Key Findings

Route to market

Early contractor involvement is a winner

of tenders are taken to market by a two-stage route, now equalling single-stage routes to market.

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Regional pressure points

Government economic policy is top concern of contractors

concern of contractors for the coming 12 months is the impact of the Spending Review and the autumn Budget.

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Market volatility

Collaborative procurement practices remain despite some easing in volatility

of contractors are reporting an increase in collaborative procurement practices despite signs that the cost of bonding facilities is easing.

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Value selection criteria

Contractors give the Procurement Act a thumbs-up

of contractors believe the Procurement Act will result in better outcomes for clients.

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The Building Safety Act

Contractors wary of Building Safety Regulator approval risk

of contractors either not willing to take responsibility for securing Gateway 3 approvals or of the timescales to secure approval.

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Sustainable procurement

Sustainability aspirations increase, but so does failure to achieve them

of contracts are now defining sustainability targets but 30% of those fail to achieve them.

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Key changes since our 2024 survey

Fixed price

Large projects shun fixed price risk

-9 months

reduction in the duration of fixed price contracts offered on projects in excess of £100m as contractors look to fluctuations clauses to manage their risk.

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Market volatility

Collaboration persists but the rate of increase is slowing

The rate of increased appetite for client held risks has slowed from 35% to 25%.

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Modern methods of construction

MMC is on the rise as resistance to change recedes

increase in average MMC content reported by contractors since 2024. Barriers to adoption are now more economically focused rather than client or design team resistance.

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