Building Cost Inflation – Charles Holt (Lincoln)

I am involved in the planning and development of a new dairy unit on one of my client’s farms.  It has taken quite a long time to establish the business plans, to obtain planning permission, and to source acceptable quotes and specifications from builders and contractors to actually build-out the project.

We are now in mid-build.  We have been held up by a number of matters, but one of the most frustrating issues is the delays from stone suppliers (due to quarry delays) and from builders’ merchants for standard items like roof sheets and concrete blocks.  Concrete itself is a nightmare.  Because of shortages, prices are rocketing.  This has caused a further problem for our main contractor.  Of course, it is not just us, it is a problem throughout the building industry.

We are having to pay a bit more for some items, but the builder has other jobs in the pipeline.  In particular, he has two further dairy units to build later this year.  He has taken deposits from the farmers.  He is now so convinced that he cannot build them for the price agreed that he told me he has had to hand back the deposits to both the farmers.   Now that really is a dramatic and serious route to have to take.

The message must be, if you are planning a building project soon, be very careful with your costings, your quotes, and your choice of builder.

Contact Charles at charlesholt@fcgagric.com or your local FCG Office, for help in costing your building plans and project managing your build.  Measure it twice and cut it once!