Category: Industry Insights

When planning a project, there’s often a moment where you need to pause and ask: do we need a feasibility study, or are we ready to produce a detailed schedule of costs? They serve very different purposes, yet they’re often confused (and sometimes skipped altogether).

A feasibility study helps you determine whether a project is financially, operationally, technically, and legally viable before committing too much time or money. Whereas, a detailed schedule of costs is a thorough, itemised breakdown of exactly what the project will cost.

In this article, we’ll break down the differences between the two services, explore when each is appropriate, and explain how they both support better decision-making.

Start your free trial with BuildPartner to get a bespoke estimate of your construction project within minutes.

What Is A Feasibility Study?

Ultimately, a feasibility study is an early-stage assessment that determines whether a proposed project is viable. It helps avoid costly mistakes by testing assumptions before major commitments are made.

Typical areas covered include:

• Site constraints (planning, environmental, access)
• Approximate calculations of quantities and materials
• Design options and scope outlines
• Stakeholder needs and risks
• Regulatory and planning considerations

Feasibility studies provide broad-brushstroke cost estimates to guide initial project decisions.

They tell you whether to proceed with a project or go back to the drawing board to overcome any obstacles. For instance, the inclusion of additional bathrooms or underfloor heating might push the project over budget, prompting a rethink around necessities versus nice-to-haves.

A BuildPartner feasibility study includes approximate quantity calculations of each stage and area of a project, standard materials and finishes, and local market pricing. It’s carried out by a qualified, insured scheduler.

All projects can benefit from a feasibility study. Why invest in a detailed schedule upfront when a feasibility study can provide a reliable reality check on budget for a fraction of the cost? 

This helps avoid unnecessary costs and supports informed decisions early on.

When Do You Need A Feasibility Study?

A feasibility study is most valuable at the very start of a project, often even before any drawings are produced, and certainly before significant design work, planning submissions, or funding applications take place.

You might consider a feasibility study if:

• The site, scope, or budget is still unclear
• You’re comparing project options or land uses
• External factors (e.g., planning, utilities, access) might derail the project
• You need to test viability before seeking funding or client sign-off

A feasibility study is often created at RIBA Stage 2 or 3 of a construction project (see FAQs for more info), but they can also be done at Stage 0 and 1. It helps stakeholders say no early or move forward with more clarity. 

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Need a feasibility study? We can provide expert support and collaborate with architects to deliver detailed drawings too.
Contact us at estimating@buildpartner.com 

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What Is A Detailed Schedule Of Costs?

A detailed schedule of costs is a comprehensive, itemised breakdown of what a project will cost, based on an agreed design and scope. 

It includes:

• Line-by-line breakdown of materials and labour
• Subcontractor and supplier pricing
• Project timeline of each project stage

Unlike feasibility estimates, these are based on real figures and design intent. And accuracy matters; even a minor error or omission can lead to major cost overrun, such as the misplacement of a decimal point and ordering 120m² of tiles instead of 12m².

A BuildPartner schedule of costs involves a detailed calculation of quantities, application of local market prices, and thorough research and inclusion of specified materials and their costs. 

How does that compare with a feasibility study?

Well, a feasibility study might estimate patio doors for a 3m-wide opening, including materials and labour, at £3,200. While a detailed schedule of costs might detail specific bifold patio doors with integrated blinds, totalling £5,500.

In short, the feasibility study provides a broad estimate for early planning; the schedule of costs delivers an exact financial plan for construction.

Both services are carried out by qualified, insured schedulers at BuildPartner.

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If you need a feasibility study or a specified cost schedule, please contact us at estimating@buildpartner.com

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When Do You Need A Detailed Schedule Of Costs?

A detailed schedule of costs is usually prepared after technical drawings are completed, as these provide the detailed information needed for accurate cost quantification.

A detailed cost schedule is needed when:

• The design is developed enough to quantify accurately
• You’re preparing for a tender or engaging with contractors
• A lender, investor, or funding body needs transparent cost data

The schedule of costs is often created at RIBA Stage 4 of a construction project (see FAQs for more info), after the technical design. From then on in, it becomes a financial control tool, not just a pricing exercise. 

For large projects, cost schedules may be created and revised throughout, especially at the tender stage, contract signing, and post-tender negotiations.

Key Differences At A Glance

The table below highlights the main differences between a feasibility study and a detailed schedule of costs:

Aspect	Feasibility Study	Detailed Schedule of Costs
Purpose	Early-stage cost planning and viability testing	Detailed cost planning and accurate quoting
Timing	Pre-design or concept stage	Post-design, when scope is fixed
Detail Level	Approximate quantities; standard materials	Detailed quantities; specified materials and finishes
Materials & Finishes	Standard materials and finishes applied	Researched and populated with specified products and suppliers
Pricing Basis	Local market prices with standard rates	Bespoke rates, local prices, and detailed supplier quotes
Use Case	Exploring feasibility, securing early buy-in	Accurate pricing for contracting, tender, or funding
Prepared By	Qualified and insured BuildPartner scheduler	Qualified and insured BuildPartner scheduler
Cost  (BuildPartner)	0.1% of project value (e.g., £200 on £200k project) Minimum charge: £150	Qualified and insured BuildPartner scheduler 0.2% of project value (e.g., £400 on £200k project) Minimum charge: £300

How They Complement Each Other

Despite the comparison in the table above, feasibility studies and detailed cost schedules aren’t competing services. They’re part of the same planning journey. Think of it like this:

• Feasibility studies explore what’s possible.
• Specified schedules define the actual costs.

In essence, a feasibility study is part of an iterative approach to pricing. At the outset, you get a rough cost based on the project scope and surface area. Then, if it’s within budget, you can carry out a specified schedule to home in on cost and accuracy.

So the two aren’t mutually exclusive services.

If you skip the feasibility study, you risk implementing impractical designs; and if you rush into a cost schedule without agreeing on a defined scope, you can expect to see wild revisions at a later stage. 

Starting this process earlier minimises potential waste on architectural costs.

Choosing the Right Service For The Stage You’re In

Selecting between a feasibility study and a detailed schedule of costs all boils down to timing. If your project is still in its early stages, with variables like site conditions, planning risk, or design scope not yet fixed, you probably need a feasibility study before committing. 

Once the scope is clear and design decisions are locked in, a detailed cost schedule will provide you with a detailed breakdown needed for accurate quoting. 

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If you need a feasibility study or a specified cost schedule, please contact us at estimating@buildpartner.com. We also collaborate with architects to deliver detailed drawings too.

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Frequently Asked Questions About Feasibility Studies & Cost Schedules

Here are some answers to frequently asked questions about feasibility studies and cost schedules in construction projects.

How accurate are feasibility studies compared to full-cost schedules?

Feasibility studies are indicative. They might be within 10 to 20% of final costs, or even greater if the project scope changes drastically. 

Detailed schedules aim for much greater accuracy, often within 5 to 10%, providing no unexpected issues arise, such as unforeseen site conditions or design changes.

Do feasibility studies include detailed material specs?

Feasibility studies tend to use standard assumptions and typical finishes. Specific material choices and supplier pricing are included later in the detailed schedule. 

At the feasibility stage, the goal is to check if the project makes sense without sweating the small stuff like picking Dulux over Crown paint or choosing specific types of fixtures. It’s about obtaining ballpark figures, not nailing down exact brands or suppliers.

Who typically carries out feasibility studies and cost schedules? 

Feasibility studies can be undertaken by architects, planners, or cost consultants like BuildPartner. Detailed cost schedules are usually prepared by a quantity surveyor or specialist consultants. Working with experienced, insured professionals ensures the figures stand up to scrutiny.

Why is it important to have a qualified and insured scheduler? 

A qualified scheduler ensures your cost plan is based on accurate quantities and a professional understanding of construction methods and pricing. 

Being insured adds a layer of protection; if there’s a significant error or omission, there is clear path to addressing disputes and legal challenges.

