Category: Blog

Hello! We are back again with the latest update on material construction prices in the UK. In our last report we hinted that prices were slightly rising at the beginning of 2023 and to keep an eye on them. 

Well, we’ve gone through the data of the last three months since that report (March, April and May 2023) and we can unfortunately say that prices are rising again!

However, these price rises are in line with inflation which the government is determined to reduce. So in theory prices will peak soon as interest rate rises start having an impact, how soon is hard to say.

So strap in, as we analyse the key points from the latest UK Materials construction prices report (dated July 2023).

Overall UK construction costs

1. Overall construction costs for “All types of construction work” have increased by ~ 3%, since January 2023. The biggest contributors to this were New Housing and Repair and Maintenance work.

2. The biggest MoM (month on month) rise in prices occurred between April 2023 and May 2023, rising approximately 1.3% in just one month! 

Cement and Concrete costs

3. Concrete related products, such as Ready-mixed concrete, pre-cast concrete have risen by approximately 6 – 7% in price since the start of January

4. Blocks and bricks have increased by approximately 5% in price since the start of the year

Other Materials costs

• Insulation material and kitchen furniture have continued their steady increase in price. With kitchen furniture rising 3% in the last month alone! (April 2023 to May 2023)

Metal Products costs

• Fabricated structural steel increased  4% since the start of the year, but is starting to trend down again in price.
• All other metal products have remained equal throughout the year.

 

Timber and Joinery costs

• Timber and joinery costs remain constant since the start of the year. With no major movements found in doors, plywood and particle boards.

Overview

Overall the main contributors to the increase in construction costs are due to the following materials:

• Concrete based products
• Kitchen furniture
• Insulation material
• Fabricated structural steel.

All other materials remain constant throughout the start of the year.

 

As always, we’ll be keeping a close eye on prices and keep you in the loop with the latest changes!

 

Best,

Ken Vilaysane, 
Product Manager

A detailed and accurate cost plan is a crucial element of effective construction management, facilitating budget control and project efficiency. As a continuation from our previous article about cost plans, we will delve deeper into how to construct comprehensive cost plans and illustrate how BuildPartner’s software can streamline this process for builders, architects, and project managers.

How to Create an Accurate Cost Plan?

Formulating an accurate cost plan is a detailed process involving meticulous understanding, calculation, and analysis. Here’s a more comprehensive look into the key steps:

1. Understand the Project Scope and Specifications

The starting point of an accurate cost plan involves a thorough comprehension of the project’s scope and specifications.

Different Scopes include:

• Basic – Including basic finishes e.g. Leyland, Everest, Wickes
• Standard – Including standard finishes e.g. Dulux, Hamilton, Slim Line
• High – High spec finishes e.g. Farrow & Ball, Fine Line, Seimens

 

Different Specifications include:

• New Build – Building a new structure and fitting out.
• Extend – Adding on to existing structure and fitting out.
• Remodel – Changing the layout of a structure or room and fitting out.
• Refurbish – Replacing the finishes and fittings in their existing locations.

Understanding the project’s intricacies, including the types of materials to be used, the complexity of the design, and the size of the project, enables you to provide precise cost estimates. This stage often involves engaging with the design team to get clarity on the specifics and working closely with stakeholders to understand their expectations.

2. Gather Detailed Cost Information

After developing a clear picture of the project’s scope, the next step involves gathering in-depth cost information for all project components. This entails estimating costs for materials, labor, equipment, and any other expenses, such as permits, licenses, or contingency funds. Make use of current market rates, supplier quotes, and historical cost data for similar projects to ensure the most accurate and up-to-date cost information.

 

3. Breakdown the Costs

Following the collection of cost information, categorize the costs into different sections such as material costs, labor costs, equipment costs, and administrative costs. This detailed cost breakdown helps in better understanding where the majority of the project funds will be utilized and aids in identifying potential areas for cost savings.

4. Include Contingencies

In spite of the most thorough planning, unexpected expenses can occur during a construction project. To prepare for such situations, it’s essential to include contingencies in your cost plan. A good rule of thumb is to reserve around 10-15% of the total cost for contingencies, although this can vary based on the project’s complexity and risk level.

5. Regularly Review and Update the Cost Plan

As the project progresses, it’s important to continually review and update your cost plan. This involves tracking actual expenditures against your initial estimates, analyzing any discrepancies, and making necessary adjustments. Regular updates ensure your cost plan remains an accurate reflection of the project’s financial status and allows for more proactive budget management.

