GUEST ARTICLE: Expert Guide to Compliance in Construction

12 Sep 2024

In the competitive world of property construction and renovation, compliance is much more than avoiding penalties – it’s about building trust and securing the longevity and success of your business. Adherence to legal and regulatory requirements is crucial at every stage, from purchasing to selling, and from building to renovating. According to Adam Cochrane, Head of Operations at Compliance Chain, a company specialising in construction software solutions, compliance forms the backbone of any successful property transaction or construction project.

“By adhering to the latest regulations, you position yourself as a responsible and reliable player in the industry, which can enhance your reputation and lead to long-term success. Staying ahead of regulatory changes can prevent costly mistakes and safeguard your reputation,” Adam comments.

“It’s important to understand the landscape of compliance regulation in construction and renovations for businesses to navigate the complexities of property compliance with confidence, ensuring a smooth process and secure investment for the future – and avoiding penalties for non-compliance.”

Compliance Chain recently conducted data research showing which British regions have the highest and lowest construction employment rates.

Data revealed that construction employment rates vary by region, with the South West leading as the area with the highest rates (79%), followed closely by the South East (78%), demonstrating strong employment in construction roles. The East of England and East Midlands are tied, reflecting similar levels of activity in this sector (76%). London (75%), known for its robust job market, ranks next, while the North West (73.4%) and West Midlands (73.2%) show moderate employment rates in consultation. Yorkshire and Humber (72%) follows, with the North East (69%) rounding out the list as the region with the lowest consultation employment rates.

They conducted the study to find out more about workforce availability, skill labels and potential shortages. Understanding employment trends can help businesses understand and anticipate challenges related to construction compliance and regulatory changes.

To help businesses navigate the complexities of property compliance, Adam shares his key strategies…

“Regular training on the latest regulations and hiring compliance officers or consultants can help ensure compliance at every stage. Investing in technology, such as digital identity verification tools for AML checks, can also streamline processes.

“In addition, making sure the contractors you work with have the necessary policies and insurances in place is particularly important for businesses procuring contractors for their construction projects as a health and safety incident can negatively impact company’s reputation. Suppliers that are certified on Compliance Chain are mandated, proving they meet the industry standard.

“Securing the appropriate planning permissions before any construction or renovation is essential. Compliance with building regulations—covering structural integrity, fire safety, accessibility, and energy efficiency—is crucial to avoid penalties and ensure project success.

“Compliance with the Health and Safety at Work Act 1974 is critical to protect workers and the public. Regular safety audits, risk assessments, and proper worker training are essential to maintaining a safe construction environment.

“Environmental compliance is increasingly important, with new regulations addressing climate change. Businesses should incorporate eco-friendly materials and methods. Additionally, adherence to the Building Safety Act 2022, which introduces stricter inspection rules, is necessary to avoid delays and ensure the safety of buildings throughout their lifecycle.”

Beyond employment data, Compliance Chain also examined the most lucrative regions in the UK for buying and renovating properties.

Construction

Based on the lowest expenditure and high availability of construction workers for renovations, the North East was found to be the most advantageous region to purchase and renovate, followed by Yorkshire and Humber, the North West, West Midlands and East, and finally the South West. In terms of house prices and construction costs, London and the East of England and South East were the most expensive regions.

Adam comments: “Compliance in property transactions covers various aspects, including financial regulations, safety standards, environmental laws, and contractual obligations. Failing to meet these requirements can lead to delays, fines, or even legal action.

“For those involved in buying, selling, or renovating homes, adherence to regulations like Anti-Money Laundering (AML) and Energy Performance Certificates (EPC) is not just mandatory but essential for a smooth and legally sound process.