• Keltbray Built Environment has booked £1m of redundancy costs after moving to adjust its cost base in response to lower revenue levels and weaker London commercial demand.

    The company confirmed the figure in a results update ahead of filing accounts for the year ended October 2025, reporting underlying pre-tax profit of £5.3m, up from £3.2m last time.

    Order book reflects market caution

    Keltbray said 2026 would be a transitional year, with first-half performance in line with budget expectations.

    The group added: “The impact of these actions is reflected in exceptional redundancy costs of £1 million reported in the 2025 results. While some margin compression is expected, the business remains confident of delivering profitability in 2026.”

    The company said it was positioned for growth in 2027, supported by expansion across National Infrastructure, Renewables and Data Centre markets. Revenues are expected to exceed £400m, with the business targeting a medium-term operating profit margin of 5%.

    Keltbray enters 2026 with an order book of £244m, which it said reflects current conditions in the London commercial market, including planning delays and continued investor caution.

    Margins prioritised over volume

    The firm said it had maintained a disciplined approach to work winning, prioritising sustainable margins over volume through its Executive Investment Panel.

    Karl Goose, Chief Executive Officer of Keltbray, said: “This has been a year of transition and progress for Keltbray Built Environment. Despite a more subdued market backdrop, we have improved profitability, strengthened margins and reinforced the fundamentals of the business.

    “Our Integrated Project Model continues to differentiate us, enabling better control, clearer accountability and consistent delivery for our clients.”

    Image credit: Keltbray

    Source: Keltbray

  • His Majesty’s Prison and Probation Service (HMPPS) has reported constructive losses of £23.99m linked to the prison capacity programme, according to newly released figures.

    The losses stem from construction costs written off on projects that have since been descoped, alongside costs associated with supplier failure. HMPPS stated that the programme is subject to continuous evaluation to ensure that investment is directed towards schemes offering the strongest value for money and the greatest feasibility in delivering the government’s commitment to 20,000 additional prison places by 2031.

    Several projects were halted after significant increases in expected completion costs, attributed in part to extensive asbestos contamination. As a result, HMPPS concluded that continuing with these builds would no longer represent value for money.

    The organisation has indicated that further losses of a similar scale are expected to be reported in its 2025–2026 annual accounts, relating to construction, demobilisation and remediation costs incurred after March 2025.

    Read the full report here.

  • The Industrialised Construction Awards 2026 have been formally announced, with the ceremony scheduled to take place in London on 21 April 2026.

    Running alongside the Industrialised Construction Conference, the awards, aim to recognise organisations and individuals advancing the UK’s transition from traditional construction practices to industrialised, digitally enabled delivery models. Judging will be undertaken by representatives of the Industrialised Construction Advisory Board.

    Achievements across technology integration, platform-based design, manufacturing excellence and cultural transformation, will be highlighted in the awards programme, reflecting the sector’s shift toward product-led, factory-enabled construction.

    Award categories span ten areas aligned with the Industrialised Construction White Paper, including digital innovation, productisation, factory excellence, procurement reform, sustainability, hybrid systems, workforce development, client leadership and collaboration. Full entry criteria are available here.

    Organisations from across the construction ecosystem — including clients, designers, manufacturers, contractors and technology providers — are encouraged to submit entries demonstrating measurable progress in areas such as digital delivery, low-carbon design, data interoperability, workforce development and collaborative working.

    Darren Richards, Chair of the Industrialised Construction Advisory Board, said:

    “Industrialised construction isn’t just about factories – it’s about changing culture, technology and delivery models across the entire sector. These Awards will celebrate the organisations already proving what’s possible — and inspire others to follow.”

    Sue Hine, Client Account Director, Jacobs and Industrialised Construction Advisory Board member, added:

    “In a sector under immense pressure to improve productivity and reduce its environmental footprint, it is vital that we shine a spotlight on those organisations and individuals who are leading the way. The Industrialised Construction Awards recognise the pioneers who are re-thinking how we design, manufacture and assemble our built environment — and by celebrating their achievements we set new benchmarks for what the entire industry can achieve.”

    Sponsorship opportunities include category, headline, brochure and trophy partnerships, offering year-round visibility across digital channels and event promotions.

    Headline Sponsor of the Industrialised Construction Conference, Autodesk representative Az Jasat, Director of Industrialised Construction, said:

    “The transformation of construction from bespoke craft to an industrialised, digitally-enabled ecosystem is well underway — but it only progresses when people take bold steps. The Industrialised Construction Awards provide a powerful platform to recognise those companies and individuals who are turning ambition into reality. By raising their profile, we accelerate the adoption of smarter processes, better technologies and more sustainable delivery across the UK built-environment sector.”

