IN Brief:
- Circular practices are gaining recognition across UK construction, but SMEs still face cost, logistics, and supply chain barriers.
- Refurbishment projects offer practical opportunities to reuse materials, reduce waste, and limit demand for virgin resources.
- Clients, designers, investors, contractors, and subcontractors all need to align earlier if circularity is to move beyond a tick-box exercise.
By Luca Sidoli, sustainability manager at Pexhurst
A survey completed last year showed that 97% of stakeholders in the UK construction industry recognise the importance of circular practices. Despite this growing commitment, not all companies will have the resources to implement changes and make progress towards circularity. Factors such as logistical challenges, the need for supply chain alignment, and increased project costs remain major roadblocks — especially for small and medium-sized businesses.
It is rare for SMEs to have a specialist in-house sustainability expert, but that is not the case at Hertfordshire-based main contractor Pexhurst. Here, sustainability manager Luca Sidoli draws on his own experience to discuss key challenges for SME contractors and opportunities for circularity in the refurbishment sector.
Linear vs circular
The construction and demolition industries were responsible for 62% of all waste generated by the UK in 2023, as well as 32% of all waste sent to landfill. As we move towards net zero emissions targets, and see more construction companies setting sustainable roadmaps, thinking about the materials we use and how they are disposed of at the end of their lifecycle is paramount.
Up to this point, much of the industry has been working with a linear economy model — following a path of take, make, and waste. Viewing a product’s life in this way not only leaves it obsolete at the end of its life, but also means that products are made to a lower quality for a shorter lifespan and inevitable replacement.
In contrast, the circular economy considers the whole lifecycle of a product from design and production through to dismantling and disposal. Buildings do not last forever, but under this model they can be designed to be deconstructed, giving the materials the best chance of being reused.
Championing circularity
Construction is an industry with many moving parts and contractors are just one part of that puzzle. During tender processes where projects are already specified with materials, timeline, and budget, contractors can often end up in a position where the focus is delivering the project effectively and efficiently. This can be even more prevalent for SMEs that do not have the reputation of their tier one counterparts and need to balance building relationships with their clients with delivering projects sustainably. All contractors need to be as educated as possible so that concerns can be explored and benefits can be explained.
However, clients, investors, and designers have the ability to champion change in the industry, to complement the efforts made by contractors and embed circular processes from conception through to delivery. Not only will this support the drive to net zero, but it will also enable the commercial benefit when letting out the final asset. An increasing number of tenants are looking for spaces that not only physically meet their needs, but also align with their own sustainability goals. Whether certifications such as BREEAM have been achieved, EPC ratings have been considered, or sustainable materials have been used, this can make a big difference to the interest of potential tenants.
Circularity in refurbishment
Contractors do still have an opportunity to incite change and address the climate emergency by pursuing a more circular approach to operations, especially in the refurbishment sector. There are initiatives that we can take to move waste streams further up the waste hierarchy rather than simply being thrown in a skip, whether this be an internal reuse system — sharing surplus materials across sites — or working with external parties to reuse everything from pallets to carpet tiles. This creates a substantial environmental benefit, reducing not only the amount of waste produced and processed, but also the demand on new virgin materials. Many of these schemes and initiatives also generate social value and contribute to local communities.
Beyond what happens on site, a big part of what we can do is focused on education and engagement — working in collaboration with the whole supply chain to see it as an opportunity for change rather than a tick-box exercise.
A key example of this comes when working with subcontractors such as demolition companies. As the team that have the first bite of the cherry where site waste is concerned, they can make an immediate difference on whether materials are disposed of, recycled, or reused, so it is essential that they are on board with the circular economy concept to make the most of existing buildings. Where possible, creating a segregated reuse area on site is a simple but great way to separate and store high-quality materials and keep them in good condition while reuse options can be explored.
The refurbishment sector has a key role to play in the transition to a circular economy. With a focus on reuse over rebuild, there is a huge opportunity to level up and support this movement.
This article originally appeared in the April 2026 edition of IN Site. Read the full issue here.