6. Estimate Profits

Part of your cost plan should also involve estimating the potential profits from the project. This is typically calculated by subtracting the estimated total costs from the total projected revenue. Estimating profits helps assess the project’s financial viability and inform decision-making processes.

7. Leverage BuildPartner’s Automated Cost Plans

To enhance the cost planning process, BuildPartner’s automated cost plan tool can be employed. This software automatically produces a detailed cost plan based on your project specifications and the most recent UK material costs, drastically reducing your workload and minimizing potential human error.

In summary, developing an accurate cost plan is a multifaceted process that requires a deep understanding of the project, meticulous data collection, and regular updating. By utilizing BuildPartner’s software, this process can be greatly simplified, enhancing overall project management efficiency. To learn more about how BuildPartner can optimize your cost planning process, visit buildpartner.com.

Our last report, published in January 2023, covered the overall rising costs of construction and material prices across 2022. In that report, we found that although prices had risen by 15% in 2022, they had generally peaked midway through the year and had since started to decrease.

Now that 2023 has begun, how have construction costs fared across the UK? In this report, we analyze the first two months of 2023, giving us some indication of how prices will fare for the coming year.

Spoiler: they’re going up again! (Although slightly)

1. Overall construction costs for “All types of construction work” slightly decreased by 0.8% from December 2022 to January 2023, but February has seen the prices go straight back up again by 0.6%.  The main contributor to this has been an increase in the cost of “Repair and Maintenance” work and “New Housing” work.

2. This has been the first increase in construction material prices since July 2022, when construction costs hit their peak. Could this be the start of a new trend upwards?

3. Insulating materials (including thermal and acoustic) continue to increase! Increasing 15% from December 2022 to February 2023.

Insulating materials have seen the fastest rise out of nearly all construction materials, increasing by approximately 60% since December 2021. For an example looking at Table 1 below to see just how much prices have risen between August 2021 and August 2022.

4. The price of screws increased by 10% from December 2022 to February 2023 , but all other remaining metal based products remain generally stable in price.

The price of screws have been steadily increasing since August 2022, increasing by almost 40% to its current prices. This increase in price has been linked to multiple layers of the supply chain such as the price of raw materials such as steel/nickel and freight shortages.

5. Cement and Concrete products continue their gradual increase in price.

Blocks, bricks, tiles and flagstones, as well as pre-cast concrete products increased the most in this category, with an approximate 10% increase in price from December 2022 to February 2023.

6. Timber and Joinery costs remain stable. No major price fluctuations have been noticed in this category since late 2022. Although it must be noted that there was a slight increase in the price of Imported plywood in February 2023.

Key Takeaways:

• February has seen the first major increase in material prices since July 2022. Is this going to be an ongoing trend? We’ll need to wait until the next report to see.
• Watch the price of insulation material and screws as they seem to be increasing at a rapid pace.
• Stay subscribed to BuildPartner for the latest updates on everything related to Building costs!

Creating a realistic construction budget is essential for the success of your project. A well-planned budget helps you manage costs, make informed decisions, and avoid unpleasant surprises. In this article, we’ll discuss how to create a construction budget and provide tips to help you stick to it.

Understand the Scope of Your Project

The first step in creating a realistic construction budget is understanding the scope of your project. This involves identifying your objectives, desired outcomes, and specifications. Different specifications can significantly impact the overall cost of your project. For example, choosing high-end materials or custom designs will likely result in higher expenses.

Research Costs and Obtain Quotes

Researching construction costs in your area will give you a better understanding of the average building costs per sq m and builders’ rates. Obtain quotes from multiple contractors to get a clearer picture of the market rates and to identify any price variability. Make sure to request detailed quotes that include labor, materials, and any additional costs to help you make informed decisions.

Create a Contingency Fund

Unexpected expenses can arise during construction, so it’s crucial to include a contingency fund in your budget. Typically, allocating 10-20% of your total budget for contingencies is a good practice. This reserve can help you manage residential construction costs during volatile times and cover any unforeseen expenses.

Monitor and Track Expenses

Keeping a close eye on your project’s expenses is essential to ensure you stick to your budget. Regularly monitor and track costs, comparing them to your initial estimates. If you notice significant deviations or increasing costs, take action to adjust your spending and remain within your budget.

Communicate with Your Construction Partner

Maintaining open communication with your construction partner is key to staying on budget. Discuss any changes in scope, materials, or schedule that may affect costs.

Review and Adjust Your Budget as Needed

As your project progresses, you may need to make adjustments to your budget. Review your budget regularly and make any necessary changes to accommodate new expenses or savings. Staying proactive in managing your budget will help you maintain financial control over your project.

