More than four in five UK construction projects still rely on manual or inconsistent contract management – rather than digital systems – according to a new survey from framework specialist Pagabo.
Just 19% said they manage contracts consistently through a structured digital system. The remaining 81% rely on a mix of digital tools and manual processes, or primarily use Excel, email and shared drives.
The benefits of centralised systems are clearly understood across the market, according to Sypro, with more than 70% of respondents saying that digital contract management helps prevent issues from escalating. Similar numbers cited improved collaboration and reduced downstream disputes as key benefits.
Early warning processes are also widely supported. Nearly 60% of respondents described them as a positive tool for managing risk proactively, rather than simply a signal of project problems.
However, the survey suggests many projects are still reacting to issues rather than managing risks proactively, Sypro concluded. More than half of respondents said contractual issues typically only become visible mid-project, when impacts are clearer, while just over a third said risks are identified early enough to be effectively managed.
Around 15% of respondents said their projects are still primarily managed through Excel, email and shared drives.
Fragmented systems
Dr Stuart Kings, NEC4 drafter and technical director at Sypro, said the findings reflect a sector that understands the principles of proactive contract management, but has yet to apply them consistently in practice.
He said: “There is a clear recognition across the industry that early intervention and structured contract management reduces risk and improves collaboration.”
“However, projects are still too often relying on fragmented systems and manual processes, which makes it harder to spot issues early and act on them in a consistent manner.
“Plus, it highlights an issue around data transparency across project delivery teams. If data is held across multiple places rather than one central location, it becomes harder to identify learnings from historic data siloes, leaving more gaps for project gremlins to sneak in and creating a blocker to improving efficiency, processes and overall delivery.”
Kings added: “The proportion of projects still being managed on manual processes like spreadsheets is most illuminating in the data. When considering the sheer scale of development going on across the country, knowing almost a fifth of that is relying on processes that can fall victim to the simplest things like miscommunication, multiple file versions, or human error is concerning.”
