Developer puts London build cost inflation at 10%
Property developer Derwent London is seeking to fix costs on its construction contracts to control cost inflation that it says is running at 10% in the capital.
John Burns, chief executive of Derwent London, said: “Construction cost inflation remains high and capacity constraints on many contractors have seen delays across the industry including at some of our schemes.”
He said that he expected it to continue at close to 10% in London throughout 2016.
In November Derwent London agreed a fix-price contract price of £116m with Laing O’Rourke for its Brunel Building development in Paddington. This sets the overall capital expenditure to complete at £122m.
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This article was published on 25 Feb 2016 (last updated on 25 Feb 2016).