Can I skip the feasibility study and go straight to a cost schedule? 

Only if the project scope, site, and design are fully defined, otherwise you risk pricing the wrong thing or hitting roadblocks later. 

Skipping the feasibility study can lead to false confidence in costings and timeframes. Doing so ultimately risks the possibility of incurring expensive revisions down the line.

What is the RIBA Plan of Work?

The RIBA Plan of Work 2020 was developed by the Royal Institute of British Architects, and it provides a structured framework for managing architectural and construction projects in the UK. The framework organises building projects into eight stages: 

• Stage 0: Strategic Definition – Define objectives, business case, and feasibility. 

• Stage 1: Preparation and Briefing – Develop project brief, budget, and site appraisals. 
• Stage 2: Concept Design – Create initial designs and preliminary cost estimates. 
• Stage 3: Spatial Coordination – Refine design, develop specifications, and planning. 
• Stage 4: Technical Design – Finalise detailed designs and tender documents. 
• Stage 5: Manufacturing and Construction – Oversee construction and manage progress. 
• Stage 6: Handover – Complete construction, hand over the building, and address defects. 
• Stage 7: Use – Monitor performance and conduct post-occupancy evaluations.

A feasibility study is usually carried out at Stage 2 or 3, but it’s not unusual to carry one out sooner at Stage 0 or 1. A detailed cost schedule is typically developed after the technical design at Stage 4. 

July 28^th, 2025

Before any plans are drawn up, the very first step in any successful construction project should be a feasibility study. A thorough study evaluates whether a proposed build is financially, operationally, technically, and legally possible.

A feasibility study assesses everything from cost estimation to planning risks, site conditions to legal constraints. With that, architects, project managers, and consultants can make informed decisions early in the process, saving time, money, and frustration down the line.

In this article, we’ll explore seven key benefits of feasibility studies in construction and why skipping this stage could be a costly mistake.

1. Providing Clearer Budget Estimates

A feasibility study sets a realistic baseline for costs. It forces early analysis of design, materials, planning fees, and site issues. Without one, budgets are based on assumptions, not facts.

An evidence-based estimate determines how much capital is needed (and at what stage), which is really important for clients to understand so they can secure access to funding in advance.

If the money runs out due to unexpected costs, the project stalls. A feasibility study turns budgeting from guesswork into strategy and helps keep the project financially on track from start to finish.

2. Avoiding Cost Overrun

Globally, 9 out of 10 construction projects exceed budget, with an average overrun of around 28%. In the UK, around 70% of major infrastructure schemes overrun projected costs. So whether it’s a small home extension or a large infrastructure scheme, no project is immune to budget overruns.

Estimating errors and flawed cost projections are responsible for nearly 60% of cost overruns in construction projects.

An early feasibility report pinpoints cost risks before they arise. With BuildPartner Construction Pricing Software, you get an accurate, itemised breakdown of every element in your project.

Simply enter your project details, and the system pulls thousands of live prices from an up-to-date database for all the materials required based on your floorplans.

It even includes small components and not just the obvious building materials (like bricks and mortar), but also preliminaries like skips, fixtures and fittings, and sundry items.

This level of transparency significantly reduces the risk of inaccurate estimates, something that’s all too common when manually entering costs line by line in a spreadsheet.

3. Testing A Project’s Financial Viability

A feasibility study is your first layer of financial due diligence. It helps you decide whether a project is worth pursuing and financially viable. By identifying all the associated costs early, it enables informed decisions before you commit to costly planning or construction.

For residential or personal projects, the focus is on usability and lifestyle benefits rather than financial gain, but the feasibility study still ensures that the project remains within budget.

When it comes to commercial developments, a properly conducted feasibility study determines whether the project is likely to deliver a worthwhile return on investment, which is especially important for developers, investors, and funding partners.

4. Planning Ahead For Challenges

A feasibility study identifies potential timeline risks, helping you anticipate delays and develop strategies to keep your project on schedule and within budget. For client satisfaction, it must be delivered on time and in full.

Here are some of the challenges a feasibility study can help identify and plan for:

• Regulatory delays, e.g., slow planning permission or conservation area restrictions.
• Site conditions, e.g., flood risk, unstable ground, or access issues for machinery.
• Supply issues, e.g., long lead times or reliance on imported materials.
• Labour shortages, e.g., lack of qualified bricklayers or electricians in the area.
• Budget risks, e.g., unexpected utility connection fees or underpriced preliminaries.
• Stakeholder objections, e.g., local residents opposing height, noise, or traffic impact.

So it’s not just about financial feasibility. A thorough study gives you a holistic view of the project’s operational viability, too, and keeps it running according to its critical path.

Start your free trial with BuildPartner to get a bespoke estimate of your construction project within minutes.

5. Improving Client Confidence

When clients see all the challenges and solutions laid out clearly from the start, they gain confidence that the project will be managed responsibly and delivered as promised.

When using BuildPartner, users can invite clients to the main dashboard to see a view of costs by:

• Stages – drainage, decoration, heating, roofing, etc.
• Areas – kitchen, bedroom, bathroom, etc.

Clients can also view a detailed breakdown of building materials, finishing materials, and labour costs across three scenarios—low, mid, and high benchmark contractors—along with the project timeline.

This transparency assures clients that every stage and aspect of the project has been fully costed, minimising the risk of unexpected expenses later.

If any costs do arise, they’ll clearly understand what was included and agreed upon from the start. That protects both sides: clients trust the process, and contractors aren’t blamed for unexpected surprises.

6. Prioritising Project Elements

A feasibility study allows you to make flexible decisions about building materials and components from the start. This way, you can adjust the scope or budget early on, preventing costs from spiralling out of control.

For example, with BuildPartner, at the click of a button, you can change a project’s specification:

• Basic spec is a basic finish; e.g., Leyland, Everest, Wickes.
• Standard spec is a standard finish; e.g., Dulux, Hamilton, Slim Line.
• Premium spec is a high-spec finish; e.g., Farrow & Ball, Fine Line, Siemens.

And in the Schedule, you can choose from a range of options for any individual building material:

You can adjust the specification based on what matters to each individual client. For example, one client may choose to reduce spending on kitchen fittings to free up budget for higher-end flooring. Another might scale back on fitted wardrobes in order to invest in underfloor heating.

This flexibility helps keep the overall budget in check and allows clients to make trade-offs without compromising on the features that matter most to them.

7. Helping Obtain Planning Permission

A feasibility study can flag local planning constraints early. These might include height limits, boundary rules, or conservation area restrictions. You can then shape the design to meet planning policy, meaning you’re more likely to get approval the first time.

For example, there’s no point commissioning architectural drawings for a three-storey townhouse if the feasibility study reveals it would block sunlight to neighbouring properties and contravene local planning rules. In that case, the study might point you toward a two-storey design that meets daylight requirements.

The feasibility study ensures time and money aren’t wasted on designs that won’t get built.

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Start your free trial with BuildPartner to get a bespoke estimate of your construction project within minutes.

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Feasibility Studies Save Time, Money, and Stress

By clarifying what’s possible, what it will cost, and what risks need managing, a feasibility study helps you make informed decisions before money is spent on drawings and applications.

Whether residential or commercial, starting with a feasibility study puts you in control. It allows you to adjust specifications and building materials to focus on what matters most in order to stay within budget.

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Frequently Asked Questions About Feasibility Studies

Here are some answers to frequently asked questions about feasibility studies in construction projects.

How do feasibility studies influence project timelines?

Feasibility studies give you foresight. For example, if you’re relying on a special component like hemp bricks (or any bespoke materials), a thorough study will establish if enough material is available and can be delivered on time. After all, without those bricks, the build can’t proceed and the whole project would come to a halt.

What does a feasibility study include?

Typically, it covers cost estimates, timeline analysis, site constraints, regulatory requirements, and risk assessments. Some feasibility studies concentrate primarily on financial aspects, such as cost estimates, budget alignment, and return on investment.

Can feasibility studies help with securing financing?

A thorough feasibility study provides lenders and investors with reliable data on costs, risks, and expected returns. Mortgage lenders usually ask for a detailed cost plan to assess the viability and risk of self-build projects, especially when the client is funding it personally.

When should a feasibility study be done?

A feasibility study should be completed early, ideally before architectural designs are drawn up or planning applications submitted. It helps iron out the project’s particulars and scope to ensure designs align with budget and planning requirements

May 30, 2024

Lead-generation companies for building contractors are certainly a quick way of getting in touch with potential customers. The most sustainable way to grow your business will always be to build a compelling service, ideally in a specific region or niche to maintain an effective margin and build word-of-mouth referrals. However, buying leads can be an effective way to jump-start growth, perhaps if you are entering a new market or could do with a marketing boost.  

So, in this review, we compare the top seven lead-gen companies for UK building contractors and weigh up their pros and cons.

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The advice provided is entirely impartial, and BuildPartner maintains no affiliations with any lead-generation companies.

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3 Types of Lead-Generation Companies

Before we dive into the nuts and bolts of who does what best, there are three main types of lead-gen companies to be aware of:

1. Directories – pay a subscription for visibility, such as Checkatrade and Houzz.
2. Lead generation – pay companies per lead, such as Rated People and MyBuilder.
3. Introducers – companies charge commissions for introducing you to clients, such as Resi.

Each has a slightly different payment model with its own service packages. We’ll share the costs associated with trading with each type and their Trustpilot rating—an industry-standard credibility marker.

The Risks Of Relying On Lead-Gen Companies

Before we dive into the seven best lead-gen companies for construction firms, it’s important to stress that for greater long-term rewards, and to build lasting trust and credibility, you will likely need to focus on:

•   Building an area of expertise
•   Establishing a clear market position
•   Cultivating a network of referrals

Often, when businesses look to external solutions (such as lead-gen companies), they turn their attention away from the internal aspects of their proposition that need immediate attention. But lead-gen companies aren’t a substitute for solidifying your proposition. Those who invest in their unique strengths are better positioned to thrive and adapt to market changes.

Different platforms have different effects on your brand but the level of appropriateness of the leads, your ability to stand out and the resultant relationship are all at their best via a direct referral. 

1. Checkatrade

Checkatrade generates leads for construction professionals by featuring them in a trusted directory of vetted tradespeople with verified reviews, offering a subscription-based model—meaning you only pay for the subscription, not per lead.

Pros

Checkatrade brings qualified leads to you. They discover your profile, learn about your services, and then reach out to you if they’re interested in hiring you. This removes most of the legwork, and it means you won’t be following up with and paying for cold or fake leads.

Checkatrade is a much simpler subscription model than Rated People since you only pay a monthly or annual fee. You don’t pay per lead, though the monthly subscription is much higher.

With over three million searches each month, it’s the UK’s number one trade directory—and it focuses exclusively on that, without the bells and whistles, like with Houzz, which includes software such as expense tracking and project scheduling.

Those looking for a low-maintenance lead-gen system that requires minimal effort will likely benefit from Checkatrade. You can sit back and wait for leads to come in rather than chasing work and promising the world when bidding for jobs using pay-per-lead services.

As a bonus, Checkatrade sends out free vinyl and marketing assets to allow you to display your Checkatrade accreditation on your company vehicles.

One huge benefit that draws customers to Checkatrade is their 12-month homeowner guarantee. In the unlikely event of a dispute about substandard work, the £1,000 guarantee provides homeowners extra reassurance for any work booked through Checkatrade.

It puts them at ease, and the sentiment when engaging in direct contact is on the whole noticeably more positive.

Cons

Checkatrade’s monthly subscription prices vary depending on the industry in which you work. If you’re an architectural or design firm, you can expect to pay more than a gardener.

There are four tiers of memberships: Approved, Lite, Standard, and Pro.

Be careful when signing up. You can’t view the subscription plans side by side, so you’ll need to adjust the sliding scale to select the right plan.

Also, to confuse matters, the widget shows you the price per month for the first six months but quotes a much higher figure in small print (usually an additional 50%) for the remaining six months.

A membership for your first year will cost anywhere from around £500 to £2,500 per year.

And then after that?

Well, so many tradespeople have been stung by price hikes. In one review on Trustpilot, a user remarked how they paid £756 in their first year, but their renewal price came out at £2,160.

New members get a preferential deal. Don’t expect any discounts for loyalty.

Summary

•   Type: Directory
•   Cost: Between £50 and £250 per month
•   Trustpilot Rating: 4.8/5.0, from 51,488 reviews
•   Link: checkatrade.com

2. Houzz

Houzz is a platform that allows contractors to showcase their work and connect with homeowners through a subscription-based visibility model.

Houzz Pro isn’t just a directory to market your services, it’s a digital toolbox that includes a 3D floor planner, invoicing system, online payments, expense tracking, time tracking, reports, and project scheduling.

Pros

Before committing to a paid subscription, you can take out a 30-day free trial.

When subscribing to Houzz, you have four options (all prices in USD):

•   Starter: $85 per month
•   Essential: $129 per month
•   Pro: $199 per month
•   Custom: not disclosed

After signing up for one of these profiles, your business will be visible to homeowners hunting on Houzz. You can easily create or upload engaging videos that showcase your business.

Reputation is everything—and one thing that Houzz does better than the rest is helping you acquire reviews. They provide templates and integration tools that allow you to easily send review requests to your contacts. These reviews automatically appear on your Houzz profile, so you don’t need to manually update your profile.

One useful tool for converting prospects is the ability to host video meetings. Houzz lets potential leads book a video meeting with you directly from your profile and directory listing—something no other platform in this review does.

Cons

Houzz Pro is pricey for a standalone lead-generation service. It’ll cost you an additional $60 per month per user, so those costs will rack up if you’re a medium to large business that wants to connect employees across departments.

Besides, many established firms already have software solutions for 3D floor plans, takeoff estimations, and email marketing. If you already have these solutions in place, you may be unassumingly duplicating costs.

Houzz Pro is better suited to construction firms looking for a new holistic approach to their operations, rather than those looking exclusively for lead generation.

Also, payments for work are encouraged through the platform. If customers choose to pay through Houzz, you will be subject to a 4.5% payment handling charge.

Summary

•   Type: Directory
•   Cost:

o   Starter: $85 per month

o   Essential: $129 per month

o   Pro: $199 per month

o   Custom: not disclosed

•   Trustpilot Rating: 4.0/5.0, from 15,173 reviews
•   Link: houzz.com

 

3. Federation of Master Builders – FMB

Established in 1941, the Federation of Master Builders (FMB) is the largest trade association in the UK construction industry, and it connects members with homeowners seeking quality builders, using a subscription-based model.

It’s an independent, nonprofit organisation that’s run by members for members, with support from a senior management team.

Pros

To earn FMB’s badge of quality, you need to pass a strict vetting process and independent inspection of your work. While this involves more administration compared to other lead-generation companies, it adds to your overall credibility and reassures clients of your high standards. It helps give you a foot in the door over other builders who are quoting for the same job.

You also get a host of other membership benefits, such as free downloadable contract templates, expert advice with a business helpline (whether it’s HR, health and safety, legal, or tax matters), dispute resolution support, free online training, and a 10% discount at Trade Point.

As a nonprofit, the FMB works with the media and the government to raise awareness of issues in the construction industry. Membership fees are reinvested to support you.

In the latest manifesto, FMB is lobbying the government to address the country’s shortage of homes. They want the government to:

•   Create a dedicated secretary of state for housing
•   Reduce VAT on repair, maintenance, and improvement (RMI) work
•   Introduce a licensing scheme to rid the industry of cowboy builders

In taking out a membership with the FMB, you’re advocating reform in the construction industry and supporting a team who are fighting for it.

