Construction diligence stresses JCT / NEC / FIDIC contract review, retention and surety exposures, Building Safety Act 2022 obligations, CIS tax compliance and Phase II ESA scoping.
Direct answer
UK construction M&A diligence covers JCT, NEC or FIDIC contract sampling, retention balances and surety-bond exposure, Building Safety Act 2022 cladding and golden-thread obligations for higher-risk buildings, CIS subcontractor compliance and a Phase I ESA on every operational site with Phase II if Phase I flags risk.
Sector add-on clauses
- III.19Confirm CIS compliance for any construction-sector activity.Severity B
- III.20Confirm gross-payment status under CIS where relevant.Severity C
- V.7Sample top-20 material contracts for change-of-control, termination and indemnity.Severity A
- X.13Review fire-risk assessment and Building Safety Act 2022 compliance where relevant.[BSA 2022]Severity A
- XI.6Review waste-carrier and waste-management licences.Severity B
- XI.12Identify any biodiversity-net-gain liabilities under development sites.Severity C
These add-ons supplement, not replace, the generic 14-Schedule scope. Begin with the generic checklist and layer these on.
This page is anchored to UK primary legislation and named regulator guidance only. Not legal advice. Confirm position with your appointed adviser before signing.