{
  "query": "UK construction industry standard EW to NCE conversion rate risk metrics",
  "raw_results": [
    {
      "url": "https://www.constructionleadershipcouncil.co.uk/wp-content/uploads/2023/09/Creating-a-productive-environment-for-UK-Construction.pdf",
      "title": "[PDF] Creating a productive environment for UK Construction",
      "content": "Metrics for measurement Gateways on Government projects Homes consented DCO back to 2.6 years C L C P R O D U C T I V I T Y P A P E R 36 GOVERNMENT ACTIONS – POLICY Infrastructure Planning • Adopt the National Infrastructure Commission report recommendations around accelerating the NSIP process:- Make it a legal requirement to update NPS for National Policy Statements for Energy, Water Resources and National Networks every 5 years, introduce a system of modular updates to National Policy Statements linked to primary or secondary legislation to ensure clarity on how future legislative change relates to National Policy Statements, introduce performance indicators for statutory consultees as part of compulsory service level agreements with developers, with budget implications for failure to [...] Metrics for measurement Quality Waste generated on site Error Assurance C L C P R O D U C T I V I T Y PA P E R 40 CASE STUDIES 2 Aldermanbury Square project - GPE In order to mitigate risk in contracts where there are unknowns, flexible contractual arrangements were introduced for GPE’s 2 Aldermanbury Square project (2AS). 2AS is a 12-storey 320,000 sq ft (NIA) new build development in the City of London. The demolition and enabling works (by Keltbray) and the main works (by Lendlease) commenced on site in August 2022, with both the demolition and enabling works and the main contract works procured within the same tailored, contractual framework. The principles of this process were evolved from a similar successful framework with GPE (client), Mace (main contractor) and Erith (demolition [...] Achieve an average 5% increase in capital utilisation across all businesses by 2035.\n£0.6 Enhanced capability and better use of Productivity data Being better able to quantify, understand and act on the drivers of productivity at a sector, project and business level.\nCLC will develop industry standard on measuring productivity at a sector, project and business level followed by a capability development programme for the industry. Businesses in construction will be expected to report on Productivity metrics to their Executive Board.",
      "score": 0.26887766,
      "raw_content": null
    },
    {
      "url": "https://www.tmhcc.com/en/-/media/files/tmhcc101579_bro_construction-report-2025-v21.pdf?utm_source=slipcase&utm_medium=affiliate&utm_campaign=slipcase",
      "title": "[PDF] UK Construction Sector Report - Tokio Marine HCC",
      "content": "However, UK construction continues to display an above-average insolvency risk. While the sector accounts for around 6%-7% of gross value added in the country, it is responsible for almost 17% of all insolvencies (4,032 out of 23,879 in 2024). This is due to small profit margins, usually around 2%-4%, and the inability to pass on unexpected cost increases to customers due to fixed-price contracts20. Source: Insolvency Service Construction Company Insolvencies in England and Wales Positively, the number of business failures in the construction sector has fallen in 2024. After three consecutive increases in 2021-23, last year saw an 8.1% drop in England and Wales (which accounts for around 94% of all company insolvencies in the UK). Overall, 4,032 construction companies went under in 2024, [...] UK Construction Sector Report December 2025 Karen Crowley Senior Risk Underwriter Trade Credit – kcrowley@tmhcc.com Alice Bremner Senior Risk Underwriter Trade Credit – abremner@tmhcc.com Summary 2025 was another disappointing year for the construction sector.\nRegulatory bottlenecks such as Gateway 2 requirements, delayed building starts, higher national insurance contributions, skill shortages, reduced contractor availability and stretched government finances all weigh on the sector’s outlook.\nInput price inflation has moderated over the past quarters but nonetheless, building costs are predicted to increase by 15% until the end of this decade.\nOutput growth over the summer months has been lacklustre, not boding well for the cold weather period in Q4 2025 and Q1 2026. [...] have come down significantly from their 2022 peaks: back then, the corresponding readings stood at 3.3 (construction sector) and 4.1 (UK average), respectively.",
      "score": 0.25075263,
      "raw_content": null
    },
    {
      "url": "https://www.hfw.com/insights/managing-the-risk-of-currency-fluctuations-in-the-international-and-domestic-construction-sector-apr-19/",
      "title": "Currency Fluctuations: Strategies for Construction Sector Risk | HFW",
