Abstract
This dissertation critically examines how small and medium-sized enterprises (SMEs) in the construction industry interpret and implement new building safety compliance obligations on live projects. Through a systematic synthesis of contemporary literature spanning multiple jurisdictions, the research addresses a significant knowledge gap concerning the practical realities of regulatory compliance among resource-constrained construction firms. The findings reveal that construction SMEs consistently struggle to interpret new safety obligations, often demonstrating low awareness of legislative changes and relying on informal understandings rather than comprehensive system implementation. Implementation on live projects tends to be uneven, characterised by prioritisation of documentary compliance over embedded safety practices, partial adoption of site controls, and underdeveloped monitoring and learning systems. The research identifies that successful compliance depends less upon the regulatory text itself and more upon contextual factors including organisational resources, safety culture, management commitment, and access to tailored external support. The dissertation concludes that improving substantive compliance among construction SMEs requires sector-specific interventions, simplified practical tools, strong client commitment, and guidance materials designed specifically for smaller firms rather than merely additional regulatory requirements.
Introduction
The construction industry remains one of the most hazardous sectors globally, consistently recording disproportionately high rates of workplace fatalities, injuries, and occupational ill-health compared with other industries (Health and Safety Executive, 2024). Within this context, small and medium-sized enterprises occupy a particularly precarious position. SMEs constitute the overwhelming majority of construction businesses across most developed economies, yet paradoxically face the greatest challenges in achieving meaningful safety compliance (Legg et al., 2014). The tension between regulatory expectations and operational realities within these firms represents a critical concern for policymakers, regulators, and industry stakeholders alike.
Recent decades have witnessed substantial evolution in building safety legislation across numerous jurisdictions, driven by high-profile incidents and growing recognition of systemic failures in construction safety governance. The Grenfell Tower tragedy in the United Kingdom, for instance, precipitated fundamental reforms to building safety regulation through the Building Safety Act 2022, imposing novel obligations upon duty holders throughout the construction lifecycle (Ministry of Housing, Communities and Local Government, 2020). Similarly, legislative reforms such as the Work Health and Safety Act 2011 in Australian jurisdictions introduced harmonised safety frameworks with significant implications for construction businesses of all sizes (Safe Work Australia, 2023).
Despite these regulatory developments, persistent concerns remain regarding the extent to which legislative reforms translate into improved safety outcomes on construction sites, particularly among SMEs. The construction sector’s fragmented structure, characterised by extensive subcontracting, project-based working, and transient workforces, creates unique challenges for safety compliance that differ fundamentally from those encountered in more stable industrial settings (Lingard and Rowlinson, 2005). SMEs operating within this environment must navigate complex regulatory requirements whilst simultaneously managing severe resource constraints, competitive pressures, and limited access to specialist expertise.
Understanding how construction SMEs interpret and implement new safety obligations on live projects carries substantial academic, practical, and social significance. From an academic perspective, this inquiry contributes to broader scholarly debates concerning regulatory effectiveness, compliance behaviour, and the governance of occupational safety in complex organisational environments. Practically, such understanding is essential for informing the design of more effective regulatory interventions, guidance materials, and support mechanisms tailored to the specific needs and capabilities of smaller construction firms. Socially, the imperative is clear: improving safety compliance among construction SMEs directly affects the lives and wellbeing of the millions of workers employed within this sector globally.
This dissertation addresses the research question: how do SMEs in construction interpret and implement new building safety compliance obligations on live projects? Through systematic synthesis of contemporary empirical research spanning multiple jurisdictions, the study provides a comprehensive analysis of the factors shaping compliance behaviour, the typical patterns of implementation observed on live construction sites, and the conditions under which more effective compliance can be achieved.
Aim and objectives
Research aim
The primary aim of this dissertation is to critically examine how small and medium-sized enterprises in the construction industry interpret and implement new building safety compliance obligations on live projects.
Research objectives
To achieve this aim, the following objectives have been established:
1. To investigate how construction SMEs become aware of and interpret new or changed safety obligations, including the factors that influence their understanding of legal requirements.
