2026 – A Transformative Year for the Construction Industry?

RED Group MD Mike Green, reflects on the highs and lows of 2025 whilst looking forward to a landmark year for the team…

To say 2025 was a challenging year for construction, is probably something of an understatement. The weight of the industry adjusting to the new BSA legislation was a major factor in this and certainly something we felt across the business.

Widely different interpretations of the new regulations, coupled with differing approaches from our clients in terms of navigating the new Gateway system, meant we had to re-group, up-skill and strengthen our resource, particularly in estimating and design.

It’s no secret that main contractors, especially those involved in higher-risk residential are feeling the pain in terms of Gateway delays, resulting in cost increases and often full project paralysis.

What remains key for us here at RED, is adopting the right thought process from start and building a strong and experienced project team who engage early and collaborate effectively with our clients to guide them through the Gateway requirements. This approach helps us to mitigate risk and produce robust cost assessments from the earliest stage, all of which helps to navigate the constrains and unlock opportunities for our clients.

Other challenges, such as ongoing skills shortages, supply chain volatility, economic pressures and environmental considerations are all still playing their part, but it’s not all doom and gloom…

The Good News

2025 also saw some major highs for us here at RED. We continued our commitment to digital transformation through further investment in our digital platforms to support both Gateway 2 and the incoming Gateway 3 requirements.

We strengthened our talent base by recruiting leading industry specialists across the business. We continued to nurture our relationships with key partners and delivered some stand-out projects, notably the 1,244 bed PBSA triumph Echo Street with B&K and the Façade Awards shortlisted science hub Greenheys, with our long-term partner, Willmott Dixon.

According to the Glenigan Construction industry Forecast 2026-2027, the sector looks set for moderate growth this year, with commercial developments and increased public sector investment all playing their part.

As a business, we will continue to take learnings from our initial 6 Gateway submissions and support our clients with more robust lead in periods and staged submittals to release work from the pipeline as swiftly as possible. Early engagement will remain at the forefront of our approach, and all Gateway projects will go through a two-stage tender process as standard.

Here’s to a successful & rewarding year ahead!

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