CPD Questions

Question 1

In your BCIS webinar on construction inflation, what sectors have been growing and why?

Answer 1

The repair and maintenance sectors have shown signs of growth as new works have been stagnant due to signs of recession although total output remains above pre-crisi levels.
The reasons why R&M has increased is due to spending on RAAC remedial works.
Public housing benefited due to reduced work in private housing

Question 2

Based on the current market conditions, what tendering strategies are contractors more inclining towards and why?

Answer 2

• Contractors more inclined to bid for simpler projects to mitigate cash flow exposure.
• Large complex projects seen as too risky and attract a small tender list.
• Contractors prefer two-stage or target cost contracts with no appetite for single stage tender.
• Contractors are adjusting procurement strategies to manage cashflow.

Question 3

In your BCIS webinar on construction inflation, what has happened to sectors involving new works and why?

Answer 3

• New work expected to decline in 2024 primarily output in housing sector.
• Future pipeline of work may potentially be shrinking.
• Market conditions index currently show falling as costs rising faster than prices. Prices are expected to rise faster than costs through 2025 as demand picks up.
• Material supply and lead times have returned to pre-covid norms however some issues with materials due to foreign conflicts.
• Construction is clearly in recession as demand has softened and effects of monetary tightening continue to build.
• Government’s plans for industry remain unclear, despite recent publication of pipeline and budget.
• Volatility still being priced into contracts
• Packages with increased costs especially M&E
• Contractors unable to secure bonds due to volatility in market

Question 4

In your BCIS webinar on choice of construction materials, what did you learn and what is the future showing in regards to reducing carbon emissions?

Answer 4

• Everyone in the industry should be doing their part to reduce emissions
• Most efficient way to balance cost and carbon is to link carbon measurement into existing measurement processes that already happen on construction projects e.g. cost estimating, reporting and control
• Challenges are:
  
  • Carbon standard is complicated and an extra thing to balance
  • Carbon numbers aren’t widely understood
  • Need to be converted
• Cost and carbon material database to be linked with life cycle cost and carbon calculator. Linking BCIS with BECD (Built Environment Carbon Database).