2. To examine the typical patterns of safety compliance implementation observed among construction SMEs on live projects, identifying common practices and persistent gaps.
3. To analyse the organisational, cultural, and contextual factors that enable or constrain effective safety compliance implementation among construction SMEs.
4. To identify strategies and interventions that have demonstrated effectiveness in improving safety compliance among construction SMEs.
5. To develop evidence-based recommendations for enhancing the interpretation and implementation of safety obligations by construction SMEs.
Methodology
This dissertation employs a systematic literature synthesis methodology to address the research objectives. Literature synthesis represents an established and rigorous approach to consolidating existing knowledge on a defined topic, enabling the identification of patterns, themes, and gaps across multiple studies and jurisdictions (Tranfield, Denyer and Smart, 2003). This methodological approach is particularly appropriate for the present inquiry given the existence of a substantial body of empirical research examining safety compliance among construction SMEs across diverse regulatory contexts.
Search strategy and source selection
The literature search encompassed peer-reviewed academic journals, government publications, and reports from recognised international organisations. Primary databases consulted included Scopus, Web of Science, and Google Scholar, supplemented by targeted searches of regulatory authority websites and construction industry research repositories. Search terms combined variants of key concepts including “construction SMEs,” “small and medium enterprises,” “safety compliance,” “regulatory implementation,” “building safety,” and “occupational health and safety.”
Inclusion criteria required that sources address safety compliance or implementation specifically within construction SME contexts, be published in English, and meet standards of academic rigour appropriate for scholarly synthesis. Sources were excluded if they focused exclusively on large construction organisations, addressed non-construction sectors, or constituted grey literature of uncertain provenance.
Analytical approach
The analytical approach combined thematic analysis with comparative synthesis. Studies were initially categorised according to their primary focus: interpretation of obligations, implementation practices, enabling factors, or intervention effectiveness. Within each category, findings were subjected to thematic coding to identify recurring patterns, contradictions, and knowledge gaps. Comparative analysis examined variations in findings across jurisdictions and regulatory contexts, enabling assessment of the generalisability of observed phenomena.
Methodological limitations
Several limitations warrant acknowledgement. First, the synthesis approach necessarily relies upon the quality and comprehensiveness of primary studies, which vary in methodological rigour and contextual specificity. Second, regulatory frameworks differ substantially across jurisdictions, potentially limiting the transferability of findings from one context to another. Third, publication bias may result in under-representation of null or negative findings regarding intervention effectiveness. These limitations have been addressed through careful attention to study quality during source selection and appropriate caution in drawing generalised conclusions.
Literature review
Defining construction SMEs and their regulatory context
Small and medium-sized enterprises in construction are typically defined according to employee numbers and financial turnover, though precise thresholds vary across jurisdictions. The European Union classification defines SMEs as enterprises employing fewer than 250 persons with annual turnover not exceeding €50 million (European Commission, 2020). Within construction specifically, SMEs encompass a heterogeneous population including specialist trade contractors, general building contractors, and project management firms operating across residential, commercial, and infrastructure sectors.
Construction SMEs operate within regulatory frameworks that impose duties regarding workplace safety, building quality, and environmental protection. These obligations derive from multiple sources including primary legislation, secondary regulations, approved codes of practice, and industry standards. The complexity of this regulatory landscape presents particular challenges for smaller firms lacking dedicated compliance functions. As Legg et al. (2014) observe, guidance and standards are typically written for larger firms, requiring SMEs to “translate” them into applicable form, often through simplification or selective implementation.
Awareness and interpretation of new obligations
The literature consistently demonstrates that construction SMEs exhibit limited awareness of new or changed safety obligations. Furci and Sunindijo (2018) provide particularly compelling evidence from their investigation of SME responses to the Work Health and Safety Act 2011 in New South Wales, Australia. Their research revealed that SMEs showed poor awareness of seven major changes introduced by the legislation, despite these changes carrying high potential to improve safety management practices. This finding is especially significant given that the reforms represented a substantial overhaul of the regulatory framework rather than minor technical amendments.
