The Jersey Competition Regulatory Authority has today published its final report into the Island’s construction sector – and its findings are clear: more effective competition is essential to the sector’s future.
The report confirms the vital role that construction plays in Jersey’s economy, and the challenges the sector continues to face – from limited consumer choice in some areas and rising costs, to structural issues unique to the Island. The Jersey Competition Regulatory Authority (JCRA) warns that without strong and effective competition, the sector’s resilience and sustainability could be at risk.
Key findings from the report include:
- Residential consumers expressed broad concern over limited effective competition, high prices, and inefficiencies in contractor availability and project delivery.
- Costs and prices in Jersey’s construction sector are generally higher than in other jurisdictions, influenced by concentrated market structures, productivity levels and labour costs.
- Logistics and transport emerged as a major constraint across the sector, affecting costs, efficiency and market outcomes.
Building on these findings and based on wider analysis, scaffolding, aggregates and concrete, and residential construction have been identified as initial ‘markets of interest’ due to signs of poor market functioning and potential competition risks.
JCRA CEO Tim Ringsdore said: “Since publishing our draft report in April, we’ve heard loud and clear from businesses and consumers. There are real concerns about how the construction sector operates – and we’re committed to further surveillance of the market.”
The final report draws on extensive engagement with industry, government and the public, backed by independent research. It highlights how different players experience the market:
- Homeowners report limited choice and affordability issues.
- Small businesses face unpredictable costs and contractor shortages.
- Larger firms are more positive about obtaining competitive quotes locally and externally and had fewer concerns with the competitive process.
Tim Ringsdore added: “This isn’t about pointing fingers – it’s about building a stronger, fairer sector. Jersey needs a thriving construction industry to deliver homes, infrastructure and jobs. Effective competition is key to making that happen.”
Next Steps
The JCRA is taking decisive action to address the issues identified:
- Further investigations are underway into potential anti-competitive practices.
- In aggregates and concrete, an analysis will be carried out to establish the competition tool most appropriate to address the competition insights and challenges arising.
- In residential construction, the JCRA has begun consumer-focused engagement to improve transparency, communication and outcomes.
- The JCRA will also revisit recommendations from its 2022 freight logistics study alongside its current investigation into Jersey’s logistics and transport sector.
Beyond these targeted actions, the JCRA is:
- Developing advice to help businesses collaborate fairly without harming competition.
- Updating its guidelines on anti-competitive arrangements to be more practical and accessible.
- Launching a rolling programme of competition awareness sessions for trade associations in 2026.
- Conducting a strategic review of Island-specific features to assess long-term competition implications.
- Sharing stakeholder feedback on the planning process with Government to assist in policy development.
The JCRA has already published an updated leniency policy to encourage businesses to exit any anti-competitive arrangements.
The JCRA’s work will continue throughout 2025 and into 2026, with further detail to be published in its 2026 Business Plan. The construction sector will remain under active surveillance, and the JCRA encourages anyone with information about anti-competitive behaviour to come forward in confidence: [email protected]
