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    Two in five UK construction firms hit: delivery–reality gap for project teams

    February 16, 2026|

    Reviewed by Joe Ashwell

    Two in five UK construction firms hit: delivery–reality gap for project teams

    First reported on New Civil Engineer

    30 Second Briefing

    Two in five UK construction firms report a direct hit to their bottom line despite political promises of accelerated infrastructure delivery, exposing a gap between headline commitments and actual project flow. Contractors cite delayed notice-to-proceed on major road and rail schemes, stop–start funding cycles for schools and hospitals, and prolonged planning approvals as key drivers of margin erosion. For geotechnical and civil specialists, this means underutilised design and site teams, disrupted ground investigation programmes, and greater commercial risk when pricing long-lead works.

    Technical Brief

    • For similar UK construction programmes, unstable pipelines are likely to push up unit rates and contingency.

    Our Take

    Across the 709 Infrastructure stories in our database, margin pressure on contractors tends to correlate with delayed public-sector decision-making and re-bidding on major Projects, which can quietly extend programme durations even when headline capital commitments are unchanged.

    When roughly 2 in 5 construction firms report bottom-line impacts, our coverage suggests smaller regional contractors are typically hit first, often tightening pre-qualification criteria and pushing more risk onto tier-2 and tier-3 subcontractors on complex Projects.

    In the Projects-tagged material, similar profitability squeezes have usually preceded more adversarial contract behaviours (claims, disputes, and scope challenges), so asset owners may need to budget more time and cost for commercial resolution even on ostensibly straightforward Infrastructure schemes.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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