Construction bulletin: Focus on security of payment

Welcome to the October 2025 edition of our Global Construction Bulletin. In this edition our global team explores legislative and standard form contractual security of payment regimes in the UK, Ireland, Denmark, Sweden, the UAE, Qatar, Saudi Arabia, Australia and Hong Kong.

With insolvencies in the construction sector remaining very high following the COVID-19 pandemic and supply chain shocks of the early 2020's, construction sector participants and governments are more acutely focused on securing payment for work done. Some governments have mandated the use of project bank accounts to quarantine monies for progress claims and allow contractors to impose liens over work or land to secure payment; whilst other jurisdictions rely on standard form contracts which provide for retention monies to be placed into a trust account for the benefit of the contractor.

England and Wales introduced a statutory regime pursuant to the Housing Grants, Construction and Regeneration Act 1996 to protect and promote security of payment in construction contracts. Followed by Scotland pursuant to the Scheme for Construction Contracts (Scotland) Amendments Regulations and Ireland under the Irish Construction Contracts Act 2013. Australia’s governing legislation consists of a unique network of jurisdiction-specific provisions with varying case law and important distinctions. Whilst the impacts of Hong Kong’s newly introduced legislation, the Construction Industry Security of Payment Ordinance, are yet to be fully realised within the market.

In comparison, Middle East jurisdictions such as the UAE, Qatar and Saudi Arabia do not have dedicated security for payment legislative regimes. However, broader legislation governing commercial contracts and transactions, provide a useful framework for contractors to enforce their payment entitlements. Whilst jurisdictions such as Sweden and Denmark have construction sectors which operate primarily on a contractual basis, with parties commonly relying on standard industry agreements to establish their payment rights and obligations.

The AKD Partners Construction team reviews these respective statutory and contractual security of payment regimes and their commercial realities across these key jurisdictions. We hope that you find these reviews helpful. If you would like to understand how you might be able to utilise the legislation where you are located, please do get in touch with our team.