Multiple factors contribute to limited awareness among construction SMEs. Resource constraints restrict the capacity of smaller firms to monitor regulatory developments through dedicated compliance personnel or legal advisors. The project-based nature of construction work, with constantly changing site locations and workforce compositions, further impedes consistent information dissemination. Additionally, regulatory communications are often couched in technical legal language that may be inaccessible to owner-managers without specialist training.
When construction SMEs do become aware of new obligations, their interpretation typically emphasises minimum legal tasks rather than comprehensive system implementation. Pérez, Ndekugri and Ankrah (2022) found that SMEs prioritise documentary compliance—the production of policies, procedures, and risk assessments—over the substantive behavioural and cultural changes that legislation often intends to achieve. This emphasis on paperwork reflects both practical constraints and uncertainty regarding what the law “really requires” (Belayutham and Ibrahim, 2019; Alawi, Shahri and Ghafri, 2020).
The interpretive approach adopted by construction SMEs might be characterised as reactive and task-focused rather than proactive and systemic. Firms respond to perceived regulatory requirements through discrete compliance activities rather than integrating safety considerations throughout their operations. This pattern reflects broader findings from the organisational compliance literature suggesting that smaller firms tend toward minimal compliance strategies when faced with complex or ambiguous regulatory requirements (Parker and Nielsen, 2011).
Implementation patterns on live projects
Examination of how safety obligations are implemented on live construction projects reveals consistent patterns of partial and uneven compliance among SMEs. These patterns manifest differently across distinct aspects of safety management.
Documentary compliance and procedural requirements
Construction SMEs generally demonstrate reasonable compliance with documentary requirements. Safety policies, method statements, and risk assessments are typically present on projects, reflecting both regulatory expectations and the practical demands of main contractors and clients who require such documentation as a condition of site access (Gunduz and Laitinen, 2018). However, the relationship between documentary compliance and actual site practice is frequently tenuous. Pérez, Ndekugri and Ankrah (2022) observed that while legal tasks were prioritised and often present, they were not consistently followed through in day-to-day work. This disjunction between documented procedures and operational reality represents a significant implementation gap.
Physical site controls
Implementation of physical site controls among construction SMEs exhibits variable patterns depending upon the specific control measure in question. Personal protective equipment compliance tends to be relatively strong, likely reflecting the visibility of PPE usage and the direct link between equipment provision and employer liability (Gunduz and Laitinen, 2018). Other site controls present more challenging implementation profiles. Alawi, Shahri and Ghafri (2020) found uneven compliance with fencing requirements, welfare accommodation standards, and supervision arrangements among construction SMEs in Oman. Similar patterns have been observed across other jurisdictions, suggesting structural rather than context-specific barriers.
Safety climate and culture
The safety climate within construction SMEs has been characterised as “marginal” in recent research. Kima et al. (2024) investigated safety climate dimensions among small and medium construction enterprises, finding that safety protocols were only partially embedded within organisational cultures. Belayutham and Ibrahim (2019) similarly observed that Malaysian construction SMEs struggled to establish safety-oriented workplace cultures, with accidents remaining frequent despite formal compliance activities. The persistence of accidents and near-misses despite documentary compliance underscores the limitations of procedural approaches to safety management.
Kima and Shohet (2022) developed measurement tools specifically adapted to assess safety climate in SME contexts, recognising that instruments designed for larger organisations may not capture the distinctive characteristics of smaller firm environments. Their findings confirm that safety climate development in construction SMEs faces particular challenges related to resource constraints, limited management attention, and the transient nature of project-based employment.
Learning, monitoring, and resilience
Perhaps the most significant implementation gaps concern the organisational learning and monitoring systems that enable continuous safety improvement. Bhattacharjee, Bugalia and Mahalingam (2024) applied a resilience engineering framework to analyse safety practices across construction projects of varying sizes, finding that SME projects exhibited underdeveloped capacities for anticipating, monitoring, and learning from safety-related events. Near-miss reporting systems, widely recognised as essential for proactive safety management, were found to operate inconsistently or not at all among construction SMEs.
