Back to BlogKeeping your engineering projects on track with compliant contingent talent
Introduction — the compliance factor in engineering project success
Civil engineering and infrastructure projects across EMEA face increasing regulatory scrutiny. The demand for strict adherence to local employment laws, health, safety and labour regulations across a diversity of jurisdictions, creates complexity for an industry heavily reliant on contract labour. And with projects typically under budgetary and time pressures, worker compliance in engineering projects isn’t a nice-to-have, it’s crucial to project success.
Contingent workers in the region are a staple of the industry, playing a critical role in filling short-term skills gaps and offering flexibility as projects evolve. In the UK, around 36 percent of construction output depends on subcontracted labour. And across the EU, contingent and cross-border workers are increasingly essential to meet demand in large infrastructure projects.
Given the nature of engineering and infrastructure projects, regulatory standards are especially high. Not only from a workplace health and safety standpoint, but when projects in EMEA require the hiring of international talent (as is often the case), worker classification, statutory obligations and cross-border employment law create compliance challenges.
For civil engineering leaders, workforce compliance is not an administrative burden. Rather, it’s a critical factor shaping a project’s delivery timeframes, budget and ultimately, success. So two key questions arise: how can civil engineering and construction companies use contingent talent strategically and compliantly to meet project goals, and what compliance frameworks are required to manage multi-jurisdictional workforces? That’s what we’ll cover in this article.
Compliance-driven workforce strategies for engineering project management
Centralised workforce oversight for compliance and delivery
A centralised workforce management system helps engineering project leaders to better manage contingent workforce onboarding, contracts, compliance, and oversee all facets of project milestones, in one central location. This approach addresses a common industry risk: where engineering firms take an inconsistent approach to overseeing their contractors, subcontractors, and partner agencies.
In the EU, the Posted Workers Directive requires engineering firms to notify host countries when they send workers across borders, and to comply with the employment rules of that country. Factors such as worker classification, pay grades and other working conditions. By establishing a centralised contingent workforce management system, the employer can demonstrate their organisation’s compliance with all these rules, avoiding fines and potential project stoppages.
Also, by maintaining clear visibility over right-to-work documentation, worker safety certifications, and contract specifics (like terms and timeframes), engineering companies can reduce onboarding delays and improve control over their project delivery schedules. A centralised workforce management system will also provide the internal capability to assess contractor compliance at scale, and supports the company’s alignment with ISO 45001 standards on occupational health and safety, which many infrastructure clients require from contractors.
Best practices for onboarding and integration
Fast and efficient onboarding is vital in infrastructure projects where timelines can be influenced by weather patterns (and the resultant windows of opportunity to build), permit approvals, and conditions around funding. However, rushing the onboarding process without compliance checks will place the engineering firm at risk of breaching safety standards and the potential to face severe legal penalties.
Best practices for quickly bringing contingent workers into projects without disrupting workflow include the following:
- Conducting pre-employment right-to-work checks for contractors or subcontractors in line with national legislation of the host country (for example, the UK’s Home Office guidance on preventing illegal working)
- Verifying safety credentials before workers get access to sites, in accordance with national health and safety regulators such as the UK’s Health and Safety Executive (HSE)
- Using contingent worker contract templates that clarify employment status and prevent misclassification claims (used in conjunction with a centralised management system as noted earlier, will further mitigate the risk of misclassification)
According to KPMG in the UK, contingent labour misclassification can lead to liabilities for unpaid wages and other statutory contributions, sometimes running into millions of euros for large construction firms. Ensuring correct classification at onboarding avoids compliance failures, project disruption and crippling non-compliance fines.
Leveraging MSP and EOR models in engineering projects
When engineering and construction firms in EMEA take on major infrastructure projects like cross-border rail projects or vast energy infrastructure projects, the size and scope of these projects will typically run across multiple jurisdictions. This adds complexity to achieving fast contingent workforce onboarding and compliance. As the labour laws differ significantly across the EMEA region, construction companies may lack the in-house expertise or local resources to compliantly navigate them.
This is where two different workforce management models can offer practical, effective solutions. First, there’s the Managed Service Provider (MSP). The MSP manages contingent workforce programs across all workforce suppliers to the construction firm, consolidating compliance oversight, contingent worker onboarding, and performance reporting for both suppliers and workers. Then, there’s the Employer of Record (EOR). An EOR becomes the legal employer of record for staff in the host country, managing contingent worker payroll, contracts, tax and benefits in compliance with the relevant local laws. The EOR allows the construction firm to scale into new geographical regions quickly and compliantly, without having to set up their own legal business entity.
