Edmonton, north London, October 1, 2025
News Summary
The construction sector is under mounting pressure as Large Panel System (LPS) residential blocks trigger evacuations, buyouts and borough-level decommissioning after inspections found cracking, thermal movement and fire-safety risks. Councils face high remediation bills and in some cases opt to demolish or sell affected stock. Industry advisers and insurers are responding with new risk tools — including parametric cover, captives and pre-arranged capacity — while contractors seek contract models that better balance risk. Workforce shortages, rising costs and supply-chain strains compound the challenge, leaving residents, leaseholders and subcontractors facing disruption and financial stress.
Construction risk and building-safety alert: insurers, managers and councils respond to rising hazards
What happened: Towers and large panel system flats have been evacuated and leaseholders offered buyouts as councils decide some blocks are beyond economic remediation. At the same time, major risk advisory firms and construction managers are highlighting rising workplace, climate, cyber and material risks that are reshaping how projects are planned, insured and delivered.
Key developments first
Tenants and leaseholders were told to leave Walbrook House in Edmonton, north London because it was built with Large Panel System (LPS) concrete. LPS stands for Large Panel System and consists of prefabricated concrete panels. At another estate, residents were also moved out after safety checks found cracking, thermal movement of panels and a breakdown of compartmentation of fire safety. Councils have moved some households and are offering buyouts to leaseholders; councils say refurbishment would have been extremely expensive and decommissioning is the only viable option for some blocks.
Why this matters now
Structural degradation and cracking in panel systems can affect fire compartmentation and create elevated fire and collapse risks. Historical events and reviews have shaped the response: after a similar block partially collapsed in 1968 (Ronan Point), vulnerability advice was issued and, after the 2017 high-rise fire that caused mass fatalities, further government letters and a national review raised building-safety concerns. Many LPS blocks have since shown increased signs of degradation — damp, leaks and widespread cracking — and some councils now conclude the cost of remediation exceeds feasible options.
Industry risk picture
Large global risk and construction advisers describe a complex blend of pressures shaping the market. Firms state that digitalization, climate risks, rising construction costs, and supply chain choke points are shaping construction companies’ risk profiles. They say that understanding current and emerging risks allows design of a considered risk management framework balancing retention, management, and transfer needs. One firm states its globally integrated team has more than 1,000 construction industry specialists and that in 2024, it placed more than US$6 billion in construction insurance premiums.
Advisers list services including engineering and enterprise risk management, probable maximum loss (PML) studies, risk finance optimization (RFO), claims management, and loss control solutions. One firm highlights an internal generative AI assistant and future webcasts and articles that explore cyber, climate and contracting risks for contractors in the coming years.
Contract and insurance stresses
Contractors face a challenging risk conundrum: mitigating current and emerging risks, ensuring job safety and containing project costs. Project owners frequently push risk to contractors using structures such as EPC, design-build and public-private partnerships. EPC, design-build and PPP models often lead to large losses, causing many contractors to avoid their use. Contractors are increasingly looking for structures that improve and balance construction risk management, including progressive design-build, alliance and integrated project delivery.
Contractors operating on tight profit margins need insurance solutions that provide certainty of claim payments and liquidity upon a loss. The contractual review process is crucial and contractors should work with brokers that understand the project including local coverage nuances. Each U.S. state has its own interpretation of what is insurable and how policy conditions apply. If a contractor does not set up the contract to cover costs from delay, disruption, supply chain issues, labor shortage and design difficulty, insurance may not respond.
Workforce and material pressures
Workforce shortages are acute: nearly 1 in 4 construction workers are older than 55 (statistic referenced). In February 2024, Canadian construction employment fell by 0.6 percent year-over-year (source: Statistics Canada Labour Force Survey | March 2024). The U.S. construction industry needs to attract half a million new workers in 2024 to balance supply and demand (statistic referenced). New materials and methods — including mass timber and concrete alternatives — are being deployed to address sustainability goals, but these bring questions about long-term durability and insurance coverage.
