The report, titled ‘Learning lessons from the Covid-19 pandemic to strengthen the construction industry’, examines how emergency adaptations made in the face of the pandemic have improved long-standing issues within the sector, including contractor–client communication, worker wellbeing, and payment times.

Over half of the 1,400 construction SMEs surveyed reported improvements to hygiene provisions and mental health support since the beginning of the pandemic, as temporary measures introduced to keep the sector running safely through lockdown have become the new normal.

In addition, 52% of respondents said they’ve seen a reduction in the time it takes to get paid by clients since the pandemic, with more than half also saying they now receive payments in 40 days or less.

This is a major change from previous years when, according to a 2017 survey by the Federation of Master Builders (FMB), almost a quarter of construction SMEs had to wait over four months to receive payments from clients or large contractors.

While this positive step forward has been welcomed, the CIOB research highlighted that further improving payment terms to under 30 days remains a priority for the majority of SMEs.

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Daisie Rees-Evans, policy and public affairs officer at CIOB, said: “Covid-19 had a monumental impact on people’s lives and livelihoods, with businesses needing to adapt how they operate to keep their workers safe while staying financially afloat.

“Since the outbreak of the virus in the UK, we have seen a shift in business practices, with construction seeing large improvements in supply-chain collaboration, access to hygiene facilities and provision for worker wellbeing.

“Our report reflects on the progress that’s already been made and what further opportunities can be harnessed to deliver change that positively impacts construction businesses, workers and the communities they build for.

“With the UK government committing to procuring for social value, the publication of our report is timely in its approach to seek true cultural change.”

Paul Singh, commercial director at EEDN, added: “The pandemic has definitely increased collaboration and empathy within the industry from clients to consultants and contractors, opening up dialogue and reducing the adversarial approach.

“Construction has really taken note of the need to prioritise mental health and wellbeing; projects are now defined with a new, hybrid way of working in mind and spaces have wellbeing built right into them.

“We have also seen greater proactivity when it comes to invoicing and payments, with invoices often being settled before the payment period is up.

“There is undoubtedly still a lot of work to be done, but the signs are certainly encouraging.”