Tim Erich, Construction Director at Power On discusses the impact of utilities fragmentation on housebuilding.
Utilities infrastructure has become one of the most critical and underestimated barriers to delivering new development in the UK.
In a rapidly evolving landscape shaped by electrification, decarbonisation, digitalisation, grid constraints and tightening regulation, the need for resilient, integrated utility infrastructure has never been greater.
What developers increasingly need is not just delivery capacity, but a multi-utilities partner that can simplify complexity, provide financial certainty, and ensure long-term performance.
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Traditional developments rely on multiple contractors and adopting authorities. This fragmented approach increases programme risk, slows delivery, complicates adoption, and introduces reputational risk for developers.
By designing and delivering all utilities together – including electricity, fibre, heat, water, wastewater, and gas – a multi-service provider reduces interfaces, improves coordination, and provides a single point of accountability from construction through to long-term operation.
This matters because utility infrastructure is not just a technical workstream. It sits on the critical path of development.
When delivery is delayed or performance falls short, the impact extends beyond the utility package to affect programme, sales, customer experience and ultimately the developer’s reputation. The market does not see the contractor it sees the development.
A more strategic measure of value
Utilities typically represent a relatively small proportion of total development cost – often around 4–6% – yet their impact on programme and overall scheme performance is significant.
For this reason, utility delivery should not be assessed on upfront financial value alone.
A fragmented model may appear attractive commercially, but can introduce hidden costs through increased coordination, additional interfaces, and greater exposure to delay and underperformance.
The more meaningful comparison is the total economic value of the delivery model, including programme certainty, reduced management burden, long-term performance, and protection of the developer’s brand.
An investment-led model
One of the key differentiators to look for in a multi-utilities partner is an investment-led approach. By funding infrastructure upfront and retaining long-term ownership and operational responsibility through its group structure, Power On is fully aligned to deliver networks that perform reliably over the long term.
