CONSTRUCTION: WHAT TO EXPECT FOR 2025?
The final phase of the Grenfell Tower inquiry was published in September 2024. The report recommended significant updates to the regulation of the construction industry, featuring the introduction of a ‘construction regulator’ and suggested an urgent review of approved document B of the building regulations, which the review claimed were inadequate and unhelpful. The report contained many recommendations which could see substantial reforms introduced if implemented by the government.
The planning system is likely to see major reforms in 2025, following the publication of the revised National Planning Policy Framework on 12 December 2024. Data centre development was included in the latest round of planning changes following the General Election and is expected to be a key focus for planning policy. The framework highlights data centres and grid connections, stating that planning policies and decisions should support the delivery of this key infrastructure. Other focuses include the renewables sector following the government’s lifting of the de facto ban on onshore wind farm developments in England and expediting ambitious housing project targets.
The Future Homes Standard will become compulsory during 2025. The Future Homes Standard represents a significant step towards creating a more sustainable and energy-efficient housing stock in the UK. By focusing on low-carbon heating technologies and stringent fabric standards, the standard aims to reduce carbon emissions, lower energy bills for homeowners, and contribute to the UK’s net-zero goals. The construction industry will play a crucial role in implementing these changes and ensuring that new homes meet the required standards.
The commencement date for the Procurement Act 2023 has been delayed from October 2024 to 24 February 2025. The Procurement Act 2023 represents a significant shift in public sector procurement, with the potential to drive greater transparency, efficiency and innovation in the construction industry. The delay in the commencement date to 24 February 2025 provides a valuable window of opportunity for companies to adapt and align their operations with the forthcoming changes.
The UK Government is likely to endorse the initial two UK Sustainability Reporting Standards (UK SRS) in the first quarter of 2025. These standards will be derived from the sustainability and climate-related disclosure standards issued by the International Sustainability Standards Board.
The UK Government is likely to endorse the initial two UK Sustainability Reporting Standards (UK SRS) in the first quarter of 2025. These standards will be derived from the sustainability and climate-related disclosure standards issued by the International Sustainability Standards Board. The purpose of these standards is to enhance transparency for funders regarding borrowers’ climate and sustainability risks and opportunities, as well as to establish benchmarks for monitoring projects. Some further examples of specific reporting requirements are:
- Corporate Sustainability Reporting Directive Scope 3 emissions reporting
Beginning in 2025, the Corporate Sustainability Reporting Directive (CSRD) will mandate that specific businesses disclose their greenhouse gas emissions both prior to and following the delivery or consumption of a product. This requirement extends to non-EU companies if they have securities listed in the EU, engage in substantial business activities within the EU, or were previously subject to the Non-Financial Reporting Directive. - The Energy Savings Opportunity Scheme Phase 3 action plans
Businesses with over 250 employees or an annual turnover of over £44m, from March 2025, will be required to outline their plans for reducing energy consumption to the Environment Agency.
Most of the new JCT suite was released in 2024, but the construction management contract and the new target cost family of contracts are expected to be available prior to summer 2025. It is still uncertain how the principles in the JCT 2024 suite, which were previously supplemental provisions but are now included in the main body of the JCT contract, will impact behaviours, especially in terms of collaborative working and the obligation to notify and negotiate disputes.
FIDIC is expected to introduce a climate change clause in 2025, similar to NEC’s X29 published in 2022. This clause will set objectives, obligations, incentives and damages according to a separate schedule of carbon emissions.
Additionally, FIDIC plans to provide carbon management guidance for the entire lifecycle of the asset. The standard form contract for offshore wind projects, initially expected in 2025, is now likely to be published in 2026. The release dates for other contracts in development, such as an EPCM contract, joint venture agreement and PPP 2.0 model contract, are unknown.
Consultation on the bill is set to commence in 2025. The Employment Rights Bill represents a comprehensive effort to modernise and improve employment law, addressing various critical issues that affect employees’ rights and well-being. The consultation process set to commence in 2025 will provide an opportunity for stakeholders, including employers, employees, trade unions and legal experts, to contribute their views and shape the final legislation.
The proposed amendments aim to create a fairer, more transparent, and supportive working environment for all employees.
These amendments replace and expand the sections on regulation 38 and fire safety information to include more detailed obligations.
The first updates to volumes 1 and 2 of approved document B take effect on 2 March 2025. These amendments replace and expand the sections on regulation 38 and fire safety information to include more detailed obligations.
The amendments to approved document B of the Building Regulations 2010 represent a significant step forward in enhancing fire safety in buildings. By expanding the requirements for fire safety information, mandating sprinkler systems in care homes, imposing stricter performance standards for materials and enhancing record-keeping obligations, these changes aim to provide better protection for building occupants and ensure a higher standard of fire safety across the board. Building professionals, owners and managers must familiarise themselves with these new requirements to ensure compliance and enhance the safety of their buildings.