State of the Nation - Sept 2023
I read an article recently by RMBA Chief Executive David Kelly, commenting on the construction sector reaching a “critical point”. While this may be true for many SME builders, I have been talking to many others who are soldiering on and still finding work to keep their teams busy, which reinforces the statistics that 52% of the sector report having a “steady or strong pipeline of work on the horizon”.
Although a reasonable percentage of builders are confident they will weather the current economic storm, the majority acknowledge they are having to think outside the square and perhaps take on work they wouldn’t have previously considered. While work is proving more and more difficult to locate and secure, many building companies are striving to maintain turnover and hang on to their current staffing levels to avoid losing knowledge and experience which can be difficult to replace.
The rising cost of construction continues to be the main concern for a large part of the sector and under these conditions it becomes necessary to maintain tight cost controls while protecting the bottom line and maintaining a viable profit margin. Many of our regular clients state the value of a QS report for them is that it gives them a blueprint to run the job and allows them to do back costing as the invoices are received, rather than when the job has been completed and they realise there has been a cost overrun.
It can be easy to consider a QS as a ‘luxury’ and unnecessary cost in the construction pricing process however, the many builders who use Red QS on a regular basis have given me the feedback that they see a definite value on the time they save by outsourcing pricing and they feel comfortable that they are maximising their profits by ensuring nothing gets missed.
If you are considering using a QS or just want to have a chat about how we may be able to help, give me a call – Paul Watson, Ph. 027 238 1866