Higher costs absorbed

Aug 21 2008 by Henryk Zientek, Huddersfield Daily Examiner

BUILDERS in Yorkshire are failing to pass on the full impact of rising costs for materials and wages – amid fears of a “backlash” from clients unable to secure finance in the credit crunch.

A survey by the Royal Institution of Chartered Surveyors showed the price of new construction work in the region fell by 2.4% in the second quarter of the year – even though costs rose by 1.1% in the same period.

Construction firms reported a 6% fall in workloads for public housing projects and a 10% decline for private housing schemes – countered by an increase for public sector and commercial work.

Peter Rumble, manager of the RICS’ building cost information service, said contractors appeared to be nervous about future workloads.