The Top 7 Issues Shaping Construction in 2025

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• The Top 7 Issues Shaping Construction in 2025

07 January 2025

The construction industry faces a year of regulatory change, technological advancements and government initiatives – what are the critical issues that will define the sector in 2025?

Ian McKinnon, Managing Director at Veriforce CHAS, highlights these critical issues and outlines how industry players can adapt.

Ian has over 25 years of experience driving growth for organisations both in the UK and internationally. His leadership spans a range of industries, from data and SaaS to risk management.

 

1. Ambitious Government Building Plans

 

The UK government's "Get Britain Building Again" programme has set the target of constructing 1.5 million homes over five years. This effort is guided by a revised National Planning Policy Framework (NPPF), prioritising brownfield redevelopment and selective greenbelt land release (referred to as grey belt). The plan also includes support for New Towns and infrastructure improvements.

While there is scepticism that these numbers are achievable in the timescale, these initiatives promise to boost employment for contractors. However, rising workplace fatalities highlight the need for better training and strict safety compliance.

Contractors should adopt best practices like the Common Assessment Standard (CHAS Elite) to enhance safety, credibility, and tender prospects. Tools like the Veriforce CHAS Client Portal can help hiring clients identify verified local contractors to maintain compliance and ensure efficient project delivery.

 

2. Building Safety Overhaul

 

The Building Safety Act 2022 continues to reshape safety regulations and accountability in construction. From March 2025 all new care homes, regardless of height, must include sprinkler systems. Meanwhile, the expiration of old-style CSCS cards by December 31, 2024, signifies an ongoing drive to upskill the sector.

Sign up to the Building Safety Regulator e-bulletin to stay up to date with regulatory changes. Check out the BESA's 'Play it Safe' guide, which communicates safety concepts in accessible terms, and can help ensure all workers understand their responsibilities under the Act.

 

3. Launch of Central Digital Platform 

The Central Digital Platform (CDP), set to launch in February 2025 alongside the Procurement Act 2023, represents a significant modernisation in public procurement. This centralised hub aims to streamline government procurement activities, increase transparency, and enhance efficiency, particularly for small and medium-sized enterprises (SMEs). With features like a unique supplier identifier and a "Tell Us Once" system for supplier data, the platform should simplify processes for both suppliers and contracting authorities. However, it does not replace pre-qualification checks or due diligence.

To prepare for registration suppliers should gather essential information, including company details, financial standing, and records of exclusion grounds. However, be aware that while the CDP simplifies data handling through its centralised approach, it does not verify or evaluate supplier qualifications, making it crucial for suppliers to maintain compliance with pre-qualification standards like the Common Assessment Standard (CHAS Elite) to enhance their eligibility for government tenders.

 

4. Workforce Challenges in Construction

 

Persistent labour shortages remain a significant issue for the sector, with employment in construction 10 per cent below pre-pandemic levels. Brexit has reduced the availability of European workers, while the government seeks to reduce reliance on overseas workers through initiatives like Skills England and changes to the apprenticeship levy. Additionally, new regulations under the Employment Rights Bill will enforce bans on zero-hour contracts, grant flexible working rights, and strengthen union protections.

Employers should explore apprenticeship grants and prepare for upcoming changes to employment laws. Companies employing foreign workers should also be aware of the 31^st December 2024 e-visa registration deadline. Missing this deadline doesn’t automatically affect immigration status but will make it harder to prove. Details are on the gov.uk website. 

 

5. Putting Occupational Health and Safety Front and Centre 

 

With the latest HSE figures revealing a 20 per cent rise in fatal construction injuries over the past five years, the construction sector must intensify its focus on health and safety to protect workers and prevent further tragedies. The high-risk nature of the industry, combined with the pressures of increased construction activity under ambitious government building plans, makes stringent safety measures a top priority. Businesses must ensure compliance with updated regulations and promote a culture where safety is embedded at every level.

Contractors should implement regular safety audits and training programs to minimise risks. Adopting recognised standards like the Common Assessment Standard (CHAS Elite) can enhance safety credibility. Meanwhile tools such as the Veriforce CHAS Client Portal can help businesses find subcontractors that meet robust safety and compliance standards, fostering safer worksites across the supply chain.

 

6. Mental Health as a Strategic Goal 

 

The construction sector has the UK's second-highest suicide rate, with many workers reluctant to discuss mental health issues. A 2024 survey by Causeway Technologies found over half of construction workers had experienced mental health challenges, and 12 per cent reported suicidal thoughts.

Employers can lead change by prioritising mental health as a strategic goal. The Veriforce CHAS Mental Health & Wellbeing Evaluation, which has seen widespread uptake since its launch in 2024, encourages best practice, empowering businesses to support their workforce effectively.

 

7. Driving Sustainability in Construction

 

Sustainability is no longer optional. Regulations such as the Procurement Act 2023, which will come into force in February 2025, require companies to demonstrate factors such as environmental responsibility to secure contracts. Meeting net-zero targets means adopting low-carbon materials, energy-efficient designs, and better waste management. Beyond compliance, sustainability offers cost savings, improved reputation, and a competitive edge.

Conduct a sustainability audit to identify areas for improvement. Certifications such as BREEAM and LEED can help showcase environmental leadership, while tools like CHAS Social Sustainability help benchmark your organisation’s performance.

Picture: a photograph of Ian McKinnon. Image Credit: Veriforce CHAS

Article written by Ella Tansley | Published 07 January 2025

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