Fixed Price Structural Calculations

Fixed Price Structural Calculations

The Rising Cost of Building Projects

We know that building projects require substantial investment and costs can quickly add up. Finishing work over budget is common and, when prices rise mid-project, it can make a substantial difference to the overall costs.

The rising prices couldn’t come at a worse time for the construction industry, which has been hit hard by supply chain and personnel issues after the pandemic. For some companies, it means that they simply can’t operate at a profit anymore. With reserves of cash depleted by the issues caused by Covid-19, sadly, the only option for them is to cease trading.

For other companies, it means a big decrease in profits even though more projects are completed, needing extra labour. For home builders, the impact can be even bigger. In some cases, it means that plans for changes, new builds and renovations are shelved or even written off.

That’s why we’ve decided to offer fixed price structural calculations to our customers.

Why are Prices Rising so much?

Two vital construction materials are steel and timber, both of which have been subject to big price hikes.

Steel

According to British Steel the ongoing conflict between Russia and the Ukraine is playing a big part in the price rises. This is due to the significant disruption of supply chains and the unprecedented volatility of the energy markets, which is causing the increases in electricity costs.

In March, the company increased prices for large sections of steel to over £1,000 per tonne. There’s a rise of £250 per tonne for new customers – a staggering 25% increase. Experts say that it’s British Steel’s biggest ever one-off price increase.

By January 2022, the price of fabricated steel had already increased by 55%. This trend has continued into the year, putting a huge financial strain on the whole construction industry.

Timber

Timber prices have been rising throughout 2021 and into 2022. Experts say that the price rises are caused by distribution problems, high demand and the increased cost of transportation.

The latest National Statistics on Timber Price Indices produced by Forest Research were released on 19 May 2022 according to the arrangements approved by the UK Statistics Authority.

The key points from the latest release are:

In the Coniferous Standing Sales Price Index:

• The index was 40.5% higher in real terms (38.8% higher in nominal terms) in the year to March 2022 compared with the previous year.
• The average price for coniferous standing sales was £42.55 per cubic metre overbark standing in nominal terms in the year to March 2022, an increase from £31.03 in the year to March 2021.

In the Softwood Sawlog Price Index:

•       The Softwood Sawlog Price Index was 13.3% higher in real terms (13.5% higher in nominal terms) in the 6 months to March 2022, compared with the corresponding period in the previous year.

•       The average price for softwood sawlog sales was £76.89 per cubic metre overbark in nominal terms in the 6-month period to March 2022, a decrease from £79.39 in the 6 months to September 2021, but an increase from £67.70 in the 6 months to March 2021.

•       The Spruce Sawlog Price Index and Other Conifer Sawlog Price Index were 18.5% and 6.1% higher respectively in real terms in the 6 months to March 2022, compared with the corresponding period of the previous year.

In the Small Roundwood Price Index:

• The Small Roundwood Price Index was 6.6% higher in real terms (6.7% higher in nominal terms) in the 6 months to March 2022, compared with the corresponding period of the previous year.
• The average price for small roundwood sales was £37.30 per cubic metre overbark in nominal terms in the 6-month period to March 2022, a decrease from £37.92 in the 6 months to September 2021, but an increase from £34.95 in the 6 months to March 2021.

Included with kind permission from the Forestry Commission: Crown Copyright, courtesy Forestry Commission March 2022, licensed under the Open Government Licence.

Why are We Offering Fixed Price Structural Calculations?

Overall, the cost of materials such as timber, cement and plastic items, had risen by 21% by January. 2022 – and the momentum hasn’t slowed in recent months.

Our structural calculations won’t cost you anymore in 2022 as we’re basing them on pre-inflation costs. We’re doing this as we’re aware that everyone in the construction industry is taking a financial hit due to the rising cost of materials. We value our customers and we want to help you get your building project completed without breaking the bank.

Let’s Get Started on Your Fixed Price Structural Calculations

We just need your plans or measured survey sketches to create your structural beam calculations.

Give us a call if you’d like to find out more – we’re always happy to help.

Call our team today on 0208 243 8618 (mobile: 07376 815 039) or fill in this form to get started now.