Couverture de Pre-Budget Conditions in Construction. Pause or Play? | Episode 136

Pre-Budget Conditions in Construction. Pause or Play? | Episode 136

Pre-Budget Conditions in Construction. Pause or Play? | Episode 136

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Construction Disrupted Episode 136 - Pre-Budget Conditions in Construction. Pause or Play? (14.10.26) in partnership with Adobe Acrobat Studio. Check them out and show them some love.In this episode, we're discussing one number, one bottleneck and one new delivery model. An PMI edging upward but still below 50, specialist capacity keeping pressure on project costs, and Liverpool gaining a direct route to turn regeneration plans into homes and sites. Here’s what that means for the projects moving next—and those still waiting for momentum. Let's go!Recovery in commercial work helps see output rise as industry waits on BudgetUK construction’s downturn eased in September, with the PMI rising from 44.3 to 46.1, its least severe contraction since January. Commercial activity was the main support, improving to 48.5, while civil engineering and housing also declined more slowly. Housing remained the weakest segment at 40.7 despite an improvement from August.The caveat is clear: output has now been below the no-change mark for 21 months. New work fell at its fastest pace since June as high borrowing costs, geopolitical uncertainty, delayed major-project decisions and rising inputs weighed on demand. Industry confidence has weakened ahead of the Budget, with firms looking for dependable infrastructure commitments and lower uncertainty around the cost of doing business.Tier 1 tender rises cool but specialist trades costs hold firmTender price inflation is expected to rise by 3.25% in 2026, down from Gardiner + Theobald’s previous 3.5% forecast, as Tier 1 contractors compete more actively for selected work. Well-prepared projects valued at £10m–£30m are attracting the strongest competition.But this is a more selective market, not a cheaper one. Main contractors are sharing a constrained pool of MEP, façade and structural-steel specialists, limiting clients’ ability to benefit from softer headline tender inflation. MEP capacity is the sharpest pinch point, reported by 68% of respondents. Larger or more complex projects, especially above £50m, are finding it harder to secure credible bidder fields. Risk-heavy contract terms, compressed programmes and immature designs are also adding allowances to bids.Liverpool City Region agrees first-of-its-kind regeneration partnership with Homes EnglandLiverpool City Region has become the first English mayoral authority to sign a Place Delivery Agreement with Homes England and the National Housing Bank. The model shifts the relationship from collaboration to co-delivery, using joint delivery units led by representatives from each organisation.The agreement gives Mayor Steve Rotheram greater influence over housing and regeneration investment and targets major schemes including Liverpool North Docks Mayoral Development Corporation and Central Station Gateway, alongside the broader housing pipeline. Its stated ambition is practical: unlock stalled schemes, accelerate council and social housing delivery, and direct investment to where it has the greatest local impact. Homes England intends to pursue similar agreements with other mayoral strategic authorities.BiosRyan Jones - SLG AgencyFor almost 20 years, Ryan’s focus has been on helping brands in the construction and manufacturing sectors tell their story.His career began in PR, working for global businesses across a variety of sectors, before opting to focus on construction and the built environment.In his role as Managing Director, Ryan works to ensure that SLG Agency continues to be one of the construction industry's leading specialist strategic and creative agencies, having seen its work recognised by the likes of Campaign, Marketing Week and The Drum in recent years.Ryan is regularly asked to speak at trade shows and events, and to contribute thought leadership pieces to trade media. He is also a member of several industry advisory boards, including Constructing Excellence and the Greater Manchester Chamber of Commerce.His passion for the construction sector has seen him work with clients on CSR campaigns that tackle the sector’s public perception, culminating in him recently launching a not-for-profit called Deconstruction.Peter Sumpton - buildDifferentPeter is a construction–marketing strategist and co-host of Construction Disrupted. With two decades’ experience spanning manufacturers, contractors and agencies, he helps organisations swap scattergun activity for clear strategy, joined-up planning and measurable outcomes.His approach is practical and plain-spoken: cut the noise, focus on what moves the numbers, and build repeatable systems that teams can actually use.Having seen first-hand how unfocused tactics waste time and budget, Peter works with leaders to align commercial goals, customer insight and content so marketing supports delivery rather than distracting from it.Peter's passion lies in diagnosing organisations' marketing functions' capabilities and existing market, assembling what’s ...
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