_Brexit: How to mitigate the rising cost of construction

Imagine you are halfway through a building project on your home when your builder says they need more money.  You’re told that costs of the materials have risen dramatically since they first quoted for the work; what should you do?

How do you know if this is a genuine price rise, or another supplier simply jumping on the 'Brexit bandwagon'?

We are finding that more than ever before, construction costs are likely to be over and above our clients’ expectations. Driven by the weak pound and the fact that at least a quarter of construction commodities such as softwood timber, aggregates and cement are imported, it is true that prices are unfortunately rising. 

So what can you do? This is how using a Project Manager like me can add value to a building project; we are there to protect your interests.  

Not only do we help with the drawing up of a fair and accurate contract with the contractor (which will clearly state who is responsible for material price rises) but we can also advise on building costs. 

To help us, thankfully there is also a wonderful index called the Building Cost Information Service (BCIS), which has 50 years of data on the costs of construction materials.

Using the BCIS and our local knowledge and expertise in the supply chain, we can advise whether any material price rises are fair and accurate, or whether the supplier might be speculating about future increases in costs.

On your behalf, we will only authorise price rises that we can confidently say are fair and reasonable. We are there to give you the right advice for your building project and ensure that this is advice that you can trust.

It is fair to say that some prices rises in the current market are inevitable and unfortunately you cannot be sure that by buying British it will be cheaper, for example, some types of stone, although mined in the UK, are sent overseas for finishing.

However, there is some good news – if you are planning to borrow money to finance your building project, even though interest rates are still relatively low, it really is worthwhile to shop around for the best advice. 

High street lenders may not always offer the best deals and by using a different lender, you could make significant savings to offset the costs of price rises on materials.  

Knight Frank Finance, as specialists in property financing, often have some cracking deals so might be able to help.

So if your builder or contractor is blaming Brexit for price rises in materials, first check your contract and then seek advice from our Residential Building Consultancy team – we’d be delighted to help.

Remember:

• A quarter of construction materials used in the UK are imported
• Don’t blame Brexit
• We are there to give you unequivocal advice.
• We have extensive experience, knowledge and understanding

Whilst your initial thoughts might be ‘oh no, not another cost’ the role of a project manager is there to be an impartial stakeholder – we are there undertaking a building project on your home.

Firstly, check your contract, this should clearly state who is responsible for material price rises. Fortunately, unlike many industries, building material prices are very closely monitored, thanks to the Building Construction BCIS, this is a tender price index

Using Knight Frank as a Project Manager, we will ensure that you have a fair and accurate contract for the work. Contact James Carter-Brown to see how we can deliver your project on time and within agreed budget.