Fire risk has long been an accepted reality in construction, but it has become more complex, more scrutinised and more consequential in recent years.
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Modern building methods, lightweight materials, temporary electrics and ambitious designs have made fire risk harder to predict and control. As a result, fire safety is no longer a one-off compliance exercise for contractors, but a live operational risk that evolves throughout the construction lifecycle.

In parallel, regulatory expectations continue to tighten. In the years following the Grenfell Tower tragedy, fire safety has remained firmly in focus, with policymakers and regulators seeking to close gaps in both building design and site management. As the industry enters 2026, fire safety is emerging as one of the defining challenges shaping how projects are planned, delivered and ultimately insured.

The changing nature of fire risk on site

Construction sites present a unique combination of hazards that can amplify fire risk if not carefully managed. Hot works such as welding, cutting and grinding remain a persistent concern, particularly because ignition can occur hours after work has finished. Smouldering materials, hidden voids and poorly monitored areas continue to feature prominently in post-incident investigations.

Material selection and storage also play a significant role. Timber, insulation products, solvents, adhesives and fuels can all contribute to high fire loads, especially on constrained or fast-moving sites. Where flammable liquids or gases are stored incorrectly, the potential consequences escalate rapidly.

Temporary electrical systems add another layer of risk. Exposed wiring, overloaded circuits and makeshift connections are common features on construction sites, yet they remain a frequent source of ignition. Environmental exposure including moisture, dust and mechanical damage only increases the likelihood of failure.

One of the most notable emerging risks is the widespread use of lithium-ion batteries. Cordless tools, site equipment and e-mobility solutions are now standard across many projects. While these technologies bring clear efficiency benefits, battery failures can generate extreme heat, release toxic fumes and prove difficult to extinguish. For sites not designed with these risks in mind, lithium-ion incidents represent a fundamentally different fire profile.

Regulation continues to raise the bar

Fire safety regulation in the UK construction sector is evolving rapidly, with further change expected in 2026 and beyond. Recent updates to British Standards have extended guidance on fire safety in residential buildings, including high-rise developments and specialist accommodation such as care homes. Height thresholds, material classifications, escape strategies and firefighting access requirements have all been reassessed, with significant implications for design decisions made early in the project lifecycle.

Alongside this, the phased transition away from long-established fire testing standards towards the European classification system marks a major shift in how materials are assessed and specified. For contractors, this has introduced new considerations around procurement, product selection and demonstrating compliance.

Mandatory sprinkler requirements in new care homes, introduced in 2025, further illustrate the direction of travel. Fire suppression systems are increasingly viewed not as optional enhancements, but as essential components of safe building design, particularly in environments housing vulnerable occupants.

Taken together, these developments signal a broader regulatory intent; fire safety is no longer about meeting minimum standards. It's becoming an integrated part of how buildings are designed, constructed and operated.

A defining issue for the years ahead

For many contractors, the challenge lies not in understanding individual requirements, but in managing how they interact. Fire risk now spans design, materials, site operations and sequencing, often requiring closer collaboration between contractors, designers, fire engineers and clients.

As construction activity continues to evolve, fire safety is set to remain a central concern for the sector. The combination of more complex sites, new technologies and heightened scrutiny means fire risk can no longer be treated as an isolated compliance issue.

Looking ahead, fire safety represents more than another regulatory milestone. It marks a shift in expectations, one that requires fire risk to be embedded into decision-making at every stage of a project, from design and procurement through to construction and occupation. Those who recognise this shift early will be better positioned to protect their people, their projects and their long-term resilience in an increasingly demanding environment.

"As sites become more complex and regulation continues to tighten, fire safety is quickly becoming one of the most critical risks contractors need to manage — operationally, financially and reputationally."
Tracy Keep, managing director of National Construction Practice Group, Gallagher

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Disclaimer

The sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.