nod Posted July 3, 2021 Share Posted July 3, 2021 A large company that I do a lot of work for Are reducing bricklaying and joinery prices in September and told subcontractors to reduce tenders by 10% Good news for self builders and will also be good for contractors Link to comment Share on other sites More sharing options...
Oz07 Posted July 3, 2021 Share Posted July 3, 2021 Do they tell the subbies what to price? Surely they will find work elsewhere Link to comment Share on other sites More sharing options...
nod Posted July 3, 2021 Author Share Posted July 3, 2021 (edited) They are a large family firm 100 mil plus turnover There joiners and Brickies could walk if other companies don’t follow suit They must be pretty convenient that things will slow after September You’ll probably find Redrow and others are planning to do the same I think the end of lockdown and the stamp duty holiday Plus all the Furlough money being handed out created an artificial boom Hopefully a bit of normality after September Edited July 3, 2021 by nod Link to comment Share on other sites More sharing options...
epsilonGreedy Posted July 3, 2021 Share Posted July 3, 2021 Do you think materials price instability is causing building projects to be postponed? Link to comment Share on other sites More sharing options...
nod Posted July 3, 2021 Author Share Posted July 3, 2021 No Materials seem to be flattening out Gypsum has stayed the same for us MF has gone up due to companies converting from timber But I’m reliably informed that once demand drops the price will come back down I do think a lot of suppliers have cashed in to make up for lost revenue The end of stamp duty holiday will play its part Link to comment Share on other sites More sharing options...
Ronan 1 Posted July 3, 2021 Share Posted July 3, 2021 I'm hearing the same thing over in Dublin too Nod. One of our big suppliers have a timber department who will sort out all my roof Tec for my build has told me to hang fire in till End Sept or Oct with the order and there should be a good price drop Link to comment Share on other sites More sharing options...
SteamyTea Posted July 3, 2021 Share Posted July 3, 2021 Did I not say that if material prices go up, labour prices will drop. All comes down to the money supply. If people only have 100 quid to spend, no good hoping they will pay 110. Link to comment Share on other sites More sharing options...
jamieled Posted July 3, 2021 Share Posted July 3, 2021 53 minutes ago, epsilonGreedy said: Do you think materials price instability is causing building projects to be postponed? Might depend where you are. I know of one big site that has shut here for that reason. Link to comment Share on other sites More sharing options...
epsilonGreedy Posted July 3, 2021 Share Posted July 3, 2021 37 minutes ago, SteamyTea said: Did I not say that if material prices go up, labour prices will drop. You did, it was a memorable day. Link to comment Share on other sites More sharing options...
Mr Punter Posted July 3, 2021 Share Posted July 3, 2021 54 minutes ago, SteamyTea said: Did I not say that if material prices go up, labour prices will drop. But that is not what happened. Both went up and both should come down. Link to comment Share on other sites More sharing options...
nod Posted July 3, 2021 Author Share Posted July 3, 2021 I think the commercial side of construction is directly linked to the housing side Link to comment Share on other sites More sharing options...
SteamyTea Posted July 3, 2021 Share Posted July 3, 2021 39 minutes ago, Mr Punter said: But that is not what happened. Both went up and both should come down. And little work was done. People often forget that supply and demand is governed by demand. Now while a few people will pay over the odds to get something finished, most won't. If this was not so, we would all be infinitely cash rich with unlimited wealth. 1 Link to comment Share on other sites More sharing options...
Oz07 Posted July 3, 2021 Share Posted July 3, 2021 @nod are you talking about that betfred family? Think the site my old boy is on is funded by them. Can see him walking if he can't earn what he's been used to earning. Link to comment Share on other sites More sharing options...
nod Posted July 3, 2021 Author Share Posted July 3, 2021 34 minutes ago, Oz07 said: @nod are you talking about that betfred family? Think the site my old boy is on is funded by them. Can see him walking if he can't earn what he's been used to earning. No Not those Its pretty typical of the building trade In 2008 Prices dropped 30% overnight Link to comment Share on other sites More sharing options...
Oz07 Posted July 3, 2021 Share Posted July 3, 2021 Yes but usually there's a catalyst isn't there. Not just some developer telling their subbies to drop their prices. Link to comment Share on other sites More sharing options...
nod Posted July 3, 2021 Author Share Posted July 3, 2021 1 hour ago, Oz07 said: Yes but usually there's a catalyst isn't there. Not just some developer telling their subbies to drop their prices. I think the catalyst is a combination of furlough cash give away ending and also the stamp duty holiday ending We normally do 90% commercial But the last 18 months it’s nearly all been houses and apartments The last twenty months has been none stop So it will be good for things to slow down Link to comment Share on other sites More sharing options...
epsilonGreedy Posted July 3, 2021 Share Posted July 3, 2021 8 minutes ago, Mr Punter said: But that is not what happened. Both went up and both should come down. Steamy was right, however economic systems have inertia. Even when material prices rise by historic percentages there are still incomplete buildings. In most cases it makes sense to complete and get such new homes onto the market because of the financial commitment prior to prices rises. Then we need to overlay clumsy attempts by the Government to manipulate the market through tax holidays. Link to comment Share on other sites More sharing options...
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