Construction firms have been urged to start using modular construction in order to make the process more cost-effective.
This comes as construction costs are predicted to rise by between 3-3.8% this year, following a rise of 4.1% in 2023.
Currie & Brown, provider of cost management, project management and advisory services, made the recommendation in its report, ‘How to navigate 2024: Balancing challenge with opportunity’.
It said adopting modular construction will help reduce the impact of local skills and materials shortages, giving greater certainty on construction costs. Close collaboration between developers, consultants and contractors will also lead to greater clarity on schedules so that skilled labour can be secured early.
Nick Gray, chief operating officer, UK and Europe, Currie & Brown, said: “Cost escalation is a significant challenge for the construction industry, but it is also nothing new.
“The UK is not alone in experiencing spiralling construction costs. Currie & Brown predicts cost increases across every one of its operating regions in the year ahead.”
Prices are rising due Geopolitical turmoil in Ukraine and the Middle East. This is disrupting Red Sea trade routes, which is increasing insurance costs and extending journey times.
Inflation is the dominant driver of cost increases, while the industry is also looking to adapt to new sustainability rules, as well as deal with skills and material shortages.
