The latest projections from the Building Cost Information Service (BCIS) have forecasted construction costs to rise just over 3% in the year to Quarter 3 2024 , while tender prices are expected to increase by just over 2% in the same period.
In its five-year forecast published for Quarter 3 2024. BCIS outlines its expectations for the industry, set against a backdrop of tightening market conditions. From Quarter 3 2024, costs are set to rise between 2% and 3% per annum until 2028.
These cost projections can directly influence your project budgets, profit margins, and operational strategies… Discover how you could optimise the outcome of your staircase projects in response to this industry forecast.
What Does The Forecast Mean To Carpentry Contractors?
For carpentry contractors, the forecasted construction cost and tender price increases could mean:
Cost Projections
The forecasted 3% rise in construction costs for the year up to Quarter 3 2024 means that carpentry contractors can expect higher expenses related to materials, labour, and equipment. This increase can directly impact project budgets and profitability, and contractors will need better accuracy in cost estimation when bidding on projects. The fluctuating prices and erratic availability of timber can be a constant headache, as the uncertainty can severely impact project budgets and timelines.
Tender Prices
The expected 2% increase in tender prices suggests that contractors might be able to charge slightly higher prices for their carpentry services. However, the gap between cost increases and tender price increases (3% vs. 2%) means that the profit margins for carpentry contractors could become tighter. That makes efficient cost management and pricing strategies even more important.
Profit Margins
With construction cost increases potentially outpacing tender price increases, carpentry contractors may face challenges in maintaining healthy profit margins. A focus on enhancing operational efficiency and cost control with suppliers can help protect their profitability.
Alongside these potential concerns, carpentry contractors often have to deal with some other common challenges in their projects, including:
Common Challenges Faced in Carpentry Projects
Labour Shortages
Securing skilled and dependable labour can be challenging, especially during peak construction seasons. Labour shortages stand out as one of the most common causes of project delays and concurrently escalate costs, creating added pressure for project managers. However, selecting a reliable staircase supplier can help you combat the challenge of skill shortages.
Project Management
Juggling multiple tasks and timelines, and coordinating different subcontractors can make project management complicated, adding complexity to achieving a streamlined project implementation.
Budget Overruns
Staying within budget is a continual struggle for many carpentry contractors. Unanticipated costs, client-requested design changes, and sudden spikes in material prices can rapidly erode profit margins and throw projects off track.
Volatile material costs, labour shortages and budget overruns are all factors that could impede the success of your project. However, there is a way to ensure your staircase installations are always a success and contribute to a positive project outcome.
The Staircase Success service offered by Multi-Turn can address these challenges head-on, offering a reliable solution to make carpentry projects run smoother.
How Staircase Success helps make carpentry projects more successful
Never underestimate the role staircases play in your carpentry projects. A dependable staircase supplier that pays attention to staircase design and facilitates your installation can significantly influence the successful outcome of your staircase project, relieving you of one less concern to manage.
Assured Compliance with UK Building Regulations
With over 30 years of expertise in staircase design and manufacturing, the Staircase Success service ensures each staircase produced adheres to building regulations, eliminating the need for costly remedial work and the delays it can cause. Each staircase is guaranteed to meet the unique standards of your projects and streamline your entire project process.
Fit-First-Time Commitment
Select staircases that are thoughtfully designed for easy installation, ensuring a seamless, hassle-free experience for both your subcontractors and site managers. This fit-first-time commitment simplifies the project management process and improves the overall efficiency, and you can have peace of mind that there will never be unexpected on-costs or delays associated with remedial work of your staircases.
Flexible On-Time, In Full Deliveries
Our guaranteed on-time, in-full deliveries help prevent any potential disruptions to other project aspects and spare you from the hassles of on-site storage, which can lead to damage or additional storage costs. Furthermore, by consistently delivering staircases to your site with reliability, you are building trust with your clients and subcontractors and establishing a solid foundation for potential long-lasting collaborations.
Secure Your Project Success With Staircase Success
A successful staircase project and installation involves careful planning and collaboration with a trusted supplier, accurate measurements, and attention to detail throughout the entire process to keep delays and any unwanted surprises at bay.
Multi-Turn offers a Staircase Success service that will guide you through every step of your staircase project, from design to manufacturing, to ensure each staircase is a successful part of each project you undertake and will fit on the first trial.
Staircase Success guarantees flexible on-time, in-full staircase deliveries just-in-time by plot, keeping you safe from costly project delays and associated expenses.
Ready to take the next step? Book a consultation with one of our staircase specialists today and discover how we can help with your projects.