The procurement stage of any construction project is one of the most significant points in its timeline, often carrying implications for ongoing costs, legal compliance, supply chains and relationships between all parties.
As the sector evolves, construction procurement becomes a more complex exercise, particularly for large-scale commercial projects.
This evolution has created new challenges for the construction sector. Our construction law experts take a look at some of the most common challenges.
- Sustainability requirements
Sustainability has become a significant priority for individuals, businesses and the Government in recent years.
Awareness of the impact of the construction sector, particularly waste and energy-intensive processes, has brought in a number of sustainability requirements to the sector.
These may include:
- Reporting on carbon emissions
- Targeting net zero
- Procurement of sustainable materials
- Incorporating energy efficiency into the design of the structure.
Despite the long-term benefits, these requirements can boost the short-term cost of a project and create delays while obligations are met.
- Costs, delays and risk
Although these can be viewed as three separate issues, cost, delays and risk are interrelated and one can trigger difficulties with another.
For example, when costs rise in a project, this increases the risk to the investor if the project cannot go ahead, which can result in delays as contracts are negotiated or disputes are settled.
Rising costs are ever-present in the 2024 economy, so this challenge is likely to persist. Investors and contractors are likely to put increased emphasis on cost efficiency and return on investment (ROI).
Contact us for advice on overcoming the challenges facing your project.