Contracts for Innovation: Construction Resource Efficiency Grant 2025

Programme:Innovate UK Business Connect (KTN) and industry challenge owners

Awards:Up to £3m

Geographical Scope:national

Beneficiaries:private

Key Features:Up to £3 million in pre-commercial contract funding to scale up innovations that decarbonise construction materials and methods across the UK built environment.

Key Features

Up to £3 million in pre-commercial contract funding (including VAT)
Focused on decarbonising the UK construction sector
Supports TRL 5–7 demonstrators that reduce material, energy, or emissions intensity
Open to UK-registered businesses working on buildings, insulation, concrete, or processes
Backed by Innovate UK Business Connect (KTN) and industry challenge owners
One of three strands in the Contracts for Innovation – Resource Efficiency programme

Eligibility

Be a UK‑registered business (micro, SME or large)
Lead individually or as part of a UK‑based collaboration
Hold a prototype or demonstrator at Technology Readiness Level (TRL) 5–7
Have a delivery plan finishing by 30 April 2026
Carry out the R&D entirely in the UK
Align with one of the published innovation needs for the construction sector
Academic partners and research organisations may join consortia but cannot lead

Application Timeline

Opens: 14 July 2025
Closes: 27 August 2025 at 11:00 am UK time
Notifications: September 2025
Project start: From 1 October 2025
Project end: No later than 30 April 2026

Partner & Funder Context

This competition is backed by Innovate UK Business Connect (KTN) and industry challenge owners. The UK construction sector accounts for over 40% of national material use and around 25% of carbon emissions, so decarbonising materials and processes is a critical priority. The programme aligns with the UK Net Zero Industrial Clusters and Clean Growth Strategy and complements initiatives such as the Industrial Energy Transformation Fund.

FI Group helps UK construction innovators by:

Identifying strategic alignment with challenge owner needs
Structuring proposals to meet technical and delivery criteria
Supporting workplan design, TRL validation and compliance
Maximising value for money in budgeting and service outputs
Ensuring submission success through grant writing expertise

Scope

This funding strand targets low-carbon innovation in construction, including materials, systems, and processes. Projects must aim to:

Reduce embodied carbon in buildings and infrastructure
Replace or reduce the use of cement, concrete, or carbon‑intensive materials
Improve insulation, heat retention, or building envelope performance
Enable modular construction, automation, or waste reduction
Lower the environmental footprint of retrofitting or refurbishing
Improve material reuse, disassembly, and circularity

Solutions must be ready to validate or demonstrate at scale, with commercial deployment possible within 2–5 years.

Funding and Delivery

Awards are issued as pre‑commercial procurement contracts
Each contract is worth up to £3 million, VAT inclusive
Projects must begin from 1 October 2025 and conclude by 30 April 2026
Funding supports specific R&D services, not business‑as‑usual operations
Deliverables, milestones and technical reporting are contractually required
Intellectual property stays with the applicant, with potential public access rights

Benefits to Applicants

Up to £3 million in non‑dilutive funding
Supports large‑scale testing of low‑carbon construction technologies
Enables faster deployment into infrastructure or housing markets
Increases visibility with government and industry challenge owners
Creates a stronger pathway to commercial procurement or further grant investment

Our Service Offering in Grants

At FI Group UK, we help businesses unlock funding for innovation through expert support in grant discovery, bid writing, management, and innovation loans. From early-stage project scoping to full application and delivery support, our team ensures your funding journey is efficient, strategic, and successful.

Our services include:

Grant scouting and strategy: identifying the right UK and EU funding opportunities for your project pipeline
Bid writing: crafting compelling, compliant applications with strong technical and commercial narratives
Grant management: supporting delivery, reporting, and compliance throughout the project lifecycle
Innovation loans: helping secure and manage Innovate UK loans for late-stage development and market readiness
International support: leveraging our global network to access cross-border innovation funding opportunities

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Our Service Offering in Grants

Our services include:

Grant scouting and strategy: identifying the right UK and EU funding opportunities for your project pipeline
Bid writing: crafting compelling, compliant applications with strong technical and commercial narratives
Grant management: supporting delivery, reporting, and compliance throughout the project lifecycle
Innovation loans: helping secure and manage Innovate UK loans for late-stage development and market readiness
International support: leveraging our global network to access cross-border innovation funding opportunities

Book An Introductory Meeting

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