Construction Isle of Man (CIOM) has submitted its formal industry response to the AtkinsRéalis interim report examining the impact of rising construction costs on brownfield regeneration in the Isle of Man.
The review, commissioned by Isle of Man Treasury, considers how increasing construction costs are affecting the viability of brownfield development and the implications for the Manx Development Corporation (MDC) and Government's future strategy.
CIOM welcomes the review and agrees that the Island faces genuine challenges from construction inflation, imported material and transportation costs, labour availability, planning delays, infrastructure constraints and uncertainty over the future project pipeline.
The report highlights the scale of these pressures, with BCIS data indicating that construction costs on the Isle of Man are approximately 18% above the UK national average. It also identifies the lack of a consistent and visible development pipeline as a significant factor affecting investment in people, skills and capacity.
CIOM's Response
While CIOM supports many of the report's findings, we have raised concerns regarding a number of statements about the capability, productivity and quality of the local construction industry.
CIOM believes conclusions of this importance must be supported by clear, objective and independently verifiable evidence before they are used to shape future Government policy or procurement decisions.
In particular, CIOM believes that contractor capability cannot be determined simply by the number of people directly employed by a business. Modern construction is delivered through specialist supply chains, and capability should instead be assessed through experience, competent personnel, financial standing, management systems, supply-chain access, previous performance and capacity to deliver.
CIOM also urges caution over automatically combining Government projects into larger contracts or frameworks primarily to attract Tier 1 or Tier 2 contractors from outside the Island.
The AtkinsRéalis report itself identifies an estimated 7–10% premium associated with attracting larger off-Island contractors. CIOM believes any such additional cost must be considered alongside its potential impact on competition, local businesses, skills and the amount of public investment retained within the Manx economy.
Building a Stronger Manx Construction Industry
CIOM believes the priority should be to build the capacity and competitiveness of the established Manx construction industry, supplementing it with specialist off-Island expertise where genuinely required.
Central to this is a credible, funded and visible multi-year pipeline of projects.
Greater certainty would allow contractors and consultants to retain skilled people, recruit apprentices, invest in training, plant and systems, strengthen their supply chains and plan resources with greater confidence.
CIOM is therefore calling for continued engagement between Government and industry before the final report and policy recommendations are completed.
Our full response sets out CIOM's position and recommendations in detail, including proposals relating to procurement, project packaging, planning, skills, apprenticeships, local economic benefit and the assessment of contractor capability.
Read the Reports and CIOM Response
For further information, the original AtkinsRéalis Interim Report and CIOM's response documents are available below.
AtkinsRéalis Interim Report
Review of the Impact of Rising Construction Costs on Brownfield Regeneration – Interim Report, July 2026
The original interim report prepared by AtkinsRéalis following its appointment by Isle of Man Treasury.
[View / Download AtkinsRéalis Interim Report – PDF]
CIOM Full Response
CIOM Response to the AtkinsRéalis Interim Report
Construction Isle of Man's full formal industry response, providing detailed commentary on the interim findings and CIOM's recommendations.
[View / Download CIOM Full Response – PDF]
CIOM Executive Brief
CIOM Response to the AtkinsRéalis Interim Report – Executive Brief
A concise two-page summary of CIOM's position, key concerns and priority recommendations.