New Report from NEC Contracts Explores Key Drivers of Industry Change

New research reveals the construction industry is ready for transformation across digital adoption, sustainability and collaborative contracting, with training identified as the key enabler for change.

The exclusive research from NEC Contracts, 'Smarter, greener, together: the factors driving change in our industry', offers the first comprehensive view of where the sector truly stands in 2025 across three game-changing areas that will define our future: sustainability, collaboration, and digital adoption.

Exploring the views of over 250 built environment professionals, including opinion from senior figures across civil engineering, utilities and government bodies, the report offers a fascinating insight into the industry's direction of travel and what the future holds.

Digital adoption shows strategic potential

'Smarter, greener, together' reveals that real opportunity lies in creating digital workflows that enhance the collaborative principles underpinning successful project delivery. When digital tools support mutual trust and cooperation rather than create additional barriers, transformational results follow.

The industry's challenge is moving beyond reactive adoption to strategic implementation that serves project outcomes.

Key findings show 40% of respondents said their organisation has a clear digital roadmap and are implementing it, with a further 26% saying digital is currently core to their business and operations.

Whilst 76% of respondents believe the sector is keeping pace with digital innovation, 70% also agreed that digital tools are only adopted when necessary.

Efficiency improvements (61%), quality control (53%) and improved project control (49%) were the most common drivers for adopting digital technologies. Cost of implementation (44%), lack of in-house expertise (30%) and limited time or resources (27%) were the most common barriers.

Significantly, 79% of respondents agreed that 'using digital technologies is crucial to attract new people into the industry'.

Sustainability transition accelerating

The report finds much of the sector still in the early stages of a transition, with sustainability targets and contractual mechanisms not yet widely adopted. This presents both a challenge and an opportunity.

Collaborative approaches naturally align with sustainable outcomes - and when all parties share risks and rewards, efficient resource use and waste reduction become collective priorities rather than individual concerns.

Just 25% said sustainability targets are substantially transforming many elements of contracts, whilst larger organisations (10,000+ employees) are most likely to be aware of sustainability focused optional clauses such as NEC X29 (67%).

The three most common areas where contractual mechanisms are used to improve sustainability are carbon impact during construction (56%), operational emissions of the finished building (52%) and water usage during construction (41%).

However, 72% said more projects should include sustainability focused optional contract clauses, indicating a strong appetite for change.

Strong collaboration appetite meets implementation challenges

The research highlights a significant gap between ambition and implementation in collaborative contracting. Whilst the industry recognises the value of collaboration, it faces practical barriers to implementation, with wider adoption requiring training, cultural shifts and the confidence to do things differently.

Nearly half (49%) strongly agree that using collaborative contracts leads to higher efficiency and improved quality, whilst 82% think that the widespread adoption of collaborative contracts would significantly improve the industry.

Looking ahead, 32% think that cloud-based collaborative contract drafting technologies and innovations will have a significant impact on the built environment sector in the next five years, with 20% expecting a major impact.

The main barriers to adopting collaborative contracts are the training required (43%), reluctance to change (37%), and lack of awareness of collaborative contracts available (35%).

Training emerges as transformation enabler

The research consistently identifies training as the primary barrier across all three areas studied. This presents a clear opportunity for targeted professional development and education programmes to bridge the gap between industry aspirations and practical implementation.

The findings reinforce NEC Contracts' role in supporting industry transformation through both innovative contract solutions and comprehensive training programmes.

Welcoming the findings of the report, Andrea Naylor, managing director, Thomas Telford Ltd. concluded: "The report reveals an industry that understands the direction of travel and requires support on the way. What excites us most is that the findings show an industry ready for transformation.

"We see digital transformation, sustainability and collaboration not as separate challenges but interconnected elements that need to be brought together effectively to achieve a fundamental shift towards more intelligent, efficient and equitable project delivery. The most successful projects of the future will be those that integrate these elements seamlessly, and that's exactly what the right contractual framework can enable."

Download the full report now