Columnist

Key construction developments in 2025

2025 is expected to bring several significant changes and developments in the construction sector, particularly in procurement, building safety and environmental practices. 

While it’s still early to predict every shift, here are some of the things we can expect.

The Procurement Act

The Procurement Act, set to come into force in February 2025, follows a welcome delay for both clients and contractors. 

It aims to reform public sector procurement by increasing transparency, focusing on value for money and public benefits. 

It will place greater emphasis on supplier performance, particularly for higher-value contracts, and impact both public and private sectors involved in public procurement.

Future Homes Standard

Becoming compulsory in 2025, the Future Homes Standard introduces major changes, including a shift towards energy efficiency, integrating low-carbon technology and implementing high fabric standards.

Approved Document B building regulations

Effective from March 2025, the Approved Document B regulations will require better record keeping, stricter performance standards for materials used in buildings and mandatory sprinkler systems for care homes.

Building safety changes

Building safety will remain a top priority, with more regulatory changes expected. 

Despite significant reforms from the Building Safety Act (October 2023), the industry remains under scrutiny. 

The Gateway 2 approval system, aimed at higher-risk buildings, is designed to ensure safety before construction starts.

However, reports suggest only a small percentage of these applications were approved, possibly pointing to capacity issues or a lack of understanding of the application process.

Enforcement is expected to ramp up in 2025 as the building safety regulator takes a more active role.

Grenfell Inquiry recommendations

The Grenfell tragedy continues to impact industry conversations. 

The final Grenfell Inquiry report, published in September 2024, highlighted several issues in the current building safety regime, including the fragmentation of regulatory oversight. 

It recommended the creation of a single construction regulator to oversee all construction safety aspects. 

While it’s not yet clear how this will play out, major changes could be on the horizon.

Remediation of unsafe cladding

The Government allocated £600 million in 2019 for the remediation of high-rise buildings with dangerous cladding. 

This was increased and, as of August 2024, £2.3 billion had been spent, with efforts expected to continue until 2035 to remediate buildings more than 11 metres tall.

New targets and tougher penalties have been introduced to accelerate the process, requiring the completion of remediation by 2029 for all buildings more than 18 metres. 

Buildings above 11 metres must have a remediation plan in place by the same year.

Scottish development

The Housing (Cladding Remediation) (Scotland) Act 2024 gives Scottish ministers power to create a cladding assurance register and implement a responsible developers scheme. 

These measures will require developers to contribute to, or address, remediation costs. 

While similar powers exist in England and Wales, Scotland’s timeline for implementation remains unclear, with further announcements expected in 2025.

Technology and innovation

Technological advancements will continue to transform the construction industry, especially in terms of sustainability and innovation. 

The increased use of information management systems, artificial intelligence in design and workforce upskilling will become more prominent. 

However, big questions remain around the use of artificial intelligence, its regulation and responsibility. 

Additionally, with procurement under tighter margins, driving sustainability may mean the need to target client audiences directly.

Environmental, social and governance provisions

Environmental, social and governance considerations are becoming increasingly significant in construction contracts.

The introduction of biodiversity net gain requirements in 2024 will lead to more stringent planning regulations in 2025. 

These provisions promote sustainability and social responsibility, providing opportunities for under-represented groups in the workforce.

Avoiding costly consequences

2025 will bring significant changes to the construction sector in terms of legislation and regulation, with developments affecting building safety, procurement, sustainability and financial stability.

As the industry continues to evolve, staying informed and adapting to these changes will be crucial to avoiding costly consequences.

Tim Barrett is chair of Construction Alliance North East

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →