Why is UK Construction So Expensive? Uncovering the Hidden Costs
In this episode, we dive deep into the reasons behind the high costs of construction in the UK.
Although construction is the top sector for company insolvencies, accounting for 18% of them, the financial losses and inefficiencies are staggering.
We recount recent losses from major contractors like Sir Robert McAlpine, Bouygues, and BAM Construction, and discuss potential exits from the UK market by companies like Lendlease.
We also explore how gross inefficiency, high agency costs, underutilized equipment, and reluctance to adopt new technologies contribute to the problem.
Finally, we ponder whether the industry will seize future opportunities to eliminate these inefficiencies.