    Key dates include an entry deadline of 13 March 2026, judging between 23 and 27 March, and winners announced at the April ceremony.

  • The New Hospital Programme (NHP) is redefining how healthcare infrastructure is delivered in England. By adopting industrialised construction principles, particularly DfMA, the NHS is creating a more predictable, efficient and scalable delivery model.

    This platform-based approach focuses on repeatable components, digital integration and offsite manufacturing to streamline timelines and improve outcomes.

    In this interview, Tom Stocks, Industrialised Construction Lead at NHS England, shares how NHP is balancing standardisation with clinical flexibility to futureproof hospital design.

    His insights reveal the potential of a product-led construction approach to meet urgent healthcare demands while setting a new standard for public sector delivery.

     

    Tom Stocks

    How is the New Hospital Programme applying industrialised construction principles to improve delivery timelines?

    The New Hospital Programme (NHP) is embracing industrialised construction to streamline delivery. At its core is a platform-based approach using Modern Methods of Construction (MMC), especially Design for Manufacture and Assembly (DfMA).

    By creating repeatable building components, like standardised plant rooms, MEP systems and façade modules, projects can reduce design and build time while improving consistency.

    NHP is moving towards a kit-of-parts model, with interoperable components that can be assembled like a system, rather than built from scratch every time. Digital tools help coordinate early-stage design across stakeholders, cutting rework. Meanwhile, offsite manufacturing shortens on-site programmes, reduces weather delays and improves safety and predictability. These principles mean hospitals can be delivered quicker and more predictably. Ultimately, it’s about creating a replicable yet adaptable approach to meet future healthcare needs more efficiently and reducing variation were advantageous.

    What are the biggest opportunities to standardise and scale hospital components using DfMA?

    DfMA opens major opportunities for the NHS to standardise key hospital components without compromising clinical quality.

    High-value systems like MEP services, risers, bathroom pods, and plant rooms can be pre-designed and manufactured at scale, reducing onsite install time and labour demands. By creating a shared component library, the NHP can drive consistency in procurement and reduce waste.

    Façade systems and structural frames can also be designed for repetition, allowing for speed and flexibility. Crucially, standardisation doesn’t mean one-size-fits-all: components can be mass-customised to suit different clinical needs. With a shared digital platform and data-rich models, designers can rapidly configure components for new sites while maintaining control over quality and cost.

    The opportunity lies in shifting from bespoke builds to product-led construction, making it easier to scale delivery, futureproof assets, and meet sustainability targets through better material efficiency.

     

    How does your team navigate the challenge of custom clinical requirements within platform-based delivery models?

    We approach custom clinical needs by embedding flexibility into the platform itself. Early and deep engagement with clinicians is key, we run detailed requirements mapping and user-involved design sprints to understand what truly needs to be different and what can be the same. The platform provides a flexible framework with plug-and-play components, meaning layouts can adapt without reengineering core systems.

    Think of it like a modular backbone with configurable organs: the structure and services are standardised, but rooms can be arranged or finished differently to reflect different clinical pathways. Digital products allow us to test these configurations virtually and flag issues early. Where customisation is needed we design hybrid components that interface with the platform but allow for variation. The goal is to standardise where we can, customise where we must, and always maintain clinical function and safety at the core. This balanced approach keeps delivery efficient without compromising care quality.

  • In 2016 Mark Farmer’s influential report, Modernise or Die – sent shockwaves through the UK construction industry and beyond. With a clear and urgent call to action, the report exposed deep-rooted inefficiencies, critical skills shortages and a culture stubbornly resistant to change.

    However, today we stand on the cusp of a different, more promising narrative. Under the mantra of innovate and thrive, Trevor Richards, Director for offsite experts, Cogent Consulting – explores how innovation in construction can unlock new levels of positivity, productivity, sustainability and growth.

    A New Era of Productivity

    The UK construction industry is set for transformation and Industrialised Construction offers the key to unlocking its enormous potential. By harnessing modern technologies, progressing traditional processes and fostering collaborative working models – we can propel the sector into a new era. The solutions to resolving many of the industry’s most persistent problems are already here, we just need to adopt them at a faster rate.

    Compared to other sectors such as aeronautic or automotive, the UK construction industry has been criticised for low productivity levels. Digital innovations are rapidly changing the construction arena. Approaches such as Design for Manufacture and Assembly (DfMA) and Platform Design, integrated with digital technologies such as Building Information Modelling (BIM), automation, robotics and data analytics – streamline project management, improve collaboration and reduce costly errors.

