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Over the last few years, the construction industry has been facing many challenges: Quantity surveying Assignment, UOS, UK
|University Of Salford (UOS)
|Quantity surveying Assignment
Over the last few years, the construction industry has been facing many challenges. The magnitude of challenges faced by the UK construction industry due to the impact of Brexit has increased significantly with the advent of Covid-19, which disrupted the normality not only in the UK but also all around the world. It seems that these challenges will continue to grow, with extraordinary levels of price increases in critical construction materials and utilities.
In fact, major Construction Industry information sources such as ‘RICS’, ‘The Guardian’ and ‘Construction News report that steel prices rose 77.4% in 2021 and timber prices rose 80% in the first half of that year. The cost of labour also increased, with salaries of construction workers rising 6.7% over the first half of 2021.
These challenges have significantly hampered the Construction Industry where the level and complexity of construction disputes has risen sharply. In fact, Construction News website reports that “the average value of disputes in the UK rose to £27.4m last year, up from £12.6m in 2019” and with even bigger challenges ahead, more significant increases in disputes can be anticipated.
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In addition, the post Covid ”new normal” has introduced new ways of work in many industries and construction is not an exception. Along with that, there are now new legistations / changes to the legilations are being introduced to facilitate the ‘new normal’.
Modern Standard Forms of Construction Contracts (SFCC) are expected to provide an impartial, fair and balanced legal framework to minimising the avenues for construction disputes, within the context of these challenges and legislative changes, the capabilities and the use cases of SFCCs have been challenged. It is, therefore, high time to critically reflect on the capabilities and the typical use cases of current SFCCs with the aim of stress testing them.
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