The Construction Playbook: Is the Industry Adopting the Direction of Travel

The construction industry is going through a transformational time, but the full power of that change is yet to be fully unlocked. The Construction Playbook was released almost four years ago, setting a clear vision for the future: 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, it’s not the first time government or industry reports have set stock of the changes needed. It’s also not the first time that the uptake of recommendations from such reports has been a mixed bag, with extreme changes in some areas of the sector, and much slower adoption – if at all – in others. Given the outside perception of the construction sector being slower to embrace modern ways of working – particularly from an operational delivery perspective – there’s still much to do in whipping the whole industry into shape.

Aligning with the Construction Playbook’s vision

The Construction Playbook laid out 14 key policies covering the whole life journey of construction projects – all aimed at improving how public projects are delivered and setting stock of best practice from preparation through to evaluation.

It endorses the use of unamended standard forms of contract and highlights the ways in which they can help simplify and speed up procurement processes. By using a common approach across the sector, best practice becomes more embedded, particularly as people become familiar and comfortable with a more consistent approach. The contract types named within the Construction Playbook are:

• NEC

• JCT

• PPC/TAC-1 and FAC-1

However, there are further benefits to standardised contracts. They 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. Our own contract management system is designed with this standardisation in mind, supporting all contract types to make it easier for companies to adopt this approach.

But why is it so important? 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 – and by using contract management systems like Sypro, teams are able to better address potential issues early on as part of that protective approach.

Learning from the past, acting in the present

As already mentioned, the Construction Playbook is not the first industry report to take stock of the way things are done and make recommendations – and it won’t be the last.

An illustrative example here would be to take the 1994 Latham Report. It made a series of recommendations, including around the adoption of NEC as the contract model with the power to streamline construction projects – and since then, there has been a continued adoption of that contract type.

However, the Latham Report aimed to address some core industry issues, including the prevalence of late payments, which had long plagued construction firms. Thirty years later, these issues are still with us in full force – perhaps more so than ever before, with the number of construction insolvencies in the year to August 2024 rising by 1.1% on the previous year.

The recent collapse of ISG is the latest high-profile casualty, and while according to reports this particular administration was not solely down to late payments, it shows the knife edge of construction operation that can exist. It also shows the knock-on impact, with Companies House documents showing that the company owed almost £1bn in debt, with much owed to suppliers and subcontractors – and indeed the worst occurred for one specialist lighting contractor Seventynine Lighting Ltd, which ceased trading as a direct result of ISG’s insolvency.

So, it’s certainly clear that more needs to be done to tackle the industry’s financial stability – and quickly. 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 both 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 – a space in 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 using much more manual approaches.

Yet the need for these tools is urgent: digital solutions can streamline contract management, improve accountability, reduce inefficiencies, and provide protective measures that make sure the industry can propel forwards, not be bogged down by administrative burden.

Key Policy 5 in the Construction Playbook highlights this need for digital solutions and their role in achieving project goals. By integrating digital platforms, construction companies can track, manage, and communicate effectively on complex projects, ensuring that all team members are informed and aligned with the latest information in a central platform.

This all works towards the Construction Playbook key policies around collaboration and risk management as well – both of which our own contract management platform at Sypro is built to enhance, with conversations tabs per activity to collaborate in platform, and the early warnings facility to capture issues before they escalate. Especially when considering how a contract is set up, specific communications and management tools can be identified within the contract itself, creating accountability for the use of said digital solutions from the outset.

The push towards digital adoption is crucial not only to improve day-to-day operations but also to appeal to the younger workforce. This tech-savvy generation, which has grown up with apps and digital solutions, will become increasingly important as the industry works to close the skills gap. 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.

For companies unwilling or unable to evolve, the risks are clear: becoming outdated in an industry increasingly focused on efficiency, digital adoption, and collaborative practices. By embracing the Construction Playbook’s policies sooner rather than later, firms can avoid the ‘dinosaur’ label and position themselves as industry leaders that drive – not hinder – the sector’s progress.

Adhering to the Construction Playbook’s standards is not just a compliance measure; it’s a strategic advantage. With tools like Sypro, construction firms can navigate the evolving demands of the industry confidently, meeting the call for transparency, collaboration, and efficient project management. As younger, tech-savvy professionals continue to enter the workforce, companies already aligned with these digital, standardised approaches will have an edge in attracting talent and staying competitive.