Report

Contractor Risk Review 2021

Read our latest annual Contractor Risk Review 2021. Discover how top UK construction companies are managing the most pressing threats to their businesses.

Discover how top UK construction companies are managing the most pressing threats to their businesses.

In our annual Contractor Risk Review 2020, we highlighted how the construction industry was facing some of its biggest challenges in living memory, with risks and opportunities for contractors across a wide range of business segments. We updated the development of some of these areas in our Interim Contractor Risk Review, released in May this year, which specifically looked at how Brexit, potential mergers and acquisitions activity, and increasing levels of cyber-attack are affecting the perceived and actual risk profile of the construction industry.

This year, we have again analysed the latest reports and accounts of the top construction companies in the UK to discover how they perceive, quantify and manage the risks to their businesses. The results can be found in the Contractor Risk Review 2021 (CRR), the new white paper from Marsh Specialty’s Construction, Infrastructure and Surety Practice. Click on the link at the foot of the page to download now.

The report focuses on the UK’s largest contractors, by revenue, which are involved in civil engineering and/or construction works, and have made their information publicly available. Our team processed these companies’ data to determine their ten most pressing risks. The Contractor Risk Review 2021 contains a detailed analysis of our findings.

Some of the notable findings include:

  • Whilst political and economic risk retains number one spot in the rankings, project delivery and contractual dispute has risen two places from fourth place last year to rank second.
  • A rise in the combined environment & sustainability and climate change category which moves up to number seven in the rankings.
  • Legal and regulatory risk, rising in both percentage terms and ranking to enter the top ten for the first time. 

With the full impact of the COVID-19 pandemic now becoming apparent we have devoted a section in our introductory commentary to the leading role it is playing in driving material price inflation and supply chain constraints. Equally with environmental considerations now playing such an important part in our lives and how we conduct business, further commentary has been provided on ESG in construction.

By highlighting the key risks and sharing ‘best in practice’ on how these risks are being mitigated, we aim to fully inform companies of the challenges ahead and how those challenges may be overcome.


Report

Contractor Risk Review 2021

Top 10 risks analysed


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