Search

How can we help?

Icon

The Construction Sector Deal – investment in “bytes and mortar”

On 5 July 2018, the Government announced its Construction Sector Deal worth £420 million to transform the UK construction industry by improving productivity through greater investment in innovation and skills.  A copy of the Construction Sector Deal is available here:

The Construction Sector Deal is part of the Government’s Industrial Strategy and is an ambitious partnership with the construction industry, through the Construction Leadership Council.  The construction sector, including the supply chain and professional services, had a turnover of £370 billion in 2016 and employed around 3.1 million workers, or around 9% of the UK workforce. The sector also exported over £8 billion of products and services.  However, it is widely recognised that the potential of the sector has been held back by its productivity especially as compared to other sectors.  The Farmer Review in 2016 recommended that transforming the industry would need shared leadership by the industry, clients and the Government.  The Construction Sector Deal is intended to achieve this goal and also build on ‘Construction 2025’ published in 2013.

 The Construction Sector Deal will deliver:

  • £420 million investment in what it calls “bytes and mortar smart construction” through use of digital building design, new manufacturing technologies and offsite manufacturing helping cut the time taken to deliver new build by 50%. Industry will be contributing up to £250 million with a £170 million injection from Government through the Industrial Strategy Challenge Fund
  • Support for the objective in the Clean Growth Grand Challenge to at least halve the energy use of new buildings by 2030, helping families to save money and making the UK a leader in clean, green sustainable construction
  • Commitment to 25,000 construction apprenticeship starts and 1,000 Construction T Level placements by 2020 – with £34 millon to scale up innovative training models across the country
  • Improved access to a $2.5 trillion global export infrastructure market

The Construction Leadership Council will lead on the implementation of the Deal and publish an annual report.  The Construction Leadership Council, government and various subgroups will also work on a delivery plan.

The Construction Sector Deal is part of the Government’s Industrial Strategy and is an ambitious partnership with the construction industry, through the Construction Leadership Council.

Comment 

This is an ambitious programme so will it deliver?

The Construction Sector Deal is the biggest investment in the industry in a decade and it is thought that digital techniques and offsite manufacturing will revolutionise construction and address the productivity issue.  The commitment to innovation and improvement is also intended to help industry respond to the recommendations in the Independent Review of Building Regulations and Fire Safety published in May 2018 to improve the sector’s health and safety culture to deliver high quality, safe buildings.

The investment is significant.  However, the Deal recognises that the construction industry itself  needs to move to new business models based on collaboration and more efficient and better integrated supply chains to achieve its goals.

About this article

Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

About this article

Read, listen and watch our latest insights

art
  • 08 July 2025
  • Corporate and M&A

Share buybacks and what to do when they are void!

A share buyback is when a company purchases its own shares from a shareholder. However, for a limited company to successfully purchase its own shares, it must comply with Part 18 of the Companies Act (CA) 2006.

art
  • 07 July 2025
  • Commercial Real Estate

Climate change risks in property transactions

Climate change is starting to affect our lives to a greater extent than experienced before. Extreme weather events such as floods, droughts and heatwaves are becoming a frequent occurrence.

art
  • 04 July 2025
  • Employment

Update: The ‘Employment Rights Bill Implementation Roadmap’

The Employment Rights Bill is a draft law which is poised to expand the rights of employees, signifying a major overhaul in employment law. The ERB has already been passed by the House of Commons and is currently at the ‘Report Stage’ in the House of Lords.

Pub
  • 03 July 2025
  • Corporate and M&A

Get your tech business market ready for sale

In our latest podcast, join Stuart Mullins and Nicky Goringe Larkin to learn how to maximise your tech business value and get your tech business market ready for sale.

art
  • 03 July 2025
  • Immigration

Major Changes to the Immigration Rules from 1 July 2025: What Employers and Visa Holders Need to Know

We outline the key updates, how they affect employers and visa holders—particularly those on the Skilled Worker and Global Business Mobility (GBM) routes—and how our team can assist you in staying compliant and ahead of policy changes.

art
  • 02 July 2025
  • Employment

Day One Rights: What the New UK Employment Bill Means for You and Your Workplace

Let’s unpack what’s changing in the UK Employments Rights Bill, and why it matters, and what both employees and employers should expect.