How Britain can manage risk better to deliver world-class infrastructure
From working more collaboratively to learning from other players in the sector, the built environment could free up resources to enable innovation.
![]() |
London Power Tunnels takes a pioneering approach to delivery. Image credit: National Grid |
Contents |
[edit] Introduction
In a changing and growing world full of competition, standing still is not an option.
As new economic focal points arise around the world, as capital becomes increasingly mobile, and as companies compete more frequently outside of their home markets, the opportunities for British built environment professionals to deliver world-class infrastructure have never been greater. What's holding us back, however, is the risk of risk.
ICE has produced a short briefing paper, ‘Improving approaches to risk in the built environment sector’, to serve as a reference point for decision makers and promote discussion in the sector on how we can manage risk better.
It draws on the principles for developing new business models that have been set out as part of Project 13, a blueprint for the sector on how this could be achieved, designed by ICE and the Infrastructure Client Group.
[edit] A risky business
Risk is an everyday issue in any economic undertaking. Adopting an approach which manages project risk effectively, however, is an acute problem in construction and the built environment.
The mindset towards risk is inherently conservative. This is understandable given how dangerous the work can be and because of how competitive the market is.
While this means that the UK has cost-conscious contractors who deliver excellent infrastructure at value, over the longer term, this has resulted in an industry constantly under pressure to seek a margin.
[edit] Taking responsibility
This transactional approach has wider effects which undermine the industry’s fundamentals.
With no economic margin comes no development of skills, no room to research, no ability to test bed innovations and an unwillingness to try new things – all through fear they will not work.
What's needed are changes in business practices. Working collaboratively through an enterprise model (instead of treating partners on a project as separate entities to be managed), could have great benefits for the sector. The costs of risk are substantial, up to 50% of the final price paid by the asset owner.
If management and ownership of risk were kept where they can best and most expertly be handled, rather than pushed around, resources could be freed up which could improve the financial health of the sector and free up resources to improve practices and enable innovation.
[edit] Working together, learning together
Beyond business practices, different players in the sector would do well to learn from each other. Internationally companies are adopting new ways of working and building using cutting-edge technology like 3D printing on a scale that the UK isn't accustomed to.
Data is also vital, and can be harnessed through adopting shared frameworks. Indeed, simple standardised methods of measuring project outcomes could enable more straightforward lesson-sharing, avoiding the pitfalls projects have come across and adopting what works.
Pulling together as a sector, with clients and contractors setting aside funds from projects to allow for sector-wide dedicated budgets for research, innovation and skills development would also create space to test ideas outside of active projects.
The result of which would remove some of the concern about projects failing because of new and not well-understood techniques.
[edit] A positive outlook
The UK has an enviable reputation in project management, implementation of safe working and providing long-lasting, safe infrastructure. It's important that the government and the sector shout about these successes while also casting a critical eye over things when they go wrong.
Overall, what's needed is teamwork and evolution to minimise the impact of risk on the successful delivery of programmes and projects.
You can download the briefing paper here: https://www.ice.org.uk/ICEDevelopmentWebPortal/media/Documents/Media/Policy/Improving-approaches-to-risk.pdf
This article was originally published by the Institution of Civil Engineers on 5 December 2018. It was written by ice.org.uk Martin Shapland, ICE Policy Manager. Ref https://www.ice.org.uk/news-and-insight/the-infrastructure-blog/december-2018/improving-approaches-to-risk-in-built-environment
--The Institution of Civil Engineers
[edit] Related articles on Designing Buildings
Featured articles and news
Mixed reactions to apprenticeship and skills reform 2025
A 'welcome shift' for some and a 'backwards step' for others.
Licensing construction in the UK
As the latest report and proposal to licence builders reaches Parliament.
Building Safety Alliance golden thread guidance
Extensive excel checklist of information with guidance document freely accessible.
Fair Payment Code and other payment initiatives
For fair and late payments, need to work together to add value.
Pre-planning delivery programmes and delay penalties
Proposed for housebuilders in government reform: Speeding Up Build Out.
High street health: converting a building for healthcare uses
The benefits of health centres acting as new anchor sites in the high street.
The Remarkable Pinwill Sisters: from ‘lady woodcarvers’ to professionals. Book review.
Skills gap and investment returns on apprenticeships
ECA welcomes new reports from JTL Training and The Electrotechnical Skills Partnership.
Committee report criticises UK retrofit schemes
CIOB responds to UK’s Energy Security and Net Zero Committee report.
Design and construction industry podcasts
Professional development, practice, the pandemic, platforms and podcasts. Have we missed anything?
C20 Society; Buildings at Risk List 2025
10 more buildings published with updates on the past decade of buildings featured.
Boiler Upgrade Scheme and certifications consultation
Summary of government consultation, closing 11 June 2025.
Deputy editor of AT, Tim Fraser, discusses the newly formed society with its current chair, Chris Halligan MCIAT.
Barratt Lo-E passivhaus standard homes planned enmasse
With an initial 728 Lo-E homes across two sites and many more planned for the future.
Government urged to uphold Warm Homes commitment
ECA and industry bodies write to Government concerning its 13.2 billion Warm Homes manifesto commitment.
From project managers to rising stars, sustainability pioneers and more.
Places of Worship in Britain and Ireland, 1929-1990. Book review.