G&T’s latest Main Contractor Survey offers a detailed snapshot of market sentiment and emerging pressures in the UK construction industry. Respondents—comprising some of the most experienced and financially resilient contractors—shared views on workload, cost trends, regulatory constraints and forward-looking risk factors.
KEY TAKEAWAYS FROM THE REPORT
- Slow project conversion impacting workload. Contractors have secured around 81% of expected workload for 2025. This trails the 89% secured at the same point last year for 2024, suggesting some slippage in forward conversion rates. Most expect workloads to remain flat over the next six months.
- Input costs stabilise but labour remains a concern. Material prices have levelled off and availability is broadly stable, but labour pressures persist—especially for estimators, planners and delivery side roles—with some warning that any uptick in demand could expose shortages.
- M&E and façade packages remain inflationary hotspots. Contractors report sustained pressure on M&E and façade pricing, driven by limited subcontractor availability and high demand in complex sectors such as data centres and large commercial schemes.
- Contractors are adapting commercial strategies to navigate uncertainty. Many are prioritising repeat business, diversifying across public and private sectors and adopting selective two-stage tendering models. Several highlighted a shift towards earlier client engagement—though this can shift inflation risk onto the supply chain.
- Regulatory and procedural delays are stalling progress. BSA processes and Gateway reviews are now a material risk to programme certainty. Delays of 30+ weeks are common, and contractors say the lack of clarity is deterring clients from progressing schemes into delivery.
Taken together, the findings reflect a market that is operationally stable but strategically cautious—shaped by regulatory friction, selective demand and a continued focus on risk-managed growth.
