Construction in the UK: Where we are, and what’s to come in 2026 and beyond Copy
Let’s take a step back in time. It’s December 31st, 2024. The clock is about to strike midnight and close out another year. A time for renewed hope and looking ahead.
The UK construction industry rang in the new year under pressure: productivity still lagging the national average, a shrinking workforce, regulatory demands, and digital transformation having teams constantly feeling as though they are playing catch up.
Yet for planning and scheduling professionals, 2025 has also been a pivotal year that proved how much well‑implemented digital tools, model‑based planning and better data can move the dial on outcomes; reducing some of the ‘fear’ that can often come with new technology. That said, construction remains around 13.5% less productive than the wider economy on an output‑per‑hour basis; but even then it was one of the biggest contributors to UK productivity growth in early 2025, even as the overall workforce fell to roughly 12% below pre‑pandemic levels.
At the same time, customers using Asta Powerproject and Asta Vision are demonstrating that robust, data‑driven planning – including 4D and portfolio‑level visibility – can cut planning effort by 20%, reduce reporting time by 20% and significantly improve programme consistency. For UK planners, the story of 2025 is about how smarter planning and more collaborative digital workflows are starting to highlight the sector’s long‑promised productivity gains.
How the ground shifted: 2025 in context
Structural pressures: productivity and workforce
The UK’s productivity problem in construction is now well‑documented. Construction output per worker hour is around £35.69, some 13.5% below the economy‑wide average, according to the Construction Leadership Council’s productivity analysis. Although this gap has persisted for decades, productivity in construction has actually declined by about 0.1% per year since the late 1990s, even as sectors like manufacturing improved by over 3% annually. Paradoxically, construction has still been a major driver of productivity growth in 2025, reflecting both the sector’s scale (around 7–9% of UK GDP) and the impact that even marginal efficiency improvements can have on national figures.
Demand, risk and the macro outlook
Market conditions through 2025 have been mixed. After a contraction in 2024, Construction Products Association forecasts point to modest output growth of around 2.1% in 2025, driven by infrastructure investment, selective housing recovery and retrofit activity tied to net‑zero goals. However, PMI data through 2025 shows recurring slowdowns, particularly in civil engineering, as cost pressures, high interest rates (until recent easing) and policy uncertainty weigh on projects.
For planning teams, this environment is characterised by more volatility and less slack. Programmes must be robust against stop‑start funding, regulatory delays and supply chain shocks, but also flexible enough to re‑sequence quickly when gateways slip or scope changes. This is one of the reasons why digital tools that support multi‑scenario modelling, rapid re‑baselining and Active 4D simulation are moving from “nice to have” to essential.
Digital transformation: How things changed by 2025
From spreadsheets to platforms
The industry’s digital transformation has accelerated considerably since the pandemic, even if adoption remains patchy. McKinsey’s widely cited benchmark still classifies construction among the least digitalised sectors, with only about 1% of firms considered digital leaders, and around 70% of projects overrunning budget and 80% late. Yet firms that embrace digital collaboration tools have seen project schedule durations reduced by around 15%, according to analysis highlighted in Thinkproject’s 2025 digital transformation review.
A key shift in 2025 is the move from tool‑centric to data‑centric thinking. Instead of separate systems for design, scheduling, forecasting and reporting, more organisations are investing in integrated platforms and common data environments (CDEs).
The human challenge: learning curves and reluctant adoption
However, digital transformation has not been painless. Steep learning curves, fragmented workflows and cultural resistance remain major barriers. Thinkproject notes that many construction workers still lack confidence with collaboration tools, process management software and data analytics; CIOB research points to an ageing workforce with limited digital literacy in many roles. Legacy systems – from old ERP packages to heavily spreadsheet‑based project controls – slow down integration and keep data locked in silos.
For planners specifically, there is often tension between new model‑based methods and trusted bar‑chart workflows. Early experiences with “passive” 4D – where models are loosely coupled to a schedule late in the process to produce animations – left many teams sceptical about the real value versus the setup effort. That has created understandable reluctance when vendors talk about “the next wave” of model‑based planning. The planners who are succeeding in 2025 tend to be those whose organisations support phased adoption, tailored training, and clear process standards, rather than expecting instantaneous transformation.
Net zero, green construction and ESG
Externally, sustainability and net zero commitments are reshaping project priorities. The UK’s legally binding net‑zero target for 2050, combined with tightening Building Regulations (such as Part L) and the Future Homes Standard from 2025, is pushing new‑build housing to reduce operational emissions by 75–80% compared with current standards. The industry produces over 60% of UK waste, with around 32% of that waste going to landfill, spurring greater focus on circular economy principles, reuse and design for deconstruction.
Observers across the supply chain report rapid growth in low‑carbon materials (CLT, engineered timber, recycled steel, low‑carbon concrete), green roofs and highly efficient building services, alongside wider use of modular and off‑site manufacturing to cut waste and improve quality. Green construction is also becoming a commercial differentiator, with more clients specifying BREEAM, LEED and WELL certification as standard for major schemes. For planning professionals, this adds another dimension: sequences must now be optimised not only for time and cost, but also for carbon, waste and logistics impacts, making digital rehearsal and data‑driven decision‑making increasingly valuable.
