in July administrations.
🏛️ Government has clarified tougher retention and payment rules under the Procurement Act 2023, with no exemptions to retention bans and strict 30‑day terms.
Today’s update: project delivery on critical energy and rail corridors is moving forward even as the broader construction market remains weak and highly exposed to insolvency risk. At the same time, new payment and retention rules are crystallising just as build-to-rent and housebuilding come under pressure, reshaping risk allocation across the supply chain. Here’s what you need to know to stay ahead today.
Ongoing Stories
Following recent coverage of pressures on the UK’s construction and infrastructure pipeline, new RICS data confirms workloads remain marginally negative while energy, water and communications infrastructure stand out as the strongest segments, reinforcing a clear shift of activity towards regulated networks. (Source: RICS)
Continuing the theme of sector fragility and corporate failures, the tally of 3,805 construction insolvencies in England and Wales in the 12 months to June 2026 – plus a spike in July administrations – underlines mounting counterparty risk just as major programmes are expected to ramp up. (Source: IREIS)
Building on earlier reporting around planning and procurement reform, fresh government clarification that there will be no exemptions from construction retention bans and that 30‑day payment terms are mandatory under the Procurement Act 2023 tightens the commercial framework for public sector work. (Source: TTA Linea)
Top 5 Headlines
🚆 National Grid’s Thames electricity tunnel passes halfway point
National Grid has confirmed tunnelling under the Thames for the 2.2 km Grain‑to‑Tilbury high‑voltage cable link has passed the midway point, marking a major milestone for the project. The tunnel will carry electricity transmission infrastructure beneath the river, forming part of a wider upgrade to the south‑east’s power network. This progress de‑risks programme timelines on a strategically important reinforcement for future grid capacity and connection of new generation. (Source: Rigzone)
🚆 Charing Cross and Waterloo East reopen after major engineering works
London’s Charing Cross and Waterloo East stations reopened on 17 August following completion of a significant rail engineering programme. The works form part of ongoing network maintenance and capacity improvements on key central London routes. The reopening restores important commuter and interurban connectivity into the capital, easing pressure on alternative routes and supporting passenger recovery. (Source: Construction Magazine)
🏗️ Build-to-rent housing starts plunge 79% year-on-year
UK build‑to‑rent starts fell 79% in the year to June 2026, with only 2,176 homes commenced over the period. The steep slowdown suggests institutional and developer appetite for new BTR projects has weakened sharply, against a backdrop of higher borrowing costs and market uncertainty. This contraction removes a key growth engine from residential delivery, with implications for pipeline visibility, contractor workloads and rental supply in urban markets. (Source: Property118)
💰 RICS: workloads still negative as infrastructure leads and insolvencies rise
Returning today with new data, RICS’ latest update shows UK construction workloads remain marginally negative overall in Q2, though activity in energy, water and communications infrastructure is comparatively strongest. In parallel, 3,805 construction company insolvencies were recorded in England and Wales in the 12 months to June 2026, with a noticeable spike in administrations in July. The combination of flat workloads, segment divergence and rising failures heightens delivery and pricing risk across supply chains, particularly for firms exposed to weaker residential segments. (Source: RICS, IREIS)
🏛️ Procurement Act: no retention exemptions and strict 30‑day payments
Government guidance in August 2026 confirms that there will be no exemptions to construction retention bans – including any proposed 2% caps – under the evolving regime, and that 30‑day payment terms will apply strictly under the Procurement Act 2023. These clarifications remove ambiguity around how public clients must structure payment and retention on new contracts. The changes will reshape cash‑flow dynamics, risk allocation and contract drafting for contractors and supply chains delivering public‑sector work. (Source: TTA Linea)
Also in the news
🏗️ The S&P Global UK Construction PMI edged up to 44.7 in July, indicating construction demand is tentatively stabilising, with housebuilding activity declining at the slowest rate in nine months. (Source: Bloomberg, CrowdProperty)
💰 Official ONS figures for August 2026 show UK construction output remains around 2% lower year‑on‑year but with signs that the pace of decline is easing. (Source: ONS)
🌱 The Thames electricity tunnel milestone is being highlighted as a significant example of complex underwater tunnelling to support future low‑carbon power flows across the Thames estuary. (Source: Rigzone)
🏗️ Analysts note that the sharp fall in build‑to‑rent starts will interact with already weak housebuilding, compounding pressure on residential contractors and consultants reliant on urban multifamily pipelines. (Source: Property118)
💰 Market commentators warn that the recent spike in July construction administrations could presage a tougher autumn for balance sheets if workloads do not recover, despite infrastructure remaining relatively resilient. (Source: IREIS)
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 watching workload, cashflow and regulatory risk.