Mawli et al. (2021) examined construction SME safety challenges specifically within the water infrastructure sector in Oman, identifying systematic weaknesses in monitoring and learning capabilities. Their research highlighted how resource constraints limited the capacity of smaller firms to invest in the data collection, analysis, and feedback systems that underpin effective safety management. Stiles, Golightly and Ryan (2021) provided additional evidence of learning system weaknesses in their examination of construction sector responses to COVID-19, noting that SMEs faced particular difficulties adapting to rapidly changing safety requirements.
Factors influencing compliance implementation
The literature identifies multiple factors that shape how construction SMEs implement safety obligations, operating at organisational, sectoral, and regulatory levels.
Resource constraints
Resource limitations represent the most consistently cited barrier to effective safety compliance among construction SMEs. Belayutham and Ibrahim (2019) identified cost concerns and limited internal expertise as fundamental constraints shaping SME compliance behaviour. The investment required for comprehensive safety management systems—including training, equipment, personnel, and monitoring activities—may exceed what smaller firms perceive as economically viable.
Bachar et al. (2024) investigated the optimal allocation of safety resources within small and medium construction enterprises, concluding that SMEs may need to invest a relatively higher proportion of project costs in safety management compared with larger firms to achieve equivalent safety outcomes. Their analysis suggested an optimal investment range of approximately three to five percent of project costs, a level that many SMEs struggle to achieve. This finding carries significant implications for understanding why SME safety performance often lags behind larger competitors despite equivalent regulatory obligations.
Management commitment
The role of management commitment emerges as a critical determinant of compliance effectiveness across multiple studies. Adzivor et al. (2024) examined approaches to scaling up positive safety culture among construction SMEs in Ghana, identifying senior management commitment as essential for moving beyond minimal compliance toward genuinely embedded safety practices. Where owner-managers demonstrate personal commitment to safety, this orientation tends to permeate organisational culture and daily practice. Conversely, where safety is perceived primarily as a regulatory burden or cost centre, compliance tends toward the procedural minimum.
Sogaxa (2024) investigated SME contractor management practices in South Africa, finding that sustainable business performance—including safety performance—depended substantially upon management approaches and priorities. The concentrated decision-making authority within SMEs means that owner-manager attitudes exert disproportionate influence over organisational behaviour, for better or worse.
Client and supply chain influences
Construction SMEs operate within supply chain relationships that significantly influence their safety compliance behaviour. Clients, particularly on larger projects, often impose safety requirements as contractual conditions, creating commercial incentives for compliance that may exceed the deterrent effect of regulatory sanctions. Belayutham and Ibrahim (2019) found that client and owner commitment to safety—manifested through funding for PPE, training requirements, and supervision expectations—was critical for improving SME safety practice.
The supply chain dynamics of construction create both opportunities and challenges for safety compliance. Positive influences include the diffusion of good practice from larger principal contractors to smaller subcontractors through contractual requirements and site management arrangements. Negative influences include competitive tendering pressures that may squeeze safety budgets and create incentives for corner-cutting among subcontractors seeking to win work on price.
External support and intermediaries
Access to appropriate external support substantially influences SME capacity to interpret and implement safety obligations effectively. Legg et al. (2014) conducted foundational research on safety management in SMEs, concluding that tailored, low-cost, action-oriented interventions delivered through trusted intermediaries significantly improved SME implementation of legal standards. The design and delivery of external support matters considerably: generic guidance materials developed for large organisations frequently prove unhelpful for SMEs facing different challenges and operating under different constraints.
The role of industry associations, trade bodies, and professional organisations as intermediaries between regulators and SMEs deserves particular attention. These organisations possess credibility with their members and understanding of practical operational realities that may be lacking in regulatory agencies. Effective intermediary support translates regulatory requirements into accessible, actionable guidance while providing channels for SME concerns to influence regulatory development.
Strategies and interventions for improved compliance
The literature identifies several approaches that have demonstrated effectiveness in improving safety compliance among construction SMEs.
Simplified tools and practical guidance
Simple, accessible tools tailored to SME contexts have shown promise in improving compliance outcomes. Gunduz and Laitinen (2018) developed construction safety risk assessment approaches with introduced control levels, providing a structured yet manageable framework for SME application. SME-friendly risk assessment methods, checklists, and template documents reduce the interpretive burden on smaller firms and lower barriers to implementation.
