05
Sep 2025
- BY Kevin Barry BSc(Hons) MRICS
- POSTED IN Latest News
- WITH 0 COMMENTS
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Starting a monthly update, here is a list of the top 10 issues currently important to building contractors and clients in Northern Ireland, based on recent industry reports and forecasts. These reflect challenges in September 2025 and anticipated trends leading into December 2025, such as ongoing economic pressures, infrastructure limitations, and policy developments. I’ve prioritized them based on frequency and impact across sources, affecting project delivery, costs, and viability for both contractors (e.g., workforce and compliance) and clients (e.g., delays and funding).
- Wastewater and water infrastructure constraints: Chronic underfunding of NI Water has led to capacity issues, halting new connections for housing, schools, and commercial projects in 23 towns, with a projected £2.03 billion funding shortfall by 2027 potentially causing job losses equivalent to COVID-19 impacts. This remains a critical barrier to development through year-end, with calls for developer contributions and sustainable drainage systems as partial solutions.
- Workforce and skills shortages: High vacancy rates, low unemployment (around 3%), and competition for talent are exacerbating shortages in roles like quantity surveyors (52% of firms affected), wood trades, electrical trades, and other professionals, making it hard for contractors to staff projects and for clients to meet timelines.
2 sources Efforts to attract new entrants and re-engage workers will intensify toward December.
- Planning system delays and reforms: The outdated planning process is a major hurdle, causing project bottlenecks for clients and increased costs for contractors; reforms are urgently needed to streamline approvals and support growth.
- Housing supply and development challenges: Despite government targets to scale up building (e.g., UK-wide 1.5 million homes push), NI faces barriers like capacity constraints and rising activity in housing but declines elsewhere, impacting clients seeking affordable developments and contractors’ workloads. 3 sources An ambitious Housing Supply Strategy is a key recommendation heading into Q4.
- Safety regulations and compliance: Strengthening standards, such as the Building Safety Act 2022 requirements for sprinklers in care homes from March 2025 and expiring CSCS cards, are raising the bar for health and safety, requiring upskilling and audits that add costs for contractors while ensuring client project quality.
- Economic downturn and output fluctuations: Recent declines in construction workloads (net balance of -8% in Q2 2025) amid recession risks are affecting viability, with forecasts of 3% average annual growth but sharp drops in some sectors, leading to uncertainty for contractors’ pipelines and clients’ investments through December.
- Mental and physical wellbeing in the workforce: The sector’s high rates of injuries, fatalities, and suicides (one of the UK’s highest) are prompting calls for better training and support, impacting contractor retention and client project reliability as wellbeing initiatives gain traction.
- Sustainability and net-zero requirements: Advancing environmental responsibility, including low-carbon materials and alignment with net-zero targets under the Procurement Act effective February 2025, is challenging contractors to innovate while clients demand greener projects.
- Tendering and procurement complexities: The need to simplify tendering processes is highlighted to reduce administrative burdens for contractors bidding on public projects and improve efficiency for clients in the supply chain.
- Broader infrastructure deficits (energy, transport): Beyond water, lacks in energy and transport infrastructure are undermining market viability and growth, with calls for government action to support recovery and prevent further halts in projects toward year-end.