The productivity problem, and why planners are central to solving It
Where construction stands on productivity
The headline productivity challenge for UK construction can be summarised in three points:
- At sector level, labour productivity (output per hour) is about 13.5% below the national average, even though construction sits ahead of some other services in output per person.
- Long‑term trend data shows stagnation or slight decline in construction productivity since the late 1990s, while peer sectors have grown steadily.
- Despite this, construction has been among the largest contributors to productivity growth in 2025, underlining its systemic importance and the leverage of improvements.
Oxford Economics analysis links much of this underperformance to chronic under‑investment in capital, technology and modern methods, together with fragmented supply chains and sub‑optimal planning. Cornerstone Projects’ study into project overruns underscores the point: poor original planning and unrealistic scheduling were cited as primary causes of delays, with nine out of ten construction professionals reporting project delays and a rising share of overruns since 2016. For planners, this is both uncomfortable and empowering: planning quality demonstrably influences productivity outcomes.
Digital technology as a productivity engine
BIM maturity and its impact
By 2025, BIM has “come of age” in the UK. Government mandates (from the original BIM Level 2 requirement through to the UK BIM Framework based on ISO 19650) have driven widespread adoption on public projects, with the latest BIM surveys suggesting over 70% of practitioners now regularly use BIM, and non‑users reduced to around 25–26%. Recent digital construction reports note that most professionals no longer see BIM as “just 3D models” but as a collaborative, data‑centric process that underpins design coordination, quantification, clash resolution and lifecycle asset management.
The benefits for productivity are measurable. Studies collated by RICS indicate that 60% of BIM‑engaged respondents report efficiency improvements, while digital transformation analyses highlight that projects using digital collaboration tools, including BIM‑enabled platforms, can reduce programme durations by around 15%. For planners, the most immediate gains come from:
- More reliable design information earlier, reducing late design‑driven rework.
- Integrated 4D and 5D capabilities, enabling simulations of schedule and cost impacts directly from the model.
- Streamlined change control, with model‑based variations propagated consistently into the programme and reporting.
Asta Powerproject’s BIM integration is designed exactly around this: planners can link IFC models to tasks for 4D planning, use model properties to drive task structures, and maintain much tighter alignment between design and programme over time.
Active 4D: moving beyond visualisation
One of the most important digital shifts in 2025 has been the emergence of “Active 4D” planning. Traditional 4D has often been used passively – building an animation late in the process to impress a client or validate logistics, but not truly using it to drive planning decisions. Thought‑leaders from Elecosoft and others argue that this wastes most of 4D’s potential. In contrast, Active 4D treats the model as the foundation of the schedule, using IFC object properties and rules‑based automation to generate task structures and maintain live synchronisation as the design evolves.
Elecosoft’s own roadmap emphasises this Active 4D model. Asta Active 4D uses IFC data and intelligent automation to auto‑generate tasks and relationships based on elements, zones or materials, while leaving sequencing and logic under planner control. When the model changes, the schedule can remain in sync without manual relinking, addressing one of the biggest historic pain points in 4D adoption. For UK planners facing increased scrutiny, tighter margins and greater regulatory complexity, that shift from passive visuals to live production control is especially powerful.
Real‑time data and collaborative platforms
BIM and 4D are only part of the picture. Productivity gains increasingly depend on real‑time data capture and collaborative platforms that connect site, planning office and boardroom. Thinkproject’s digital transformation report and multiple technology trend analyses converge on a similar set of enablers:
- Cloud‑based CDEs and project platforms that provide up‑to‑date information to all stakeholders, replacing fragmented Excel files and email‑based coordination.
- Mobile apps for progress updates, photos and field reports, feeding live status back into the programme and dashboards.
- AI‑supported analytics, from forecasting delays to detecting patterns in productivity data and highlighting risk hotspots.
Asta Vision is a strong example tailored to schedulers. It provides web‑based access, real‑time multi‑user editing and portfolio dashboards, allowing planners and project teams to work on the same live programmes rather than passing around offline copies. The Vision dashboards can automatically surface KPIs such as float distributions, start/finish variances and programme health, supporting both day‑to‑day control and executive‑level oversight. When combined with Asta Powerproject and Asta Powerproject 4D, this creates a continuous digital thread from high‑level portfolio milestones down to task‑level progress and even location‑based 4D sequences.
Other digital trends shaping UK construction
Advanced estimating and commercial tools
The shift away from spreadsheet‑driven estimating towards advanced take‑off and estimating tools is another important 2025 trend. Digital take‑off, integrated with BIM and CDEs, enables:
- Faster, more accurate quantity extraction from models.
- Tighter alignment between estimating codes and schedule activities, supporting 5D workflows.
- Clearer audit trails for change and claims management.
Platforms that combine commercial & contract management with VDC allow fairer, more transparent bidding and streamlined evaluation via automated workflows and centralised documentation. For planners, the value lies in using the same data structures for time and cost, making it easier to maintain coherent WBS/CBS relationships and support integrated risk and value analysis.