Sila, Agumba and Adebowale (2024) examined predictors of Building Information Modelling adoption for health and safety management among construction SMEs, identifying potential for digital solutions to support compliance activities. While technology adoption among SMEs remains uneven, appropriately designed digital tools may reduce administrative burden, improve documentation consistency, and facilitate information sharing. Ghafoor et al. (2025) similarly noted the potential for technological solutions to address compliance risks in construction, though emphasising that technology adoption must be accompanied by appropriate training and support.
Integrated interventions
Interventions that integrate safety compliance with broader business objectives have proven more effective than standalone safety initiatives. Legg et al. (2014) found that approaches positioning safety as a contributor to business success—through reduced accidents, improved productivity, and enhanced reputation—achieved greater SME engagement than approaches emphasising legal obligation alone. This finding aligns with broader evidence that SME owner-managers respond more readily to business-focused messaging than to compliance-focused communications.
Sector-specific approaches
Generic regulatory approaches may prove less effective than sector-specific interventions that address the particular circumstances of construction SMEs. The project-based, geographically dispersed, and subcontract-dependent nature of construction work creates challenges that differ from those encountered in manufacturing or service SMEs. Effective interventions acknowledge these sectoral characteristics and provide solutions appropriate to the construction context. Yani (2024) emphasised the importance of training programmes specifically designed for construction contexts, noting that generic occupational safety training may fail to address sector-specific risks and working arrangements.
Discussion
The findings emerging from this literature synthesis carry significant implications for understanding safety compliance among construction SMEs and for the development of more effective regulatory approaches.
The interpretation-implementation gap
A central finding concerns the substantial gap between regulatory intention and operational reality within construction SMEs. New safety obligations are consistently interpreted in minimal, task-focused ways rather than as mandates for systemic organisational change. This pattern reflects not wilful non-compliance but rather the practical constraints and uncertainties facing smaller firms attempting to decode complex regulatory requirements without specialist support.
The emphasis on documentary compliance—policies, procedures, and risk assessments—represents a rational response to perceived regulatory expectations within resource-constrained environments. Documents provide tangible evidence of compliance activities and satisfy the immediate demands of regulators, clients, and principal contractors. However, the disjunction between documented systems and actual site practice fundamentally undermines the protective intent of safety legislation. Achieving genuine safety improvement requires attention not merely to documentary outputs but to the behavioural and cultural changes that effective safety management entails.
Structural barriers to effective compliance
The structural characteristics of construction SMEs create persistent barriers to effective safety compliance that regulatory reform alone cannot overcome. Resource constraints limit investment in safety management systems, training, and personnel. Limited internal expertise restricts the capacity to interpret regulatory requirements and design appropriate responses. The project-based nature of construction work impedes the development of stable organisational cultures and continuous improvement processes.
These structural barriers suggest that expecting construction SMEs to achieve equivalent safety outcomes to larger firms through identical regulatory mechanisms represents unrealistic regulatory design. The finding that SMEs may need to invest proportionally more of project costs in safety management than larger firms highlights the economies of scale that disadvantage smaller operators. Regulatory approaches that fail to acknowledge these structural realities may inadvertently produce compliance regimes that burden smaller firms whilst delivering limited safety improvement.
The critical role of contextual factors
Implementation of safety obligations among construction SMEs is shaped primarily by contextual factors rather than by the regulatory text itself. Organisational resources, management commitment, client expectations, and access to external support emerge as more significant determinants of compliance behaviour than the specific content of regulatory requirements. This finding carries profound implications for regulatory strategy.
Traditional command-and-control approaches to occupational safety regulation assume that clearly stated rules, combined with appropriate sanctions for non-compliance, will produce the desired behavioural changes. The evidence synthesised here suggests that this assumption holds weakly, if at all, for construction SMEs. Improving compliance outcomes requires attention to the contextual conditions under which compliance becomes practically achievable, rather than merely intensifying regulatory requirements or enforcement activities.
