Three in four UK fit-out firms unprepared for evolving regulations

A recent survey by PlanRadar, a leading digital platform for documentation, communication and reporting in construction, facility management and real estate, reveals a fit-out sector grappling with compressed timelines, rising regulatory demands, and a growing need for digital solutions to uphold quality and compliance.

The findings reveal resource management as the most pressing challenge for fit-out companies, with 42 per cent of respondents identifying it as a top priority. Following closely, 38 per cent noted rising client expectations as businesses today seek modern, safe and sustainable workspaces. Interestingly, while only 15 per cent of companies reported concern over cost overruns, 31 per cent identified them as the greatest risk to their projects, closely followed by delays (26 per cent).

Despite growing legislative pressure in the UK, only a quarter (26 per cent) of respondents feel fully prepared to navigate the complex compliance landscape, and just 23 per cent are confident they can capture the data needed for informed future decisions. Even fewer (8 per cent) reported using technology to provide tamper-proof audit trails, an essential tool for attaining the BSA’s digital Golden Thread.

Digitalisation also appeared to be lacking elsewhere. The survey also found that despite three quarters (73 per cent) of companies acknowledging rework poses a significant threat to their business, only 4 per cent leverage digital tools to manage rework. Adding to this, no respondents currently cited using advanced technology to control risk. Companies rely more on traditional methods to manage these perils, such as prioritising rigorous planning and forecasting (38 per cent), and depending on strong contract management (31 per cent).

When asked what a successful project looks like, client satisfaction emerged as the key criteria, with 58 per cent of fit-out companies prioritising it. In contrast, only 4 per cent consider the quality of workmanship their top success criteria. This trend underscores a growing tussle between meeting immediate client expectations and ensuring lasting quality, perhaps driven by a need to build quickly against headwinds like rising building costs and supply chain issues.

Commenting on the survey findings, UK Director of PlanRadar Rob Norton said: “These challenges reveal an urgent need for effective project coordination among contractors, clients and building management. It’s encouraging to see that 77 per cent of companies have at least implemented basic software to tackle these challenges. Yet, fit-out professionals must continue to adapt quickly and increasingly balance efficiency with stringent building safety and compliance standards, especially those set out by the Building Safety Act 2022 (BSA).”

Norton added: “The gap in technology adoption to control risk is surprising, given the impetus on health and safety today and challenges presented by rework. There is a clear opportunity for contractors to integrate digital tools and enhance efficiency by not only reducing the potential for costly missteps and delays but also helping ensure that critical compliance standards are met.”