Emerging solutions and tools
Parametric insurance and alternative risk transfer solutions are being proposed to fill coverage gaps for hard-to-predict events such as extreme heat or earthquakes. One adviser says parametric solutions can make “grey swan” events insurable and that parametric is an alternative solution that has grown in utilization to insure against a variety of perils in any market conditions. Quantitative analytics suites aim to improve risk insights and operational efficiency. Firms also point to the need for proactive, data-driven property risk strategies aligned to financial stability and risk appetite.
Human impact and council action
Leaseholders and tenants report stress and housing insecurity when buyout offers do not enable purchasing similar local properties. Some residents learned of structural risks only after gas supplies were turned off or after evacuation notices. Councils state they offer market-value buyouts plus home loss and disturbance payments and compensation for fees, and say shared equity options and support are available where applicable. Residents report mental-health impacts and frustration at perceived earlier inattention to reported defects.
Bottom line
Building-safety evacuations and decommissioning decisions are highlighting how structural degradation, policy gaps and market pressures intersect with insurance, contracting and social outcomes. The combined technical and social challenge is prompting renewed emphasis on early risk assessment, contract design, insurance innovation and clear resident support where homes are affected.
FAQ
Q: Why were residents told to leave Walbrook House?
A: Tenants/leaseholders were told to leave Walbrook House in Edmonton, north London, because it was built with Large Panel System (LPS) concrete.
Q: What is LPS?
A: LPS stands for Large Panel System and consists of prefabricated concrete panels.
Q: What do advisers say are current challenges shaping construction risk profiles?
A: Marsh lists digitalization, climate risks, rising construction costs, and supply chain choke points as current challenges shaping construction companies’ risk profiles.
Q: How many construction specialists does one adviser claim to have?
A: Marsh states its team of over 1,000 construction professionals operate in more than 130 countries.
Q: What workforce statistics are cited?
A: nearly 1 in 4 construction workers are older than 55 (statistic referenced). In February 2024, Canadian construction employment fell by 0.6 percent year-over-year (source: Statistics Canada Labour Force Survey | March 2024). The U.S. construction industry needs to attract half a million new workers in 2024 to balance supply and demand (statistic referenced).
Q: What insurance-market activity is noted?
A: In 2024, Marsh placed more than US$6 billion in construction insurance premiums.
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Key features table
| Feature | Summary |
|---|---|
| Evacuations and decommissioning | Tenants and leaseholders moved from LPS blocks; councils offering buyouts and declaring some blocks too costly to remediate. |
| LPS risk | Large Panel System panels can crack, causing damp, leaks and fire compartmentation failures; historical collapses prompted prior warnings. |
| Insurance and advisory response | Advisers promote risk frameworks, parametric insurance and analytics; one adviser placed more than US$6 billion in construction premiums in 2024. |
| Contracting pressures | EPC and design-build models often shift risk to contractors; alternatives like progressive design-build and alliances are being explored. |
| Workforce and materials | Worker shortages and adoption of new materials (mass timber) create productivity, safety and insurance questions; nearly 1 in 4 construction workers are older than 55 (statistic referenced). |
| Support and compensation | Councils report offering market value plus home loss and disturbance payments, and compensation for fees in buyout offers. |
Deeper Dive: News & Info About This Topic
Additional Resources
- Marsh: Construction
- Wikipedia: Construction management
- BBC: Walbrook House evacuation / LPS concerns
- Google Search: Walbrook House LPS evacuation
- Aon: How North American construction contractors can mitigate emerging risks
- Google Scholar: construction risk mitigation
- WTW: Renewable energy and construction risks
- Encyclopedia Britannica: renewable energy construction
- The Conversation: Britain’s net-zero construction workforce at risk of burn-out
- Google News: construction workforce burnout
Author: Construction TX News
TEXAS STAFF WRITER The TEXAS STAFF WRITER represents the experienced team at constructiontxnews.com, your go-to source for actionable local news and information in Texas and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Texas Construction Expo, major infrastructure unveilings, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of Texas and the Texas Building Branch, plus leading businesses in construction and real estate that power the local economy such as Austin Commercial and CMiC Global. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