Digital twins and lifecycle thinking
Digital twins – dynamic, data‑fed digital representations of assets – are rapidly moving from concept to practice across infrastructure, energy and complex building projects. They rely on BIM as a geometric and information backbone, enriched with IoT sensor data, operational systems and AI analytics to support predictive maintenance, performance optimisation and scenario planning.
Although many digital twin use cases focus on operations, they have implications for planning:
- Construction‑phase twins can visualise live progress against plan and highlight deviations spatially.
- Integrating schedule data into twins (linking tasks and elements) enables simulation of alternative phasing and logistics options in a rich, visual context.
- Data captured during construction – including actual productivity rates, sequencing choices and handover quality – can feed back into planning templates and benchmarks for future projects.
Forward‑looking scheduling environments that already support 4D model‑based planning, like Asta Powerproject 4D linked into a broader lifecycle platform, are well placed to plug into digital twin ecosystems.
Green tech and sustainable construction workflows
The green construction trends highlighted by builders’ merchants, trade bodies and sustainability specialists all have planning implications.
Digital construction software is increasingly used to model sustainability constraints – from energy simulations in BIM to carbon‑aware sequencing and logistics planning in 4D. For planners, mastering these tools is not just about compliance; it is about demonstrating that better programmes can deliver both time and carbon wins.
2026 and beyond for UK planners
Emerging trends that should be on your radar
Looking into 2026, several technology and market trends are particularly relevant to UK planning and scheduling professionals:
- Mainstream 4D and Active 4D – Multiple forecasts flag 4D as one of the most powerful enablers of safe, predictable delivery by 2026, with structured digital rehearsals for complex operations becoming routinely specified on major projects. For Asta users, this aligns with the continued evolution of Asta Powerproject 4D, Active 4D workflows, and roadmap plans for Asta 4D web environments integrated with Vision.
- AI‑enhanced planning assistants – Industry reports predict greater use of AI for risk prediction, schedule optimisation and “AI‑powered search on the construction site” that can answer programme questions instantly and flag emerging trends in performance and risk.
- Greater interoperability and open data – With BIM based on IFC and ISO 19650 now widespread, and clients demanding integrated digital delivery, planners will increasingly work in ecosystems where schedule tools exchange data seamlessly with authoring platforms, ERPs and field apps via standard APIs.
- Regulation‑driven programme discipline – The Building Safety Act’s gateways and Golden Thread obligations are unlikely to be the last major regulatory shifts; future tightening around resilience, climate adaptation and embodied carbon will further increase expectations for transparent, data‑rich programmes.
2026 predictions from Elecosoft’s construction team
“In 2026, AI won’t succeed but it won’t fail. What it will do it expose fragmented project data, forcing the construction industry to move from isolated project or discipline-level experiments to organisation-wide, data-driven strategies. AI is powerful and the output can be game changing, but only when it is working from best quality input. This will force companies to rethink how data is structured to enable insight driven from data across the project not just one silo.” Andrew Norrie, Head of Business Development
“In 2026, an increasing number of companies will decide that their current reporting processes aren’t helping them to avoid issues; they will get fed up with hearing afterwards that something went wrong, and increasingly ask why – and how to prevent, rather than cure.” Ben Taunt, Senior Commercial Manager
“Next year, based on government housing and net‑zero targets, as well as the focus on the Construction Playbook and ongoing MMC “kit of parts” initiatives, I predict that clients will push away from bespoke one‑off schemes and towards off‑site, standardised solutions. As this happens, data and off‑site construction methods are likely to become embedded in day‑to‑day delivery rather than confined to project‑specific or pilot activities. ” Amy Law, Senior Marketing Manager
From animation to action
The next phase of digital transformation will be less about adopting isolated technologies and more about re‑engineering planning workflows so that models, schedules, cost plans and site data truly work together. For Asta users, that means leaning into integrated ecosystems built around Asta Powerproject, Asta 4D and Asta Vision and using data from every project to inform the next.
For UK planning and scheduling professionals, 2026 will reward those who shift from animation to action: using digital tools not just to illustrate the plan, but to drive safer, more predictable, and more productive delivery in an industry that urgently needs all three.
Sources
- https://www.pbctoday.co.uk/news/digital-construction-news/construction-technology-news/beyond-visualisation-why-the-future-of-4d-planning-is-active/151760/
- https://bcis.co.uk/news/latest-construction-workforce-figures/
- http://www.constructionleadershipcouncil.co.uk/wp-content/uploads/2023/09/Creating-a-productive-environment-for-UK-Construction.pdf
- https://bcis.co.uk/news/latest-construction-workforce-figures/
- https://cpa.uk.net/half-built-promises-new-report-reveals-cracks-in-uks-construction-pipeline/
- https://www.thinkproject.com/insights/blog/digital-transformation-construction/
- https://www.saint-gobain.co.uk/top-trends-uk-construction-2025
- https://pinnacleinfotech.com/bim-adoption-in-uk/
- https://www.constructionbriefing.com/news/transforming-construction-the-power-of-active-4d-bim/8038068.article