What the fall in the pound means for the Construction sector

The fall in the value of the pound is leading to an increase in material prices for 70 per cent of UK builders, the Federation of Master Builders has warned. New research from the trade association has revealed that a 20 per cent rise in the price of timber and other building materials is leading to builders having to rapidly re-evaluate their price of their jobs.

Steven Todd of EQ Property & Construction advises that from discussions with his clients, this is certainly the case. Steven recommends that construction businesses, if not already doing so, may have to put safe guards in place to try and mitigate potential price increases in materials. Either by trying to agree prices with their suppliers for an extended period of time, or by placing clauses within contracts that the price of the contract will increase if there are further material price increases.

The need to have a robust job costing system is more important than ever.  By keeping an accurate eye on how costs are building up on jobs, business owners can make quicker and more informed decisions on jobs.

If you are looking for advice in relation to Job Costing or any other advice, please contact Steven Todd via steven.todd@eqaccountants.co.uk (01592 630055).