Blog Author: Peter Hibberd – Past JCT Chair
A knowledge and skills gap
The UK construction industry has for some time been concerned with shortages in skilled labour. Recent evidence such as the RICS Surveying skills report 2025 shows the problem extends beyond just site operations, which is the primary focus of the Skills policy in England report (2025). A less visible – yet increasingly critical – gap is opening in professional competencies, particularly those in project and contract administration. A gap that will be exacerbated by decisions flowing from Skills England, such as the setting up of 10 technical colleges specialising in construction to train primarily on-site workers to underpin the governments push for growth in construction.
These knowledge and skills gaps have significant consequences that extend beyond staffing challenges. Such gaps mean there is a barrier to efficient procurement processes, inconsistent contract management, and rising numbers of disputes rather than a lessening. The situation will worsen without actions specific to project and contract administration.
The challenge
The challenge of addressing this is acknowledged within the sector, regular industry commentary highlights the issue clearly. The pace of change in procurement, combined with the introduction of new contract forms and increasing digitalisation has outstripped the ability to make appropriate provision, even before further growth in construction activity. This impacts on education and training providers who need to make changes that include making provision more tailored to the workplace; theory must be seen applied to practical situations. It also impacts on current professional employees who must keep their skills up-to-date. Shifts in procurement structures, and evolving contract suites, such as JCT 2024 all require practitioners to possess a solid grounding not just in contract principles but in the application of those principles in practice. Additionally, there is need to respond to rapid technological change, such as Artificial Intelligence, embrace its immense potential, and consider how it might impact upon contract administration.
Why the skills gap exists
Several structural pressures contribute to the shortfall:
- A failure to attract sufficient new entrants to professional pathways because, not least, the relatively poor image of construction and the perception of inadequate reward.
- Slowness in making provision for and in acquiring new knowledge and skills to meet the expansion of procurement approaches and associated building contract forms.
- Inadequate awareness among students and early‑career professionals of the centrality of contract administration to modern project delivery.
The cost of inaction to address knowledge and skills gaps
A shortage of contract administration capability manifests itself in the following ways:
- Inconsistency in procurement outcomes, especially where teams lack capability in selecting or administering the appropriate contract form.
- Inefficiencies in project delivery due to poorly referenced or inadequate documentation.
- Limited understanding of the different cost control and payment mechanisms.
- Greater risk for clients and contractors where contract terms are misapplied or misunderstood.
- Increased likelihood of disputes arising from misunderstandings of obligations and unclear drafting. The case of John Sisk & Son Ltd v Capital & Centric (Rose) Ltd [2025] being instructive.
Addressing the knowledge and skills gap – solutions
There is no single way of tackling the problem of the knowledge and skills gap; it is a complex issue. In addition to efforts by various public and private sector organisations, an essential requirement in closing the knowledge and skills gap is coordinated action across industry, education, training organisations, and professional bodies. Specific measures to close the gap include:
- Developing clearer educational pathways that more extensively connect theory with actual contract administration practice.
- Broadening awareness and access to structured knowledge bases, making contract administration, and building contracts more intelligible for new and existing professionals.
- Strengthening continuing professional development (CPD) to ensure existing practitioners keep pace with procurement changes, and the impact of technological developments.
- Providing support packages tailored to contract administration to include building contract forms, to help both new entrants and experienced practitioners build competencies.
- Adopting policies that change the perceptions that prospective members have of the UK construction industry.
Various initiatives within the construction industry have been taken to address the knowledge and skills gaps, but one specific and topical example is the updated JCT Contracts Discovery publication (published March 2026). It provides a resource for teachers and students involved in the study of JCT contracts and contract procedures. Following substantial restructuring, and alignment with JCT 2024, the updated publication offers an excellent starting point for:
- Students developing foundational contract literacy.
- Education and training providers seeking authoritative content.
- Practitioners needing a concise refresher on contract administration principles.
A call to action
The construction industry cannot meet its future productivity, sustainability, and delivery goals without strengthening its professional skills base. Contract administration is not an optional competency – it is central to project success. Doubling the effort in addressing the skills gap is an imperative to ensuring the next generation of professionals enter the industry prepared for modern practice. Both knowledge and relevant competencies are essential.