The FMB has a track record of success, having previously influenced policy changes such as the introduction of the Green Homes Grant and securing additional funding for vocational training in the building sector.

Cons 

To become an FMB-registered contractor, you need to apply by completing a short online form. A representative will then reach out to you and explain how the process of becoming a member works.

Once the administration is complete, they’ll have an independent assessor visit one of your sites for a day to carry out an inspection of your work to check it meets high standards. The overall application process takes around two to three weeks.

Jumping through these hoops is unlikely to be worthwhile for smaller businesses, even though the FMB has a proud history of supporting small and medium-sized firms.

There are only 73 active members using FMB, most of which are national businesses, such as Isuzu, Openreach, BP, and Trade Point.

There’s also a lack of price transparency for becoming a member, but you can expect to pay around

£53 and an inspection fee of £11 per month (in the first year only).

That’s expensive when there is no indication of how many prospects will view your profile or reach out to you. Still, payments are monthly and you can cancel anytime.

Summary

•   Type: Directory
•   Cost: £53.51 (+VAT) and inspection fee of £10.92 per month (+VAT)
•   Trustpilot Rating: 4.3/5.0, from 629 reviews
•   Link: fmb.org.uk

4. MyBuilder

MyBuilder helps construction professionals generate leads by allowing them to bid on jobs posted by homeowners needing trusted tradespeople, with a pay-per-lead payment model.

They charge when a customer shortlists you for the job, which is usually between £10 to £50, depending on the job’s size and nature.

Pros

Signing up for MyBuilder is free, and you don’t need to commit to an expensive rolling monthly contract. Once you’re set up, MyBuilder will send you leads that match your skills and work area. You can respond to as many of these as you like when it suits you.

If customers are interested in your bid, they’ll shortlist you. So you’ll only pay a fee when they’re actively engaged and when you have expressed interest.

Before bidding, you get full visibility of how many other tradespeople have expressed interest and how many have been shortlisted. This helps you gauge whether applying is still worthwhile.

With three main tabs to navigate—New leads, Interested, and Contacts—MyBuilder’s user interface is the simplest platform to use and navigate, which is perfect for technophobes.

This makes it incredibly easy to keep track of and respond to your leads.

Cons

If you apply for several projects and are shortlisted for multiple jobs, the costs start mounting up. Customers are unaware of how tradespeople are charged, so they often liberally shortlist tradespeople, up to a maximum of 10.

In a sense, customers are encouraged to shortlist; it’s only when they do that they’re able to read a message from you.

But that can also mean that by the time you follow up with them, they’re disgruntled from having already dealt with so many other contractors.

Many customers complain about the barrage of communication they receive from tradespeople, meaning the experience overall is much less customer-friendly.

Summary

•   Type: Pay per lead
•   Cost: Account creation is free, with a fee of between £10 to £50 for each shortlisting
•   Trustpilot Rating: 4.6/5.0, from 50,865 reviews
•   Link: mybuilder.com

5. Rated People

Rated People connects construction experts with homeowners seeking reliable tradespeople, providing a steady flow of leads, and it operates on a pay-per-lead basis.

You simply choose the location you are available to work in, and you’ll see a list of homeowners who need your help.

Pros

One of the delights of using Rated People is that there are no shortlists and no waiting for the phone to ring. The platform puts you in complete control.

You buy leads when it suits you, and no more than three tradespeople can buy the same one. This means you stand to achieve a much higher win rate. Once you buy a lead, you get immediate access to the homeowner’s details, so you can follow up instantly.

If, for whatever reason, the lead is not contactable (say, if they’ve used a fake email address), you can get a credit back for the failed lead. You don’t have that luxury with other pay-per-lead platforms like MyBuilder.

The Rated People ecosystem is so easy to use. You can chat with customers on the go, get alerts for new leads, and request reviews for work in just a couple of taps.

Cons

When signing up for Rated People, their team will follow up with a phone call (usually within 24 hours) to explain how Rated People works. It doesn’t take a genius to realise that this is basically a smokescreen to sell you the benefits of using their platform before sharing the price with you.

Their most popular subscription costs £35 a month, which isn’t unreasonable, but you have to pay per lead too. So if you have periods where you’re too busy to pick up extra jobs, you’ll still be paying for the service, unlike with MyBuilder (where you only pay per lead).

Also, jobs are only live on Rated People for three working days, whereas Checkatrade keeps them live for around 30 days.

While this keeps the market competitive, it doesn’t give you a great window of opportunity to respond to job posts. You need to be routinely checking Rated People two to three times a week to ensure you don’t miss any.

If you have any issues and need to speak to customer service, finding contact information (whether email or phone) is virtually impossible. If you do enough digging around in the “Help hub”, you’ll eventually stumble across a live chat option.

Summary

•   Type: Pay per lead
•   Cost: Leads cost £2 to £65; monthly subscription of £35.
•   Trustpilot Rating: 4.4/5.0, from 17,172 reviews
•   Link: ratedpeople.com

 

6. Bark

Bark connects construction professionals with potential clients who are looking for a wide range of building and renovation services (as well as other services outside the construction industry), charging per lead to help you grow your business.

After creating a free account with Bark, customers can find you and reach out to you. Bark will also send you emails and notifications with relevant leads in your area. Not only that, but you can browse job posts.

Bark charges a fee for each introduction (paid for in credits), where you get each potential customer’s phone number and email address.

Pros

To some, no doubt spending £230.40 (ex VAT) for 180 credits may sound expensive, but Bark doesn’t lock you into a paid monthly subscription like other lead-generation companies.

This puts you in complete control over managing your workload. Your credits never expire, so there’s no pressure to use them within a certain period.

With 180 credits, you can usually buy around 12 leads, which works out at around £23 per lead. Bark is so confident that you’ll get hired at least once, that they will issue you with a full refund if you don’t. It’s a no-risk lead-generation strategy, and you can cancel anytime.

There are no commissions or hidden fees with Bark, nor is there a risk of a subscription price hike.

When a lead posts a job, a maximum of five professionals can respond to them—and you can always see how many have already been in contact with the job poster.

Contractors with a more sophisticated CRM system can integrate Bark with Hubspot and Zapier, to automatically sync purchased leads and carry out targeted campaigns.

Cons

As with any lead-generation service, you can expect leads to ignore your messages or calls. Usually, around one in five prospects will actively engage. But some aren’t always interested in actually going ahead, even though their lead profile says they have high hiring intent.

Also, many tradespeople have noticed that the cost (in credits) for the same job often differs. For example, a 30m2 house extension in the same area costs 12 credits, and another costs 18 credits.

After signing up with your free account, you’ll be encouraged to sign up for the Elite Pro plan, which supposedly helps your profile stand out and rank higher in SEO results. But for £49.95 per month (ex VAT), your money is better spent contacting customers directly.

Summary

•   Type: Pay per lead
•   Cost: 180 credits for £230.40 (enough for eight to 10 leads)
•   Trustpilot Rating: 4.2/5.0, from 93,880 reviews
•   Link: bark.com

7. Resi Connect

Resi is one of the UK’s largest architectural services, and they provide a Connect service for helping customers find vetted contractors.

As a vetted contractor, you get access to the projects and their design, and you can manage your projects using the online dashboard. Resi will introduce you to customers, and you won’t pay a penny until you land a project.

Pros

Resi Connect is a small network of around 150 tradespeople, meaning that you’re not up against dozens of competitors. If you offer a specialist service or cover a certain region, this means your chances of landing a contract are higher.

Resi’s process involves:

1. Project matching – Resi introduces customers to a selection of suitable contractors.
2. Client intro – Customers request to meet contractors based on high-level cost estimates.
3. Client site visit – Resi arranges any necessary site visits and allows you to take over.
4. Decision-making – Resi’s customer service team handles any tendering queries.
5. Full handover – Resi confirms the on-site start date and completes a full handover.

It’s a personal service that streamlines the tendering process, eliminating confusion for customers who might be tired of browsing endless listings of amateur tradespeople in online directories.

Not only that, but you can manage your projects using Resi’s online Dashboard to provide quotes, manage important documents, and communicate with the Resi team.

The signup process is subject to background checks and vetting, but getting started takes no more than 30 seconds by filling in your details with your Companies House number and website.

Cons

One of the downsides of Resi is account creation. You have to dig deep to find the small section on the Connect page that says “Are you a tradesperson? Get in touch if you're interested in being introduced to Resi customers”.

To sign up, you need to head to the Trade page.

Once your request has been received, Resi will be in touch to start the vetting process and acceptance is not guaranteed

Then, those who are successful in winning a contract are hit with a 5% referral fee—which earns it the title of Most Expensive Lead Generator in this comparison.

Resi charges an agent fee, but the process still requires effort on your behalf, as you need to bid for jobs on the dashboard.

Having learned this, some customers have remarked their disapproval, suggesting that the fee inflates the price of the contract, a cost which is passed on to them—which may affect their overall satisfaction.

Summary

•   Type: Introducer
•   Cost: ~5% referral fee
•   Trustpilot Rating: 4.6/5.0, from 589 reviews
•   Link: resi.co.uk

  

Local Listings for Construction Companies

If you want to pick up more local work, the quickest win for boosting your lead generation is to list your business on:

•   Google My Business
•   Bing Places for Business

Local search results are prioritised, especially when a user appends “near me” to their searches. By accumulating reviews on Google and Facebook (which are visible in Bing listings), you can leapfrog the local competition to the top of the local search results.

You don’t need to be in the habit of publishing tonnes of blogs and building a comprehensive SEO strategy to be visible to your local audience.

This is the lowest-hanging fruit of the lead-generation world—and it’s totally free!

                                                                 

Best Lead Generators for Construction Companies

For a steady stream of leads, you might want to take a mixed-methods approach, rather than relying exclusively on one type, such as directories. Whichever type of lead-gen company you use, be sure to track your performance and conversion rates; you want to avoid paying fees if your chosen platform isn’t generating new leads and, most importantly, conversions.

Also, if you’re getting more leads than you can handle, you might want to pause your subscriptions. Paying monthly (rather than annually) for subscriptions might be the most economical choice, especially if your business experiences demand fluctuations.

Overall, good luck! And remember to focus on your business fundamentals and customer satisfaction rather than just buying leads, as tempting as it may seem.

The big question on many minds is “Will UK construction costs fall in 2024?” The construction sector faces several challenges, such as a decline in housing demand, a stagnating economy due to inflation, and climbing mortgage rates – but what about rising costs?

In this article, we’ll explore how several economic factors are impacting the build cost of UK construction projects and the outlook for 2024.

A Look Back At Historical Construction Prices

Before we dive into what the market is currently indicating, let’s take a look back at historical prices. The latest figures released by the Department for Business & Trade suggest the construction material price index decreased by 2.1% in October 2023 compared to the same month the previous year.

If you look at the last 24 months in isolation, you see a gradual decline in construction prices. However, this fall is negligible when you consider the increase we saw in 2021/22 – when prices of building materials rose more than 45% at the beginning of the Covid-19 pandemic.

Despite a slight decline from the peak in 2022, material prices have held for the most part – even though the initial demand that triggered the spike has long since subsided. A 2.1% decline in the UK construction price index is a small shift.

Since construction output has fallen by around 7% in 2023, you might be wondering why construction material prices haven’t fallen more drastically. Economics is seldom so formulaic.

There are several factors influencing the prices of construction materials. Here are the ones having the greatest impact in the UK.

1. The Cost-of-Doing Business Crisis

We often hear that we’re in a cost-of-living crisis, but we rarely (if ever) mention that we’re in a cost-of-doing-business crisis.

Inflationary pressure has squeezed the value of the pound, and operating costs are much higher. Rising energy costs, interest rates, wages, and the cost of goods are eroding the profitability of building material suppliers.

Important! UK interest rates now seem to have reached a peak, and it’s expected that they will remain around 5.25% until 2025.

2. The Current Housing Market

Even though the sector has seen a 7% decline in the output of new-build housing as well as repair, maintenance, and improvement (RMI), the forecast for 2024 is more bullish. Glenigan predicts that construction output will grow around 12% at the start of 2024 due to a strengthening in project-starts and a pickup in housing spend.

For prices of building materials to drop, there would need to be a significant reduction in demand for those materials – but so far, construction output remains at relatively stable highs since records began in 2010. Thus, demand for build materials remains relatively high as well.

Even so, as we saw with the pandemic, in April 2020, construction output decreased by 40.1%, but that wasn’t accompanied by a drop in building materials prices – suggesting the construction market is much less reactionary to external economic factors.

3. The Brexit Impact

The cost of labour and materials have increased more steeply in the UK than in the EU, according to The Guardian. Analysis shows that, between 2015 and 2022, the cost of construction materials increased by 60%, whereas they rose only 35% in the EU.

The Guardian hasn’t made it clear which of those EU member states were included in its research, nor have they referenced which building materials this purports to. A more suitable comparison would have been between France and Germany (countries with similar GDP).

Nevertheless, one challenge that is apparent, however, is that before Brexit, 40% of construction workers in the UK came from other EU countries. The end of free movement means there is an even greater shortage of skilled workers, making it harder for companies to recruit and driving up the labour costs of construction projects.

A shortage of labour drives labour costs higher, which increases overall construction costs – subsequently reducing demand.

The Construction Industry Training Board has predicted that the industry will require an extra 225,000 workers to meet demand by 2027.

4. Government Initiatives

The total housing output in 2022 was healthy at £46.2 billion, but it was bolstered by government initiatives (Stamp Duty suspension and the Help to Buy scheme).

The Stamp Duty suspension remains in effect until 31 March 2025. The Help to Buy scheme, however, ended in March 2023. This means it’s now harder for first-time buyers to get a mortgage. They were previously able to secure a mortgage with a 5% deposit.

The dismantling of this support over the last year can be linked with the decline in construction output this year, with experts expecting a further impact in 2025 when the Stamp Duty cuts end.

An impending general election in 2024 could bring with it further stability or instability.

Labour pledges

At the Labour Party conference, Sir Keir Starmer promised to build 1.5 million homes during the next five years of parliament. He also pledged to:

• Bulldoze through the planning system in England
• Build on unused urban land (“grey belt”) to create next generations of new towns
• Increase the stamp duty for foreign buyers to disincentivise speculative overseas investment in UK property.

Conservative pledges

Back in 2021, the Conservatives set an ambitious plan to build 300,000 new homes a year, but in the year prior to the pandemic, there were 243,770 net additional dwellings.

At the Conservative Party conference, Gove reaffirmed the government’s commitment to:

• Building more homes (without offering specifics)
• Easing planning rules in cities to allow the conversion of empty retail premises
• Relaxing rules around barn, warehouse, and agricultural building conversions.

5. A Growing Reliance On Imports

One recent and alarming trend is the growing reliance on imports in the UK. Since Brexit, it’s clear that we do not yet possess the comparative advantages that our European neighbours do, such as Germany and Italy – who accounted for £2.2 and £1.3 billion of imports in 2022, respectively.

The gap between imports has more than doubled since 2015, with UK exports hardly growing in the last eight years. In 2022, the annual trade deficit widened by £3.9 billion to £15.5 billion, an increase of 34.4%. Why? Because foreign suppliers can provide commodities much cheaper than suppliers in the UK.

We imported £1.3 billion of sawn wood in 2022. Given the availability of land and the suitability of our climate for growing trees, it wouldn’t be hard to imagine a future in which the UK was self-reliant in timber production – leaving housebuilders (and their customers) less exposed to volatile prices and less exposed to supply chain disruptions at ports.

The UK also imported £700 million of linoleum products. The UK’s last surviving linoleum factory in Kirkcaldy, Scotland, which opened in 1847, is continuing to produce the eco-friendly and natural flooring solution (made of completely natural materials that come from renewable sources and are 100% biodegradable).

Should the UK be more independent when it comes to sourcing building materials? Self-reliance carries economic benefits as well as ecological benefits, but it’s not high on the agenda of our incumbent government.

What A Drop In Demand Of Brick Sales Tells Us

The UK market for brick sales saw a 29.1% decrease in brick deliveries in October 2023 compared to October 2022. It’s a similar pattern for concrete blocks too – a 24.2% decrease year on year. These early signs suggest that the demand for new housing is slowing.

Brick sales have dropped to their lowest level since 2010, and the downward trend looks set to continue. But that doesn’t necessarily mean to say we should expect a price decline.

Why prices rarely come back down

Unless there is something majorly disruptive, such as an innovation that slashes the costs of raw material production, prices of building materials rarely drop back to previous levels following a prolonged increase.

The price elasticity of demand refers to the change in demand when there is a change in the price of a product. Demand is considered inelastic if demand for a good or service remains unchanged even when the price changes.

Necessities such as building materials are inelastic, luxuries are considered elastic.

If demand sustains after a price increase, suppliers have no reason to reduce their prices – because that’s the price that customers are willing to pay. The Invisible Hand of the market determines whether prices will rise or fall.

Final Word On Construction Prices In 2024

Certain markets may see a temporary drop in material costs in 2024 (should we see a decline in construction activity), but due to the several economic factors outlined – government policy, construction cost inflation, Brexit, the annual trade deficit, and the current housing market – most material costs are unlikely to return to previous levels.

The cost of doing business has reached historic highs, meaning suppliers of building materials are faced with a stark choice: charge higher prices or wind up their operations.

Construction costs have soared in the last few years as demand has outstripped supply, but costs are gradually stagnating and have now fallen for four consecutive months. It’s not just hard costs that are volatile but soft costs, too.

Are you familiar with the difference between hard and soft costs? We’ll discover the nuances of each in a moment.

According to a McKinsey report, 69% of construction projects exceed their budget by around 10%. There are, of course, various factors at play in this – one of which is inadequate cost planning.

Understanding the difference between hard costs and soft costs will help you bolster your cost plans and bring stability to your construction projects.

Defining Hard & Soft Costs

Hard costs are expenses that are directly related to the physical construction process, while soft costs are indirect expenses that are related to planning and management.

• Hard costs are easier to quantify because they’re tied to specific construction activities and generally make up a larger portion of the total costs of a project.

• Soft costs are harder to estimate because they’re often spread throughout the project lifecycle, and they generally make up a smaller portion of the total cost of a project.

Exceptions

Since hard costs relate to tangible aspects of a construction project, you can be forgiven for thinking that land acquisition is a hard cost – but it’s not. Most professionals consider land a soft cost because acquisition takes place prior to the scheduled works.

What about furniture, fixtures, and equipment (FF&E)?

This includes both moveable furniture and fitted furniture that can be removed without damaging the structure of the building – for example, shelving.

As for repairs and maintenance involving physical labour after the construction is complete, these are categorised as soft costs. The same goes for gardening and landscaping costs.

The Main Soft Costs In Construction

When creating your cost plan, it helps to segregate soft and hard costs. Here are some of the main soft costs that you should include. Please note that this isn’t an exhaustive list and soft costs vary greatly in their nature.

• Planning: project management, coordination, and office support.
• Legal: legal fees, planning applications, and compliance with regulations.
• Insurance: various types of insurance coverage.
• Advertising: marketing and promotional activities.
• Repairs: maintenance and unforeseen repairs during construction.
• Security: on-site security measures.
• Rentals: facilities or temporary accommodation.
• Loans and financing: interest and fees associated with project financing.
• Design fees: architectural and engineering design services.
• Land costs: acquiring and preparing the construction site.

Remember, these are costs that are indirectly associated with the construction of a project – that is, the supporting costs that enable the physical construction of a building.

The Main Hard Costs In Construction

Hard costs typically account for between 70% and 80% of total construction costs. A few examples of these are:

• Materials: raw materials such as steel, concrete, and timber.
• Labour: wages and benefits for construction workers.
• Equipment: purchase or hire of machinery and tools.
• Utilities: connection of water, drainage, electricity, gas, etc.
• Mechanical systems: HVAC, plumbing, electrical, and fire safety systems.

Now that you know the difference between the hard and soft construction costs, it’s time to work up a solution for proactively managing them, before they spiral out of control.

Actionable Steps For Estimating Hard & Soft Costs

Accuracy is a must if you want to come in below budget. That means no more back-of-the-fag-packet calculations. You need to be methodical in your cost planning.

1. Understand the 5 levels of Cost Estimation

The Association for the Advancement of Cost Engineering (AACE) outlines five levels of cost estimation. Every level relates to the information that’s available at the time of estimation.

1. Order of magnitude estimates: when minimal design details are available, these are used to prepare rough estimates.
2. Study estimates: when early design details are shared, you can gauge the project’s feasibility.
3. Preliminary estimates: when initial data on materials and labour is provided.
4. Definitive estimates: when more detailed design information becomes available.
5. Detailed estimates: when complete information on the design, labour, and material costs is available.

It’s common for contractors to progress throughout a project’s lifecycle without iterating the cost plan. Is it any wonder construction companies overspend when the budget is based on woolly estimates?

Maybe you’ve given an indicative quote to a customer who’s taken that as concrete. Be sure to manage customer expectations at the outset and let them know the

2. Use BuildPartner Cost Planning Software

Using BuildPartner cost planning software, you can prepare a detailed estimate in a matter of minutes for hard costs, based on minimal or early design details.

As for the five levels of cost estimation mentioned above, BuildPartner enables you to prepare:

1. Order of magnitude estimates through per square metre rates.
2. Study estimates at the takeoff stage.
3. Preliminary estimates when scheduling the work.
4. Definitive estimates after specifying the itemised costs.
5. Detailed estimates at the point of analysing and collating quotes.

In that regard, it’s a full end-to-end process of cost planning for hard costs.

Whatever software or platform you’re using, your cost plan must include itemised costs. Not only does this give you transparency, but it’s important for the customer too, as it builds trust.

Having an itemised cost plan gives you greater customisation options. It’s so much easier for clients and contractors alike to adjust or remove certain components to better fit their construction budget requirements.

It also reduces the risk of errors and omissions. Ever accidentally forgotten to include the cost of an important component in a quote?

3. Bake A Contingency Plan Into The Price

Since over two-thirds of construction companies go over budget by at least 10%, it suggests that initial estimations are optimistic. It could be worse, though. Our government can scarcely manage a project like HS2 with incurring cost overruns of billions.

All manner of things can arise during project plans that contribute to overspend, such as:

• Changes to the construction schedule
• Scope or design changes
• Material price fluctuations
• Workforce availability
• Natural disasters, bad weather, or emergencies

With private firms, part of the reason for overspend is that firms are under-pricing to appear competitive and win bids.

That’s a commercial decision that only you and your team can decide, and you might be willing to risk it on smaller projects. But for the sake of accuracy, you should factor an additional 10% into more complex projects to cover any unexpected costs or delays.

Or, if you have access to historical data, use the percentage of overspend and apply that instead.

4. Track Running Costs

Cost planning isn’t a one-and-done process. Maybe you started out with a comprehensive spreadsheet, or maybe you’re paying for project management software – but are you using these tools to proactively track costs?

Ever find yourself saying, “There’s just not enough hours in the day”?

You’re too busy doing the actual doing, right?

We can all relate to this on a personal level. If we don’t check our bank statements, we quickly forget about our memberships and direct debits, and we’re oblivious to what we spend every month.

