Posted on December 20th, 2023 by Melissa Lawrence
Mark Merritt, the Director of Development Monitoring, reflects on his first year (2023) at Project and Building Consultancy (PBC) and outlines his predictions for the upcoming year that will directly affect his clients and his department in 2024. Mark’s appointment was to lead the newly formed Development Monitoring team, with a mandate to increase PBC’s current client base and centralise the department.
An Overview of Development Monitoring in 2023
“In many respects, it has been a good year, as we have successfully expanded our client base, whilst continuing to deliver excellence to our existing clients.”
Traditionally, Development Monitoring have monitored residential schemes, with some mixed-use, commercial and industrial, however, in the last couple of years Mark has seen an upturn in Purpose Built Student Accommodation (PBSA). Mark said that the Development Monitoring team prides itself on their ability to monitor these schemes, successfully completing 2 in the last year, with a further 3 either on site or about to start on site.
Mark has noticed a reduction in new development deals across the board. There has been a “perfect storm” impacting the viability of schemes – construction costs are significantly up on 2 years ago, the cost of borrowing is 5% more expensive than at the end of 2021, end sales are flat and land prices to date have remained high.
Opportunities for 2024
“There are signs of green shoots of recovery. Land prices are reportedly starting to fall which is seeing some of the schemes that were previously not viable, starting to look achievable.”
Whilst interest rates remain higher than they were 18 months ago, they have stabilised. giving more certainty to developers over their cost of borrowing. Additionally, a lack of development in certain sectors, has meant that the supply chain is seeking work and are therefore more competitive. A Developer recently spoke to Mark about material costs being reduced as some suppliers have a surplus of materials and are offering discounts to reduce their stock. Mark adds that If we consider lower land prices, more competitive tender prices and stabilised interest rates, schemes that have been on hold, may now be able to proceed.
Market Predictions in 2024
“I think it will continue to be a slow start, but come Q2 / Q3, with further stabilised interest rates and tender prices being more competitive, along with possible lower land prices, I think we will see an upturn in schemes proceeding. I am therefore confident that in the latter half of 2024, we will see more development deals proceeding.”
To learn more or make an enquiry, please contact Mark Merritt, Director of the Development Monitoring Team.
To view Development Monitoring’s past work, click here.
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Posted on December 11th, 2023 by Melissa Lawrence
End of Year Review 2023
Market Trends
The turbulent economic environment has continued this year, marked by high UK interest rates to combat rising inflation, cost of living pressures and global uncertainty, which have had a dampening effect on business investment and growth. Construction industry output continues to fall, as we move into next year.
Our Summer edition of PBC Cost Commentary reported that although the UK economy managed to avoid recession, there are still adverse pressures on the construction industry with some sectors in decline but with growth in others. New project orders saw a 3.9% increase in the last quarter and the November BCIS materials cost index shows the cost of materials decreasing and building costs starting to ease, with the reduction in material prices helping to offset the increase in labour costs. Click here to be redirected to our latest cost commentary report.
Responsibility
We continued our commitment to net Zero and have again this year achieved Carbon Neutral certification, our fourth year running.
The Global Cop 28 global Summit is upon us, and the UK drive for Net Zero has again been a key trend this year, with most of our clients being focused on ESG and improving the green rating of their properties. Investors have been offering green building loans, and many of our property clients have in place a strategy and pathway to achieving Net Zero carbon for their portfolios and the use of more renewable products and materials.
Our teams are involved in a number of EPC building upgrade projects to meet the minimum energy efficiency standards (MEES) by 2030 and we are promoting decarbonising across our construction projects, including minimising waste to landfill sites, the reuse of materials wherever possible and the responsible sourcing of construction products.
Diversity and inclusion also remains high on the agenda at PBC and we have taken significant steps in helping individuals and external organisations to become more accessible and inclusive.
Notable Achievements
This year we made some key promotions in our senior management team, with Glenn Wright MRICS our director of Project Management promoted to the PBC Board, Jack Dison MRICS promoted to a director of Building Consultancy and Jim Heatley MCIOB promoted to a Senior Associate in our PM Team.
We continued to grow our pool of talented staff with a number of strategic hires, including the appointment of Dante Makin MRICS, senior building surveyor who joined the business in September to work alongside Jack Dison.
