Is the industry adopting the direction of travel set out in the Construction Playbook?

Published in 2020, the Construction Playbook set a clear vision for the future of the construction industry: collaboration, digital adoption and standardised practices to deliver efficiencies and an all-round better approach to development in the built environment.

While these guidelines represent a much-needed direction, a question remains if a difference is seen several years down the line. Given the outside perception of the construction sector being slower to embrace modern ways of working, there’s still much to do in whipping the industry into shape.

Aligning with the vision

The Construction Playbook laid out 14 policies covering the whole life journey of construction projects – all aimed at improving how public projects are delivered and outlining best practice.

It endorses the use of unamended standard forms of contract – specifically NEC, JCT and PPC/TAC-1 and FAC-1 – highlighting the ways they can embed best practice through a common approach, as well as simplify and speeding up procurement processes.

Standardised contracts can minimise the chance of misunderstandings and make sure that everyone involved in a project is on the same page regarding expectations, responsibilities and potential risks.

When contracts are altered or lack clarity, disputes can arise – especially around elements that impact project timelines or budgets. The Construction Playbook promotes a collaborative working model, where strong communication and transparency minimise the risk of disputes escalating.

Learning from the past, acting in the present

While these guidelines represent a much needed direction, it’s not the first time government or industry reports have laid out the changes needed – and it won’t be the last.

Just take the 1994 Latham Report. It made a series of recommendations, including the adoption of NEC as the contract model with the power to streamline construction projects – and since then, there has been continued adoption of NEC contracts.

However, the Latham Report aimed to address some core industry issues, including the longstanding prevalence of late payments. Thirty years later, these issues are still with us in full force with the industry continuing to be the worst hit sector for insolvencies, accounting for 17% of all cases in 2024.

Last year saw the collapse of ISG, the sixth biggest contractor in the UK, and while according to reports this was not solely down to late payments, it highlights the knife edge nature of the construction industry. It also shows the knock-on impact, with Companies House documents showing that the company owed almost £1bn in debt.

It’s clear that more needs to be done to tackle the industry’s financial stability. The Construction Playbook puts a focus on elements like longer-term contracting to give more transparency and help manage pipeline visibility, which in turn will help organisations plan resources for bidding and delivery much more effectively.

Digital transformation – is it here yet?

The Construction Playbook moves into a new realm, actively pushing for digital transformation, which many feel construction has historically lagged. Much innovation has been applied to new technical solutions, design processes and delivery, but when it comes to project and contract management, and operational work, there are still swathes of people still using manual approaches.

Embracing technology also comes with the added perk of appealing to a younger workforce – attracting tech-savvy talent, ensuring innovation, closing the skills gap and future-proofing the construction sector. By adopting digital tools now, construction firms can attract this younger talent, who will ultimately drive innovation within the sector and ensure that companies stay ahead of the curve.

Following the direction of travel

The Construction Playbook is the latest guide steering the industry’s ‘direction of travel’ – the term often used to describe the future-oriented vision of these reports. Many construction companies contribute valuable insights and expertise to these reports, helping shape an industry blueprint for best practices. Yet, when it comes to implementing these practices, a gap often remains, with some firms failing to adapt swiftly to new standards and innovations.

By embracing the Construction Playbook’s policies sooner rather than later, firms can avoid the ‘dinosaur’ label and position themselves as leaders driving the sector’s progress towards a more streamlined and productive future.

Dr Stuart Kings is group technical director at Sypro