RED Construction Group’s Post

The cost to build: 2019 v 2025 We know that build costs have increased materially in the past 5 years, but to understand the challenges in building new property it pays to put figures to the increases. In short: • Queensland experienced a 57% rise in costs since the pandemic. New South Wales (+46.1%), South Australia (43.1%), Western Australia (+41.6%), and Victoria (38.2%) • Labour costs are a huge driver, with trades rates up by 50% and labourers average hourly rates increasing by 36%. • Around 3,000 construction firms went bankrupt in 2023-24 due to unsustainable cost increases. IFM's Alex Joiner posted the below image on Twitter/X/Tesla? late last year which helps give some context to just how much costings have changed for new projects

A picture is worth a thousand words, and in the world of construction, going modular is essential. However, the choice of materials and techniques is crucial, as it can significantly impact the ability to produce a cost-effective product and generate profit. Much of today's building technology seems almost designed to fail. Imagine if cars, planes, trains, and containers were all handcrafted from wood—this illustrates the construction industry's dire need for standardization and the application of mass production principles. By adopting these simple strategies, we can reduce costs, boost productivity, and restore profitability. Our innovative second-generation VEGO building technology enables the production of robust, energy-efficient building components from our new SF composite (steel foam). This technology allows for the construction of one small house per minute or 24,000 square feet per hour within a 200,000-square-foot factory built using VEGO components. You can design layouts in 400mm increments, up to 10 stories high. Moreover, we are developing the capability to extend this up to 50 stories.

RED Construction Group announces turnover of over £100m for the first time RED Construction Group, the specialist main contractor, has announced its results for the 2023/24 financial year. Reaching a key milestone for the business, RED Construction Group has reported a turnover of £115m, as the company continues to deliver targeted revenue and achieve sustainable profit. Across the financial period, from 1st April 2023 to 31st March 2024, RED Construction Group has maintained a pre-tax profit margin of 1.7%, while taking turnover to nine figures for the first time in the company’s history. RED Construction Group forecasted more than 60% growth for 2023/24 in the previous financial year results, a figure that has been exceeded. Maintaining a stabilised income stream, The Group has already secured over £100m in contracts for its 2024/25 financial year. Operating year-on-year as a stable, profit-generating business, RED Construction Group is firmly established across multiple regions and sectors through an ambitious, controlled growth strategy. Key project wins and completions in that timeframe include South West’s team work on the £22m Net Zero Carbon Zeal Hotel in Exeter, creating a benchmark for the industry. RED Special Projects’ delivery of Warwick Castle Hotel, part of Merlin Entertainment’s £16.4m investment in Warwick Castle, following works delivered at Merlin Entertainment’s £35m LEGOLAND Woodland Village scheme in Windsor during the previous financial year. https://lnkd.in/e6Zki-4d

I read in an article over the weekend that construction costs were forecast to rise a further 40% over the next four years. Not enough labour, expensive materials and too many projects in the pipeline - the lion's share from the public sector - is to blame for this. In the last 12 months dwelling construction has met only two-thirds of the Federal Government's target of 240,000 homes per annum. Hutchinson Builders Chairman Scott Hutchinson stated that productivity was through the floor, and that "rising costs will mean less private work is done. No units will be built unless they are very expensive like $25,000 a square metre, which means nothing in lower price brackets”. To put that into context, $25,000 per square metre means a 100 sqm apartment costs $2.5 million. Not only will government not achieve their targets, but they are making the situation actively worse, by reducing construction sector productivity through re-regulating the workplace and removing the ABCC, drawing away labour from the private sector by improving pay and conditions on government projects without offsetting productivity improvements, and overheating the entire sector through poorly-designed and mismanaged public sector projects. The result is that housing will become less and less affordable. This is going to get a lot worse before it gets better.

