Keeping a build on budget isn’t easy – delays, supply chain issues and labour shortages can quickly eat into profits. We look at why more UK developers are turning to Insulated Concrete Formwork (ICF) to cut hidden construction costs, keep the build to budget and finished to schedule.
Why are projects hard to keep on budget?
The construction industry is facing a tough time at the moment. There is the constant need to meet Government targets and keep building. At the same time, developers are juggling increased wages, rising land costs, shifting building regulations and environmental regulations alongside a lack of skilled workers. Fortunately, construction material costs are finally dropping but balancing the books is still tough. While it may be tempting to look only at construction costs in black and white, these might not be the only thing driving up budgets. Instead, it could be those hidden costs that make all the difference.
Most developers look at the initial price of building materials. But what if you measured the construction material costs over the whole life of the build, from groundwork to maintenance after handover?
Why is ‘Cost per Block’ misleading in construction budgeting?
When looking at budgeting for a new build development, there are basic fixed costs that must be covered.
- Initial cost vs. lifecycle cost: the cheapest block may not be the most affordable choice when considered over the life of the project.
- Variable supply and labour rates: supply chain issues and the potential for a price shift between tender and build stage.
- Logistics and downtime: delivery costs, storage, and waiting for trades all add up.
Let’s look at these in detail.
First, the building materials market. How much are lumber prices or metal prices at the time of purchase? What is the cost per square metre to purchase the blocks? Will there be a cost movement between tender stage and the build getting on site? Does the build need sustainable materials and how does this impact the cost?
Next, the logistics. What is the potential for supply chain issues? Is there a cost to get building materials to site and what plant equipment do you need for the build? Are there supply constraints and will imports of construction materials reduce prices but add delays? How will energy prices impact on the build? How many contractors are needed to meet the development timescale and what are your labour costs? The final consideration is whether there are contractual penalties if you fail to deliver on schedule?
What are the hidden costs in construction?
With most property developers these costs are fairly simple to work out. You typically go for lower building material prices to ensure you meet rising wages in contractors and hiring equipment. You then add in your margin for error to accommodate the unknown factors. If the build programme runs as intended you will meet your budget. However, there are also certain factors which you can’t control. Ones that can push your build programme over schedule and see the costs quickly add up if you end up with a ‘nightmare’ project where everything goes wrong.
Beyond the initial “cost per block,” UK property developers face extra costs that can quickly erode margins:
- Weather delays during wet or freezing months
- Late trades disrupting schedules
- Labour shortages increasing contractor rates
- Material damage causing replacement delays
- Late design changes adding rework costs
- Snagging issues after handover
Why does your construction material choice matter?
Here’s the good news, while delays caused by these factors can be a common occurrence within the construction market, making an informed choice in your construction building materials and components can mitigate the risks. Systems such as an insulated solid wall construction method like ICF offer a flexible system with fewer components to give you greater hold on your budgets. While upfront building materials costs can be higher for ICF when compared to traditional build systems, it’s the savings on ‘hidden risks’ and construction output that make this an incredibly affordable option.
1. The challenge – unreliable British weather
There is no doubt that most property developers look forward to the summer months. The weather is usually sunnier, drier and days are longer – the perfect ingredients for progressing a build.
In winter, very wet weather can delay work on parts of a site because of waterlogged ground or stopped crane operations. Freezing temperatures can stop all work completely. Concrete and mortar don’t perform well in temperatures below 5OC which will pause bricklaying in its tracks.
The solution – how ICF cuts construction delays in bad weather
When you build with ICF, the system consists of large building blocks made from an insulating material. The blocks lock securely into place via a raised edge with no need to apply mortar. While cold temperatures usually stops work continuing on most builds, the insulating material in the ICF block creates the protective environment for the concrete. This makes it possible to assemble and cast in almost all weather conditions and keep your development project on track with minimal delays.
2. The challenge – late trades pushing back schedules
In an ideal world, to improve construction output your site would have multiple trades working on a property simultaneously to reduce overall build time. In reality, the build programme has to follow a staged order. But what happens when the build is delayed, perhaps the foundations can’t be laid or the walls don’t go up in time due to bad weather. Now you’re juggling the order contractors come to site.
