Health and safety will always be a major risk to the construction and lift industries. But building resilience means looking beyond it.

From first-hand experience and industry research, we know today’s risks increasingly stem from commercial, technological and contractual issues. And in many cases, they’re interconnected. That’s why building resilience now depends on taking a broader view of risk.

From cyberattacks and changing legislation to supply chain pressures and extreme weather, we explore the most significant business risks every construction and lift company should have on its radar in 2026.

1. Contractual risk

Construction contracts are becoming more complex, with tighter deadlines, broader responsibilities and greater financial consequences if something goes wrong.

Some of the biggest contractual risks include:

• Scope creep that extends your responsibilities and liabilities beyond the original agreement.
• Penalties for overrunning projects.
• Uncapped indemnities that leave your business liable for costs without an agreed financial limit.

Ask yourself: Do you understand where your contractual responsibilities begin and end before signing on the dotted line?

2. Regulatory changes

Construction and lift businesses face a stream of new regulations, revised guidance and evolving compliance requirements.

Recent examples include the Employment Rights Act, the continued implementation of the Building Safety Act and updates to Approved Document B, all of which have implications for how you plan projects, manage responsibilities and demonstrate compliance.

For businesses working on higher-risk buildings, changing safety requirements also bring additional design, approval and documentation obligations.

Legal costs, compensation awards and regulatory fines for breaches can escalate quickly. Failing to keep up with changing requirements can also lead to project delays, contractual disputes and reputational damage.

Ask yourself: Do you have a process for monitoring regulatory change so you can revise procedures and avoid issues?

Lift sector insight

The introduction of updated Approved Document B requirements from September 2026 includes new evacuation lift requirements for certain high-rise residential buildings, creating additional design and compliance considerations for lift specialists.

3. Supply chain bottlenecks

Supply chain threats aren’t just about delayed materials. Today’s challenges include fluctuating costs, specialist component availability, subcontractor capacity and increasing customer expectations around delivery times.

One delay can trigger another, creating a domino effect across multiple projects and placing pressure on cash flow, contractual commitments and customer relationships.

Current pressures include:

• Volatile material, shipping and energy costs.
• Longer lead times for specialist components.
• Availability of skilled subcontractors.
• Increasing pressure on project margins.
• Customers expecting faster delivery despite ongoing market uncertainty.

Industry bodies warn that rising costs are squeezing profit margins throughout the construction supply chain, with SMEs vulnerable to sudden price fluctuations and disruption.

In our experience, businesses that plan ahead for disruption tend to recover far more quickly when unexpected issues arise.

Ask yourself: If one supplier, subcontractor or critical component became unavailable tomorrow, how quickly could your business adapt?

4. Cyber threats

Whether you’re managing projects, processing customer information or using connected equipment, digital technology plays a central role in how construction and lift businesses operate.

That makes it an attractive target for cyber criminals. The consequences of a cyberattack can extend far beyond lost data, including:

• Disruption to projects and day-to-day operations.
• Financial losses and business interruption.
• Damage to customer confidence and reputation.
• Regulatory and legal consequences following a data breach.

But it’s not just about cyberattacks on your own business.

Modern building systems increasingly incorporate remote monitoring and other connected technologies. While these innovations improve efficiency, they also create new cyber security responsibilities, including compliance with evolving legislation and standards.

Cyber security is no longer just about protecting your business. It’s also about protecting the systems you install for your clients.

Ask yourself: If a cyber incident disrupted your business tomorrow, how quickly could you recover?

5. Professional liability

Providing technical advice, specifications or design input creates professional liability.

For example:

• Advising on suitable products or systems.
• Producing specifications or drawings.
• Providing compliance guidance.
• Recommending design changes or alternative solutions.
• Offering technical advice during a project.

Even well-intentioned recommendations can have significant consequences if they contribute to delays, additional costs or performance issues later in a project.

Ask yourself: Has the advice your business provides evolved over time, and does your risk management reflect the role you’re performing today?

6. Skills, recruitment and technology

Construction and lift businesses face staffing pressures, with experienced engineers retiring, ongoing skills shortages and reliance on subcontractors to meet demand.

Some of the biggest workforce challenges include:

• Recruiting and retaining experienced engineers.
• Preserving knowledge as experienced professionals retire.
• Managing increased workloads with leaner teams.
• Maintaining quality while projects become more demanding.

Relying more on subcontractors means their risks become your risks.

The technology challenge

Digital tools, including those powered by artificial intelligence (AI), are becoming an essential part of running a modern construction or lift business.

However, this creates a new challenge. Businesses don’t just need engineering expertise. They also need people with the confidence and skills to use these technologies effectively.

As Construction News recently highlighted, embracing technology requires a cultural shift as much as a technical one.

Businesses that successfully combine experienced people with modern digital tools are often better placed to improve productivity, manage risk and protect margins.

Ask yourself: Are you investing as much in developing your people as you are in developing your business?

7. Climate resilience

According to Zurich’s latest construction outlook, extreme weather and natural disasters are now considered the greatest long-term risk facing the construction sector, ahead of many financial and operational challenges.

Extreme weather can trigger a chain reaction that affects every stage of a project, including:

• Site flooding and storm damage.
• Programme delays and missed deadlines.
• Supply chain disruption.
• Damage to equipment and materials.
• Rising project costs.
• Pressure on cash flow and customer relationships.

A storm delays deliveries. Delays affect contracts. Extended programmes increase costs. Financial pressure then ripples through the supply chain.

Ask yourself: If an unexpected weather event disrupted one of your projects tomorrow, would your business be able to absorb the knock-on effects?

8. Rising claims costs

Labour costs, material prices and specialist equipment have all increased in recent years. At the same time, projects are becoming more complex and business interruptions can last longer when supply chains, subcontractors or specialist components are involved.

That means the cost of putting things right is higher than it was a few years ago.

Rising claims costs are being driven by factors including:

• Higher labour and repair costs.
• Increased material prices.
• Longer project delays and business interruption.
• More complex repairs requiring specialist skills or equipment.
• Inflation across the wider construction sector.

Remember that the value of your business, assets and liabilities doesn’t stand still either. Cover that was appropriate a few years ago may no longer reflect the current cost of recovering from an unexpected event.

Ask yourself: When was the last time you reviewed whether your cover still reflects the way your business operates today, and the value of your assets?

Conclusion: Review your business, review your risk profile

Health and safety will always remain at the heart of the construction and lift industries. But building a resilient business means looking beyond health and safety to understand the wider risks that impact the sector.

Contracts, technology, regulation, supply chains, climate and customer expectations are all evolving, with each one influencing the others.

In our experience, the businesses that navigate these challenges most successfully are the ones that regularly review how their business is changing and make sure their risk management evolves alongside it.

If you’d like to discuss any of the issues covered in this article, or review whether your insurance arrangements have kept pace with your business and the specific risks it faces, Team RG, supported by the wider expertise of the Jensten Group, is ready to help. Please get in touch.

Useful guides

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• Trade Credit Insurance: Protecting Your Cash Flow When Clients Can’t Pay
• Labour Only or Bona Fide? Why Subcontractor Status Matters More Than Ever in 2026
• SMEs Now Prime Targets for Cybercrime — Why You MUST Act NOW Before it’s Too Late
• The True Cost of Business Downtime – Are You Covered?
• The Costly Consequence of Buildings Underinsurance – And How to Avoid it
• Navigating the Employment Rights Bill: Why Directors and Officers Need to Protect Themselves NOW
• Under-Insurance Risk for Commercial Property Due to Rise in Construction Costs
• Increase in Construction Costs Sparks Call to Check Sum Insured