Three-fourths of builders back collaborative deals, but only 34% use them

Traditional forms still rule 67% of projects, a report revealed.

Three-quarters of construction and built environment professionals support wider use of collaborative contracts, but only 34% have worked on projects using them, according to an NEC Contracts report.

The report highlights a gap between industry sentiment and actual practice, with most professionals (67%) still operating within traditional contracting frameworks.

“The predominance of traditional contract forms is driven overwhelmingly by client specification, pointing to the critical role client organisations must play in accelerating change,” it said.

Amongst those familiar with collaborative contracts, 77% said these arrangements help protect their business and improve delivery timescales, whilst 72% reported fewer legal disputes and 70% cited improved profitability.

However, adoption remains uneven. In Singapore, 14% of respondents said they had never heard of collaborative contracts.

The study also underscored persistent challenges in project delivery. Uncontrolled scope changes and poor estimating were each cited by 42% of respondents as key sources of instability, followed by inflationary pressures (37%) and late payments (36%), amidst a sustained pipeline of infrastructure and housing projects expected to keep construction demand elevated.

According to the Building and Construction Authority, total construction demand across public and private sectors is projected to reach up to $53b this year, comparable with the preliminary $50.5b estimated for 2025.

However, a separate report by CGS International said higher fuel prices linked to Middle East tensions are expected to increase cost pressures across the construction and materials sector.

The brokerage added that a 5% increase in raw material costs could reduce net profit margins by between 0.1 and 2.4 percentage points if companies are unable to pass on the higher costs.

At the same time, NEC Contracts noted that 61% of respondents said supply chains in the built environment remain inherently adversarial, whilst 78% warned that poor relationships could threaten business continuity.

Still, there is broad alignment on what drives better outcomes. A majority (81%) said trust between parties is critical to project success, and 80% said higher levels of collaboration help resolve issues more quickly.

Moreover, 64% said more than half of their projects over the past three years were delivered on time and within budget—the highest amongst markets surveyed.