The biggest challenge facing the built environment isn’t a shortage of work. It’s keeping pace with the growing layers of regulation, compliance obligations and client expectations that now sit behind every project.
That was the central conclusion from a senior-level roundtable hosted by TheBusinessDesk.com at Cubo Standard Court in Nottingham and sponsored by Evolve Corporate Finance. Bringing together developers, consultants, funders, designers and legal specialists, the discussion painted a picture of a sector operating in an increasingly complex environment where regulation is driving demand, reshaping business models and creating fresh opportunities for investment and growth.
Panel:
Richard Ellis, Evolve Corporate Finance
David Neate, Evolve Corporate Finance
Daniel Lacey, DL Design Studio
Sheleedra Fernando, 24/Three
Daryl Woolley, Pulse Consult
Wayne Woodland, Miller Knight
Sue Hunter Bentley Project Management
Joshua Dickinson, BWB/Deetu
Amy Revell, We Are Spaces
Lyn Dario, Shakespeare Martineau
Rob Woolston, RG+P
Sam Metcalf, TheBusinessDesk.com
Regulation reshapes the project lifecycle
Few topics generated more discussion than the impact of the Building Safety Act and the wider programme of regulatory reform.
Participants agreed that the industry is adapting to a system that has evolved incrementally rather than through a single, coherent redesign. As a result, planning, building control and safety requirements do not always align neatly, creating delays, uncertainty and additional cost.
One of the most significant changes has been the shift towards front-loaded design. Fire safety, compliance and technical assurance now need to be considered much earlier in the development process, requiring greater collaboration between clients, designers, consultants and contractors from the outset.
At the same time, uncertainty remains around the responsibilities of dutyholders, particularly principal designers and principal contractors working on complex or higher-risk buildings. Questions around liability, risk allocation and accountability have become increasingly prominent during contract negotiations, with some projects reportedly delayed as parties seek clarity.
Clients face growing compliance burden
The conversation highlighted how the regulatory burden is increasingly falling on clients themselves.
Many organisations, particularly those that are not regular developers, are still grappling with the implications of the new regime despite being expected to take greater ownership of compliance and sign-off decisions.
Explaining gateway requirements, risk management obligations and governance structures now forms a much larger part of project delivery than in the past. The challenge is compounded because much of the work is effectively invisible to clients. Unlike a new façade or completed building, compliance activity can be difficult to visualise and easy to perceive simply as an additional cost.
This issue becomes particularly acute when investigations into existing buildings uncover more extensive problems than anticipated. Intrusive surveys frequently reveal additional defects, expanding project scope, increasing costs and, in some cases, undermining viability altogether.
ESG remains important – but budgets matter
ESG and social value continue to feature prominently in both public and private sector projects.
There was broad agreement that healthier, more sustainable and community-focused places remain a strategic objective across much of the industry. Some organisations are already using local health and wellbeing data to shape developments that encourage active travel, improve air quality and support better outcomes for communities.
Long-term investors were seen as particularly receptive to this agenda, recognising the link between placemaking, tenant retention and long-term asset performance.
Yet participants acknowledged a gap between aspiration and delivery.
In many procurement exercises, ESG commitments continue to be scored heavily during bidding but are not always backed by sufficient funding during delivery. Rising construction costs and growing compliance requirements mean discretionary ESG initiatives can be among the first elements to be removed when budgets come under pressure.
As one theme repeatedly emerged, ESG appears most resilient where it is embedded within a client’s long-term strategy rather than added primarily to strengthen a tender submission.
AI’s role is practical, not transformational
Artificial intelligence was viewed with cautious optimism.
Rather than replacing professional expertise, participants described AI as a tool that can improve efficiency, enhance communication and support decision-making.
Current applications range from creating visualisations that help communities understand development proposals to analysing consultation responses, drafting reports and helping organisations manage the “golden thread” of information required under the new safety regime.
However, concerns remain around reliability and accountability. Examples were cited of AI-generated outputs containing inaccurate references or technically flawed assumptions, reinforcing the need for human oversight and professional judgement.
There was also discussion about the longer-term impact on skills development. If junior professionals become overly reliant on automated tools, the industry risks weakening the analytical and technical capabilities that underpin effective decision-making.
For now, AI’s greatest value appears to lie in reducing administrative workloads and allowing specialists to focus on higher-value advisory, design and technical work.
A strong investment story
While regulation dominated much of the discussion, it is also creating significant opportunities.
From an investment and M&A perspective, the outlook for the built environment remains positive, particularly across safety, compliance and specialist consultancy businesses.
Participants noted that regulatory change is creating sustained demand for technical expertise, while a highly fragmented market continues to offer attractive opportunities for consolidation.
Talent shortages are also making acquisitions an increasingly important route to securing specialist capabilities that are difficult to recruit organically.
Investors remain particularly attracted to businesses with recurring revenue, framework agreements and long-term client relationships. Specialist ESG, environmental and advisory capabilities continue to command interest, although building safety and compliance are currently among the strongest drivers of activity.
Opportunity through complexity
If there was a single theme running through the discussion, it was that complexity is becoming both the sector’s greatest challenge and one of its biggest commercial opportunities.
Regulation is increasing costs, extending timescales and demanding new skills. Yet it is also creating sustained demand for specialist advice, technical expertise and innovative solutions.
Looking ahead, participants identified strong growth opportunities in fire and safety consultancy, infrastructure, utilities, energy security and data centres, sectors expected to benefit from both regulatory drivers and long-term structural investment.
For businesses operating in the built environment, success is likely to depend on their ability to combine technical expertise, strong governance and intelligent use of technology.
In a market where compliance is becoming more complex and expectations continue to rise, those capabilities may prove to be the industry’s most valuable assets.