We also launched a new Development Monitoring (DM) department and centre of excellence, headed by director, Mark Merritt MRICS, and in Q3 we launched a specialist Rights of Light, Daylight and Sunlight division, headed by Desrine Oak MRICS, Senior Associate.
The official launch of our new Matterport camera services provides advanced 360-degree, 3D scanning technology and imaging software, which has already proved popular with clients for building surveys and feasibility studies, insurance claims and recording progress on site.
The demand for our range of Professional and Construction Consultancy Services has remained both strong and diverse. We have seen significant growth, in client requirements for commercial fit outs and office flex space products, hotels and Purpose-Built Student Accommodation.
The Artesian, London E1 – Project Management Services
Our Projects Team delivered “The Artesian, in London E1 for CLS Holdings Plc, transforming a 1930’s former Co-Operative Bank HQ built in art deco style, into high quality modern office accommodation, providing over 110,000 sq. ft. of CAT A refurbished and CAT B fitted office space over 6 floors, with a large roof-top terrace and strong sustainability credentials, including BREEAM “Excellent”, EPC B and Wired Score platinum certification.
The White Hart Hotel, Lincoln – Cost Management Services
Our Cost Consultancy division cost managed the comprehensive upgrade and refurbishment of the historic White Hart Hotel, near to the Castle and famous cathedral in the heart of Lincoln, with a soft opening achieved in October and full opening due in the New Year.
The Hickman, Whitechapel – Employer’s Agent Services
Meanwhile, the larger Building Consultancy team have been busy with pre-acquisition Technical Due Diligence (TDD) surveys for property investors, and continued to manage the delivery of a range of serviced office fit-out projects for operators and landlords across the South-East of England, including “Flex space” offices for Great Portland Estates.
Five Fields, Grosvenor Gardens – Party Wall & Neighbourly Matters Services
Our Party Wall, Rights of Light and neighbourly matters team acted on behalf of Grosvenor on the “Five Fields” scheme in Grosvenor Gardens, set across 30,000 sq. ft, this new charity hub, has been brought forward by Grosvenor and the Westminster Foundation.
The Enso PBSA Building, Colchester – Development Monitoring Services
Our newly launched Development Monitoring department grew its client base with many projects monitored for lenders, including the Enso Building in Colchester, new purpose build student accommodation monitored for Investec Bank Plc. In Highgate Road, Kentish Town are monitoring a mixed-use scheme consisting of five assisted living residential units, commercial space and with 42 apartments above.
In terms of financial performance, 2023 has been a strong year to date, with a 10% increase in fee income compared to this time last year and all major departments remaining ahead of budget.
Look Ahead
The year ahead looks both exciting and challenging and we remain cautiously optimistic. Our strong pipeline of new business opportunities across all departments, with potential for adding more new clients, is one of our key strengths going forward into 2024.
We will be looking to invest in more good quality talent to strengthen our sector experience including in Hotels and office “Flex” space. We are also planning to grow our presence across the UK regions.
The drive towards Net Zero and implementation of the MEES regulations has undoubtedly given rise to more opportunities for advising clients on their proposed property purchases, existing portfolio upgrades and for managing clients’ Net Zero pathway implementation projects.
This year, we have also seen a shift towards modern methods of construction (MMC) in construction and development, particularly the use of timber framed structures and volumetric modular developments as part of a strategy for meeting 2030 net Zero targets.
Our 23 year business track record and reputation for professional expertise should enable us to grow further our framework agreements with private blue chip portfolio clients.
Faced with continued economic uncertainty and more financial pressures moving into 2024, clients should be taking early advice from their professional consultants to secure cost and programme resources for their projects. PBC is well placed to respond to our client’s demands as we continue to be a financially robust, with strong management and experience across our Building Consultancy, Project Management, Development Monitoring and Cost Consultancy Teams. Our motto is ‘to ensure the best outcome every time’ and we wholeheartedly believe that PBC achieves this for our clients.
