As noted in the previous report the market has reacted by reviewing processes for procurement and design development via selective tendering, funding certainty conversations and approach to contractor engagement – this leading to a more collaborative approach to procurement.
However, inflation pressures are not the only element to be considered, the changes to building regulations in the last 12-24 months must also be considered alongside inflationary pressures. These changes to building regulations have resulted in the increased costs of materials, which when already at their highest rates due to inflation, put further pressure on viability and deliver-ability especially on key packages such as external walls and glazing.
With this added test on construction costs it is imperative that buildings are designed efficiently with a key focus on packages such as facades to ensure that external envelopes are designed with minimal undulations and abnormal heights – which we will explore in this Market Update.
