FRANCE: An introduction to Construction

The launch of the first edition of Chambers France dedicated to the construction practice provides an opportunity to highlight not only the key economic and legal trends shaping the construction industry in France, but also the notable stability of its foundational legal framework.

A landscape of contrasts

From both economic and legal perspectives, 2025 presents a landscape of contrasts for the sector.

Office and residential construction continue to suffer from a prolonged real estate crisis, compounded by reductions in public subsidies due to the ongoing effort to curb public spending. As a result, the contraction experienced in 2024 is expected to persist. On the other hand, private construction remains dynamic in sectors such as logistics, data centres, and hospitality. Public infrastructure activity also remains robust, with major projects like the Grand Paris Express and the forthcoming EPR nuclear plants driving growth. This sustained activity is already exacerbating the shortage of skilled labour in several qualified trades.

More broadly, regulatory developments in sustainability and green building—including energy-efficient retrofitting, low-carbon construction under the RE2020 standard—and the industry's digital transformation, such as the increasing use of BIM in public procurement and investments in AI by major operators, are additional sources of momentum and investment.

Beyond these internal drivers, the industry may also face external pressures. If the global trend toward protectionism—mirroring recent initiatives in the United States—leads to widespread increases in customs tariffs, supply chains will be disrupted, and the costs of materials and equipment are likely to rise. In such a scenario, escalation clauses and indexation formulas will need to be drafted with great precision. In this context, it is worth noting that the unforeseeability doctrine introduced in the 2016 reform of the French Civil Code is often expressly excluded by employers in their forms of construction contracts.

Climate change and sustainability-related risks are also impacting the market, particularly through rising premiums for mandatory ten-year insurance.

The legal standpoint

From a legal standpoint, the French market similarly reveals a dual nature.

On one hand, 2025 marks the fiftieth anniversary of the landmark 1975 Subcontracting Law. Together with the 1978 Spinetta Law on liability and insurance in construction—which introduced the decennial liability regime and its compulsory insurance as they are known today—these two legislative pillars continue to define the French construction law.

However, despite the formal stability of these frameworks, related case law continues to evolve, presenting ongoing interpretive and practical challenges for practitioners.

Moreover, both legislation and industry practices are in constant evolution.

Legislative developments remain significantly influenced by sustainability objectives. However, more traditional legal instruments may also be subject to reform. Following the major 2016 overhaul of the general contract law provisions in the French Civil Code, a reform of the special contract regimes is under consideration, following the release of a draft in 2023. This includes provisions on contrat d’entreprise (contracts for works or services), which encompasses construction contracts. The inclusion of specific provisions dedicated to construction contracts themselves is currently being contemplated.

As for practice, one noteworthy development is the increasing use of dispute boards in large public infrastructure projects delivered under both traditional design-bid-build models (the loi MOP scheme) and design-build contracts. This innovation, previously limited to PPP contracts, is now being implemented in landmark projects such as the Grand Paris Express.

Finaly, while the strong domestic base of industry players and the distinct features of French construction law may give an impression of conservatism, international trends and global operators are nonetheless well integrated into the French construction landscape.