{"id":154240,"date":"2025-08-18T15:08:13","date_gmt":"2025-08-18T14:08:13","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=154240"},"modified":"2025-08-18T15:08:13","modified_gmt":"2025-08-18T14:08:13","slug":"market-slowdowns-due-building-safety-act-delays","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/market-slowdowns-due-building-safety-act-delays\/154240\/","title":{"rendered":"Market slowdowns due to Building Safety Act delays, says SCF"},"content":{"rendered":"

A new report<\/a> from Southern Construction Framework (SCF), a leading construction procurement framework delivered by the public sector for the public sector in the South of England, has identified that the Building Safety Act is continuing to contribute to project delays<\/h2>\n

Impacts of delays caused by the Building Safety Act include elongated pre-construction periods, repeat tendering, and selective subcontractor engagement, according to the SCF.<\/p>\n

Curtain walling in sharp decline as tender workload slows<\/h3>\n

Southern Construction Framework\u2019s trade-specific data aligns with wider construction output data, which showed a 0.6% slowdown in May, following three months of growth. Despite a regional increase in tender workload (+0.29%), this is the smallest quarterly rise reported since Q1 2021.<\/p>\n

In addition, data on curtain-walling activity shows a -6% decline on the previous quarter, highlighting the continued potential impact of BSA-related delays, requiring stricter design and competency requirements before external wall builds commence.<\/p>\n

The news comes as the UK Construction Purchasing Managers\u2019 Index (PMI) reveals that the UK construction sector activity contracted sharply to 44.3 in July, marking the lowest reading since May 2020.<\/p>\n

Despite the positive potential impacts of the Spending Review on infrastructure investment, a cautious approach to funding allocation with a stronger emphasis on value for money, project readiness, and delivery assurance is leading to increased scrutiny of pipeline schemes. This is particularly impacting those not yet at planning or procurement stage. As a result, a more risk averse bidding climate is emerging.<\/p>\n

Insolvencies at highest in 2025<\/h3>\n

This quarter has continued to see a rise in construction-related insolvencies<\/a>, averaging 423 per month. June saw 447 insolvencies, marking the highest monthly figure this year.<\/p>\n

Despite the operational challenges outlined above the data suggests that building costs remain relatively stable, with a modest increase of +1.2% this quarter. Notably, the current rate of cost inflation remains below general inflation, indicating a more competitive market landscape.<\/p>\n

Rising costs and labour challenges persist<\/h3>\n

Following the recent increases in National Insurance and the National Minimum Wage in April 2025, a significant rise in building costs was anticipated. However, contractors report that employers appear to be absorbing these additional costs. This could have further implications for future projects, resulting in longer lead times and slower delivery.<\/p>\n

At the same time, employment has only risen by +0.8% this quarter, which could compound this issue.<\/p>\n

Janara Singh, assistant framework manager, said:<\/h4>\n

\u201cWhile the market remains competitive and relatively stable in terms of costs, the underlying pressures from regulatory delays, labour constraints, regional resource imbalances, funding uncertainty, and rising insolvencies are shaping a more cautious and selective supply chain. Continued monitoring and proactive engagement with contractors will be essential to navigate the months ahead.\u201d
\nMaterial availability has also seen a modest regional average increase of +0.3 weeks this quarter with the following seen across trades: M&E (+0.7 weeks), Tower Crane (+0.67 weeks) and Carpentry and Joinery (+0.6 weeks). Regional pressures were noted by subcontractors, such as large-scale schemes like Hinkley Point and Bridgewater straining supply chain resources. This is affecting bid returns and availability for other projects.”<\/p>\n

Adrienne Turner, framework manager, said:<\/h4>\n

\u201cWhile overall material lead times are expected to stay relatively stable over the next year, roofing, cladding, and windows are still seeing the longest delays. These envelope elements are critical to project sequencing, so even short hold-ups can ripple through delivery.<\/p>\n

\u201cEarly procurement, close monitoring of supplier lead times, and securing key materials through framework agreements will be vital to keeping programmes on track.\u201d<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

A new report from Southern Construction Framework (SCF), a leading construction procurement framework delivered by the public sector for the public sector in the South of England, has identified that the Building Safety Act is continuing to contribute to project delays. <\/p>\n","protected":false},"author":25,"featured_media":154243,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[172800,908,639],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-154240","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-planning-construction-news","8":"tag-building-safety-act","9":"tag-economy","10":"tag-procurement"},"acf":[],"yoast_head":"\nMarket 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