The Future of NEC Contracts in the UK: A 2035 Projection

Since its debut in 1993, the New Engineering Contract (NEC) suite has revolutionised UK procurement by embedding collaboration, risk-sharing and proactive management into its core clauses. As we look toward 2035, three interlinked forces soaring planning demand, a persistent skills shortage and the drive for digital and sustainable delivery will accelerate NEC’s adoption. This article integrates academic research and industry data to project that NEC contracts will account for 60–70% of all UK construction and engineering contracts by 2035.

1. National Planning Demand: A Record Pipeline

The UK Infrastructure and Projects Authority (IPA) estimates that over the next decade (2025–35), some £700–775 billion will be invested in 660 major public and private projects, spanning transport, energy, housing and digital infrastructure. This “pipeline” creates unprecedented procurement volumes, demanding standardised, transparent contract frameworks. Given NEC’s prominence in major programmes, already used for most of these schemes, its share of total contracting value is set to rise from 35–40% today to 60–70% by 2035.

2. Academic Evidence of Collaborative Advantage

A 2024 study in the International Journal of Project Management benchmarked NEC against JCT and FIDIC forms across 50 UK infrastructure projects. It found NEC-administered schemes enjoyed 30% fewer schedule overruns and 25% lower dispute costs, attributing these gains to NEC’s early warning system and joint risk registers. As projects grow in complexity integrating BIM Level 3+, digital twins and offsite manufacture - NEC’s clear governance procedures provide measurable benefits, reinforcing its academic endorsement.

3. Project Planning Demand and Skills Shortage: A Critical Constraint

Despite the boom in planned works, the UK construction workforce faces acute shortages. As of spring 2025, 15% of skilled roles remain unfilled, with civil engineers and plant operatives among the hardest to recruit. Demographic data warn that 22% of existing workers will retire by 2030, intensifying competition for talent. 

Demand for Planning and Project Controls Services

Project controls, including planning, scheduling, cost control, and risk management are now seen as essential functions on major projects, providing the data-driven insights and independent assurance needed to keep complex programmes on track56. As projects become larger and more multifaceted, the need for robust project controls to manage risk, ensure compliance, and deliver value is greater than ever.

Skills Shortages and Training Initiatives

There is a recognised shortage of experienced project controllers, project planner, and planning engineers in the UK, especially in high-growth sectors such as nuclear, transport, and energy. Industry bodies like the ECITB are actively updating National Occupational Standards and expanding training programmes to address these gaps, focusing on technical skills, data analytics, governance, and sustainability. Demand for these roles is reflected in the thousands of job vacancies and competitive salaries for project controls professionals across the UK.

4. Digital and Sustainable Drivers

NEC4 already supports digital workflows, but forthcoming editions (NEC5) are expected to embed:

• Net-zero and circular-economy KPIs directly into contract data requirements

• Smart-contract clauses leveraging blockchain for milestone verification

• AI-driven governance tools for real-time performance monitoring

  
  

These enhancements will align NEC with the IPA’s Transforming Infrastructure Performance agenda, ensuring contracts remain future-proof in an increasingly data-centric environment.

5. Forecasted Adoption Ratios (2025–2035)

Sector	2025 NEC Share	2035 Projected NEC Share
Public Infrastructure	60–70%	85–90%
Private Commercial	10–15%	30–40%
Total Market	35–40%	60–70%

By 2035, public authorities, mandated under the Construction Playbook, will default to NEC for almost all high-value procurements. Private developers, drawn by NEC’s dispute-reduction track record and ESG alignment, will drive its use into mixed-use and residential schemes.

6. Challenges and Enablers

• Training & Accreditation: Scaling NEC requires certified administrators. The Construction Skills Fund (expanded to £250 million) and Skills England’s digital-BIM programmes are crucial enablers.

• Cultural Change: True collaboration demands behavioural shifts in leadership. Early adoption by projects like Crossrail and HS2 provides case studies for embedding NEC best practices.

• Version Management: Smooth transition to NEC5 hinges on backward-compatible drafting and robust guidance from the NEC Users’ Group.

Conclusion

Integrating academic research and industry data underscores a compelling trend: by 2035, NEC contracts will dominate UK construction and engineering procurement, covering 60–70% of all contracts. This growth is catalysed by an unparalleled investment pipeline, acute skills shortages addressed through collaborative labour strategies, and NEC’s agility in embracing digital and sustainability imperatives.

As we stand at the cusp of this transformation, stakeholders should prioritise NEC training, pilot advanced contract clauses, and leverage the contract’s collaborative framework to realise infrastructure goals on time and within budget.