Prepare your construction business and its projects for the year ahead with an incisive look at the trends that will directly impact on your planning and construction costs

1. CONSTRUCTION COSTS OF BUILDING PROJECTS
TOP 7 PREDICTIONS
Prepare your construction business and its projects for the year ahead with an incisive
look at the trends that will directly impact on your planning and construction costs

2. WWW.EQUE2.CO.UK
Despite concerns about the overall
economy and a poor start to the year,
UK CONSTRUCTION
OUTPUT IS STILL
FORECAST TO GROW
BY 3.6% IN 2016.

3. THE COST OF CREDIT
While the big players are enjoying a return to pre-recession
levels of profit and relatively easy access to funding, small-
to-medium builders continue to experience difficulties
raising financing, a problem that will affect the cost of credit.
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4. The cause? Strict loan-to-value limits.
SMALLER BUILDERS HAVE
YET TO CATCH UP AS THEY
STRUGGLE TO SECURE THE
FUNDING THEY NEED.
Conrad Ford, Chief Executive, Funding Options.
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5. SKILLS SHORTAGES REMAIN
The sector is blighted by a skills shortage and the situation is not expected
to improve in 2016. This has already had a knock-on effect on wages:
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6. THE AMOUNT WAGES HAVE RISEN GLOBALLY ON
AVERAGE IN 2015 DUE TO THE SKILLS SHORTAGE.
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6%

7. WWW.EQUE2.CO.UK
2%
THE AVERAGE UK WAGE RISE.

8. MATERIAL PRICES GOING UP
2015 saw encouraging news for the price of materials
with overall drops over the course of the year.
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9. The outlook for 2016 is not so positive:
4.6%: THE AMOUNT OVERALL
MATERIAL PRICES WILL RISE
BY IN THE YEAR TO Q3 2016.
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10. THE PRICE OF STEEL
Steel prices have dropped significantly in recent months due to
low-cost imported steel from China, a trend set to continue in 2016.
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11. OTHER MATERIAL PRICE RISES
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12. SAND, GRAVEL,
CEMENT AND TIMBER
have risen in price over the past five years overall and these
critical construction costs are expected to rise further in 2016.
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13. THE COST OF
NONCOMPLIANCE
The amount of updated or new regulations affecting the
construction industry will continue to climb in 2016, creating
concerns about remaining up to date and compliant.
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14. New sentencing guidelines will hand down harsher sentences for those
found guilty of corporate manslaughter/health and safety offences:
UP TO £20 MILLION:
THE AMOUNT A COMPANY WITH
A TURNOVER OF MORE THAN
£50 MILLION WILL BE FINED FOR
CORPORATE MANSLAUGHTER CHARGES.
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15. WWW.EQUE2.CO.UK
UP TO £10 MILLION:
THE AMOUNT A COMPANY WITH
A TURNOVER OF MORE THAN £50
MILLION WILL BE FINED FOR HEALTH
AND SAFETY BREACHES.

16. THE BLIGHT OF
LATE PAYMENT
97% of small contractors feel unfairly treated.
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17. ONLY 5%SAY THAT ALL WORK IS
PAID FOR WITHIN 30 DAYS.
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18. TAKEAWAYS:
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Expect growth in the
industry despite
turbulent financial climes
and increasing
construction costs.
Develop strategies now
to deal with the skills
shortage issue and the
rising price of
construction materials.
Roll out technological
solutions to stay on top
of your operations to
ensure compliance and
efficiency across your
entire business.

19. Take our Quick and Easy:
CONSTRUCTIVE TRANSFORMATION UK SURVEY TODAY!
All respondents will receive a full report of findings and insights.
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