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Posted on November 28th, 2023 by Melissa Lawrence
In the complex landscape of the built environment, unforeseen events are almost inevitable. When the unexpected occurs, the role of a surveyor navigating insurance claims becomes pivotal. Your surveyor plays a crucial role in assessing damages, providing accurate documentation, and facilitating a smooth process throughout your insurance claim. Here are steps that are taken when raising a surveyor for an insurance claim:
Choosing the right consultant
Choosing the right consultant is crucial for the success of an insurance claim and the reinstatement of a building, especially for complex claims involving multiple affected parties. Our professional team has a wealth of expertise in project managing reinstatement work following fire, flood, structural failure and other related issues. The team can ensure a higher degree of diagnostics, detailed analytical data, and rapid response to ensure a smooth delivery, taking into consideration all circumstances and within the agreed timeframe.
Initial Assessment and Documentation
When an unfortunate incident occurs, such as property damage or structural issues, the surveyor is often the first on the scene following emergency services. Their initial assessment involves documenting the extent of the damage, collecting evidence to document your claim, and creating a comprehensive project plan. This meticulous documentation becomes the foundation for the entire insurance claim process.
Expertise in Building Pathology
Surveyors bring a wealth of expertise in building pathology, enabling them to identify the root causes of damage but also the consequential effects of the route cause. Whether it’s due to structural issues, construction defects, fire or flood, the surveyor’s in-depth understanding allows for a precise diagnosis and through remediation proposals . This knowledge is instrumental in ensuring that your claim covers the full extent of the remediation covered by your policy.
Collaboration with Insurance loss Adjusters
Surveyors act as liaisons between the insured party and insurance loss adjusters. Their role involves presenting the documented evidence, explaining the technical aspects of the claim, and providing insights into the necessary remediation measures. This collaborative approach facilitates a smoother and more informed claims process.
Cost Estimation and Valuation
A critical aspect of the surveyor’s role in insurance claims is the estimation of costs for reinstatement. Surveyors leverage their knowledge of construction costs, materials, and labour to provide accurate and realistic cost estimations. This ensures that the insurance settlement aligns with the actual expenses required to restore the property to its pre-loss condition.
Risk Mitigation Strategies
Surveyors actively contribute to the development of risk mitigation strategies. By identifying vulnerabilities and weaknesses in the construction process or design, they help clients and insurers implement measures to prevent similar incidents in the future. This proactive approach adds value beyond the immediate resolution of the insurance claim.
Expert Witness Testimony
In cases where disputes arise, surveyors often serve as expert witnesses. Their testimony, grounded in technical expertise and comprehensive documentation, can be instrumental in legal proceedings. Surveyors play a crucial role in ensuring that the facts of the case are presented accurately and objectively.
Adherence to Regulations and Standards
Surveyors are well-versed in the ever changing regulatory standards which govern the construction industry. Their advice in this respect can be invaluable, particularly when reinstating buildings which have been constructed under previous regulatory standards to meet with todays standards.
While surveyors may work behind the scenes, their role in insurance claims is undeniably vital. From the initial assessment to collaborating with insurance professionals, providing expert testimony, and contributing to risk mitigation, surveyors contribute significantly to the resolution insured perils in the built environment. As the construction industry continues to navigate uncertainties, the expertise and diligence of surveyors remain indispensable in ensuring fair and informed outcomes in the aftermath of unforeseen events.
To view case studies showcasing insurance claims, click here.
Speak to Simon Garrard to learn how we can support your insurance claim.
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Posted on December 19th, 2022 by liz
John Nassari Photography
PBC Managing Director, Paul Philips, shares his thoughts on 2022 and his insights on where the property sector is heading over the next 12 months.
What external factors have had the biggest impact upon PBC and its business this year?
“Over the last year, we have seen economic and political pressures both on a domestic and global scale. The tail end of Covid-19 pandemic, Russia’s war with Ukraine through the year, and a lack of UK political stability during the last quarter has given rise to volatility in many markets, with energy price and interest rate rises, and continuing public sector pay disputes, leading to strikes impacting UK business.
Our latest Cost Consultancy Lead Times and Cost Commentary reports an increase in construction output across three consecutive months from July to September, with an increase in new orders, less material shortages and improved supply chain performances beating market expectations. In fact, the UK Construction Industry was the only main sector of the economy that expanded in recent months.
This was mainly due to unfinished work and a strong pipeline, principally related to the private commercial, infrastructure and housing projects.
However, the above reported growth in Q3 came ahead of the Government’s disastrous mini budget, which significantly impacted the UK economy, resulting in a forecasted fall in construction output for the year ahead, coupled with a tight labour market and a slowdown in real estate investment and finance.
