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R&D in Construction & Engineering: Overlooked Opportunities

August 11, 2025

Giorgia Turus
R&D Tax Manager

While construction and engineering are typically seen as practical, hands-on sectors, they are also rich with technical innovation. Often, businesses in these sectors are unsure how to assess whether their projects meet HMRC’s eligibility criteria.

Where Innovation May Arise

Research and development may occur in construction and engineering projects when companies address technical uncertainties present in the field. Examples of potentially eligible activity include:

  • Material development: Investigating new environmentally friendly materials or construction composites to improve performance or reduce environmental impact.
  • Process innovation: Creating or refining construction methods that cannot be delivered using standard approaches.
  • Digital solutions: Advancing digital modelling capabilities, such as building information modelling or simulation tools.
  • Energy and efficiency improvements: Exploring new approaches to improve energy efficiency or retrofit buildings to meet environmental targets.
  • Sustainable design: Tackling waste, embodied carbon, or environmental risk in ways that require technical experimentation and overcoming uncertainty.
  • Challenging conditions: Addressing significant design constraints where no solution exists in the broader field, requiring the expertise of competent professionals.

While these areas may contain research and development activity, not all technical effort qualifies. Each case depends on whether a genuine advance is being pursued in science or technology.

The Funding You Could Be Missing

Accessing Support

Research and Development Tax Relief

  • Relief is available under the merged scheme, which combines the SME and large company schemes for accounting periods beginning on or after April 2024.
  • Eligible costs include staffing, subcontractors and externally provided workers (generally UK-based, with some exceptions), software, and consumables directly related to eligible research and development.
  • Relief rates have changed, and compliance scrutiny has increased. Now, more than ever, it is essential to seek expert advice.

Innovation Grants
Organisations such as Innovate UK, Horizon Europe, and Made Smarter are actively funding:

  • Sustainable construction solutions
  • Net zero and carbon capture in building materials
  • Artificial intelligence, robotics, and automation in construction
  • Digital transformation in engineering workflows

Yet despite being a strong fit, many firms simply aren’t applying.

Real-World Impact

We’ve supported clients in:

  • Claiming research and development tax relief for innovation in the engineering and construction sectors
  • Securing successful Innovate UK Smart Grants for various construction projects
  • Obtaining strategic roadmap funding for low-carbon construction solutions

How Inventya Can Help

At Inventya, we help ambitious companies unlock the hidden value in their innovation.
Our services include:

  • Research and Development Tax Relief: Full claim preparation, submission, and audit defence
  • Grant Funding: Bid writing, strategy alignment, and consortium building
  • Innovation Strategy: Aligning your technical roadmap with the funding landscape
  • Project Management: Supporting delivery and compliance for funded projects

We specialise in working with construction and engineering businesses that are innovating—whether they realise it or not.

Ready to explore what funding you could unlock?


Contact us today and let’s start the conversation.

August 11, 2025
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