Research Report – Procurement, Contracts and Payment Practices in the Housebuilding Supply Chain

In the final quarter of 2025, the Finishes and Interiors Sector (FIS) surveyed specialist contractors working across the housebuilding supply chain. The research explores how procurement practices, contract complexity and payment conditions are affecting investment, workforce development and the sector’s ability to support the delivery of new homes.

The backdrop to this research is concern that Government’s target to build 1.5 million homes (over this Parliament) is running into a serious headwind. According to the latest Construction Skills Network (CSN)i the UK construction sector faces a shortfall of circa 225,000 skilled workers by 2027. It is estimated that around 8-10% of these workers are required to support work in the finishes and interiors sector. Whilst attracting individuals to the sector has long been a barrier, there is also a concerning absorption problem i.e. creating the right conditions and ensuring employers are incentivised to invest in the recruitment and training of new entrants.  This survey explores the factions that impact absorption in more detail.

This report provides valuable insight into the challenges faced by specialist contractors and the changes needed to create the right conditions for sustainable growth.