      "content": "#### Conclusion\n\nFluctuations in currency exchange rates – driven by external political and economic factors – has the potential to undermine the financial viability of a construction project.  This risk will only increase in light of the current procurement trend towards larger, single-package contracts.\n\nThe UK construction industry relies heavily on imported goods and services with around 60% of building materials used on UK construction projects being imported from the EU.  In an industry which traditionally operates on very tight margins, fluctuations in the strength of the pound following Brexit – as well as the potential for additional EU tariffs and UK taxes – could have a very significant impact on project affordability. [...] In international construction contracts, it is not uncommon for the works to be valued in one currency and paid, at least in part, in another.  Similarly, the currencies of these payments sometimes do not match the currencies of the contractors’ input costs.  Whenever any currency conversion is involved, these payments are vulnerable to changes in currency exchange rates and can create risk for a contractor. [...] The risk of currency fluctuation faced by a contractor is amplified if the project (a) is long term i.e. more than 12 months; (b) is based in a country or to be paid in a currency that presents a high risk of fluctuations in currency exchange rates (which arguably currently includes the UK in the current political climate); (c) uses materials and/or labour and/or equipment obtained from a different country and/or is being paid for in a different currency; and (d) utilises third party financing and is to be repaid in a different currency to the Contract Price.",
      "score": 0.23176241,
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    },
    {
      "url": "https://learninglegacy.crossrail.co.uk/wp-content/uploads/2023/05/Terry-Smith-MSc-Dissertation-EWN-Contract-Procedure-Improving-its-use-on-large-Infrastructure-Projects.pdf",
      "title": "[PDF] Early Warning Notice Contract Procedure: Improving its use on large ...",
      "content": "Findings Summary……82 Construction Commercial Management MSc Dissertation Final Submission - Terry Smith v List of Tables and Illustrations Figure 1 – Objectives and corresponding key questions ........................................................... 4 Figure 2 – Summary of NEC edition publications. Source: www.neccontract.com .................. 6 Figure 3 - Financial Risk of Main Options A-F. Source: Hughes 2013, p 9. ................................ 9 Figure 4 - Crossrail Route Map. Source: www.crossrail.co.uk ................................................. 10 Figure 5 - Research Methodology Road Map. Source: Adapted from Naoum (2013, p 15). . 25 Figure 6 - Example of a ordinal scale question ....................................................................... 32 Figure 7 - [...] the management of risk exposure in the pursuit of achieving predefined goals. BSI (2009) uses the following definitions: Risk potential events which could adversely affect a company’s objectives. Risk Management coordinated activities to direct and control an organization with regard to risk. Risk is an inherent part of the construction process, it brings together skilled workers to construct a unique design in uncertain weather conditions on a site rather than under factory conditions. Therefore it can be virtually impossible for a project to have a design, tender estimate and programme that does not change during the project (Hughes 2013). It is interesting to note that whilst the NEC3 mandates use of a risk register, the stipulated components are limited to the description of the risk [...] - Terry Smith vii Preface I have been working in the Rail infrastructure sector for the past 16 years and for nearly a decade on large infrastructure programmes using the NEC and the EWN procedure to facilitate collaborative and proactive management of risk. More recently I have been a commercial manager on two different Crossrail projects which use the NEC3 Engineering and Construction Contract (ECC) Option C, Target contract. I am extremely interested in finding more practical, effective and efficient ways of working. Throughout my career in the construction industry I have encountered situations where process is followed without full consideration of the ‘waste’ or non-value add elements of the process or how things can be changed for the better. From first-hand experience I have",
      "score": 0.23157988,
      "raw_content": null
    },
    {
      "url": "https://www.timekeeper.co.uk/blog/posts/tricks-of-the-trade-part-3-navigating-early-warning-notices-2",
      "title": "Tricks of the Trade: Part 3 - Navigating Early Warning Notices ⚠️ | Timesheet Software for Modern Construction and Field Service Businesses",
      "content": "### Closing Thoughts on Early Warning Notices\n\nEarly Warning Notices are a vital tool for managing risk and ensuring the smooth progress of construction and field service projects under NEC contracts. By proactively identifying and addressing potential issues related to cost, time, or quality, EWNs foster clear communication and collaboration between contractors and project managers. This early intervention not only helps to minimise delays and additional costs but also creates a culture of teamwork and informed decision-making. [...] Claire Conry\n\nMonday, March 31, 2025\n\nBlog Image\n\nWelcome to Part 3 of Tricks of the Trade - the series dedicated to helping construction and field service companies tackle their day to day challenges 🛠️  \n  \nIn this segment, we are going to take a close look at Early Warning Notices (EWNs) and their role in NEC contracts. We aim to shed light on how they can be used effectively to manage risks and keep projects on track. Whether you're new to EWNs or looking to refine your approach, this blog will help you navigate the key aspects with ease. We’ve also included a practical template of an Early Warning Notice to help you get ahead of the curve. Let’s dive in and explore how to make the most of this tool!\n\n### What is an Early Warning Notice (EWN)?  🤔 [...] ### What is an Early Warning Notice (EWN)?  🤔\n\nAn early warning is a proactive notification raised by either the Project Manager or Contractor to highlight an issue that could affect cost, time or quality. Specifically, both parties (Contractor and Project Manager) are required to issue early warnings as soon as they become aware of any issue that could:\n\n Increase the total cost of the prices\n Delay completion\n Delay meeting a key date\n Impair the performance of the works in use\n Increase the contractor's total price\n\nEarly warnings notices are a requirement in the clauses 15.1 NEC4 & 16.1 NEC3.\n\n### Issuing an Early Warning Notice 📋",
