GUEST ARTICLE: Don’t Get Left Behind – Four Events That Will Shape The Construction Industry This Year

A new year often brings new opportunities and, with the responsible construction revolution well underway, this year will largely see firmer commitments to – and delivery of – sustainable, socially accountable projects across the sector. Robert Walton, Chief Innovation Officer at Constructionline, outlines four key things that will define the construction industry for years to come. 

We have witnessed many changes to the construction industry over the past 20 years, particularly when it comes to addressing our environmental and social impact. 

This year in particular will see a significant number of standards and legislative developments that will set the course for the future of our industry.

The Procurement Act 2023 comes into effect this February

Long awaited, the new Act will change the landscape of public sector procurement, aiming to drive innovation, deliver better outcomes and embed transparency throughout the public procurement process. 

There are plenty of opportunities for contractors to do better business with public contracting authorities. The key to success lies in keeping up to speed with the latest requirements, ensuring that bid submissions aren’t simply following the same old policies. 

In essence, bidders must illustrate how they will create more successful public sector projects, which…

– better meet community needs
– offer greater value for money
– reduce environmental impact
– provide a more level playing field for smaller businesses

The Act also gives contracting authorities more power to exclude suppliers should they not meet required standards and legal obligations such as; health and safety, employment, equality and, more specifically to our industry, the Building Safety Act (BSA) 2022. 

Announcement of the UK Sustainable Reporting Standards (UK SRS)

A hot topic in the construction industry, the UK government is expected to endorse the UK SRS this year, with a phased implementation starting from early next year. The precise criteria will be confirmed when the final standards are published, which is expected in March 2025.

Most, if not all, of the larger companies are already paying close attention to their environmental, social, and governance (ESG) performance so these standards will come as no big surprise. The difference is that they will be mandated to disclose more detailed information about their environmental and social impact. A lot of this data will come from the supply chain, meaning that smaller organisations will also have to start measuring and reporting on their own ESG performance – if they aren’t already. 

This poses a clear opportunity for growth for the smaller suppliers. Those that proactively embrace sustainable and responsible practices and can provide transparent reporting will gain the competitive advantage, attracting new contracts.

The Future Homes Standard (FHS) will become mandatory in 2025

The Government’s 2021 heat and buildings strategy committed to a Future Homes Standard by 2025 which will future-proof new build homes by ensuring they produce 75 – 80% less carbon emissions. 

This significant step requires a fabric-first approach that prioritises high levels of insulation, airtightness and use of low-carbon heating solutions such as heat pumps.

This means embracing new construction methods and materials that offer improved quality control and reduce waste. It will also mean upskilling the workforce in areas such as heat pump installation and energy-efficient construction practices.

Naturally, this will go hand in hand with the UK government’s ambitious housebuilding targets, creating new jobs, encouraging innovation and employing Modern Methods of Construction (MMC) – not to mention encouraging the development of higher quality, sustainable, FHS compliant homes.

Version 1 of the Net Zero Carbon Building Standard (NZCBS) is expected towards the end of the year

Piloted towards the back end of 2024, the NZCBS is a framework driven by the UK Green Building Council (UKGBC) intended to guide the construction and operation of buildings towards achieving net zero carbon emissions. 

The intention is to guide the sector towards a future that goes beyond simply reducing operational carbon (from heating, cooling, lighting etc) to encompass whole-life carbon emissions. 

Applying to all new buildings and major renovations, the framework requires robust measurement and verification to ensure accountability and transparency, empowering the construction industry to take action and support our collective mission to reach net zero in time.

There is an expectation that this framework will become legally binding through changes to Building Regulations so is definitely one to watch this year.

Staying informed has never been more important

With the public sector driving responsible, low impact and sustainable construction practices through its procurement strategy, it is absolutely essential that any supplier in our industry keeps abreast of these developments if they want to drive business growth. 

There are a number of regularly updated resources available that can help with this.