Wait till they legislate
The UK demolition and construction industry remains pathologically incapable of doing the right thing unless handcuffed by legislation.
Back in the early 2000s in the Netherlands, authorities conducted an experiment. They removed traffic lights, signs, and kerbs from a busy intersection. The result was a counter-intuitive but rip-roaring success. By stripping away the automated certainty of signals, drivers were forced to rely on human interaction and eye contact to negotiate right-of-way. That perceived risk caused motorists to slow down naturally and pay closer attention to their surroundings. Recorded accidents dropped to nearly zero, while traffic flow actually improved.
In the report that accompanied the experiment, it was suggested that traditional rules often “un-teach” responsibility, whereas removing them can foster a more alert, social, and safe environment. This approach demonstrates that, in some instances, less regulation can lead to better collective outcomes.
The UK demolition and construction industry is an undeniable powerhouse. It is a sector capable of boring massive tunnels under the heart of London, erecting towering skyscrapers, and regenerating entire city landscapes. Yet, for all its engineering brilliance, the industry has a glaring, fatal flaw: it is chronically incapable of doing the right thing unless the government explicitly forces it to.
If there is a moral high ground to be taken - whether it involves paying small businesses fairly, protecting the planet, or ensuring basic human rights in the supply chain - the sector’s default stance is to drag the heels of its steel-toe-capped boots. All too often, the industry treats ethical, financial, and environmental progress like a toddler treats vegetables: flatly refusing to engage until a stern authority figure steps in and makes it mandatory.
For over a century, the UK construction industry has relied on the archaic practice of cash retentions. In theory, withholding a percentage of a subcontractor’s payment is meant to act as a financial safeguard against defects. In practice, however, it has functioned as a legalised form of financial hostage-taking that disproportionately harms small-to-medium enterprises (SMEs).
When massive main contractors withhold these payments, they choke the cash flow of the smaller businesses that actually do the heavy lifting. Sometimes, these withheld payments account for up to 100% of a subcontractor’s profit margin. Unscrupulous companies have been known to hold onto money that doesn’t belong to them, secretly hoping the supplier will simply go under so the debt disappears. In fact, it is estimated that SMEs have lost over £2.5 billion due to upstream insolvencies.
Did the industry recognise this moral failing and fix it on its own? Of course not. The Construction Leadership Council (CLC) spent half a decade trying to get the industry to agree on moving away from retentions, but the sector remained stubbornly paralysed. Because the industry couldn’t police itself, the government recently had to announce the toughest crackdown on late payments in 25 years, including a complete ban on withholding retentions and a mandatory 60-day payment cap. Once again, the industry proved that unless you make bad behaviour explicitly illegal, bad behaviour will thrive.
When it comes to the environment, the construction industry loves to talk a big game. There are endless press releases about “green building” and “sustainability,” but the reality is far more grim. According to the UK Green Building Council (UKGBC), the built environment—the country’s second-largest source of carbon emissions—is falling “dangerously behind” the pace needed to meet net-zero commitments.
Since 2018, embodied carbon emissions in the sector have fallen by only 14%, falling drastically short of the 24% reduction required to stay on track. The industry is currently moving at roughly half the speed necessary. To put that into perspective, that is the equivalent of the emissions generated by heating nine million homes for an entire year. Why the failure? Because there is no legal gun to its head. The UKGBC has explicitly stated that to unlock change, the sector needs “mandatory whole life carbon regulation.” Without a mandate, the industry reverts to its old habits.
Perhaps the most damning indictment is the handling of modern slavery. You might assume forced labour is a relic of the past, but in the UK construction sector, it is an emerging trend. According to the charity Unseen, the construction industry ranks second only to the care sector for exploitation calls. In 2024 alone, the charity identified 492 potential victims. The industry’s reliance on multiple layers of subcontracting and opaque supply chains creates the perfect breeding ground for exploitation. The sector’s approach seems to be one of wilful ignorance. As Safeguarding Minister Jess Phillips pointedly told representatives: “Modern slavery is extremely prevalent. If you are not finding it, I would suggest you are not looking hard enough.”
If you want to understand how the industry responds to legislation versus moral obligation, look at the contrast between physical safety and workforce diversity. On-site, health and safety is taken incredibly seriously. Workers are decked out in PPE. Why? Because the Health and Safety at Work Act 1974 legally compels them to. If they ignore compliance, they face massive fines and criminal prosecution. Consequently, compliance is excellent.
Now, compare this to diversity. Currently, only 14% of workers are women; for frontline labour, that drops to 4%. While the Equality Act 2010 makes discrimination illegal, there is no legal requirement to actually hire a diverse workforce. Because there is no legislative mandate, the industry largely doesn’t bother. Many companies continue to rely on “word-of-mouth” recruitment that maintains an exclusive boys’ club.
The pattern is undeniable. Whether it’s holding billions hostage from SMEs, choking the planet with carbon, or turning a blind eye to slavery, the UK construction industry refuses to lead. It is a sector filled with brilliant innovators who suffer from systemic moral inertia.
We need to stop pretending that “industry-led change” is anything more than a PR fairy tale. The Dutch intersection proved that humans can be trusted to act responsibly when the safety nets are removed. The UK construction industry proves the exact opposite: it is a collective that has successfully “un-taught” itself a conscience.
We don’t have an industry of leaders; we have an industry of reluctant compliance-chasers who view ethics as an optional surcharge they’d rather not pay. So, let’s stop waiting for a “moral awakening” that isn’t coming. Until the government puts a metaphorical boot to its throat with more regulations, more bans, and more fines, this industry will continue to do the absolute bare minimum required to stay out of a courtroom, and not a single inch more.
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