Opportunities for intervention
Despite the challenges identified, the literature provides grounds for optimism regarding intervention possibilities. Tailored support delivered through trusted intermediaries, simplified tools appropriate to SME contexts, and approaches integrating safety with business objectives have demonstrated effectiveness in improving compliance outcomes. These findings suggest that regulatory agencies and industry bodies possess practical options for enhancing SME safety performance beyond the traditional regulatory toolkit.
The role of clients and supply chain relationships in shaping SME compliance behaviour represents a particularly promising intervention point. Commercial incentives created through contractual requirements may prove more effective in motivating compliance than regulatory sanctions, particularly where enforcement resources are limited. Engaging principal contractors and major clients as partners in supply chain safety improvement may multiply the reach and effectiveness of regulatory interventions.
Addressing the research objectives
The analysis presented addresses each of the research objectives established for this study. Regarding the first objective, construction SMEs demonstrate limited awareness of new safety obligations and interpret requirements in minimal, task-focused ways shaped by uncertainty, resource constraints, and the perceived demands of regulatory compliance. The second objective is addressed through identification of consistent implementation patterns: documentary compliance tends to be prioritised whilst actual site practice, safety climate development, and organisational learning systems remain underdeveloped. The third objective is met through analysis of enabling and constraining factors, with resources, management commitment, client influences, and external support emerging as critical determinants. The fourth objective is addressed through identification of effective intervention characteristics, including tailored design, trusted delivery channels, business integration, and practical accessibility. These findings provide the foundation for evidence-based recommendations addressing the fifth objective.
Conclusions
This dissertation has examined how construction SMEs interpret and implement new building safety compliance obligations on live projects, drawing upon systematic synthesis of contemporary empirical research across multiple jurisdictions. The findings confirm that construction SMEs consistently struggle to interpret new safety obligations and translate them into consistent on-site practice. Implementation is characterised by emphasis on documentary compliance, partial adoption of physical controls, marginal safety climate development, and weak monitoring and learning systems. These patterns reflect structural constraints inherent to SME operation within the construction sector rather than wilful disregard for safety requirements.
The research demonstrates that improving real compliance among construction SMEs depends less upon new rules and more upon tailored support, client and management commitment, and practical tools that embed safety into everyday project management. Regulatory approaches predicated upon assumptions appropriate to larger organisations are unlikely to achieve intended outcomes within SME contexts characterised by resource constraints, limited expertise, and project-based working arrangements.
Several recommendations emerge from this analysis. First, regulatory agencies should develop guidance materials specifically designed for construction SME contexts rather than expecting smaller firms to translate materials developed for larger organisations. Second, interventions should be delivered through trusted intermediaries such as industry associations and trade bodies that possess credibility with SME owner-managers. Third, policy approaches should engage clients and principal contractors as partners in supply chain safety improvement, recognising the commercial influences that shape SME behaviour. Fourth, simplified tools including checklists, templates, and digital solutions should be developed to reduce compliance burdens whilst maintaining safety outcomes. Fifth, support should integrate safety compliance with broader business objectives, positioning safety investment as a contributor to commercial success rather than merely a regulatory cost.
Future research should examine the longitudinal effectiveness of intervention approaches, tracking compliance outcomes over time rather than capturing point-in-time snapshots. Comparative research across jurisdictions would illuminate how different regulatory frameworks and support mechanisms influence SME compliance behaviour. Investigation of emerging technologies and their potential to reduce SME compliance burdens whilst improving safety outcomes represents another promising avenue. Finally, research examining the perspectives of construction workers within SME contexts would complement the predominantly management-focused literature reviewed here, providing insight into how safety compliance manifests from the perspective of those whose protection it is intended to ensure.
The significance of this research extends beyond academic contribution to practical and social importance. Construction remains a hazardous industry in which workers continue to suffer preventable deaths, injuries, and ill-health. Improving safety compliance among the SMEs that dominate this sector represents an essential component of any strategy to reduce this toll. The evidence synthesised here provides a foundation for more effective regulatory approaches that acknowledge the realities of SME operation whilst maintaining commitment to the fundamental objective of protecting workers from harm.
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