By virtue of tracking your expenses, you can act accordingly and:

• Stop buying expensive materials and source alternatives
• Identify discretionary expenses that can be cut
• Allocate funds based on strategic priorities

If you don’t track expenses, the profitability of your project is in the hands of the gods.

Final Word On Hard Vs Soft Costs

The success of any construction project hinges on the management of hard and soft costs. When a project’s stakeholders have full visibility of costs, it gives them greater control over the project’s outcome, to ensure that the vision translates into the desired outcome.

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Frequently Asked Questions About Hard And Soft Costs

Here are a few questions that will provide some insight into hard and soft costs in construction.

How much contingency should a building project have?

The propensity to overestimate or underestimate a quotation varies by company, and the specific percentage depends on the complexity of the project. Those with access to historic data should take an average percentage of their previous overspend for similar projects. A general rule of thumb is around 10%.

What is cost planning in building?

Cost planning in construction is the process of estimating, managing, and controlling the costs. Those companies that adopt rigorous cost planning practices are more apt to stay on budget and within scope of a project.

What are fixed costs and variable costs in construction?

Fixed costs are constant regardless of the project’s scope or output, and they’re typically incurred before or throughout the construction process. Some of the main fixed costs in construction are salaried workers, office rent, and vehicle repayments.

Variable costs fluctuate as the project’s size or complexity grows and decrease as the project scales down. Examples of variable costs include materials, waste disposal costs, and subcontractor costs.

It’s frustrating when you invest a bucket-load of time into bidding for a construction contract, only to never hear from the client again. But with the UK construction industry expected to bounce back and grow 12% in 2024 – according to Glenigan – there will be more projects up for grabs.

Even so, winning construction bids isn’t just a simple numbers game that involves bidding on as many projects as possible. Those who do wind up stretched and committing to projects outside of their niche.

Do you want to win repeat business from those who aren’t your ideal customers? Of course not.
Here are seven tips to win construction bids with the right clients.

1. Find the Right Projects

Just like the client, you need selection criteria too. It works both ways. So, how do you know what to look for when choosing the right projects to submit a bid for?

For starters, a construction project should be profitable. You can expect some negotiation further down the line, but if the numbers don’t stack up at the outset, it’s time to move on.

You should also spend time bidding on jobs you have more chance of winning. If a contract requires a firm to have certain trade characteristics and capabilities, you should evaluate this versus your organisation. Think about whether you meet the specifications for:

• Team size and capacity
• Accreditation and certification
• Legal compliance
• Sustainability practices
• Financial stability (large firms may request a D&B credit report)

If you find yourself bidding on every project, you’ll be engaged in work that’s less suited to your capabilities. You’ll end up trapped in a vicious cycle, winning repeat business from those same customers.

Focus on your niche – weed out the rest.

2. Know Your Bid-Hit Ratio

Your bid-hit ratio is a calculation of your successful projects versus the amount of bids you’ve submitted. If you’ve submitted 36 bids and won four, your bid-hit ratio is 9:1. That means for every ten bids you submit, you win one.

Go a step further and carry out an in-depth analysis. Break the bids up into categories like public sector and private sector contracts, building type (extensions, new builds, renovations), location, and contract value (<£5,000, >£,5,000).

With this information, you may discover that your bid-hit ratio is much stronger for smaller private contracts, particularly extensions.

3. Prepare An Accurate Estimate

Your cost planning is the foundation of your bid. Some clients will scrutinise the itemised costs, and they’ll use this as a basis for comparison with other contractors.

Have you included everything in your breakdown?

Missing items off a quotation or inputting inaccurate measurements leads to inaccuracies that will reflect unfavourably on you.

Submitting an accurate bid has never been easier through the use of cost planning software.

For instance, with BuildPartner cost planning software, you can:

• Generate instant comparable quotes of different specifications
• Automatically compile a schedule of works with a visual timeline
• Filter out inappropriate clients at little cost with a quick, accurate cost plan
• Make sure measurements are accurate and cut out errors
• Ensure no items are missed out with detailed and complete templates
• Provide accurate pricing with project-specific rates and live material feeds
• See where you are in the market with accurate averages in your area

All of this brings an unparalleled level of transparency that is welcomed by both parties. If you’re not using cost planning software, your bids will likely drown in a sea of others

4. Follow Up With Clients

So, you’ve spent a tonne of time preparing your bid, but nobody has contacted you to let you know if you’ve been successful.

That doesn’t mean you can’t reach out to them.

You don’t need to go sending passive-aggressive emails asking why you’ve not heard back. You should, however, engage with them politely and request an update on the status of your bid. Even if you’re unsuccessful, it’s an opportunity to glean some feedback from them.

5. Get Feedback (And Implement It)

Next to winning a contract, the next best thing you can gain is valuable feedback when you’re unsuccessful.

If you walk away from a tender without feedback, you do so empty-handed.

We don’t always know what the weaknesses are in our pitch, and we rely on the honesty of others to share that information.

Some clients will be happy to tell you how you measured up versus the competition – whether you were priced too high or too low, or if there were any other sticking points.

Tip! In your parting email or conversation, thank the client for their time and be sure to express your interest in working with them should things not work out with the awarded contractor. In doing so, you’re strategically pushing your way to the front of the queue and positioning yourself as a contingency.

Don’t take it personally if you don’t hear back. Some clients might just be shopping your number and weighing up the bids of others. If you suspect someone is wasting your time, don’t waste any more time engaging them.

6. Write Detailed Proposals

If you write generic proposals or proposal templates, they’ll land on the clients’ slush pile, never to see daylight again. Each bid proposal should address the specifics of that particular job.

You might think that the old copy-and-paste method will save you many hours, but the reality is that it’s harming your bid-hit ratio.

A client can spot a pre-made proposal a mile off because they fail to connect with their specific needs. The can also sniff out what’s been auto-generated by ChatGPT and Google Bard as it’s often saturated with hyperbole, wooden language, and Americanisms.

Do your homework.

7. The Early Bird Gets The Worm

More often than not, a deadline will be specified, but that doesn’t mean the client isn’t actively assessing proposals in the interim.

You don’t have all the time in the world to submit your bid. Those who submit later on in the construction bidding process have to work harder to compete for the client’s attention and stand out from the crowd.

The anchoring bias is a psychological bias towards the first piece of information we are given about a topic. Our early learnings influence our opinions after that.

So, not only is it more likely that your bid will be reviewed when submitted earlier, but your bid will also be regarded as an authority or benchmark.

Why Do I Keep Losing Construction Bids?

If you’re receiving knockback after knockback, there’s likely a fundamental reason that’s preventing clients from awarding you the work. Stop to consider if:

• You didn’t understand the scope of the project
• The price wasn’t right
• You didn’t explicitly detail your costs
• You didn’t showcase your experience
• Your testimonials and evidence of past projects weren’t unsatisfactory
• You were missing documents and information
• You were late in submitting
• You don’t use the right tools

Price is often the deciding factor, but don’t sell yourself short. After all, if you are successful in your bid with a low price, your client will expect similar prices for future work. Are you prepared to keep winning business that underpays you?

Frequently Asked Questions On Winning Construction Bids

Here are some frequently asked questions on winning construction bids.

What evaluation criteria are used to assess construction bids?

Firms use lots of criteria when deciding which construction business to carry out their project. Professional organisations use a scoring system that analyses technical capabilities, price, quality, financial stability, compliance with requirements, sustainability credentials, track record of construction management, and the scheduled timeliness of the project plan.

What pricing strategy can I use for construction tenders?

