A year ago, when I looked ahead to 2022, no one could have foreseen that Russia would invade Ukraine, nor that a new government would come in and cause utter chaos in the financial markets in barely two months in power. While these events, of course, had much wider repercussions for society, the reality is that they have strengthened the economic headwinds the construction sector will face during 2023.

Construction output was relatively strong throughout 2022, as the industry bounced back from the pandemic and other challenges. ONS figures released in December 2022 record multiple consecutive months of growth since the middle of the year. However, while order books remain strong, high product prices, materials and labour shortages, and climate change effects are set to continue in 2023 and have a real impact on projects: the Construction Products Association forecasts a 3.9% fall in construction output in 2023. Private housing output in particular is predicted to fall by 9%. The strain to the sector will be significant. It is likely we will see projects delayed and run over budget, leading to an uptick in disputes, particularly adjudications.

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