{"id":533195,"date":"2025-11-24T12:16:14","date_gmt":"2025-11-24T12:16:14","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=533195"},"modified":"2025-11-24T12:16:14","modified_gmt":"2025-11-24T12:16:14","slug":"playing-it-safe-frameworks-can-steady-constructions-ship-amid-choppy-waters","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/sections\/long-reads\/playing-it-safe-frameworks-can-steady-constructions-ship-amid-choppy-waters-24-11-2025\/","title":{"rendered":"Playing it safe: Frameworks can steady construction\u2019s ship amid choppy waters"},"content":{"rendered":"

Simon Toplass is chief executive at Pagabo<\/em><\/strong><\/p>\n

A combination of tightening finances, continued insolvencies and a persistent skills shortage has created an environment where risk appetite is lower than ever.<\/p>\n

With the Autumn Budget looming, contractors and consultants are approaching with caution, but the sector needs to remain alive to how it is reshaping competition across the market. Fewer bids on tenders can leave clients with limited choice and potentially lower value for money \u2013 and it\u2019s in this context that procurement frameworks are increasingly vital.<\/p>\n

\u201cContractors gain a structured, predictable environment, while clients can access the right expertise and competition levels with less risk\u201d<\/p><\/blockquote>\n

The S&P Global Purchasing Managers\u2019 Index for the sector showed that construction activity shrank for a ninth month in a row. Meanwhile, monthly insolvency figures highlight construction among the hardest-hit sectors.<\/p>\n

Layered on top of these financial pressures is the ongoing struggle to find \u2013 and retain \u2013 skilled workers, with different pockets across the sector from consultancy to practical retrofit delivery in great need of filling the gap.<\/p>\n

This perfect storm of financial and skills pressures has seen the market shift towards risk aversion. Smaller and medium-sized firms, in particular, are wary of taking on projects that may threaten margins or delivery schedules \u2013 and therefore their bottom line. The knock-on impact here, however, is felt by clients, who see less competition for their tenders, with fewer bids and often conservative pricing \u2013 especially if exploring a more traditional single-stage procurement approach.<\/p>\n

In this environment, frameworks have emerged as a vital route, reducing uncertainty by connecting clients with pre-qualified suppliers in a transparent and compliant way. Contractors gain a structured, predictable environment, while clients can access the right expertise and competition levels with less risk \u2013 with clarity and transparency enhanced through procurement reform earlier this year. It\u2019s fair to say that in 2025 \u2013 and going into 2026 \u2013 construction firms are more geared up to be on frameworks than not.<\/p>\n

Social value<\/h3>\n

Frameworks offer a platform to make a difference through projects too. For example, delivering social value through works is a growing priority for government and in theory this means public contracts can be awarded based on a combination of price and social value, not just the lowest price. The key is pragmatic implementation: impact needs to be meaningful, locally focused and measurable. Done well, frameworks guide clients in targeting investment where it delivers the greatest effect \u2013 turning social value from a compliance exercise to a genuine driver of impact.<\/p>\n

Most construction firms are already geared up in some way to operate through frameworks. Fixed overhead and profit (OHP) models create predictability on both sides: suppliers gain steady, structured work with agreed margins, while clients get transparency, economies of scale, competitive tender responses, and faster procurement cycles.<\/p>\n

Amid today\u2019s uncertain waters, frameworks stand as a sturdy ship for the sector \u2013 ensuring fair pricing, consistent delivery and greater confidence that projects will be delivered on time and on budget. All being vital to rebuilding the sector\u2019s productivity and confidence levels hand-in-hand.<\/p>\n

In a market where uncertainty and a level of hesitance is another post-pandemic \u2018new normal\u2019, frameworks provide a way to keep the industry moving forward with delivery confidence, fairness and purpose. By combining stability and compliance, they make sure that projects don\u2019t just get built, but they leave a lasting benefit for companies, clients and communities alike.<\/p>\n

And in turbulent times, that sort of stability isn\u2019t just wanted \u2013 it\u2019s needed.<\/p>\n","protected":false},"excerpt":{"rendered":"

Simon Toplass is chief executive at Pagabo A combination of tightening finances, continued insolvencies and a persistent skills shortage has created an environment where risk appetite is lower than ever. With the Autumn Budget looming, contractors and consultants are approaching with caution, but the sector needs to remain alive to how it is reshaping competition …<\/p>\n","protected":false},"author":1,"featured_media":533197,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[559,567],"tags":[],"class_list":["post-533195","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-long-reads","category-opinion"],"yoast_head":"\nPlaying it safe: Frameworks can steady construction\u2019s ship amid choppy waters | Construction News<\/title>\n<meta name=\"description\" content=\"Simon Toplass is chief executive at Pagabo A combination of tightening finances, continued insolvencies and a persistent skills shortage has created an\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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