After a tough year for many UK businesses, it is refreshing to see some positive news from Glenigan, within the UK construction sector. Alongside strengthened economic growth for the UK they predict a growth of 8% for construction in 2025 and a further 10% in 2026. This is certainly welcome news for businesses within this sector and hopefully we will see more positive news across other sectors in future. https://lnkd.in/e92nsYeb

MP Building Ltd is proud to announce its successful acceptance in all four categories of the Westworks Development and Construction Dynamic Purchasing System (DPS). This prestigious procurement framework is designed to streamline tendering for public sector organisations, such as local authorities, housing associations, and other public entities, ensuring efficiency and quality in project delivery. By securing acceptance in all categories of the DPS, MP Building Ltd now qualifies to bid on a wide range of construction and refurbishment projects, further cementing its reputation as a trusted and versatile partner in the construction industry. The Four DPS Categories: Category 1: Design and build of housing and non-housing developments up to £1.5 million. Category 2: Design and build of housing and non-housing developments valued between £1.5 million and £4.5 million. Category 3: Design and build of housing and non-housing developments valued over £4.5 million. Category 4: Construction and major refurbishment of industrial, commercial, and other non-domestic properties. This achievement demonstrates MP Building Ltd’s versatility and capability in handling projects ranging from small-scale refurbishments to major new builds, catering to diverse client needs across public and private sectors. Delivering Excellence in Construction MP Building Ltd, based in Hertfordshire, has a proven track record of delivering successful projects across the UK. Its inclusion in the Westworks CONST DPS reflects the company’s dedication to maintaining high standards in safety, quality, and efficiency. By joining this dynamic framework, MP Building Ltd commits to providing public sector clients with: Cost-effective solutions: Delivering high-quality outcomes while adhering to strict budget constraints. Expert project management: Ensuring all projects are completed on time and with exceptional quality. Sustainable practices: Aligning with modern standards to enhance energy efficiency and environmental responsibility. MP Building Ltd remains steadfast in its mission to support communities and organisations by offering bespoke construction solutions tailored to their unique requirements. For more information about MP Building Ltd’s services or its involvement in the Westworks CONST DPS, contact us directly via our website or phone. We look forward to collaborating with public sector organisations to bring transformative construction projects to life.

North West developer Cityheart has picked local contractor Oak Construction Projects LTD Projects to deliver the first phase of its 440-flat Stopford Park scheme in Stockport town centre.

In commercial construction, our work goes far beyond blueprints and hard hats. It's a collaborative journey that extends deep into the heart of our community, where every project is an opportunity to forge meaningful connections and create lasting impact. At Brien Contracting, we understand that our role transcends mere construction; it's about empowering building owners and business leaders to realize their visions. We take pride in being catalysts for growth and prosperity, knowing that the buildings and spaces we construct today will shape the future of our community tomorrow. Our commitment to excellence isn't just about the structures we build; it's about the lives we touch and the legacies we help shape. As business owners, we are creating these same legacies. With every project, we strive to leave a positive imprint, knowing that our contributions extend far beyond bricks and mortar. Brien Contracting Building Businesses #generalcontractor #commercialconstruction #arizonarealestate

Another project completed ✅ We have recently completed a cost appraisal for one of our regular property developer clients for a potential office conversion into apartments housing 65nr apartments in Birmingham. Our client requested a budget cost plan to be produced based on the preliminary information to understand the potential costs from inception to completion. The works involved all relevant trades to be considered from initial strip out all the way to the finishing trades. This is an important process that all investors and property developers need to be familiar with when building their project, as it provides the developer with an idea of their total exposure when carrying out the design and build works. Are you a developer and looking for something similar and wondering what the benefits are? 1. Fast and effective service ✅ 2. Accurate costings ✅ 3. Peace of mind and time saving ✅ 4. Knowledgable and experienced ✅ If you require any assistance on any similar projects please get in touch below or visit our website for other services👇🏻 📧: louisbetts@lb-commercialconsult.com 🌐: https://lnkd.in/eA-jHPf9 #quantitysurveyor #estimating #construction #propertydeveloping #property