2026 has seen a flurry of Government announcements, policy developments, and industry updates relating to the UK's nuclear sector. Recent developments include Government support for the extension of Sizewell B's operational life to 2055, proposals for further small modular reactors (SMRs) development across the UK, as well as joint ventures between the United Kingdom Atomic Energy Authority (UKAEA) and global energy tech company, Eni, to develop consultancy and operational services in the fusion industry. These developments suggest that nuclear energy will remain an important part of the UK's long-term energy strategy.
Against this backdrop, participants across the construction supply chain may be considering opportunities arising from both conventional nuclear projects and emerging technologies. While the technologies may be new and the scale of investment significant, many of the underlying construction law and project delivery issues will be familiar.
In this article, we will explore some key considerations for parties that will be embarking on these projects.
Key considerations
Procurement and contract strategy
As with any major infrastructure project, parties should ensure that procurement and contract strategy are considered at an early stage. Nuclear and SMR projects are likely to involve extensive supply chains and a range of specialist contractors as well as consultants. Clearly defining scope, design responsibility, and the allocation of programme and cost risk at the outset can help reduce the likelihood of disputes later in the project lifecycle.
Parties should also consider whether the chosen form of contract is appropriate for the project. Depending on the procurement route and the nature of the works, projects may utilise NEC, FIDIC, or bespoke forms of contract. Publicly funded infrastructure projects are generally procured using NEC contracts, although alternative forms may be appropriate depending on the project and delivery model. Whichever form is selected, ensuring that key responsibilities and risk allocation mechanisms are clearly understood by all project participants is likely to be critical.
Design responsibility
Emerging technologies often bring a degree of design development and change as projects progress. Parties should therefore pay close attention to how design responsibility is allocated and the standard against which that design will be assessed.
Contractors should carefully review all contract documents for any fitness for purpose obligations, performance guarantees, and acceptance criteria, especially where new or developing technologies are involved. Employers, meanwhile, will wish to ensure that design obligations and performance requirements are clearly defined from the outset to reduce uncertainty and the scope for disputes.
Managing change and compensation events
Infrastructure projects often evolve during delivery, making robust contractual change procedures critical. Parties should ensure that the mechanisms governing changes to scope, time, and cost are clearly understood and administered consistently throughout the project lifecycle.
Where NEC contracts are used, particular attention should be paid to compensation event procedures and notification requirements. Contractors should ensure that potential compensation events are identified and notified promptly, whilst employers and project managers should remain alert to contractual response periods and assessment obligations.
Regulatory and licensing considerations
Nuclear projects operate within a much more regulated environment and are subject to more safety frameworks that are not typically encountered on other infrastructure projects. Parties should ensure that they understand the regulatory framework applicable to the project from the outset, including any additional licensing requirements, regulatory approvals, and ongoing compliance obligations which can all have a bearing on programme and delivery risk.
Supply chain and quality assurance
The anticipated growth of the nuclear sector is likely to place increased pressure on supply chain capacity and specialist resources. Nuclear projects often require highly specialised expertise, whether from designers, manufacturers, consultants, or contractors, and so, parties should be mindful of potential skills gaps and resource constraints when planning procurement and delivery strategies. Early engagement with key supply chain participants may help to identify and manage these risks.
Conclusion
With a new Prime Minister now in office, it remains to be seen whether the Government's priorities and investment in the nuclear sector will evolve over the coming months. Successive governments have identified nuclear power as a key component of the UK's net zero and energy security objectives and, given Prime Minister Andy Burnham's long-standing support for decarbonisation initiatives in Greater Manchester, we expect to see continued political support for low-carbon energy infrastructure. The scale of recent investment and project development also suggests that nuclear is likely to remain a significant area of interest for the construction supply chain. Whatever the future policy direction, the key contractual and construction considerations noted above are likely to remain the same.
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