Over the last 3 years, the world has seen many events unfurl with wide ranging and often unexpected consequences. From Brexit, to Coronavirus, the blockage of the Suez Canal and now war in Ukraine- many of these events have had a knock-on effect to the UK construction industry. Many interior design practices large and small are feeling the effects of these issues on their projects- the most prominent and difficult being availability and cost of materials and contractors.
It can be an unpleasant surprise for clients to find out how significantly their budgets and timelines can be affected by world events, particularly when we’re not able to predict what could happen next or when the issues will alleviate. Nevertheless, being up front about the issues and clear what you can realistically do (if anything) to help navigate or lessen the effect on their projects.
Costs- some key reasons why they might have risen
Brexit- some suppliers have reduced their ranges supplied to the UK market or increased prices to cover increased customs checks/ charges and transport costs. Additionally, many items take longer to arrive from the EU, which if not prepared for can cause timeline delays which can result in increased costs (i.e. if the space cannot be used or rented on schedule).
Covid- this had a big impact on supply chains and therefore costs increased for items which were in short supply and high demand- appliances and timber being particularly affected. Many people also paused projects or decided to start planning renovations to their homes after spending more time there in lockdown- as such there is a backlog of construction/ renovation work. Again, this raises costs due to high demand and short supply of materials and labour.
Suez- the blockage had an enormous impact on shipping which lasted for months. This exposed how the global supply chain can be hugely affected by a single rare event and has made many designers seek more local alternatives which have a less risky lead time but may have a higher cost. However, shopping more locally for materials or products has a beneficial impact on the sustainability of a project so it’s not all bad news.
War in Ukraine- one of the biggest impacts so far, has been the cost of fuel and impact on financial markets/ inflation. Rising fuel costs has an immediate and drastic impact on delivery costs and even getting builders to site where public transport isn’t a viable option (i.e., to transport materials/ tools etc). Rising fuel prices also means production and manufacturing processes costs may rise, resulting in increased costs to the end user.
Availability of Contractors-
In the UK, a particularly frustrating issue is availability of skilled and trusted contractors. This issue has been caused by several factors:
Brexit- many highly skilled tradespeople have opted to leave the UK and fewer have emigrated to the UK, leaving a gap which is difficult to rapidly fill by the UK labour market. Contractors who are available, are now more able to increase their fees and choose the projects they want to do.
As above there is a pent-up demand for contractors due to Covid delays and increased demand for residential renovations. Some delays have also been caused by huge delays to obtain planning permissions after local councils and planning departments were affected by staff absences and even cyber-attacks.
Whilst there are many other factors beyond this list which may affect projects, the above are highly likely to affect your upcoming project. So, what can be done to improve outcomes?
Plan works well in advance-
Speak to contractors early on about the project and be prepared to wait for good tradespeople and specialists. Where possible get costs confirmed in advance and set aside a contingency which may be required if costs rise.
Choose and order materials and fittings well in advance of works going ahead- this avoids delays or price rises later.
Be realistic about your budget- it might cover less than you planned or could have achieved a few years ago. Ensure you focus on the key elements of a project or renovation and work with designers or contractors to cut back or phase works in a sensible way. Read more about how to approach your project with a sensible budget in one of our recent blogs here.
Be prepared to wait if necessary- if there are few builders or materials available, it’s easy to feel pressured into working with the first available person. But in the long term, it may be better to wait for a trusted contractor.
If you need help with your renovation in London or Brighton, contact us now