Project delays caused by the Building Safety Act are easing, helping lift tendering activity in the UK construction sector, during the second quarter of 2025, according to a new report.
Tender workloads increased by 2 per cent between the first and second quarters of this year, and by 3.2 per cent compared with the same period in 2024.
The change follows a further period of reduced activity in late 2024, according to the National Association Construction Frameworks’ Q2 market intelligence report.
The report said: “Feedback from the supply chain indicates that delays caused by the Building Safety Act are beginning to ease, enabling more projects to move forward. This presents an opportunity for increased tendering activity in the coming quarters.”
The data, which reflects sentiment from across the supply chain, points to strengthening demand in infrastructure and housing-related work.
Window fitting led the rebound, with a 12.3 per cent increase in opportunities reported since the start of the year.
Tender activity also rose in groundworks and steel frame packages, which saw a combined increase of 6.75 per cent.
However, mechanical and electrical work dropped by 4.6 per cent, with concrete frame and drylining trades also showing marginal declines.
Subcontractors have continued to take a selective approach to bidding, limiting exposure to volatile material prices and supply chain risks, the report said.
While this has supported pricing stability, it could reduce delivery capacity if demand rises more sharply in future quarters, it added.
Concerns remain over the potential impact of US tariffs and broader geopolitical tensions, particularly regarding the availability and cost of imported construction materials.
Despite these external pressures, firms have expressed cautious optimism for the second half of 2025, pointing to a steady pipeline of new opportunities as safety-driven project hold-ups begin to clear.
Other report highlights
- Building costs in the UK have continued to rise steadily, aligning with the projected quarterly inflation rate of 2.4%. MEP and Groundwork packages have experienced the most significant increases over the past two quarters, with quarter-on-quarter growth of 3.3% and 2.9%, respectively.
- Employment levels across the supply chain have remained largely stable over the past three months, indicating a steady labour market.
- Material lead times have remained stable across all surveyed trades over the past three months. However manufacturing delays and regional defects could lead to a shortage of bricks in coming months. “These issues could pose a risk to the supply chain, especially for residential construction projects, if not addressed promptly.”
Source: National Association Frameworks’ Q2 market intelligence report
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Colin Marrs