Construction News

Thu December 13 2018

Related Information

Builders cite skips and diesel as price hike culprits

13 Nov Two of the biggest factors behind recent price rises in home improvement projects are skips and diesel, according to a survey by the Federation of Master Builders (FMB).

Skip prices have gone up
Skip prices have gone up

FMB research found that the average cost of an eight yard skip has gone up by £24 over the past year, adding £360 to the cost of the average home extension.

The UK average price of diesel has gone up from 124.4 pence a litre to 136.7 pence a litre so far in 2018, according to AA fuel price reports. This has prompted builders to start narrowing their catchment areas. The FMB found that more than one in ten builders had recently turned down jobs they would have previously accepted as they are too far away.

FMB chief executive Brian Berry said: “The increase in the price of skips and diesel is bad news for builders and home owners alike. Nearly two-thirds of builders have had to pass skip price increases on to clients and a fifth have had to pass on diesel price rises. This has made home improvement projects more expensive for home owners. What’s more, the impact of the rising price of skips could have an impact on our communities through a rise in fly-tipping. No matter how much the price of skips might increase, there is never any excuse for fly-tipping and any individuals found doing so should be severely reprimanded. In 2016 and 2017, more than one million incidences of fly-tipping were dealt with by councils in England and the last thing anyone wants is for this number to increase.”

Mr Berry concluded: “The increase in the price of skips and diesel have come at a bad time for the UK’s builders. The cost of doing business is rising more generally for construction firms. Wages and salaries are all rocketing because of the ever-worsening skills shortages in construction. What’s more, material prices have been rising because of the depreciation of sterling following the EU referendum. Looking ahead, material prices are expected to cause an even bigger headache going forward, with recent research from the FMB showing that almost 90 percent of builders believe that material prices will rise in the next six months. We are advising builders to price jobs and draft contracts with this plethora of price rises in mind to avoid a further squeeze on already razor thin margins.”

Skip costs

Diesel costs

Diesel costs calculated on the basis of a Ford Transit Custom, which claims 49.6 mpg.

MPU

More News Channels