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ARTICLE · 12 NOVEMBER 2026

Building For Battle: Navigating Construction Disputes In The Defence Sector

Herbert Smith Freehills Kramer LLP
Herbert Smith Freehills Kramer LLP
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Herbert Smith Freehills Kramer LLP

Herbert Smith Freehills Kramer LLP

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Defence construction projects are experiencing unprecedented growth amid rising geopolitical tensions, yet they face unique challenges that distinguish them from civil construction. As governments increase military spending and new contractors enter the market, the sector is witnessing a shift from quietly managed disagreements to formal disputes, complicated by classified information constraints, rapidly evolving technology, and complex government contracting frameworks.

GlobalLitigation, Mediation & Arbitration
James Doe
James Doe
Daniel Waldek
Daniel Waldek
Mike McClure KC
Mike McClure KC
Michael Lake
Michael Lake
Matthew Procter
Matthew Procter
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From nuclear submarine construction to cyber infrastructure and drone technology, defence-related construction projects are growing in scale, complexity and ambition. 

Yet the disputes that arise in this sector are marked by a number of features that distinguish them from disputes in the civil construction world. Contracting parties should be alive to those specificities and should consider procurement strategies and contractual mechanisms that are adapted to the particularities of the sector. 

Geopolitical tensions and the global growth of the defence construction sector

Defence construction spans a wide range of project types, ranging from military training establishments and logistics facilities to naval shipbuilding and vessel upgrade programmes, and from digital/cyber systems to drone and space technology. What unites them is a distinctive strategic and operational backdrop. Contractors will generally enter into direct contractual relations with governments to deliver projects

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