The construction industry is entering a period of significant change, with safety, compliance, and innovation taking the spotlight in the years to come. Evolving regulations are poised to reshape the landscape, emphasizing proactive measures to mitigate risks, enhance operational efficiency, and safeguard employee wellbeing. These changes are not just about compliance — they represent an opportunity for contractors, insurers, and risk managers to lead the charge in creating safer, more sustainable, and forward-thinking work environments. Staying ahead of these developments will be critical to reducing liability exposure, maintaining regulatory compliance, and driving long-term success.
Here's an in-depth look at seven key regulations set to shape the future of the construction industry and redefine its trajectory:
1. OSHA's PPE Fit Requirement
Effective January 13, 2025, the Occupational Safety and Health Administration (OSHA) has mandated that all personal protective equipment (PPE) provided to workers must properly fit each individual. This update addresses long-standing safety concerns where ill-fitting gear contributed to injuries and reduced compliance. Contractors will need to maintain a diverse inventory of PPE sizes, implement fit-check protocols, and train supervisors to verify compliance before work begins. Failure to comply could result in citations and increased liability exposure, making this a critical area for insurers and risk managers.
Organizations that embrace smart PPE technologies and prioritize fit-testing protocols will not only meet compliance but also set a new benchmark for worker safety.
Read more: The Rise of Smart Personal Protective Equipment
2. Heat Illness Prevention Standard
The implementation of OSHA's proposed heat illness prevention rule will introduce stringent requirements for outdoor work environments. Employers will need to provide shaded rest areas, potable water, acclimatization programs, and heat-stress training. This regulation responds to rising heat-related incidents and climate-driven temperature extremes. Construction firms should begin integrating heat safety measures into site plans and documenting worker training to avoid penalties and ensure workforce health.
Read more: Essential Strategies for Preventing Heat Stress
3. Silica Exposure Enforcement
OSHA's enforcement of its silica standard will intensify, maintaining the permissible exposure limit at 50 μg/m³ over an eight-hour TWA. The focus will be on dust control measures, medical surveillance, and recordkeeping. Contractors should invest in engineering controls such as water suppression and vacuum systems, while insurers may see increased claims related to respiratory illnesses if compliance lags.
Read more: Unmasking the Threats of Silica Exposure in Construction
4. Energy Code Updates
The 2024 International Energy Conservation Code requires state adoption reviews by the end of 2026, promising 78% efficiency gains over the 2021 code. Contractors will face higher insulation standards, tighter building envelopes, and more efficient HVAC and lighting systems. These changes will increase upfront costs but reduce long-term energy expenses, influencing project bids and insurance valuations.
5. New York's All-Electric Building Mandate
Starting January 1, 2026, most new low-rise buildings in New York will be prohibited from installing fossil fuel systems. This transition to all-electric construction will accelerate demand for heat pumps, induction cooktops, and electric water heaters. Contractors must adapt quickly, and insurers should anticipate evolving risk profiles tied to electrical infrastructure.
6. Confined Space Regulations
California is expected to implement new confined space rules by January 1, 2026, requiring competent person surveys, immediate notifications for new permit spaces, and formal rescue training. These measures aim to reduce fatalities in hazardous environments, but they will add compliance complexity and training costs for contractors.
7. Davis-Bacon Act Updates
The major overhaul, effective October 23, 2023 — with some provisions under injunction — expands coverage and clarifies subcontractor definitions for federally funded projects. Contractors must ensure payroll compliance and accurate wage classifications to avoid penalties and project delays.
The Path Forward: Turning Compliance into Competitive Advantage
The regulatory landscape for 2026 is not just a challenge — it's an opportunity for the construction industry to lead with innovation, safety, and sustainability. At Gallagher Bassett, we understand that navigating the evolving regulatory landscape can be complex and challenging. These seven regulations represent more than just compliance requirements — they are opportunities to build safer, more efficient, and more resilient operations. As a trusted partner, we're here to help contractors, insurers, and risk managers stay ahead of these changes with tailored risk management strategies, innovative solutions, and expert guidance.
Make Gallagher Bassett your dependable partner
When making the right decision at the right time is critical to minimize risk for your business, count on Gallagher Bassett's extensive experience and global network to deliver.