Soaring material price rises highlight need to stay on top of costs

 Research from the FMB in 2017 reported soaring material prices with 32% of builders reporting their margin being squeezed.

Small building firms were asked which materials have increased the most and the results were as follows:

  1. Timber
  2. Insulation
  3. Bricks
  4. Blocks
  5. Windows
  6. Plasterboard / Slate (joint sixth)
  7. Boilers and radiators
  8. Porcelain products

As you can see, the fundamental materials for most building projects!

Brian Berry, Chief Executive of the FMB stated “Material price increases have left builders under severe pressure. This research shows that following the fall in the exchange rate, timber is the material that the majority of builders say has increased most in price. But the problem doesn’t end there – everything from insulation to windows to bricks and blocks are soaring in price…” (FMB, 2017)

It’s not surprising that the FMB have stated that more than 1 in 10 builders have reported making losses on their building projects due to material price rise. It highlights the need for builders to stay on top of material prices on top of their mountainous to-do list.

Stay on top of material price rises with the help of our estimating service.

EstimatorXpress Live building material pricesWith 32% of builders reporting their margin being squeezed, now more than ever it’s important to ensure that your material prices are up to date. It could make the difference between making a profit or a loss on a project. Our estimators use EstimatorXpress software with its exclusive Price Tracker which links to thousands of live building material prices to ensure you are estimating with up to date prices.

Plus we can use your own trade account discounts using our merchant partners catalogues including Tradepoint, Jewson and Crystal Direct (PVC-U doors, windows, conservatories and roof lights). Thus, ensuring any changes in the market are reflected in the 100% accurate estimates.

No more ringing merchants, estimating with old prices or having to convince clients when you can explain how your quote was produced.

Estimating with future prices and inflation

Automatically calculate materials inflation-toolOur estimators can also enable builders to accurately estimate for future projects using the software’s built-in inflation tool which will set inflation over the project to ensure that costs take into account rising costs over time. So you quote the right cost at the start to take account of inflation. And make the money you expect at the end of the project!

Imagine being able to confidently hand over a quote to a client knowing that is representative of the prices at the time of build. It also allows you to line up work in the future which is essential to running a profitable building firm.

How we can help save builders money

profit, wastage and inflation calculator

Not only will HBXL quote help protect your profit margin against material price increases through live updates over the internet. But it also factors in wear and tear, and wastage.  All these aspects may initially seem like small things. However, they add up and it makes it a whole lot less painful when it comes to replacing an expensive power tool!

Adrian Wild, Managing Director & Founder of HBXL echoed the sentiments of the FMB and the importance of accurate estimating:

Once again the latest statement from the FMB underlines the importance of accurate estimating. Many builders report small profit margins or losses undertaking building work as inflation eats away at their profits.

Why not send over a plan today?

Our fee for producing your estimates can be incorporated into your customer quotes. So you really have nothing to lose and everything to gain by using the guys here. Give Ian a call on 0117 916 7894 and we can have a chat or email him at ian.clark@hbxl.co.uk – have a look round the website or simply upload a plan for us to quote for producing the estimate.