Over recent months, data has suggested that there are further cost increases ahead for the construction industry. Some of these cost increases are due to rising energy bills, cost of materials, material shortages, wages and fuel. Wages alone have risen around 6.3 per cent over the last 3 months with the average wage topping £700 per week.
Some reports suggest that there has been a significant 42.3 per cent rise in building material costs since September 2020.
These rising costs prompt concern within our industry which is affecting viability and sometimes delaying work from proceeding as build costs are often exceeding construction budgets.
It is unfortunate that since the pandemic costs have rocketed and are continuing to rise due to the conflict in Ukraine.
Looking beyond inflation challenges
Whilst there are challenges ahead, it is important to remain positive and sometimes try to look at things differently.
As architects, we listen to our clients individually to understand their needs when it comes to addressing cost challenges with respect to their particular project and budget.
Early and continual consultation with a Quantity Surveyor, cost consultant and/or your builder is more essential than ever these days to ensure that construction budgets can achieve the quality level and amount of work required for a project to be a success.
Reviewing our clients’ schemes, we often have the ability to revisit construction methods, consider phasing, the amount of initial work, proposed materials and design. We can sometimes adapt designs to make them more affordable, but this is not always easy without a fair amount of redesign work.
The floor area and size of a building is the single most important factor that affects the overall build costs, so reducing this can certainly help. Phasing the works or only fitting out certain areas in the short term are also an effective way to manage budgets moving forward.
We pride ourselves on the fact that wherever possible we always try to help our clients find a way forward to achieve their aims.
Please do contact us to discuss these aspects in more detail if relevant to your project, we are more than happy to help where we can.