United Kingdom

The United Kingdom originated the modern statutory model for construction payment via the Housing Grants, Construction and Regeneration Act 1996, which voided most pay-when-paid clauses and created a right to adjudication. Despite this, late payment persisted, prompting the March 2026 Late Payment Reform package proposing a retention-withholding ban, a 60-day payment cap and mandatory interest. UK construction also records the highest company-insolvency count of any sector in England and Wales.

Connections

• Housing Grants Construction and Regeneration Act 1996 — foundational UK statute, source: 1996
• UK Late Payment Reform 2026 — current reform package, source: 2026
• Contractor Insolvency and Subcontractor Risk — highest-insolvency sector, source: 2024