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PESTLE Analysis for Construction Project

BUILD™ is a framework to ensure you act in the best interests of your clients. The key purpose of analysing the context for the project is to get all relevant information to help you agree an appropriate strategy for protecting those interests.

Overview

This analysis should relate to the whole life-cycle of the project. For further information see the business balls website. This checklist is used in the Briefing stage of BUILD™.

P Political Issues relating to documentation, permits, licences and the role of regulatory authorities; international markets and trade; taxation; local government strategies for private and public sector projects; EU Directives on issues related to the construction industry

E Economic Issues relating fluctuation of input prices; market demand; inflation; the economic and property cycles; future growth; the impact of the economy on demand for the project; the focus on whole life-cycle costs

S Sociological Issues relating to the credibility of the members of the project team; supply networks; end-users such as attitudes to work/travel, age, income distribution, socio-economic groups, birth rates, well-being

T Technological Issues relating to the components to be used in the project, including their rate of obsolescence, off-site manufacture; technological systems for communicating within the project team; the use of BIM; the technological requirements of end-users as part of the design demands

L Legal Issues relating to construction law; permits and certificates in the use and disposal parts of the life-cycle; competition law; employment law; intellectual property rights; the legislative framework which supports collaborative working; the current standard forms in common use

E Environmental Issues relating to the environment such as sustainability; the project’s geographical location; site specific issues such as archaeology, pollution, traffic, access

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Objectives

The objectives of this stage in the process, with which this analysis is intended to assist, are:

to act in your client’s best interests;

to obtain the right information at the right time;

to clarify your client’s perspective(s) and criteria for success;

to ensure consistent information across the project team;

to focus on what’s critical for your client.

Sarah Fox of Enjoy Legal Learning developed this checklist. She is a speaker and trainer who cuts through the complexities of construction law. She provides confidence to those who use construction contracts through workshops that clarify and simplify the law. She is also author of the 500 Word Contract™. To find out how Enjoy can transform your technical training, contact Sarah on her mobile: 07767 342747 or by email: sarah@enjoylegallearning.co.uk

BUILD™

Begin with the Brief

A successful project requires great foundations

P Political

Documentation, permits, licences, regulatory authorities, international markets & trade, taxation, government strategies, EU Directives

E Economic

Input prices, market demand, inflation, the economic cycle, future growth; whole life-cycle costs

S Sociological

Project team members, supply chain; end-users

T Technological

Obsolescence, off-site manufacture; ICT, BIM, future requirements of end-users

L Legal

Laws relating to construction contracts, works, competition, employment, IPR, collaborative working, standard forms

E Environmental

Sustainability, geographical location, archaeological, pollution, traffic, access