Inefficiencies and Insolvencies - The true cost of UK construction

Why is UK Construction So Expensive? Uncovering the Hidden Costs

In this episode, we dive deep into the reasons behind the high costs of construction in the UK.

Although construction is the top sector for company insolvencies, accounting for 18% of them, the financial losses and inefficiencies are staggering.

We recount recent losses from major contractors like Sir Robert McAlpine, Bouygues, and BAM Construction, and discuss potential exits from the UK market by companies like Lendlease.

We also explore how gross inefficiency, high agency costs, underutilized equipment, and reluctance to adopt new technologies contribute to the problem.

Finally, we ponder whether the industry will seize future opportunities to eliminate these inefficiencies.

00:00 Introduction: The High Cost of UK Construction
00:16 Current Financial Struggles in the Construction Sector
01:30 Where is the Money Going?
01:56 Inefficiencies and Wasted Resources
02:22 Wages and Employment Practices
03:18 Equipment and Resource Management
03:52 Technological Solutions and Resistance to Change
04:50 Conclusion: The Cyclical Nature of the Industry

[kussemeinkont]

Builders are constantly going bust in Australia, it's just standard practice to avoid all the liabilities they accumulate. They employ cowboys, flout regulations, do a shit job and then run.

[charleslouden]

Devolution, paying nine times more for politicians and civil service that goes with it.

[freemason]

Stop blaming the competitive market, Zoning laws, building codes/regulations a NIMBY- politics, that's what does it, (in short, govt/politicians) and nuttin' else

[shelbynamels]

The mention of Lendlease rang a bell. Lendlease, an 'Strayan builder, was the lead contractor on the Oceanwide Plaza project in Los Angeles, the infamous graffitied hi=rise project abandoned by the Chinese real estate company now blighting downtown LA.
They filed a contractor's lien in the amount of \100 million dollars against the company before they shut down in 2019.

[clivewilliams]

This is a load of BS with little knowledge of the construction industry. If there had been any reference to the flow of new orders there would be a realisation that construction is on the end of a piece of elastic tied to both the public sector and private sector commissioning organisations. Think on this, 50% of all construction is funded through the public purse so the Govt has a great influence on the health of construction. From Brexit we have seen astronomical costs in materials and a shortage of tradesmen, the latter due to Govt not investing time and effort to encourage apprenticeships, which is also compounded by the growth of sub-contract labour as a response to the 7yr cycle of boom and bust. I could go on about the state of the industry but we certainly don't need ignoramus' giving ill-informed judgements on a subject that they know nothing about.