What key trends have you seen this year and what do you think has driven them?
Labour shortages, high vacancy rates and recruitment difficulties have remained a constant obstacle to growth for construction companies and consultancy businesses, and this looks set to continue into Q1 2023 while the construction project pipeline is strong. However, this is likely to change as wages struggle to keep up with the cost of living and we see more redundancies.
The Global Cop 26 and 27 Summits, and the UK drive for Net Zero, has been a key trend this year, with most of our clients being focused on ESG and improving the green ratings for their properties. Investors have been leaning towards green building loans, and our property clients have been keen to understand the strategy and pathway to achieving Net Zero carbon for their property portfolios and the use of more renewable products and materials. Indeed, the construction industry has been promoting decarbonising construction projects. However, the lack of Government recognition of the sector’s abilities, and associated funding, has made the target of achieving Net Zero in construction by 2030 a slim prospect.
Post pandemic flexible working is another trend we have seen this year, with many businesses, including PBC, offering staff more flexible working arrangements between office and home, with productivity being maintained. In conjunction with this we have seen changes in the way businesses occupy their space, with a shift towards the serviced office market, with more emphasis on breakout areas, collaboration spaces and noise proof phone booths for Zoom and Teams calls.
What major achievements has PBC recorded in the past year?
Rising inflation, higher interest rates and energy costs have been the key economic barometer this year. However, notwithstanding these pressures since the start of the year, PBC saw an upswing in new property investments and development finance transactions and an increase in new project starts. Our profile in the market has increased due to the quality of our service, giving rise to repeat business from our clients, and also from more effective marketing and promotional activities. A mix of showcase features, case studies, and an improved social media campaign, has further helped to drive growth over the past year.
The demand for our extensive range of Professional and Construction Consultancy Services has remained both strong and diverse, with healthy activity in the commercial, industrial and logistics and residential sectors. The average size of our instructions continues to grow across all departments and saw an upturn in 2022.
Our Projects Team has delivered a £74 million commercial office development in Southwark for a world leading advertising company and will also be handing over a new 150,000 sq. ft. distribution facility extension in Colchester for a major book publisher, with a BREEAM “very good” certification.
Our Cost Consultancy division has recently secured a 66,000 sq. ft. comprehensive CAT B office fit out in the City for a major insurance company and has completed QS services on the refurbishment of a 50,000 sq. ft. industrial unit in Milton Keynes for a leading institutional fund, incorporating many sustainability upgrade features. Both our PM and QS teams are also busy project and cost managing an extensive CAT A+ office refurbishment project at the former Terence Conran HQ at Shad Thames in SE1.
Meanwhile the larger Building Consultancy team has carried out over 25 pre-acquisition Technical Due Diligence (TDD) surveys for property investors, including an industrial park in Essex, a multi-storey office building in the City, two hotels and Judges Lodging’s in the heart of historic Lincoln and another hotel situated on a clifftop overlooking the Lizard in Cornwall.
In addition to these TDD surveys, our Building Consultancy team has continued to manage the delivery of a range of serviced office fit-out projects for operators and landlords, across the South-East of England, including “Flex space” offices for Great Portland Estates.
We continue to act for many blue-chip clients, including The Portman Estate, CLS Holdings Plc, Columbia Threadneedle Investments, Aviva Investors and Ballymore.
Our experience and expertise over the last 22 years in providing Project Monitoring Services to banks and other development funders, has enabled us to secure Independent Monitoring Surveyor roles on many exciting projects, including the £25 million conversion of Richmond Hospital to private and affordable residencies, a 57,000 sq. ft. development of new contemporary offices and light industrial space in Kings Cross and a £20 million, 298 unit build to rent office residential conversion scheme in Swindon.
All of PBC’s departments are growing in size and you are taking on more staff. Why is this?
PBC has grown this year, with two new building surveyors in our Building Consultancy Team, a Senior PM and Assistant PM added to our Projects Team and a new Senior QS joining our Costs Consultancy Team. We are also excited to be starting a new departmental “centre of excellence” for Development Monitoring, headed up by Mark Merritt BSc Hons MRICS MAPM, our new Director of Development Monitoring, who is joining us in January 2023.
