UK’s Type 31 frigate program hit by £140M cost adjustment amid rework challenges

May 14, 2026, by Fatima Bahtić

Royal Navy’s Type 31 frigate program has been hit by a £140 million cost adjustment, after contractor Babcock International identified higher-than-expected rework and productivity issues during construction of the vessels.

Illustration; Credit: Babcock International

The update comes as the program to deliver five next-generation general-purpose frigates for the Royal Navy continues across multiple UK shipyards, with early ships now entering advanced build and outfitting stages.

According to Babcock, the cost increase is primarily driven by work on the first ships in the program, where outfitting and commissioning stages have required more rework than originally planned.

This has been compounded by design changes introduced during construction, which have added further complexity.

In addition, earlier out-of-sequence build activity has reduced overall efficiency, while productivity has been affected as work has progressed into later build phases.

The company said these factors together have made late-stage completion work more expensive and more technically complex than originally forecast.

As Babcock noted, the financial impact is concentrated on the first two frigates being built for the Royal Navy:

Ship 1: Nearing structural completion, now entering extensive outfitting and commissioning work;
Ship 2: Experiencing knock-on rework linked to design changes from Ship 1;
Ships 3–5: Less exposed, as they remain in earlier construction stages.

“As we finish structural completion of Ship 1, the bulk of the remaining work now relates to outfitting and commissioning. During the outfitting stage we have experienced higher than expected levels of rework as a result of changes to the design and the long-term impacts of out-of-sequence build activity earlier in the programme. Whilst the number of such rework events is not entirely unexpected, the work is being performed in the later stages of completion and therefore is more complex and more costly,” Babcock stated.

As a consequence, Babcock said it has performed an engineering maturity review and updated its financial estimates to complete the programme, reflecting the elevated levels of work due to engineering change and productivity.

The company added that these re-estimates not only cover production costs for materials and personnel, but also include an increased program risk contingency.

The Type 31 program represents a central element of the United Kingdom’s future surface fleet strategy, supporting thousands of skilled jobs and strengthening domestic capability to design and build complex warships. Most work is concentrated in Scotland and supported by a network of suppliers across the United Kingdom and internationally.

The frigates are based on the Arrowhead 140 design, which has also secured international customers, including Poland’s Miecznik program and multiple builds in Indonesia. Officials said the design’s export success reflects growing global demand for adaptable surface combatants with modular upgrade potential.

Once operational, the five Inspiration-class frigates are expected to conduct missions including maritime security, intelligence operations, defense engagement, and humanitarian support. The ships are designed with flexibility for future upgrades throughout their service life.

To remind, Babcock recently completed the float-off process of HMS Active, the second Type 31 frigate.

UK’s second Type 31 frigate HMS Active completes float-off

Vessels

The rollout of HMS Active follows earlier progress across the program, including the emergence of the lead ship HMS Venturer in 2025 and the keel laying of HMS Formidable last year.