What's Happening?
The Building Safety Act, which had previously caused delays in the UK construction sector, is now beginning to ease, according to a report by the National Association Construction Frameworks. This development has led to a 2% increase in tender workloads between the first and second quarters of 2025, and a 3.2% rise compared to the same period in 2024. The easing of delays is expected to enhance tendering activity in the coming quarters, particularly in infrastructure and housing-related projects. Window fitting has seen a significant rebound with a 12.3% increase in opportunities, while groundworks and steel frame packages have also experienced growth. However, mechanical and electrical work has declined by 4.6%. Subcontractors remain cautious, selectively bidding to mitigate risks associated with volatile material prices and supply chain issues.
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Why It's Important?
The easing of Building Safety Act delays is crucial for the construction industry, as it opens up more opportunities for tendering and project development. This could lead to increased employment and economic activity within the sector. However, concerns persist regarding US tariffs and geopolitical tensions, which may affect the availability and cost of imported construction materials. The cautious optimism expressed by firms suggests a steady pipeline of new opportunities, but the industry must remain vigilant about external pressures that could impact future growth.
What's Next?
As the Building Safety Act delays continue to ease, the construction sector is likely to see further increases in tendering activity. However, the industry must address potential risks such as manufacturing delays and regional defects that could lead to material shortages, particularly in residential construction projects. Stakeholders will need to monitor these developments closely to ensure stability and growth in the sector.
