The construction industry is well placed to meet its next challenge: net zero - Euan Pirie

The construction industry has not had its challenges to seek in recent years.

It was one of the first to really feel the heat of rising inflation caused by soaring energy costs blowing through the supply chain. This impacted upon materials and labour to a degree even the most experienced hadn’t felt before.

It has been at the pointy end of Brexit with many contractors struggling to fill positions once occupied by skilled operators who returned to their home countries during lockdowns. The UK’s position on the outer rim of continental Europe, literally and politically, means many skills are absent or in short supply.

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However, the sector has shown, repeatedly, its willingness and ability to adapt. Its resilience in the face of unrelenting and unique market conditions have been laid bare.

Euan Pirie is a Partner, Harper MacleodEuan Pirie is a Partner, Harper Macleod
Euan Pirie is a Partner, Harper Macleod

It was one of the first to adapt to Coronavirus restrictions, such was its existing focus on health and safety. It came together and showed other industries what could be done.

It has also recognised the impact it can make to the environment by continually adopting new standards of material, technology and modern methods of construction.

That level of collaboration is needed again if it is to become net zero. The target is clear. Scotland is in a legally-binding agreement to be net zero by 2045. The public sector’s built environment is one of the biggest contributors to our carbon emissions. In turn, it is one of the few industries which, if working collaboratively and on a concerted basis, can create a real impact.

In partnership with built environment consultants Faithful+Gould, we recently brought together more than 150 construction and development professionals working in or for the public sector, to discuss how the industry can contribute to the 2045 target.

With market volatility, it will be a significant challenge to ensure minds, priorities and actions are aligned. One attendee called it a “scary journey”, while another said they had “heard it all before”.

However, common themes, such as collaboration, changing behaviours and being open-minded, all emerged.

Capturing those discussions in a report, there is perhaps a blueprint for a way forward for construction in our public sector. Facing up to that “scary journey” with a united front could be the key to delivering long-term behavioural change and the collective impact of becoming net zero.

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We’re seeing local authorities come together proactively to share data and insight, particularly in the areas of Passivhaus and EnerPhit certification – energy efficiency standards for new and retrofitted buildings respectively. We’re also seeing how innovative contract structures have been developed to drive reportable transparency and collaboration between all parties. Instigating measurable contract performance can create the behavioural change required for long-lasting impact.

There is a recognition that contracting authorities can only do so much within a constrained environment. However, there is a growing and shared commitment to deliver sustainable projects from the ground up.

There is already significant innovation taking place in Scotland’s construction industry on a technical basis, but where might we see different thinking in the planning and procurement phases?

We need to bring down the contractual barriers to off-site construction so it is easier for contracting authorities and their contractors to adopt new methodologies and techniques which will stand the test of time and the Scottish weather.

We’re also seeing how the Scottish Government’s Learning Estate Investment Programme (LEIP) is delivering award-winning projects and new behaviours and cultures. LEIP has harnessed the ethos of Passivhaus and created a rigorous programme for contracting authorities to follow. This is where innovation meets rigour.

Contracts and frameworks can drive the right behaviours through collaboration and shared outcomes.

The construction sector is recalibrating because of inflation and the new ways of working brought on as a result of the pandemic.

This is an opportunity to reset and remove certain behaviours. There is also an opportunity for the industry to challenge itself to drive out those behaviours and work towards a shared goal.

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Our own Blueprint has drawn some conclusions, but we fully acknowledge there will be other important and valid opinions as to how we, collectively, can achieve net zero. The industry has shown it has the capacity to come together to overcome significant challenges before. It will do so again.

Euan Pirie is a Partner, Harper Macleod