Our graduates are aiming for their RICS APC in 2023 with our support and Ben Hallowell successfully passed his APC this year and became a member of the RICS
Our Director of Cost Consultancy Chris Jones MRICS was welcomed to the Board of PBC from 1st May during the year and in terms of company performance, 2021/22 was the best year we have had to date with 54% growth on the previous year and 23% over our budgeted profit. The Building Consultancy Team achieved a 30% increase on budgeted fee income, Cost Consultancy achieved a 38% increase, and the Projects Team achieved an 8% increase and their best performance to date.
Are there any trends amongst PBC’s commercial, industrial and residential clients that have emerged over the past year?
The last year has seen ESG and sustainability top of most clients’ corporate agenda, which has seen PBC focus on addressing energy efficiency and decarbonising carbon in construction. Across the business, we recognise the importance of introducing sustainable and renewable features into projects, including PV panels, air and ground source heat pumps, EV charging points, energy monitors, HVRF HVAC systems, end of journey commuter and cycle facilities and Net Zero pathway portfolio assessment. Advice on measures to improve the EPC rating of our clients’ buildings and property portfolios has also seen an increase.
From PBC’s own perspective, we achieved Carbon Neutral Plus Accreditation and certification in 2022
What are your plans for developing the business further in 2023 and are there any external factors or trends that you think will continue to affect the sector next year?
The year ahead looks both exciting and challenging and we remain cautiously optimistic. Our strong pipeline of new business opportunities across all departments, with potential for adding more new clients, is one of our key strengths going forward into 2023. The challenges, however, come from increased costs and the continued impact of the war in Ukraine across Europe, and the need for economic stability in the UK.
Whilst overall economic growth expectations remain subdued, there are some areas offering opportunities for property and construction consultancies. The drive towards Net Zero will undoubtedly give rise to more opportunities for advising clients on their proposed property purchases, existing portfolio upgrades and for managing client’s Net Zero pathway implementation projects.
Smart building technology is another growth area for construction, which is a must have for many larger property developers. Modern methods of construction, such as modular buildings and the greater use of close laminated timber, will also be more widely adopted across the industry.
Faced with further economic uncertainty and more financial pressures in 2023, clients should be taking early advice from their professional consultants to secure cost and programme resources for their projects. PBC is well placed to respond to our client’s demands as we continue to be a financially robust, with strong management and experience across our Building Consultancy, Project Management, Development Monitoring and Cost Consultancy Teams. Our motto is ‘to ensure the best outcome every time’ and we wholeheartedly believe that PBC achieves this for our clients.
If you weren’t the Managing Director of PBC, what job or challenge would you relish most?
After 22 years, I still get up every morning and look forward to the challenges of running PBC. Working alongside our amazing teams, our fantastic clients and the job itself makes it all worthwhile. However, anyone who knows me well knows that I am an avid rugby fan. There is, therefore, only one job that would entice me away from my role of Managing Director at PBC, and that is the England Rugby Union Manager’s job. I’m still waiting for the call!
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Posted on November 28th, 2022 by liz
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Posted on November 3rd, 2022 by liz
We’re proud that PBC has featured in Building Magazine’s recently announced ‘Top 150 Consultants’ of 2022.
It’s great to see that our continued growth, talented staff and in-depth industry knowledge has moved us into 133rd place.
View the Building Magazines top list here: https://lnkd.in/eYBAq4Dm
(Please note that a subscription to Building Magazine is required to view this information)
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Posted on September 15th, 2022 by liz
PBC has been busy on many residential projects for clients.
Take a look at our latest e-newsletter to see just a few of the successful developments our Project Management, Building Consultancy and Cost Consultancy teams have successfully completed.
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Posted on June 17th, 2022 by liz
PBC’s June 22 Materials Cost Commentary and Lead Times Review
PBC’s expert Cost Consultancy Team has issued it’s latest update on current materials costs and lead times. The full review is available to read here: https://bit.ly/3tHh16O
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Posted on December 6th, 2021 by liz
Following our market update in May, the industry continues to face build cost inflationary pressures as well as long lead times for key materials. These pressures are having a direct effect on projects with both main contractors and their supply chains finding it challenging to resource sites with materials and, in some cases, key trade labour.
Forecasts predict these issues will last for the rest of this year and push into 2022, with the knock-on effect of the pandemic, Brexit, fuel and energy costs and the shortage of haulage drivers all affecting the market.