These models reduce the risk of co-employment and protect the construction firm against legal liabilities linked to the misclassification of contingent workers. They are especially valuable for firms that need to ramp up staff and resources quickly in new jurisdictions where they lack local knowledge or expertise. An EOR can cut the setup costs in the host country and reduce the time-to-hire from months (or longer) to just weeks.
Using analytics to optimise compliance and outcomes
Contingent workforce tech platforms that offer data analytics provide valuable additions to compliance management and engineering project delivery. The main key performance indicators (KPIs) to monitor, so that your firm can balance compliance adherence with project performance, include:
- The time it takes to onboard contingent workers. And from there, the time-to-productivity for contingent workers
- The percentage of active contingent workers that have verified, up-to-date compliance documentation
- The audit success rates for contingent workers’ right-to-work as well as safety compliance
- The incidence rate of contingent worker misclassification or co-employment disputes
- Time to achieve resolution where incidents of misclassification have occurred
By tracking these metrics, engineering firms can see where compliance bottlenecks affect project progression and outcomes, and therefore allow for faster resolution of issues. Data analytics can also offer predictive insights, such as identifying high-risk jurisdictions or roles in certain locations where misclassification may be more likely to occur. According to PwC, embedding compliance KPIs in contingent workforce dashboards supports both the legal readiness of workers and the likelihood of a successful project delivery.
Building a flexible, scalable, and compliant talent strategy
Scalability without compliance trade-offs
The nature of major engineering projects often calls for shifts between labour-intensive requirements, like major structural assembly or underground tunnelling, followed by low-intensity stages. These peaks and troughs require workforce flexibility and agility while maintaining strict compliance oversight.
Having flexibility to upscale and downscale your team can be compliantly achieved by engaging the services of an MSP and/or EOR partner. With quality, compliant hiring frameworks in place across multiple jurisdictions, engineering firms can be assured their teams, at all stages of the project, are within the legal boundaries of the local jurisdiction.
When the demand for contingent workers increases, for example multiple sites need multiple workers with varying skills, the engineering firm that has engaged a reliable partner, will be able to streamline worker compliance, onboarding and management throughout the life of the project.
The engineering firm that can align scalability with compliance, will have the agility to scale without penalties or compliance disputes. And establish a clear competitive advantage.
Future-proofing against legal and market shifts
Labour laws, market dynamics and geopolitical factors in EMEA are changing frequently, making for a regulatory landscape that can be difficult to keep on top of. Think about Brexit and how it reshaped cross-border employment between the UK and EU, and specifically for the construction sector, where new visa compliance standards for construction workers were introduced. And now with the EU’s Platform Work Directive introduced in 2024, the stricter classification rules again affect contingent workers in construction (and other sectors).
Geopolitical risks, like trade sanctions, elections or tariffs can affect supply chains and therefore access to short-term workers. The digitalisation of the construction sector (through Building Information Modelling and remote project management) raises additional compliance concerns and standards for data security and intellectual property. It’s a complex minefield.
To adapt, engineering firms need to consider how they can future-proof their organisation to align with changing local laws and market shifts across EMEA. Here are some factors to consider:
- Embed compliance monitoring, updating and regular review into workforce planning
- Update contingent workforce contract templates in line with changing legislation, without delay
- Work with partners who are able to legally engage staff on your behalf across multiple jurisdictions, to diminish the likelihood of workforce non-compliance
This future-ready approach will offer certainty when it comes to project delivery, no matter how volatile the laws or market conditions may be.
Conclusion — partnering for compliance and delivery excellence
Workforce compliance can’t be viewed as an afterthought in the world of civil engineering. Instead, it must be integral to project planning given its potential to impact whether projects are completed on time and within budget. Worker misclassification, poor onboarding practices, and inconsistent compliance oversight can lead to fines, damaged reputations, costly delays and even project shutdowns.
A centralised workforce management system, best-practice onboarding, the use of an MSP and/or EOR and adopting learnings from data analytics will all help to keep contingent talent in support of engineering project goals rather than a burden to them.
Being able to scale projects without compromising compliance, and preparing for legal changes, calls for a workforce strategy with compliance at its core.
CXC partners with engineering and construction firms to provide compliant contingent workforce solutions across EMEA. CXC enables engineering firms to mobilise talent quickly while maintaining confidence that every hire meets local compliance requirements, keeping projects on track and safeguarding their delivery.
About CXC
At CXC, we want to help you grow your business with flexible, contingent talent. But we also understand that managing a contingent workforce can be complicated, costly and time-consuming. Through our MSP solution, we can help you to fulfil all of your contingent hiring needs, including temp employees, independent contractors and SOW workers. And if your needs change? No problem. Our flexible solution is designed to scale up and down to match our clients’ requirements.