The solution – how ICF accelerates construction and trade access
ICF is the ideal build system to overcome delays caused by the weather, yet the system offers an additional benefit – the ability to get other trades on to site in a quicker timeframe. Once the walls are up and the roof is on, which on a simple single story build can be in as little as three days, it’s accessible for other trades to get into the property. The ICF blocks are waterproof which enables work to continue on the inside while completing the external facing of the property.
3. The challenge – construction labour shortages
A shortage of skilled contractors is nothing new to the construction sector. The perfect storm of an ageing workforce close to retirement, a reduction in overseas contractors and a lack of youngsters coming into the construction industry has resulted in a shortage of workers. A recent survey by the Federation of Master Builders showed that over a quarter of their members have trouble hiring skilled contractors. If the workers can’t do the work on site, it results in reduced construction output, lengthy delays or paying more for subcontractors. Neither are ideal and both can quickly eat into budgets.
The solution – ways ICF reduces labour costs on site
Modern Methods of Construction (MMC) like ICF are an opportunity for property developers to bridge the gap. By removing the need to apply mortar to lay the blocks, the system is simplistic and incredibly easy to install. This makes it easy to train both experienced builders and apprentices new to the industry. Once trained in how to use the system, contractors can easily deliver a high level of quality.
4. The challenge – material damage
If damage happens when building with traditional block and brick, you can usually get replacement materials to the site quickly. This is true as long as the brick is not a special type or there are no supply chain problems. Yet with other MMC systems it can prove a disaster to the build programme. It only takes for a section of a modular building to become too damaged for remediation work and you’re looking at months waiting for a new component to be constructed in the factory.
The solution – reducing waste with ICF
With ICF, most properties can be constructed using their standard blocks which they hold readily in stock. This means if blocks are damaged on site, they can easily have a replacement with you in as little as 48 hours. For even more savings on construction material costs, when you purchase from an ICFA member, they will help you to utilise the formwork and virtually eliminate any construction waste.
5. The challenge – late design changes
You can take your construction project planning to the nth degree but that won’t help you if things change last minute. It only has to be something as ‘simple’ as changing where a window sits, reordering lintels due to a mismeasurement or an issue on site which changes the design. As the developer, trades need reorganising, there may be additional planning delays, timescales adjust and there is the knock-on effect of any delays eating into other planned projects. And, as always, the client wants these last-minute changes incorporated with little impact on the original quote.
The solution – flexible ICF design and structural modifications
ICF is an incredibly flexible build method. Right up until the point you pour the concrete it’s possible to make changes to the design. Blocks can be repositioned and cut using standard construction tools allows for changes without much fuss. Plus, with ICF you have the option to add steel rebar into the blocks which allows for structural changes such as a cantilever element or increasing the size of a large opening. Before making any structural changes you will need to contact structural engineer for advice on the reinforcement required for your construction project.
6. The challenge – snagging issues
Snagging lists can quickly eat into your profit margins. Poor finishing, cracks, gaps in the insulation or structural movement can lead to multiple post-build repairs often at your expense. And, in this day and age, negative reviews on social media platforms from homeowners complaining about quality on the build it can also come at the expense of your reputation.
The solution – maximizing build quality with ICF to prevent cracking
To build your reputation and reduce unnecessary construction material costs, you need to maximise the quality of your build. You can achieve this in two ways. First improve the quality of the build during the construction phase and then create a strong structure which is resistant to cracking cause by movement. When you build with ICF it decreases the likelihood of construction errors due to the simplicity of the system. As the concrete cures, it sits in direct contact with the blocks to create one homogeneous layer to remove the risks of cracking, unwanted gaps and drafts. The insulating material in the blocks also aides the concrete by enabling it to set quickly but cure slowly. This extended drying allows the concrete to gain additional strength. Plus, when purchasing from an ICFA member, they deliver training courses on how to build with their system to ensure every project using their ICF blocks achieves a high standard.
Work an ICFA member
Like any build system, ICF works best when planned and delivered correctly. That’s why it pays to work with trained professionals who understand the construction and building materials industry and how to maximise your ICF build. Our ICFA members are experienced in supporting projects of all shapes and sizes — from one-off homes to multi-unit developments. They’ll help you understand how to integrate ICF into your design and construction process, support your team with training, and ensure your build goes smoothly from start to finish.
If you’re ready to take more control over your construction material costs, eliminate hidden risks, and build with confidence – contact the ICFA today.
