Columnist

Building for change after a year of highs and lows

2024 will certainly be remembered for its highs and lows in the construction sector.

Starting with some sad news, we lost more companies again this year, notably ISG, which finally succumbed to pressure and went into administration. 

This, of course, created ripples all through the supply chain. 

Hopefully, the waters are calming, and all those that lost their positions have found something new.

We have seen new local mayors across the country and, in the North East, a new combined authority which, hopefully, will start impacting on the local economy in a positive way and certainly through construction and infrastructure projects, where the mayor has influence.

The biggest news of all, of course, is that we have a new Government in place. 

As mentioned in one of my previous columns for Bdaily, this could see the biggest upheaval in our industry in years. 

The Government started by stating it wanted to build, build, build, which was great news for construction. 

However, we needed more detail as to how this would be achieved and, in October, we had the first budget showing us how the funding would be raised.

It was great to see a commitment to spend multiple billions in the sector. 

However, it seems to come with conditions, specifically on employer National Insurance contributions, which may hold back some of the growth around recruitment so badly needed in our industry.

2024 also saw lots of legislation and changes come into force. 

We saw changes to the JCT suite of contracts with JCT24 being issued, with clauses introduced to promote even more collaborative working and dissuading parties from disputes, where nobody wins.

We also saw the Building Safety Act start to make a real difference in the whole design and construction phases of projects. 

The aim is to really ensure all the stakeholders understand their roles, and all those involved really are competent at what they do, making sure the wider public live, work and play in safe spaces.

Finally, the new Procurement Act came into force late in the year, to create a simpler, more transparent and flexible system for public procurement. 

We are yet to really see the impact of this, but I suspect we will see some real changes in 2025.

Getting the crystal ball out and looking at 2025, our biggest issues are around recruitment and retention of staff at all levels in the sector, and I urge those with influence to lobby government, both locally and nationally, around these issues.

The above is just a tiny snapshot of the industry in 2024; it would be impossible to mention everything. 

However, we should all be grateful for the people in the sector and for all the commitment and effort they put in to create wonderful buildings and infrastructure. 

I wish them all a very restful holiday period.

Tim Barrett is chair of Construction Alliance North East

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