{"id":536482,"date":"2026-02-02T10:44:18","date_gmt":"2026-02-02T10:44:18","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=536482"},"modified":"2026-02-02T17:34:33","modified_gmt":"2026-02-02T17:34:33","slug":"costain-chiefs-reasons-to-be-cheerful","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/contractors\/costain\/costain-chiefs-reasons-to-be-cheerful-02-02-2026\/","title":{"rendered":"Costain chief\u2019s reasons to be cheerful"},"content":{"rendered":"

Costain chief executive Alex Vaughan has little time for doom-laden narratives about the state of UK construction. Sitting down with Construction News<\/em> shortly before Christmas at the firm\u2019s offices in the distinctive \u2018Can of Ham\u2019 building in the City of London, he acknowledges the challenges facing the sector but remains excited by the opportunities ahead.<\/p>\n

\u201cThere is a tremendous amount of work happening,\u201d he says. \u201cAcross water, energy, nuclear, transmission and defence, the levels of investment are unprecedented and happening now.\u201d<\/p>\n

\u201cWe\u2019ve never had an infrastructure assessment that is so clear… But the story people hear is still about delay and uncertainty\u201d<\/p><\/blockquote>\n

Even so, Vaughan describes last November\u2019s Autumn Budget as a missed chance to inspire confidence and build on the \u00a3725bn infrastructure strategy announcement earlier in the year. \u201cWe\u2019ve never had an infrastructure assessment that is so clear about what this country needs,\u201d he says. \u201cBut the story people hear is still about delay and uncertainty.\u201d<\/p>\n

These narratives obscure a more positive reality, he argues. \u201cI would say 80 per cent of our industry is predictable \u2013 but we all focus on the 20 per cent that isn\u2019t and get agitated about it. Let\u2019s celebrate the 80 per cent that is consistently doing it right.\u201d<\/p>\n

\u201cI’ve read the [December 2025] CECA [Civil Engineering Contractors Association] report<\/a> about a reduction in road and rail workloads \u2013 that\u2019s all very interesting, but there is massive increased investment in water, and huge increased investment in skills, in energy. Why are we not talking on balance about the bigger opportunities?\u201d<\/p>\n

Vaughan acknowledges why scepticism exists, particularly around major programmes such as HS2, but notes that much of the investment that drives civils workloads today is not directly dependent on day-to-day political decision-making. Instead, regulated and private clients are pressing ahead. As a prime example, he cites the more than \u00a3100bn that has been committed for the water sector until 2030 in the AMP8 water investment cycle<\/a>.<\/p>\n

Skills mission<\/h3>\n

Although momentum is building in civils investment, the construction industry must still grapple with fundamental underlying issues around skills and labour shortages. Last year, Vaughan succeeded outgoing Balfour Beatty chief executive Leo Quinn as the infrastructure lead within the government\/industry Construction Skills Mission Board<\/a>, which aims to create 100,000 new jobs in the sector by the end of the current parliament.<\/p>\n

\u201cIf you give people live data and remove some of the admin, they make better decisions. That\u2019s how you improve predictability\u201d<\/p><\/blockquote>\n

\u201cIf you\u2019re relying on this industry for your future, you need to know there\u2019s a long-term pipeline of work,\u201d Vaughan says. \u201cOne of my roles on the Mission Board is joining up infrastructure clients regionally so we can say, collectively, \u2018this is 10 or 20 years of demand\u2019. That confidence will be transformative. If we as tier ones benefit from long-term programmes, then we have to pass that certainty down.\u201d<\/p>\n

He notes that the construction industry needs recruits for a wide range of roles \u2013 not just site workers but also finance, digital, risk and management staff \u2013 and admits the sector is in a \u201cwar for talent\u201d with other industries.<\/p>\n

The digital aspect is important to Vaughan, who emphasises the importance of practical benefits rather than hype about digital transformation. He cites Costain\u2019s work on HS2, where telematics data from hired plant has been used to iron out operational inefficiencies. \u201cWe were able to improve productivity by 40 per cent by managing lorry movements to suit excavators and plant routes,\u201d he says. \u201cThe prize for me is thinking time. If you give people live data and remove some of the admin, they make better decisions. That\u2019s how you improve predictability.\u201d<\/p>\n

But digital transformation alone won\u2019t help to win that war for talent, which partly explains why Vaughan is pragmatic about immigration. While he believes the UK can develop much more of its own capability, he accepts that amending skilled worker visa rules<\/a> may be part of the short-term solution. \u201cThis is about pace,\u201d he says. \u201cYou can\u2019t turn domestic skills on overnight. We need to build domestic capacity while also making sure we can access critical skills when we need them.\u201d<\/p>\n

Narrowing focus<\/h3>\n

Costain posted interim profit of \u00a318.2m from turnover of \u00a3525.4m and the firm is due to release its next full-year results on 10 March.<\/p>\n

In a trading update in late January, the firm said it ended 2025 with a stronger-than-expected \u00a3190m cash pile. It also announced a reset of its defined benefit pension arrangements, and plans to launch a \u00a320m share buyback this year.<\/p>\n

\u201cOur forward order book is growing because we\u2019re in the right markets. That\u2019s not theoretical \u2013 we\u2019re winning work and delivering it\u201d<\/p><\/blockquote>\n

\u201cOur forward order book is growing [to a record \u00a35.6bn in the first half of 2025] because we\u2019re in the right markets,\u201d Vaughan says. \u201cThat\u2019s not theoretical \u2013 we\u2019re winning work and delivering it.\u201d<\/p>\n

Since becoming chief executive in May 2019, Vaughan has broadened Costain\u2019s customer base while narrowing the \u00a31.25bn-turnover<\/a> firm\u2019s focus to a small number of infrastructure sectors. Around 90 per cent of its work now comes from repeat clients on long-term frameworks in road, rail and water, he says, and the firm is also involved in a framework agreement at Heathrow Airport, where work includes an upgrade to the baggage-handling system in Terminal 2.<\/p>\n

Other new work, awarded in late January, includes a contract from National Highways<\/a> to design and build a new motorway junction on the M5 in Somerset. Junction 22A will serve a \u00a34bn electric vehicle battery plant being developed by Agratas.<\/p>\n

Looking ahead, Vaughan highlights AMP8 as a major inflection point for the business, alongside continued momentum in energy and transport. But his wider ambition for the construction industry is deliberately prosaic.<\/p>\n

\u201cI\u2019d like us to be boring,\u201d he says with a smile. \u201cDo what we say we\u2019re going to do \u2013 build the skills base and deliver predictably. If we can manage that, this industry has a very strong future.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Costain chief executive Alex Vaughan has little time for doom-laden narratives about the state of UK construction. Sitting down with Construction News shortly before Christmas at the firm\u2019s offices in the distinctive \u2018Can of Ham\u2019 building in the City of London, he acknowledges the challenges facing the sector but remains excited by the opportunities ahead. …<\/p>\n","protected":false},"author":135716,"featured_media":484696,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[532,570,559],"tags":[],"class_list":["post-536482","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-costain","category-interviews","category-long-reads"],"yoast_head":"\nCostain chief\u2019s reasons to be cheerful | Construction News<\/title>\n<meta name=\"description\" content=\"Costain chief executive Alex Vaughan has little time for doom-laden narratives about the state of UK construction. 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