    Building Information Modelling: BIM has transformed construction by integrating digital models that streamline communication and enhance project coordination. With the UK’s mandatory BIM Level 2 for all public sector projects, adoption is increasing. Companies using BIM experience higher productivity, fewer cost overruns and better outcomes.

    Platform Design and DfMA: Platform Design involves creating standardised, reusable systems and components to boost efficiency, cut costs and enhance flexibility. Integrated with Design for Manufacture and Assembly approaches, it focuses on offsite manufacture and easy onsite assembly. This reduces waste, shortens timelines and improves precision. By using repeatable platforms like standardised panels and systems, designers streamline processes while still allowing customisation. The combination of Platform Design and DfMA supports sustainability, scalability, innovation and fast-track construction.

    Automation and Robotics: Automation is transforming repetitive tasks such as bricklaying, concrete pouring and welding by deploying robots, drones and 3D printing of construction components. Contractors can reduce labour costs, improve precision, and speed up project timelines. In areas such as modular construction and offsite manufacturing, automation enables factory-controlled production, where components are built to exact specifications before being assembled on-site. This reduces waste, ensures higher quality control, and enhances overall efficiency.

    Data-Driven Decision-Making: Big data and analytics tools are providing construction contractors with the ability to make informed decisions based on real-time data. Whether through monitoring equipment usage, tracking project timelines, or predicting future maintenance needs, data-driven approaches enable project managers to optimise resource allocation and identify risks early. These tools can significantly reduce downtime, improve safety and increase overall productivity.

    Trevor Richards

    A Catalyst for Innovation

    Sustainability is no longer an optional add-on—it is a core driver of innovation in construction. The industry is under pressure to reduce its environmental impact and build more sustainably. This challenge is sparking a wave of innovation in materials, design and construction techniques.

    Sustainable Building Materials: Advances in material science are leading to the development of new, environmentally friendly materials such as carbon-neutral concrete, cross laminated timber (CLT), and graphene-based composites. These materials reduce the carbon footprint of buildings while offering superior performance in terms of strength and durability.

    Circular Construction Practices: The shift towards a circular economy is encouraging architects and contractors to rethink how materials are used. Innovative approaches such as designing for disassembly and design for reuse at the end of a building’s lifecycle are becoming more prevalent. These practices reduce waste, lower costs, and increase the sustainability of construction projects.

    Green Buildings and Energy Efficiency: The demand for energy-efficient buildings is driving the adoption of cutting-edge technologies such as smart building systems, energy-harvesting materials and passive design strategies. Innovations like photovoltaic windows, geothermal heating, and energy-efficient insulation are becoming integral to the construction of zero-energy and low-carbon buildings, helping the industry contribute to the UK’s ambitious net-zero targets.

    A New Generation of Talent

    The construction industry has long struggled with skill shortages but innovation is attracting a new generation of talent. Digital tools, sustainability initiatives and cutting-edge construction techniques are appealing to young professionals with skills in technology, engineering and design.

    Construction companies at the forefront of innovation are more likely to attract top talent, helping address the skills gap while pushing the industry forward. There is a growing demand for professionals skilled in BIM, data analytics and automation. There is also a need to upskill the existing workforce to adopt new technologies and methods. Investment in training and education is essential to ensuring that workers can effectively use digital tools, automated systems and sustainable construction practices. Companies that prioritise training and development will not only improve their productivity but also build a more adaptable and resilient workforce.

    The Modernise or Die report offered a necessary wake-up call for the UK construction sector, but the story does not end there. Far from being on the brink of decline, the industry is on the cusp of an exciting era of innovation that holds the potential to solve many of its long-standing challenges. Innovation is not just a response to risk—it is a path to opportunity. The construction companies that seize these opportunities will be the ones that drive the future of the industry, delivering projects faster, more efficiently, and with greater sustainability.

    Rather than modernise or die, our message is confident and compelling – innovate and thrive.

    Industrialised Construction Conference: A Pathway to Opportunity

    Taking place at the Manufacturing Technology Centre (MTC) in Coventry on 11-12 June 2025, the UK’s only Industrialised Construction Conference and Exhibition is acknowledged as leading the charge in showcasing groundbreaking solutions, cultivating collaboration and driving an industry-wide shift towards a more advanced approach to design and delivery.

    Laying the foundations for a new era in construction, join us to discover where technology meets practical application to influence transformative change that is not just theoretical or futuristic but is already delivering tangible results.

    For the full speaker lineup and to book your place, head to: www.industrialisedconstruction.co.uk