Rise of Construction Costs

Davis Langdon have recently published their findings on the current trend of tender returns.

'Building prices in Greater London rose by another 1.5% in the last quarter and have risen by almost 8% over the last year with a similar rate of inflation forecast to continue for the next two years.

In Greater London the volume of new-build output rose 18% in cash terms last year to a value exceeding £10bn for the first time. The north-east of England matched this rate of growth but with an industry 25% the size of that of the London region. '

In the current market the balance of power, when it comes to contract negotiation rests firmly with contractors. They seem to be able to pick and chose projects they wish to tender for, charging a premium for the more complicated projects.

With an increase in the cost of building materials, there seems to be no let up in the rise of prices.

Builders You Can Trust?

Trustmark is a good success story that is worthy of some praise.

Trustmark was established as an independent check for contractors in the UK. Set up with the assistance of consumer groups and the Government they help to establish an acceptable benchmark for small contractors.

When you see our TrustMark logo you know that:

An approved scheme operator has checked the firm's technical skills, trading record and financial position

The firm has signed up to a code of practice that includes insurance, good health and safety practices and customer care

The approved scheme operator has checked and will continue to monitor their quality of work, trading practices and customer satisfaction

The firm will tell you about any building regulations you must meet and may be able to give you the certificates you need

If you have a problem or disagreement with the firm, there will be a clear and user-friendly complaints procedure to help sort out the problem

If the firm doesn't automatically provide insurance cover you will have the option to buy a warranty in case it goes out of business.

With the assistance of the numerous trade associations, Trustmark has built up a large database of contractors who meet Government Standards. The only thing left to do is offer consumers indicative prices of what work should cost, unit rate to paint etc, and then we would all be laughing.