Utilize Estimating Software

Basic estimating tools, such as BuildPartner, can help you create a realistic budget and monitor expenses throughout your project. These tools can provide valuable insights into construction costs, allowing you to plan and manage your budget effectively.

Conclusion

Creating a realistic construction budget and sticking to it requires careful planning, research, and ongoing monitoring. By understanding the scope of your project, researching costs, obtaining quotes, creating a contingency fund, tracking expenses, communicating with your construction partner, and utilizing estimating tools like BuildPartner, you can successfully manage your construction budget and ensure a successful outcome. Stay informed about the latest UK material construction cost trends and other factors that may impact your budget by visiting BuildPartner’s comprehensive resources.

Choosing the right construction partner is crucial for the success of your project. With so many builders available, it can be challenging to find the perfect match for your needs. In this article, we’ll share tips on selecting the best construction partner and discuss online tools to help you make an informed decision.

 

Online Tools to Find the Right Builder

There are several online platforms that can help you find reputable builders in your area. Two popular options include:

• Houzz
• Checkatrade

Both platforms offer a wide range of information on builders, including reviews, ratings, and portfolios. Use these tools to shortlist potential construction partners and gather more information about their services.

 

Get Referrals and Multiple Quotations

Word of mouth is still one of the best ways to find reliable builders. Talk to friends, family, or colleagues who have recently completed construction projects and ask for their recommendations. 

Once you have a shortlist of potential construction partners, request multiple quotations. Comparing different quotes will give you a better understanding of the average building costs and builders’ rates in your area. This can also help you identify any price variability among the builders and negotiate better deals.

 

Evaluate Experience and Reputation

A construction partner’s experience and reputation are essential factors to consider. Check their work history, client testimonials, and any industry awards they may have received. Look for a builder with a proven track record of successfully completing projects similar to yours.

In addition, research how they manage residential construction costs during volatile times and their approach to handling factors that cause construction costs to vary. You may also want to review the latest UK material construction cost trends and how they affect project costs. Understanding a builder’s approach to these challenges can provide insight into their ability to adapt and make smart decisions.

 

Communication and Responsiveness

Effective communication is crucial for a successful construction project. Choose a construction partner who demonstrates strong communication skills, listens to your needs, and provides timely updates. Responsiveness to questions and concerns is essential, as it can help prevent misunderstandings and ensure that your project stays on track.

 

Evaluate Contracts and Warranties

Before signing a contract with your chosen builder, thoroughly review the terms and conditions. Make sure you understand the project timeline, payment schedule, and any penalties for delays. Also, inquire about warranties and guarantees for workmanship and materials. A reputable builder should provide a warranty that covers any defects or issues that may arise after the project’s completion.

 

Conclusion

Choosing the right construction partner is a critical decision that can greatly impact your project’s success. By using online tools like Houzz and Checkatrade, seeking referrals, obtaining multiple quotations, and considering factors such as experience, reputation, communication, and contract terms, you can find a builder that fits your needs and ensures a successful outcome. For more information on construction costs and trends, explore BuildPartner and its comprehensive resources.

 

 

BuildPartner is aimed at making building prices throughout the UK and beyond as transparent as possible. With this aim we have regularly reported on rising material costs across the UK, the causes of volatility in the market and also how to minimize the variability and risk.

As previously reported 2022 has seen high levels of inflation across all industries and as a result material costs have risen as well. As we look back at 2022, what insights can we pull from the latest UK construction material prices reports? How did 2022 construction costs compare to previous years? And what can we expect moving forwards?

We have summarised 8 key points from the latest UK Construction material prices, released 02 February 2023 supported by BuildPartner’s live price data.

1. Construction costs rose 15% in 2022, compared to 24.5% in 2021 . To put this into perspective , on average construction costs normally rise around 3 – 5% per year. For example, in 2019 there was a 1% decrease in construction costs for that entire year, followed by a 5% increase in costs for 2020. So basically, this isn’t normal.

2. Overall, construction material costs have stabilised, but remain elevated. Since reaching it’s peak in July 2022, we have seen a small reduction in costs with it now stabilising in the last 5 months. This is largely due to a hike in interest rates to cool the level of inflation.

3. However, material costs are still above their long term average. Overall construction material costs have increased by 11.2% from this time last year (December 2021).

4. Insulation materials (thermal or acoustic) have risen the fastest out of all materials by 13% from August 2022 to September 2022. But have since stabilised at this higher rate in the last 4 months.

5. Timber and Joinery materials remain at a stable price. The only major trend can be send from Imported planed and plywood, which has decreased by roughly 25% and is now in line with other timber materials.