The issues are further exacerbated by an increase in construction output across most sectors, which has put an even greater pressure on material supply and demand. Construction output has significantly increased as the industry rebounds from the worst effect of the pandemic, but although output has not yet returned to pre-pandemic levels, the output to Q3 2021, as reported by the ONS, is 45% higher for infrastructure and 26% higher within the private commercial sector.
Not all sectors have seen increases, however. It is reported that the house-building industry has suffered significantly because of the Covid pandemic, with completion of new housing down by circa 11% from 2020.
To read the full Cost Commentary, which details materials and tender price increases, as well as delivery lead times click here: https://bit.ly/31yKWTE
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Posted on September 2nd, 2021 by liz
Despite the Covid-19 pandemic continuing to impact the commercial property sector, PBC’s Building Consultancy Team has been busy fulfilling requests from clients for Pre-Acquisition and Technical Due Diligence Surveys. Investment opportunities are still being seriously considered across all property sectors, and PBC’s expertise has been in high demand.
Here are just a few of the projects we have completed recently:
- 20,000 sq.ft. retail premises with development potential on Chiswick High Road – Technical Due Diligence Report for inclusion in Vendor’s Pack for a prime food store investment in an affluent London suburb
- Six site portfolio of office buildings in Greater London and the Home Counties ranging from 30,000 to 100,000 sq.ft. – Pre-Acquisition Surveys and Peer Reviews of Vendor’s Reports
- The Conran Building – Pre-Acquisition Survey of the iconic 20,000 sq.ft. premises in Shad Thames, London
- Light Industrial – Technical Due Diligence and Pre-Acquisition Survey of site in Brentford with potential for redevelopment
- Trinity House, Oxford – Pre-Acquisition Survey and Dilapidations Advice for a 26,000 sq.ft. office building
Read our e-newsletter: https://bit.ly/2YoXMCp
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Posted on July 26th, 2021 by liz
Planning policy for Change of Use from commercial to residential properties has created many opportunities for lenders, commercial landlords and property developers, and there are further changes that have been implemented over the past year.
PBC ‘s Building Consultancy, Project Management and Cost Consultancy divisions have worked on many of these projects, advising clients on their redevelopment plans. Read more here:
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Posted on June 8th, 2021 by liz
Materials:
The increase in construction activity, and the shortage of key materials, has led to an increase in costs from 2020 – 2021.
The ONS reports a change year on year on general material prices from April 2020 to April 2021 of 8.4% across all work sectors. BCIS report the general material price change at 2.8% to Q1 with their forecast being out at 5.2% year on year by Q4 2021, with the increase peaking in Q3 at 6.4%.
There will continue to be fluctuations in individual materials listed above and this will be reflected in pricing of new work as well as existing projects where contractors are seeking to recover material price increases from projects previously tendered and procured, as the actual cost from their supply chain is pushed up the line.
Based on the above, we would recommend a materials price inflation uplift be applied to cost plans or future works costs at between 2% – 4% depending on the anticipated start on site date.
Tender Prices:
Through 2020 and the worst of the Covid pandemic tender prices fell year on year to -2.1% at Q1 2021. The outlook however for the rest of 2021 and beyond sees a recovery in activity and in turn a rise in tender prices is forecast.
Currently BCIS TPI forecast shows an increase year on year to 2.4% by Q4 2021 rising from -1.8% in Q2 to 0.6% in Q3. Other industry indices are less bullish with their forecasts which range from 0% to Q4 2021 (Arcadis); 0.8% to Q4 2021 (Aecom) and 0.5% to Q4 2021 (G&T).
Noting the increases in materials, construction sector activity and contractors requesting cost increases on paused or current live projects, we would forecast a tender inflation of around 2% for the year, which should again be factored in to cost plans or estimates with a Q4 start date or beyond.
For more information, or to discuss how PBC’s Cost Consultancy team can assist your project, contact Chris Jones, Director of Cost Consultancy, on M +44 (0)7552 242 311 T +44 (0)20 3478 0631 E: cjones@pandbc.co.uk
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Posted on June 8th, 2021 by liz
MATERIALS DELIVERY LEAD TIMES
Materials:
The increase in construction activity, and the shortage of key materials, has led to an increase in costs from 2020 – 2021.
