Permanent vs Contract Construction Hiring in the UK: What’s Best in 2026?

As of 2026, the English construction landscape is defined by practical resilience. While we aren’t in a speculative ‘boom’, output is growing, anchored by massive public works and a recovering private housing sector. For hiring managers and business owners, the choice between permanent and contract staff is no longer just about filling a seat, it’s a strategic decision, based on the specific requirements of 2026’s regulatory and economic climate.

1. Permanent hiring: building institutional intelligence

In 2026, the biggest threat to construction firms isn’t just a lack of labour, it’s a lack of continuity. With over 750,000 workers expected to retire by 2036, permanent hiring is about capturing skills before they disappear.

• The Core Projects: Companies like Balfour Beatty are increasingly focusing on emerging talent and permanent pipelines to combat the aging workforce. If you are working on long-duration frameworks, like AMP8 water projects, or long-term NHS facility upgrades. Permanent staff provide the institutional memory needed for multi-year compliance.
• Safety & Compliance: With the Building Safety Act now fully embedded, roles like building control officers (ranked #9 on LinkedIn’s fastest-growing jobs for 2026) are best kept permanent. The liability involved in fire safety and structural integrity makes the trial and error of contracting risky.

Best for:

• Developing Sustainability Managers to meet 2026 Net Zero reporting requirements.
• Roles requiring deep knowledge of company-specific BIM (Building Information Modeling) workflows.

2. Contract hiring: agility in a ‘patchy’ market

Contract hiring is the lifeline for 2026’s project-based spikes. While permanent roles provide stability, contractors provide the specialised skills needed for specific milestones.

Real-Life Examples & Context:

• Infrastructure Sprints: Projects like HS2 and the A66 Northern Trans-Pennine upgrade are driving massive demand for temporary tunneling specialists and highway engineers. Hiring these roles permanently is often a mistake because the need vanishes once the specific phase ends.
• The IR35 Pivot: A major shift occurred in April 2026, where the “Small Company” threshold for IR35 increased (Turnover up to £15m; Balance sheet up to £7.5m). This has made it much easier for SME contractors to hire outside-IR35 specialists again, as the administrative burden has shifted back to the contractor.
• Niche Trades: There is currently a 59,000-person shortfall in plumbers and heating engineers due to heat pump rollouts. Using contractors allows firms to “rent” these high-demand specialists for specific installations without the £60k+ permanent salary commitment.

Best for:

• Data Center Developments: High-speed, high-spec projects that require a burst of M&E (Mechanical & Electrical) expertise.
• Short-term Remediation: Fire safety assessments and cladding replacements that are time-bound.

The 2026 Verdict

The most successful English firms in 2026 are using a 70/30 split. They maintain a 70% permanent core to protect culture and safety standards, while using a 30% flexible layer of contractors to scale for project wins without increasing fixed overheads.

Check out our range of permanent and contract construction roles here.