      "score": 0.19069421,
      "raw_content": null
    }
  ],
  "formatted": "Source: [PDF] Creating a productive environment for UK Construction\nURL: https://www.constructionleadershipcouncil.co.uk/wp-content/uploads/2023/09/Creating-a-productive-environment-for-UK-Construction.pdf\nMetrics for measurement Gateways on Government projects Homes consented DCO back to 2.6 years C L C P R O D U C T I V I T Y P A P E R 36 GOVERNMENT ACTIONS – POLICY Infrastructure Planning • Adopt the National Infrastructure Commission report recommendations around accelerating the NSIP process:- Make it a legal requirement to update NPS for National Policy Statements for Energy, Water Resources and National Networks every 5 years, introduce a system of modular updates to National Policy Statements linked to primary or secondary legislation to ensure clarity on how future legislative change relates to National Policy Statements, introduce performance indicators for statutory consultees as part of compulsory service level agreements with developers, with budget implications for failure to [...] Metrics for measurement Quality Waste generated on site Error Assurance C L C P R O D U C T I V I T Y PA P E R 40 CASE STUDIES 2 Aldermanbury Square project - GPE In order to mitigate risk in contracts where there are unknowns, flexible contractual arrangements were introduced for GPE’s 2 Aldermanbury Square project (2AS). 2AS is a 12-storey 320,000 sq ft (NIA) new build development in the City of London. The demolition and enabling works (by Keltbray) and the main works (by Lendlease) commenced on site in August 2022, with both the demolition and enabling works and the main contract works procured within the same tailored, contractual framework. The principles of this process were evolved from a similar successful framework with GPE (client), Mace (main contractor) and Erith (demolition [...] Achieve an average 5% increase in capital utilisation across all businesses by 2035. £0.6 Enhanced capability and better use of Productivity data Being better able to quantify, understand an\n\n---\n\nSource: [PDF] UK Construction Sector Report - Tokio Marine HCC\nURL: https://www.tmhcc.com/en/-/media/files/tmhcc101579_bro_construction-report-2025-v21.pdf?utm_source=slipcase&utm_medium=affiliate&utm_campaign=slipcase\nHowever, UK construction continues to display an above-average insolvency risk. While the sector accounts for around 6%-7% of gross value added in the country, it is responsible for almost 17% of all insolvencies (4,032 out of 23,879 in 2024). This is due to small profit margins, usually around 2%-4%, and the inability to pass on unexpected cost increases to customers due to fixed-price contracts20. Source: Insolvency Service Construction Company Insolvencies in England and Wales Positively, the number of business failures in the construction sector has fallen in 2024. After three consecutive increases in 2021-23, last year saw an 8.1% drop in England and Wales (which accounts for around 94% of all company insolvencies in the UK). Overall, 4,032 construction companies went under in 2024, [...] UK Construction Sector Report December 2025 Karen Crowley Senior Risk Underwriter Trade Credit – kcrowley@tmhcc.com Alice Bremner Senior Risk Underwriter Trade Credit – abremner@tmhcc.com Summary 2025 was another disappointing year for the construction sector. Regulatory bottlenecks such as Gateway 2 requirements, delayed building starts, higher national insurance contributions, skill shortages, reduced contractor availability and stretched government finances all weigh on the sector’s outlook. Input price inflation has moderated over the past quarters but nonetheless, building costs are predicted to increase by 15% until the end of this decade. Output growth over the summer months has been lacklustre, not boding well for the cold weather period in Q4 2025 and Q1 2026. [...] have come down significantly from their 2022 peaks: back then, the corresponding readings stood at 3.3 (construction sector) and 4.1 (UK average), respectively.