The ONS reports a change year on year on general material prices from April 2020 to April 2021 of 8.4% across all work sectors. BCIS report the general material price change at 2.8% to Q1 with their forecast being out at 5.2% year on year by Q4 2021, with the increase peaking in Q3 at 6.4%.
There will continue to be fluctuations in individual materials listed above and this will be reflected in pricing of new work as well as existing projects where contractors are seeking to recover material price increases from projects previously tendered and procured, as the actual cost from their supply chain is pushed up the line.
Based on the above, we would recommend a materials price inflation uplift be applied to cost plans or future works costs at between 2% – 4% depending on the anticipated start on site date.
Tender Prices:
Through 2020 and the worst of the Covid pandemic tender prices fell year on year to -2.1% at Q1 2021. The outlook however for the rest of 2021 and beyond sees a recovery in activity and in turn a rise in tender prices is forecast.
Currently BCIS TPI forecast shows an increase year on year to 2.4% by Q4 2021 rising from -1.8% in Q2 to 0.6% in Q3. Other industry indices are less bullish with their forecasts which range from 0% to Q4 2021 (Arcadis); 0.8% to Q4 2021 (Aecom) and 0.5% to Q4 2021 (G&T).
Noting the increases in materials, construction sector activity and contractors requesting cost increases on paused or current live projects, we would forecast a tender inflation of around 2% for the year, which should again be factored in to cost plans or estimates with a Q4 start date or beyond.
For more information, or to discuss how PBC’s Cost Consultancy team can assist your project, contact Chris Jones, Director of Cost Consultancy, on M +44 (0)7552 242 311 T +44 (0)20 3478 0631 E: cjones@pandbc.co.uk
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Posted on February 2nd, 2021 by liz
Since it was established at the end of 2019, our Cost Consultancy Department has been busy providing expert advice on a number of flagship projects for both existing and new clients.
Throughout the Covid-19 restrictions, our team has ensured that the financial impact on completed and ongoing projects have been successfully mitigated. This includes ensuring close cost control at all stages, by undertaking renegotiation of contractor contracts where appropriate, and by providing professional cost advice to funds and other lenders. At the front-end, the team has also been supporting clients seeking investment opportunities by providing accurate feasibility costs and cost options, which are essential in assessing the viability and acquisition of new assets and investments. Read our Cost Consultancy Showcase E-newsletter here: https://bit.ly/2YC5JRp
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Posted on July 27th, 2020 by liz
John Nassari Photography
The Leaders Council of Great Britain and Northern Ireland is currently in the process of talking to leadership figures from across the nation in an attempt to understand this universal trait and what it means in Britain and Northern Ireland today.
PBC’s Managing Director Paul Philips was invited onto an episode of the podcast, which also included an interview with Sir Geoff Hurst. Host Matthew O’Neill asked both guests a series of questions about leadership and the role it has played in their careers to date.
In particular, Matthew asked Paul how PBC has fared throughout the Covid-19 lockdown, and what has been the impact on both the company and the construction sector in general: “PBC has continued to work for its clients throughout the pandemic lockdown, albeit within stringent Government guidelines. It has been challenging but our teams have managed their projects via online meetings and through carefully managed site visits. We have delivered a number of finished projects, but it is no surprise that some of our clients have decided to put planned development schemes on hold temporarily.
“Going forward, there are opportunities for our teams to assist companies with their workplace readiness plans, to downsize their office space requirements or to help navigate the Government’s relaxation of planning restrictions regarding change of use. The future is definitely going to be challenging, but we have the right expertise and the right people to make the most of these opportunities.”
Matthew O’Neill commented, ‘Hosting a show like this, where you speak to genuine leaders who have been there and done it, either on a national stage or within a crucial industry sector, is an absolute honour.’
Lord Blunkett, chairman of The Leaders Council of Great Britain and Northern Ireland said, ‘I think the most informative element of each episode is the first part, where Matthew O’Neill is able to sit down with someone who really gets how their industry works and knows how to make their organisation tick. Someone who’s there day in day out working hard and inspiring others. That’s what leadership is all about.’
You can listen to the podcast in full here: https://youtu.be/xxMnjWME860
You can also discover more about Paul Philips here:
http://www.leaderscouncil.co.uk/members/paul-philips
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Posted on July 21st, 2020 by liz
PBC specialises in providing a wide range of services for industrial and distribution projects including Project Management, Contract Administration, Employer’s Agent and Cost Management Services as well as pre-lease Technical Due Diligence and landlord and tenant works monitoring.
