G&T hosts Construction Update: The Impact of COVID-19
G&T recently hosted a webinar for public sector participants in light of the disruption caused by the coronavirus (COVID-19) pandemic and its impact on the construction industry.
Having collaborated with a number of hub territories in recent years we were well placed to highlight the specific challenges and opportunities facing hub (a public-private partnership) and their public sector participants. Over 20 attendees from the hub territories, local authorities and joined the event which ended with a short Q&A session.
Craig Young, Project Director of Hub South West opened the webinar by highlighting the need for key market data and robust advice during these unprecedented times. He then passed over to G&T Partners, David Logue and Gordon Ritchie who shared our recently published and in addition to local market intelligence from the report and the Scottish Government .
Participants were encouraged to read The Scottish Government's Draft Infrastructure Investment Plan. Public sector bodies are being encouraged to determine future need, focus on maximising the use of existing assets and repurpose and co-locate facilities before new build is considered. A routemap out of the recession is within the Scottish Government's key themes of transitioning to net zero carbon, delivering inclusive economic growth and building resilient and sustainable places. David drew attention to the Scottish Government鈥檚 pipeline as a key opportunity for the construction sector.
鈥淐ovid, Brexit and the normal volatility of inflation on our minds at present, attempting to understand how these factors are likely to impact on project cost, affordability and deliverability is a key concern for the Participants of Hub SW and our industry as a whole. "Craig Young
Project Director, Hub South West
Detail was provided by Gordon Ritchie on the impact of the current recession on materials costs, trades costs and our Tender Price Indices.
Key Data
- G&T鈥檚 TPI shows negative inflation expected until 2022 with a gradual rise thereafter across the UK, at a Scottish level inflation in 2024 is marginally less than the level shown at the beginning of 2020.
- The business impact of COVID-19 from the ONS showed payment times being affected and 9.5% of surveyed construction firms stating that their operating costs are currently exceeding their turnover.
- A 鈥楴o-Deal Brexit鈥� means that we must work hard to retain EU staff and be mindful of the likely impact on building regulations, qualifications and apprenticeships.
- The Construction Leadership Forum (CLF) issued a recovery plan which provides interesting statistics on the sector. The core message focussed on SME鈥檚, who at the heart of our sector must be treated fairly with an effort to keep payment times to a minimum.
- The drive to net zero carbon is at the fore of the Scottish Government's agenda and their intention is absolute. It does impact on design and construction costs and as a sector we need to prioritise this.
"Through the CLF and the Construction Industry Coronavirus Forum (CICF) the sector is working together for the future of the industry and I believe this to be the way forward. Our industry will become more resilient, collaborative and inclusive as a result of the current climate and, while it may be a bumpy road, it will change for the better."David Logue
G&T Partner
Positive feedback was received from a number of the participants, with Craig Young of Hub South West commenting: "Covid, Brexit and the normal volatility of inflation on our minds at present, attempting to understand how these factors are likely to impact on project cost, affordability and deliverability is a key concern for the Participants of Hub SW and our industry as a whole. The G&T webinar concisely considered all these matters and provided insightful views which informs better risk management and helps equip us to guard our clients, projects and supply chain."