Nearly three quarters (73%) of owners and managers in the construction sector cite coping with red tape as their major concern for 2007*, according to new research from Bibby Financial Services. Despite the growing pressure on construction firms to comply with new legislation Bibby Financial Services is warning owners and managers in the sector not to neglect the day-to-day running of their business or they will suffer in the long term. Construction contracts may now account for 8% of the UK's Gross Domestic Product** but with such a huge strain being put on construction firms to comply with the ever increasing stream of legislation, firms are in danger of neglecting their business and dedicating senior resource to tackling the raft of changes, rather than focusing on core activities such as winning new contracts.

Major legislative changes hitting the sector in 2007 include, the overdue CIS scheme, which will streamline the way in which sub contractors are paid, and the revised provisions in existing Construction (Design and Management) Regulations, which will help simplify health and safety law, to name a few.

Andrew Dixon, director of construction finance at Bibby Financial Services, said: 'With so many updates to regulations coming through each year it is really difficult for construction firms to keep abreast of the changes that affect them.

However, given the very serious consequences of failing to comply owners and managers need to realise that they can't just stick their head in the sand and hope it goes away.