Industry Confidence Report (ICR) Q3 & Q4 2025

Insights from principal contractors & consultants shaping the future of the UK built environment.

ICR Q3 & Q4 2025

Executive Summary

CCBP is committed to driving improvement, transparency, and innovation across the UK Built Environment Sector. As part of this mission, we have produced an ICR to provide a clear and evidence-based view of how contractors and industry professionals are experiencing current market conditions.

This report brings together insights from principal contractors & consultants across the UK, offering a snapshot of sector sentiment at a critical time. Respondents provided feedback across nine key areas, including workload, market pressures, procurement practices, sector confidence, skills and sustainability.

Insights & Analysis

Key Findings

Drawing on feedback from principal contractors & consultants, the findings reflect a sector balancing high demand with mounting external pressures. Inflation, procurement reform and the skills shortage continue to influence how projects are planned, costed and delivered.

Yet, despite these challenges, there are clear signs of adaptability: Contractors are finding ways to secure work, diversify operations and embed new approaches to collaboration and innovation.

72% Say rising costs are significantly impacting project delivery.
81% Report strong tender win rates, yet many warn the market is still driven by price over value.
74% Are involved in collaborative procurement routes, signalling progress but also calling for faster reform under the new Procurement Act.
73% Agree contractor insolvencies are affecting their projects.
56% Of respondents said inflationary pressures are disrupting project planning and execution.
60% Believe cost increases are not adequately recognised in client budgets.
Process

Research Methodology

The Industry Confidence Report draws on survey responses from contractors and consultants across the UK built environment sector. Participants provided quantitative feedback via a structured survey alongside open-text commentary, enabling both statistical analysis and richer qualitative insight into current industry conditions.

Data Deep Dive

Insights From Our Report

To build on the insights in our report, we’ve created a series of five in-depth articles that take a closer look at the data behind the headlines. Each piece explores key trends shaping the construction industry - from rising costs and inflation to major changes the built environment needed to improve how our sector operates - providing deeper analysis and practical takeaways for employers and professionals alike.

Rising Costs and Inflation: The Industry’s Relentless Pressure Point Discover how inflation and stagnant budgets are reshaping project delivery, squeezing margins, and threatening long-term resilience across the construction sector.
Tender Market is Active However it is Still Price-Driven Could shifting focus from cost to value transform long-term project outcomes? Learn why contractors and consultants demand reform to move beyond price-led tendering models.
Three Biggest Threats to the Built Environment Sector: ICR Results Uncover the top three threats contractors say are undermining industry confidence — policy uncertainty, rising costs, and unstable funding pipelines.
Three Major Changes Needed to Improve How the Built Environment Operates: ICR Results What should the roadmap for change look like? Procurement reform, skills investment and collaboration is a start.
Sentiment Towards Procurement: Progress, Pressure, and the Push for Reform Explore how contractors and consultants view procurement reform under the new Procurement Act.
Download The Industry Confidence Report Download the full Report for more insights and practical takeaways. From rising costs and inflation to major changes the built environment needs to improve on.
Download Our Report

Industry Confidence Report 2025

This report brings together insights from principal contractors & consultants across the UK, offering a snapshot of sector sentiment at a critical time.

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Governance

Strategic Alignment

The ICR research conducted by CCBP has been strategically aligned with our Industry and Academic Advisory group's. Each shape the direction of CCBP and the research we undertake. By bringing academia and industry together, we create a government backed research to deliver real-world impact.

Industry Advisory Group (IAG) The Industry Advisory Group (IAG) is made up of senior representatives from BAM, Kier, Morgan Sindall, and Wates. Serving in a dedicated advisory capacity, this group will provide expert guidance and industry intelligence to help shape CCBP’s strategy and output moving forward.
Academic Advisory Group (AAG) The Academic Advisory Group (AAG) is made up of some of the UK's most respected universities, including Queen's University Belfast, Loughborough University and the University of Leeds. The AAG provides CCBP with the insight and rigour needed to ensure our work reflects the latest research and best practice.

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