In the world of construction, where every day counts and every project is a balancing act of time, cost, and quality, scaling up should be a natural evolution—especially in response to growing demand from the housing and infrastructure sectors. But despite a clear need for more housing and improved infrastructure, ramping up construction capacity remains stubbornly difficult.

Adversarial relationships, fragmented processes, and a chronic labour shortage are some of the long-standing issues holding the sector back. Add in the demographic time bomb of an aging workforce, and it’s easy to see why the construction sector is facing a perfect storm.

The question is: how do we break these barriers down?

An Adversarial Approach: A Stumbling Block for Collaboration

One of the key challenges facing construction companies and housing associations is the adversarial culture that has plagued the industry for decades. Historically, relationships between clients, main contractors, and subcontractors have been marked by mistrust and disputes over costs, deadlines, and contract variations.

The Rethinking Construction report, also known as the Egan Report, identified this adversarial culture back in 1998 and recommended a move toward collaborative working as the key to improving quality and efficiency in construction. Unfortunately, many of the issues outlined in the report still persist today.

This combative culture creates a vicious cycle:

Short-term focus: Everyone is laser-focused on the next project milestone or payment, with little thought given to long-term partnership or shared success.
Disputes over scope and cost: When disputes arise (as they often do), they drain time and resources, leading to delays and strained relationships.
Erosion of trust: Trust is hard to build but easy to break, and once it’s gone, collaboration becomes almost impossible.

For housing associations, these adversarial dynamics are particularly painful. With limited budgets and a social mission to provide affordable housing, delays and overruns can mean fewer homes built and communities left waiting.

Shifting to a collaborative model isn’t just a nice idea—it’s essential for survival.

The Collaboration Conundrum

True collaboration requires shared goals, open communication, and systems that support seamless information flow. But construction is a fragmented industry, often bogged down by disconnected systems, paper-based processes, and communication breakdowns between different teams.

The Farmer Review of the UK Construction Labour Model, aptly subtitled Modernise or Die, highlights how fragmented processes and lack of modernisation contribute to low productivity and inefficiency in the construction industry. Without integrated systems, valuable information is lost in emails and spreadsheets, leading to miscommunication and unnecessary rework. Productivity takes a hit, and frustrations grow on all sides.

For housing associations managing multiple developments and juggling relationships with a long list of contractors and subcontractors, the coordination challenge is monumental.

This disjointed approach is holding the industry back.

The construction sector can learn from other industries that have embraced connected systems and real-time information sharing. Digital platforms that centralise communication and data are the key to unlocking more productive, transparent partnerships.

Poor Productivity: The Industry’s Persistent Problem

Construction’s productivity levels have been stubbornly low for decades. While sectors like automotive, manufacturing and agriculture have made huge productivity gains, construction has lagged far behind. According to a McKinsey & Company report, construction productivity has increased by just 1% annually over the last two decades, compared to 3.6% in manufacturing.

Why?

Fragmentation and siloed working: The lack of integration between different players slows down progress and increases errors.
Reliance on manual processes: Many companies are still using outdated, paper-based systems. A foreman might be filling out progress reports on-site by hand, while a project manager is updating a spreadsheet back in the office—both completely disconnected from real-time events on the ground.
Inefficient allocation of labour and resources: Without a centralised view of who is doing what and when, it’s easy for teams to be underutilised—or for the wrong team to turn up at the wrong time.

Low productivity isn’t just an operational headache—it’s a financial drain. The construction sector is known for razor-thin margins, so inefficiencies quickly erode profitability.

The McKinsey report underscores the importance of embracing technology to improve productivity. Tools that provide real-time visibility, automate routine tasks, and streamline communication can significantly enhance efficiency. For housing associations, embracing these tools means faster project completion, reduced costs, and ultimately, more homes for the communities they serve.

Demographics and the Labour Challenge

Beyond cultural and operational issues, the construction sector is facing a growing crisis: the workforce is aging, and the pipeline of new talent isn’t flowing fast enough to replace those who are retiring.

Consider these stark facts from The Build Chain and Financial Times [paywall]:

Aging workforce: The average age of construction workers in the UK is 45, with a significant proportion set to retire in the next decade.
Decline in apprenticeships: The number of young people entering the industry has been falling, despite efforts to promote construction as a viable career option.
Post-Brexit challenges: The UK’s departure from the EU has exacerbated the labour shortage, with fewer foreign workers available to fill gaps.

This labour scarcity is having a direct impact on housing associations and construction companies alike. Projects are delayed because there simply aren’t enough skilled workers available, and the competition for talent is driving up costs.

The Farmer Review emphasizes the importance of long-term thinking: investing in skills development, attracting a new generation of workers, and embracing technologies like automation and prefabrication to reduce dependency on manual labour.

The Way Forward: Building a More Collaborative, Productive Industry

Despite these challenges, there is reason to be optimistic. The construction sector is at a tipping point, with growing recognition that the old ways of working are no longer fit for purpose. Housing associations, contractors, and industry leaders have an opportunity to come together and create a more collaborative, productive industry—one that delivers better outcomes for all.

Here are some key steps:

Embrace digital tools: Invest in platforms that connect contractors, subcontractors, and clients in real time, providing a single source of truth for every project.
Focus on long-term partnerships: Move away from transactional relationships and focus on building long-term partnerships based on trust and shared success.
Promote skills and innovation: Support initiatives that bring young people into the industry and invest in technologies that improve productivity.
Break down silos: Encourage cross-functional collaboration and communication to improve decision-making and reduce errors.

At Okappy, we’ve seen how the right digital tools can transform how construction companies and housing associations work together. By improving visibility, reducing duplication, and creating a connected network of contractors and subcontractors, our platform is helping organisations overcome these barriers and unlock new levels of productivity and collaboration.

The construction industry is evolving, and while the road ahead isn’t without its challenges, the opportunity is there for those willing to embrace change. Collaboration isn’t just a buzzword—it’s the key to building a better future for construction and housing alike.

Want to learn more about how Okappy can help you connect your network and improve collaboration? Get in touch with us today!