\n\n---\n\nSource: Currency Fluctuations: Strategies for Construction Sector Risk | HFW\nURL: https://www.hfw.com/insights/managing-the-risk-of-currency-fluctuations-in-the-international-and-domestic-construction-sector-apr-19/\n#### Conclusion Fluctuations in currency exchange rates – driven by external political and economic factors – has the potential to undermine the financial viability of a construction project. This risk will only increase in light of the current procurement trend towards larger, single-package contracts. The UK construction industry relies heavily on imported goods and services with around 60% of building materials used on UK construction projects being imported from the EU. In an industry which traditionally operates on very tight margins, fluctuations in the strength of the pound following Brexit – as well as the potential for additional EU tariffs and UK taxes – could have a very significant impact on project affordability. [...] In international construction contracts, it is not uncommon for the works to be valued in one currency and paid, at least in part, in another. Similarly, the currencies of these payments sometimes do not match the currencies of the contractors’ input costs. Whenever any currency conversion is involved, these payments are vulnerable to changes in currency exchange rates and can create risk for a contractor. [...] The risk of currency fluctuation faced by a contractor is amplified if the project (a) is long term i.e. more than 12 months; (b) is based in a country or to be paid in a currency that presents a high risk of fluctuations in currency exchange rates (which arguably currently includes the UK in the current political climate); (c) uses materials and/or labour and/or equipment obtained from a different country and/or is being paid for in a different currency; and (d) utilises third party financing and is to be repaid in a different currency to the Contract Price.\n\n---\n\nSource: [PDF] Early Warning Notice Contract Procedure: Improving its use on large ...\nURL: https://learninglegacy.crossrail.co.uk/wp-content/uploads/2023/05/Terry-Smith-MSc-Dissertation-EWN-Contract-Procedure-Improving-its-use-on-large-Infrastructure-Projects.pdf\nFindings Summary……82 Construction Commercial Management MSc Dissertation Final Submission - Terry Smith v List of Tables and Illustrations Figure 1 – Objectives and corresponding key questions ........................................................... 4 Figure 2 – Summary of NEC edition publications. Source: www.neccontract.com .................. 6 Figure 3 - Financial Risk of Main Options A-F. Source: Hughes 2013, p 9. ................................ 9 Figure 4 - Crossrail Route Map. Source: www.crossrail.co.uk ................................................. 10 Figure 5 - Research Methodology Road Map. Source: Adapted from Naoum (2013, p 15). . 25 Figure 6 - Example of a ordinal scale question ....................................................................... 32 Figure 7 - [...] the management of risk exposure in the pursuit of achieving predefined goals. BSI (2009) uses the following definitions: Risk potential events which could adversely affect a company’s objectives. Risk Management coordinated activities to direct and control an organization with regard to risk. Risk is an inherent part of the construction process, it brings together skilled workers to construct a unique design in uncertain weather conditions on a site rather than under factory conditions. Therefore it can be virtually impossible for a project to have a design, tender estimate and programme that does not change during the project (Hughes 2013). It is interesting to note that whilst the NEC3 mandates use of a risk register, the stipulated components are limited to the description of the risk [...] - Terry Smith vii Preface I have been working in the Rail infrastructure sector for the past 16 years and for nearly a decade on large infrastructure programmes using the NEC and the EWN procedur\n\n---\n\nSource: Tricks of the Trade: Part 3 - Navigating Early Warning Notices ⚠️ | Timesheet Software for Modern Construction and Field Service Businesses\nURL: https://www.timekeeper.co.uk/blog/posts/tricks-of-the-trade-part-3-navigating-early-warning-notices-2\n### Closing Thoughts on Early Warning Notices Early Warning Notices are a vital tool for managing risk and ensuring the smooth progress of construction and field service projects under NEC contracts. By proactively identifying and addressing potential issues related to cost, time, or quality, EWNs foster clear communication and collaboration between contractors and project managers. This early intervention not only helps to minimise delays and additional costs but also creates a culture of teamwork and informed decision-making. [...] Claire Conry Monday, March 31, 2025 Blog Image Welcome to Part 3 of Tricks of the Trade - the series dedicated to helping construction and field service companies tackle their day to day challenges 🛠️ In this segment, we are going to take a close look at Early Warning Notices (EWNs) and their role in NEC contracts. We aim to shed light on how they can be used effectively to manage risks and keep projects on track. Whether you're new to EWNs or looking to refine your approach, this blog will help you navigate the key aspects with ease. We’ve also included a practical template of an Early Warning Notice to help you get ahead of the curve. Let’s dive in and explore how to make the most of this tool! ### What is an Early Warning Notice (EWN)? 🤔 [...] ### What is an Early Warning Notice (EWN)? 🤔 An early warning is a proactive notification raised by either the Project Manager or Contractor to highlight an issue that could affect cost, time or quality. Specifically, both parties (Contractor and Project Manager) are required to issue early warnings as soon as they become aware of any issue that could: Increase the total cost of the prices Delay completion Delay meeting a key date Impair the performance of the works in use Increase the contractor's"
}