Iain McIlwee, Chief Executive at FIS spoke to Kate Kennedy, Contracts Transformation Leader at Laing O’Rourke, about how they are leading the way in transforming industry contracting and learning from other sectors.
Iain opened the conversation with Kate, noting that her job title is certainly unusual, and asked her, “What is your mission in the business?”
Kate explained that the business has always been known for innovation and thought leadership, and the executive team is clear: if we want to deliver the level of asking for, we need to transform how our industry operates. That means moving away from an adversarial, high-risk, low-resilience model and shifting toward one built on collaboration, trust, quality, and safety.
Kate said: “Contracts play a critical role in shaping project outcomes, yet they are often overlooked in transformation efforts. Depending on the project, the way we contract can significantly impact performance on site. Our mission is to lead that change, transforming how we contract across the industry and ensuring we learn from other sectors. We aim to propose solutions that are genuinely win-win outcomes for both client and contractor and it is this that we hope will create a foundation for better project delivery.”
“What transformation do you believe is needed?” She said: “There is a lot to tackle! We have studied other industries to understand how they contract and what lessons we can apply. We have been working a lot with World Commerce & Contracting (World CC)1, which is a global leader in improving contracting practices backed by robust data and research.
“One key insight is the success of contract simplification in other sectors. This does not mean the commercial deal is simplified but does mean that contracts are clear and accessible for the people who actually deliver the work. Construction projects are complex, with multiple stakeholders and regulatory requirements. If contracts lack clarity, we start from a position of risk. “For 2026 we have launched a pilot simplified contract, building on these proven approaches from other industries.
Our goal is to use real-world data from this pilot to demonstrate to clients that clarity, consistency, and accessibility in contracts drive collaboration and, ultimately, better project outcomes.”
“Are you seeing wider support for transformation of this type?” Kate said: “Absolutely. While we are at the start of this journey, we have been doing a huge amount of work to showcase this initiative across the industry. We were delighted to see organisations such as the Finishes and Interiors Sector (FIS) and the Technology and Construction Solicitors Association (TECSA) recently champion contract simplification, influenced by the presentation we delivered at one of their events in the summer. Insurers have also responded positively and are actively helping us showcase this initiative to a broader audience.
“We are excited to hear feedback from our supply chain as they engage with the new contract, and we are very keen for as many people as possible to engage with and adopt the type of work that we are doing. So please spread the word!”
“Where is resistance coming from?” “I would not say there is resistance to this idea, as we are only at the start of the journey. However, we are asking teams who have contracted in the same way for decades to shift from a mindset of “the contract governs what happens when things go wrong” to “the contract governs how we can best achieve each other’s outcomes.”
That is a move from a negative to a positive mindset. It is a cultural change, and cultural change takes time.
“But the progress we are making already in this area feels significant. In terms of what our contracts look like and how they function, it is perhaps more progress than the industry has seen in many years,” said Kate.
“What support is out there for other businesses looking to embrace this type of change?” Kate explained she would strongly recommend exploring the resources offered by World CC. She said: “They are an independent body, not aligned to either supplier or contractor interests, which makes their insights and proposals highly credible. Their research and frameworks can help any business begin this journey with confidence.
“FIS are also doing a good job of promoting the benefits, and I am sure their team are keen to support anyone on a simplification journey. And of course, please feel free to reach out to me as well at kkennedy@laingorourke.com if you would like to hear more about the journey we are on.”
Kate Kennedy, Contracts Transformation Leader at Laing O’Rourke “Contracts play a critical role in shaping project outcomes, yet they are often overlooked in transformation efforts.”
Changes you expect to see in the way we manage contracts?
Kate commented: “Looking ahead, I see huge potential for AI to help identify discrepancies and conflicts between contract documents at an early stage, reducing risk and improving delivery. I also expect a more nuanced and sophisticated approach to presenting contract information for contractors and their supply chain, making it easier to understand what matters and why.
She concluded by saying: “The biggest challenge remains risk allocation. Until we see meaningful change upstream, Tier 1 contractors will struggle to shift risk allocation downstream. We are already seeing progress in some sectors, and I believe others will follow. We all have an important role to play in improving our communication with clients about why balanced risk allocation leads to better project outcomes, and in promoting more collaborative contracting models that prioritise shared success.”
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