6. Cement based products which includes bricks, tiles, cement and concrete continue to rise at roughly 2% per month, with no signs so far of it slowing.
Concrete reinforcing bars however continue to decline in price since peaking in April 2022, but are still elevated by approximately  20%.

7. The price of gravel has increased by roughly 30% since the start of 2022, with it stabilising in price since May 2022.

8. Besides frabricated structural steel, which has seen a continual correction in price since its peak in May, prices for metal products remain stable throughout 2022 and into 2023.

Our thoughts on 2023 prices

The construction industry is facing big headwinds as we likely enter a recession and endure higher interest rates. However, these factors will be countered by the inflationary effects of labour shortages and supply chain issues. As such, we predict prices to remain relatively flat throughout 2023, however dramatic shifts caused by further geopolitical or environment shocks can’t be ruled out.

Written by,

Ken Vilaysane (Product Manager)

 

P.S Did you know Buildpartner has thousands of tasks and materials which we regularly update in response to changing market environments?

You can use these live labour and material rates in your area to create budgets and quotes for your projects.

Try it out by creating a new project here.

Or Book a Demo here.

BuildPartner is aimed at making building prices throughout the UK and beyond as transparent as possible. With this aim we have regularly reported on rising material costs across the UK, the causes of volatility in the market and also how to minimize the variability and risk.

 

As prices across the UK have become increasingly variable due to a variety of factors, we will now be publishing this new regular report depicting the latest changes in construction material prices across the UK. This is aimed at helping builders, architects and their clients gain an understanding of how overall material / construction costs are tracking across the UK and what they should be looking out for.

Here are the top 7 points from the latest UK Construction material prices, released 02 November 2022 supported by BuildPartner’s live price data.

1. Overall, construction material costs are starting to ease. With the average costs rising slightly by 0.7% from August to September, for all types of work. This continues the general trend of a slowdown in the overall material price inflation rate since June 2022.

2. However, material costs are still above their long term average. Overall construction material costs have increased by 16.7% from this time last year (September 2021).

3. Insulation materials (thermal or acoustic) has risen the fastest out of all materials by 13% from August 2022 to September 2022.

4. Timber and Joinery materials are on a general decline in price / generally flat, since peaking in price in the early part of 2022.

5. Cement based products have continued their steady increase in price, rising 2% per month on average.

6. Since March 2022, Gravel, sand, clays and kaolin including Aggregates levy (UK tax on the commercial exploitation of rock, sand and gravel) have increased by nearly 60% in price. However it has recently in the last few months started to stabilise.

7. Metal products increased by 1% in September. Continuing their steady monthly increase in price. Meanwhile fabricated structural steel has continued it’s decrease in price, following it’s peak in May this year.

P.S Did you know Buildpartner has thousands of tasks and materials which we regularly update in responrse to changing market environments?

You can use these live labour and material rates in your area to create budgets and quotes for your projects.

Try it out by creating a new project here.

Or Book a Demo here.

 

In our previous post we discussed how Natural variability in price causes price discrepancies between each project. In this article we will be discussing how you would go about reducing price variability between your construction projects.

 

1. Plan as comprehensively as possible

The more you can understand the price implications of different decisions the better, this involves getting information from designers, builders, and other industry professionals. Frankly, it is not a simple task but the more you do the more likely you are to get the result you want. Of course you can pass on some of this responsibility to your interior designer, architect or builder or instruct a project manager. All these options are good, they will simply come with an additional cost and perhaps some particular leanings.

2. Create a complete and accurate brief

A detailed and consistent description of the work is essential for all parties to be able to work effectively together.

3. Ensure detailed specifications

Create a list with materials researched and priced and avoid unnecessary variability.

4. Research suitable companies

Good matches in terms of size and spec of project will narrow the range and increase the level of appropriate advice.

5. Ensure comparable quotes

Use an itemised Excel document to ensure like for like comparison.

6. When negotiating, think about what’s in it for them

Builders do not purposefully price high to catch people out. They price what they think is appropriate. It may be sensible for them to round up rather than down initially so you can keep an eye out for that. But even in the act of quoting you may be changing the scope so just help them out.

7. Keep clear records

During the process and even as the project progresses prices and specifications will change, clear records will ensure consistency and avoid disputes.

 

Overall

–   People aren’t out to get you, construction prices are naturally variable

–   Price has certain key components, all of which you can control

–   Negotiation is a tiny fraction of the overall variability, a clear scope is much more important

Therefore preparation is the best way to find a certain and appropriate price.

And, use BuildPartner 🙂