There are many pricing strategies you can employ to arrive at your final figure. It’s important to be rigorous in your approach as your bid could be subject to scrutiny. Here are some of the main pricing strategies you can use:

• Cost-plus pricing is when you consider all costs (hard costs and soft costs), then add your margin (percentage markup) to your bid price.
• Value-based pricing is when your construction services are priced in line with what your customers are willing to pay.
• Most economically advantageous tender (MEAT) is when you offer a combination of price and quality. For example, in your bid, you may submit your lowest price (which is broadly weighted as 80% price and 20% quality), or you may wish to submit a competitive bid that reflects the highest quality (20% price and 80% quality). MEAT encourages fairness by ensuring that the cheapest suppliers don’t always win bids.
• Marginal pricing is based on the variation of output. For example, your price to build one home may attract a higher profit margin than if you were pricing for ten homes. Marginal pricing is particularly useful in expanding projects where the scope continually adjusts.

Final Word On Winning More Construction Bids In 2024

Some studies suggest that construction companies are spending as high as 22% of their operational turnover tendering for work. Tenders are fiercely competitive, and if you focus on quantity over quality, then you’ll see a margin of diminishing returns.

With each submission, your effort level will deteriorate. So you have to be selective and focus on your niche.

In an ideal world, we’d have a strong pipeline of work with our ideal customers and spend much less time submitting bids. But while we commit to a scattergun approach in bidding for contracts, that ideal remains beyond our reach.

As house prices have fallen for six consecutive months and prices have dropped 13.4% from their peak, it’s crucial to understand what UK House Price Predictions for 2024 mean for homeowners, landlords, and the construction industry.

According to the Office For Budget Responsibility, house prices are expected to fall a further 10% in the next year.

An impending general election also brings with it greater uncertainty. If the reduced demand for new housing and renovations continues, what will be the impact on the construction industry?

Let’s take a closer look.

The Trajectory Of The UK Housing Market

With rents at a record high and economists warning of a mortgage “time bomb”, you’re probably wondering about where the housing market is headed. But why is the UK property market in such a fragile position in the first place?

The short (and simple) answer is that it’s due to supply and demand. We aren’t building enough houses to meet the demand. When compared to the average European country, the UK has a backlog of around 4.3 million homes that are missing from the national housing market.

But the shortage has been the case for decades.

So why are things seemingly worse now?

• Climbing interest rates have made mortgages increasingly expensive
• The cost-of-living crisis and rising inflation have hit people’s spending power
• House prices have risen exponentially and wages are lagging.

In 1992, the average UK house price was little over four times the average person’s salary, now it’s around nine times the average person’s salary.

Over the last hundred years, aside from the occasional peak, the average price has stayed within the range of four to six times that of the average salary.

Since 1992, that figure has risen, preventing many would-be buyers from getting onto the property ladder and trapping them in rental accommodation.

So, where will the next decade take us?

The answer to that question may hinge on the results of the next general election.

Labour Policy Versus Conservative Policy

Labour pledges

At the Labour Party conference, Sir Keir Starmer promised to build 1.5 million homes during the next five years of parliament. He also pledged to:

• bulldoze through the planning system in England
• build on unused urban land (“grey belt”) to create next generations of new towns
• increase the stamp duty for foreign buyers to disincentivise speculative overseas investment in UK property.

Conservative pledges

Back in 2021, the Conservatives set an ambitious plan to build 300,000 new homes a year, but Michael Gove, the Secretary of State for Housing, has since backtracked, suggesting the initial target was advisory.

In the year prior to the pandemic, there were 243,770 net additional dwellings.

However, at the Conservative Party conference, Gove reaffirmed the government’s commitment to building more homes and said the party is also committed to:

• Easing planning rules in cities to allow the conversion of empty retail premises
• Relaxing rules around barn, warehouse, and agricultural building conversions.

What do the polls show?

The most recent YouGov voting intention poll shows Labour ahead at 43% and the Conservatives attracting just 27% of the vote.

The rest of the votes are distributed as follows:

• Liberal Democrats – 10%
• Reform UK – 8%
• Green Party – 7%
• Others – 5%

While there’s still a while to go, the current sentiment and the results of the recent Conservative by-election losses point towards a change in government at the next general election.

Investment into the housing market will be a key battleground to win over voters, so expect some outlandish headline promises.

The Renters Reform Bill

The Renters Reform Bill is currently under review by Parliament and is set to make the lettings system fairer for 11 million private tenants. If introduced, the Bill mandates the following:

• Periodic assured tenancies, providing more security for tenants
• Landlords must consider and cannot unreasonably refuse pets in their properties
• Landlords can’t refuse to house benefit claimants
• Tenants to give landlords two months’ notice before vacating

The Bill will also see the introduction of a new Private Rented Sector Ombudsman that will provide fair and impartial advice as well as binding resolutions.

But how would the Bill impact the housing market?

Despite making it fairer for tenants, these extra barriers put pressure on landlords in a market that’s already signalling an exodus of landlords.

If landlords and developers don’t supply the housing, who will?

“The government will miss their 300,000-homes-a-year manifesto pledge by a country mile,” according to former Housing Secretary Robert Jenrick.

Love them or hate them, the UK housing market needs private financing.

The Impact On The Construction Industry

We only have to look back at recent history, specifically the credit crunch, to see similar patterns of buying behaviour. The construction industry was one of the hardest hit by the financial crash in 2008, when house values dropped around 20%.

Many homeowners overextended themselves with 100% mortgage values and were left in negative equity.

That meant they were unable to downsize or get a better deal.

Today, around 400,000 people will see their fixed-rate mortgages end over the next few months, and they’ll be remortgaging on an average rate of 6.15% (for a two-year fixed-rate mortgage).

In September 2021, the average mortgage rate was 3.59%.

Depending on a homeowner’s loan to value, and the amount borrowed, repayments may be double or triple than what they were previously.

With mortgage repayments high and house prices declining, there is a very real danger of a “cost of ownership crisis”.

Over 50,000 people have already fallen into negative equity over the last twelve months.

A Bleak Forecast For 2024?

According to the Construction Products Association (CPA), the construction industry is virtually on the brink of a recession due to a (predicted) 7% decline in new-build housing and repair, maintenance and improvement (RMI).

Other forecasts for 2024 are more bullish. A Glenigan forecast predicts a bounce back of 12% at the start of 2024 due to a strengthening in project-starts and a pickup in housing spend.

Sceptics argue that the recovery will be postponed until rising mortgage rates cool and house prices stabilise – not to mention inflation.

There is hesitancy in the market, with many buyers adopting a wait-and-see approach, holding out for lower house prices and mortgage rates.

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UK Property Market Frequently Asked Questions

Here are a few frequently asked questions regarding the UK housing market.

Are house prices dropping?

There is a consensus among economists that high mortgage rates of around 5% will remain standard for at least the next couple of years. Given the high-interest repayments, fewer buyers can afford homes, meaning it’s likely that property prices will fall.

Will there be a housing market crash in 2024?

Although there is some acceptance that house prices are taking a hit and will continue to do so, a decline of around 10% (as predicted by the Office For Budget Responsibility) hardly constitutes a crash, at least not a substantial one. A crash is usually defined as a decline of over 10% in a price index from the 52-week peak.

Will interest rates come down in 2024?

The Bank of England expects the base rate to drop to around 5% by the end of 2023, but some analysts’ market predictions point towards a rate rise to 5.75%. Regardless, Andrew Bailey, the governor of the Bank of England, warns that we should not expect interest rates to drop until we see evidence of inflation slowing. The expectation for 2024 is that interest rates will remain broadly flat.

Final Word On UK House Price Market Predictions

The UK property market and construction industry are intertwined. If the housing market were to crash, the construction industry could suffer a shock that would take years to recover from.

The housing policy of the government, both incumbent and impending, will play a large role in shielding both the housing market and the construction industry.

But lessons should be learned from previous stimulus packages.

Rishi Sunak’s stamp duty cuts during the pandemic to cushion the property market may have seemed like a good idea, but economists now argue the act pushed prices up beyond any tax savings for buyers.

The affordability and supply of housing remains the problem in need of solving. Stimulating demand will only exacerbate house price growth.