3 minutes reading time
(588 words)
System Failure: Why Construction Is Losing Both Skills and SMEs
Construction Matters – Tuesday 15th July at 1pm
Hosted by Gareth Wax, with Michelle Carr and Hamish McLay
Two of the most urgent challenges in UK construction are colliding: a deepening skills shortage, and the collapse of small firms who once trained and employed the very people the industry now lacks.
SMEs, or Small and Medium-sized Enterprises, are typically businesses with fewer than 250 employees. They are a crucial part of the economy, contributing significantly to employment, innovation, and economic growth.
The numbers don’t lie. SME builders, long the backbone of the construction supply chain, are disappearing at an alarming rate. Some are swallowed in payment disputes. Others are crushed under rising costs, erratic cashflow or the sheer complexity of trying to survive in a system stacked against them. This isn’t a marginal issue. It sits at the heart of why projects stall, deadlines stretch, and housebuilding targets slip year after year.
And while government schemes highlight Modern Methods of Construction and new procurement frameworks, far too little is being done to support the people who do the work. SMEs make up over 90 percent of the UK construction sector, yet many still operate with limited access to legal support, commercial advice or contract training. Poor practices, particularly late payments, are routinely tolerated because “that’s just how it is”.
Behind this, there’s often a deeper issue: mindset. Many contractors and trade professionals start their journey after being told, at school or college, that they weren’t “academic enough”. Then later, they find themselves up against commercial professionals, often quantity surveyors or large procurement teams, and feel they’re at a disadvantage. Yet they aren’t. These business owners are resourceful, experienced, and self-built. What’s lacking isn’t capability – it’s confidence, support and a system that doesn’t pull the rug out from under them.
The Construction Act exists to protect smaller contractors, yet far too few know how to use it. Payment terms are often ignored. Contracts are misunderstood or left unsigned. And the pressure to “keep the client happy” leads many to absorb delays, costs and losses they shouldn’t have to bear.
Meanwhile, some of the largest developers in the sector are making headlines for entirely different reasons. Multi-million pound settlements with the CMA have been used to avoid full investigations into serious competition concerns, suggesting a troubling imbalance. Those with the deepest pockets continue operating, while smaller players buckle under day-to-day commercial pressure.
All of this feeds back into the skills crisis. When SMEs fold, apprenticeships disappear. Informal training opportunities dry up. Young people lose a route into the industry. And the same firms that helped so many get started are no longer there to do so.
This week’s Construction Matters looks at how the industry got here, and what it would take to stop the rot. What would it mean to change the culture, not just the process? To give contractors the knowledge, backing and confidence to assert their value and survive?
We’re joined on Tuesday by Michelle Carr, an experienced quantity surveyor, business owner and author of Taking the CON out of CONstruction. Her work focuses on better commercial practice, fairer contracting, and the realities facing SME firms in today’s market.
📺 Watch the episode live on Tuesday 15th July at 1pm
👉 Spilling The Proper‑Tea – YouTube Channel: https://www.youtube.com/@SpillingTheProper-Tea
📧 For content enquiries:This email address is being protected from spambots. You need JavaScript enabled to view it.
📧 For podcast/media info:This email address is being protected from spambots. You need JavaScript enabled to view it.
Hosted by Gareth Wax, with Michelle Carr and Hamish McLay
Two of the most urgent challenges in UK construction are colliding: a deepening skills shortage, and the collapse of small firms who once trained and employed the very people the industry now lacks.
SMEs, or Small and Medium-sized Enterprises, are typically businesses with fewer than 250 employees. They are a crucial part of the economy, contributing significantly to employment, innovation, and economic growth.
The numbers don’t lie. SME builders, long the backbone of the construction supply chain, are disappearing at an alarming rate. Some are swallowed in payment disputes. Others are crushed under rising costs, erratic cashflow or the sheer complexity of trying to survive in a system stacked against them. This isn’t a marginal issue. It sits at the heart of why projects stall, deadlines stretch, and housebuilding targets slip year after year.
And while government schemes highlight Modern Methods of Construction and new procurement frameworks, far too little is being done to support the people who do the work. SMEs make up over 90 percent of the UK construction sector, yet many still operate with limited access to legal support, commercial advice or contract training. Poor practices, particularly late payments, are routinely tolerated because “that’s just how it is”.
Behind this, there’s often a deeper issue: mindset. Many contractors and trade professionals start their journey after being told, at school or college, that they weren’t “academic enough”. Then later, they find themselves up against commercial professionals, often quantity surveyors or large procurement teams, and feel they’re at a disadvantage. Yet they aren’t. These business owners are resourceful, experienced, and self-built. What’s lacking isn’t capability – it’s confidence, support and a system that doesn’t pull the rug out from under them.
The Construction Act exists to protect smaller contractors, yet far too few know how to use it. Payment terms are often ignored. Contracts are misunderstood or left unsigned. And the pressure to “keep the client happy” leads many to absorb delays, costs and losses they shouldn’t have to bear.
Meanwhile, some of the largest developers in the sector are making headlines for entirely different reasons. Multi-million pound settlements with the CMA have been used to avoid full investigations into serious competition concerns, suggesting a troubling imbalance. Those with the deepest pockets continue operating, while smaller players buckle under day-to-day commercial pressure.
All of this feeds back into the skills crisis. When SMEs fold, apprenticeships disappear. Informal training opportunities dry up. Young people lose a route into the industry. And the same firms that helped so many get started are no longer there to do so.
This week’s Construction Matters looks at how the industry got here, and what it would take to stop the rot. What would it mean to change the culture, not just the process? To give contractors the knowledge, backing and confidence to assert their value and survive?
We’re joined on Tuesday by Michelle Carr, an experienced quantity surveyor, business owner and author of Taking the CON out of CONstruction. Her work focuses on better commercial practice, fairer contracting, and the realities facing SME firms in today’s market.
📺 Watch the episode live on Tuesday 15th July at 1pm
👉 Spilling The Proper‑Tea – YouTube Channel: https://www.youtube.com/@SpillingTheProper-Tea
📧 For content enquiries:
📧 For podcast/media info:
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