Contracts for Innovation: A Detailed Look at the Resource Efficient Construction Competition

The Contracts for Innovation: Resource Efficient Construction Impacts competition is a government-backed initiative that funds businesses to assess and validate the real-world impact of sustainable construction technologies. The aim is to accelerate the adoption of resource-efficient innovations across the UK construction sector by providing independent evidence of their environmental benefits.

This funding is part of a broader initiative delivered by Innovate UK and supported by the Department for Energy Security and Net Zero. Rather than awarding traditional grants, the programme funds successful applicants through pre-commercial contracts. These contracts focus on developing comprehensive impact validation reports that demonstrate measurable benefits such as reduced emissions, material savings, or energy efficiency improvements.

What Makes This Competition Different?

Unlike many R&D grants, this competition targets proven technologies that are ready to be measured and validated, not just developed. It does not fund product development or lab-scale testing. Instead, it supports innovators in assessing their solution’s performance using tools like lifecycle analysis, carbon accounting, or cost-benefit modelling. This evidence can then be used to engage investors, win procurement contracts, and enter new markets with a clear competitive advantage.

Projects selected for funding will enter a contract with Innovate UK to deliver a formal validation report. This report must include both qualitative and quantitative data, as well as a comparison against traditional approaches or market baselines.

The competition uses a portfolio approach, meaning Innovate UK may choose projects based not only on individual merit but also on how they contribute to diversity of solutions and impacts across the sector.

Key Features of the Competition

• Funding Type: Pre-commercial contract to produce an impact validation report
• Total Funding Available: Up to £3 million across multiple sectors (construction, chemicals, automotive)
• Project Budget Range: £50,000 to £300,000 including VAT
• Typical Project Size: Most projects are expected to request funding under £100,000
• Project Duration: 3 to 5 months
• Application Deadline: 27 August 2025 at 11:00 am
• Project Start Date: No earlier than 1 November 2025
• Completion Deadline: All projects must finish by 31 March 2026

What kind of projects are eligible?

To apply, your project should:

• Address a clear challenge related to resource efficiency in the UK construction sector
• Be based on a proven solution that is at least Technology Readiness Level 5 (tested in a relevant environment)
• Aim to produce a full impact validation report, including data-backed evidence of environmental or cost benefits
• Deliver outcomes that help users, clients, or policymakers understand your innovation’s value
• Be delivered by a single UK-registered legal entity
• Include costs that cover activities such as analysis, modelling, validation, and report writing (not physical R&D or prototyping)

Eligible innovations may include:

• Low-carbon or circular construction materials
• Modular and offsite construction systems
• Digital tools for energy and resource optimisation
• Building lifecycle assessment and carbon tracking software
• Process innovations that reduce waste or improve productivity