Click here to see just a few of the successful projects we have undertaken for clients. https://mailchi.mp/5d460464d830/pbc-industrial-distribution-showcase
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Posted on May 11th, 2020 by liz
PBC’s professionally qualified Building Consultancy, Cost Consultancy and Project Management Teams are at the ready to advise you on the changes required to your office space, in order to make them compliant with the Government’s Covid-19 social distancing requirements, and the cost, method and programme for implementing the changes ready for re-occupation and resuming business operations.
Key Considerations
- Spacial layout
- Workstation configuration
- Screens and protection
- Workplace flow design and travel direction
- Office cleanliness and sanitation
- Occupational health and safety
- Air filtration and air quality
- Fresh air movement and distribution
- Touch receptors and measures to remove or reduce potential contaminated surfaces
- Input to guidance notes for staff
Key Services
- Initial site survey by PBC specialist team
- Independent workplace health and safety assessment (if required)
- Space planning and layout options for social distancing
- Initial workplace report including space configuration and health and safety recommendations
- Implementation programme, budget costs and project delivery team
- Client review, revisions, approval to proceed
Key Services
- Initial site survey by PBC specialist team
- Independent workplace health and safety assessment (if required)
- Space planning and layout options for social distancing
- Initial workplace report including space configuration and health and safety recommendations
- Implementation programme, budget costs and project delivery team
- Client review, revisions, approval to proceed
For a FREE initial consultation about your requirements contact Chris Jones, Director, M +44 (0)7552 242 311
T +44 (0)20 3478 0631 or +44 (0)20 3478 0650 E: cjones@pandbc.co.uk
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Posted on April 23rd, 2020 by liz
Accidental damage and major incidents have a huge impact on everyone involved so, even in these unprecedented times, PBC is continuing to spearhead insurance-related projects for clients.
PBC’s Building Consultancy Team has a wealth of expertise project managing reinstatement work following fire, flood, structural failure and other related issues. To find out more visit www.pandbc.co.uk/case-studies/, or to discuss your project contact Simon Garrard, Senior Associate Director, on t +44 (0)20 3478 0650 or +44 (0)20 3478 0637 e: sgarrard@pandbc.co.uk
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Posted on March 27th, 2020 by liz
Over the coming weeks, you are likely to encounter site closures with resulting commercial and contractual issues. Contractors will seek to recover time and costs associated with these delays, so understanding your contractual position is therefore crucial. This is where PBC can help, by providing expert advice and guidance on contractual and commercial risks of live and future projects caused by the pandemic.
PBC can provide a ‘deep dive’ to review and advise you on:
The contractual provisions within your current contracts (particularly relating to force majeure clauses) along with your commercial/financial exposure
Your insurance cover and any bonds that may be in place. We can provide legal advice to assist managing responses to any forthcoming claims that may arise and their validity
Offer strategic advice to assist with the ongoing management of projects, including re-cutting programmes to mitigate delays, re-tendering or procurement of works, understanding and testing the robustness of the supply chain and valuing of works completed to date against contract sums, to ensure over-claiming is not undertaken to cover delay costs
Other service offerings from PBC construction consultancy professionals include advice on:
• Recording of delays, costs and programme information
• Issue of required certification or notices
• Advice relating to potential contract termination if appropriate
• Clarity relating to current Government advice and the impact/implication of this on your projects
• Consensual agreement with contractors regarding how projects will cease works, record progress and methods for re-mobilisation and close out
For future projects we can provide advice relating to contractual provisions, ensuring the correct amendments to contracts are made to protect you as our client, as well as ensuring the correct insurances and levels of insurance are included with the current situation in mind.
Other considerations we can input into include:
• Procurement advice
• Main and sub-contractor selection
• Provision of robust contract documentation
• Advice around deferment of projects and inflationary cost issues that may require consideration
It is imperative, in these difficult times, that you understand your current and future commitments and the impact of the pandemic on all facets of your projects. The above list is not exhaustive, so we would welcome the opportunity to talk to you in further detail in relation to your projects, and the advice we can provide.
For further information contact Chris Jones, Head of Cost Consultancy on cjones@pandbc.co.uk t +44 (0)20 3478 0631 m +44 (0)7552 242 311
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