Managing Cost Increases In Construction Contracts

The consequences of Russia's invasion of Ukraine have joined forces with a surge in demand for construction products, Ofgem's permitted energy price hikes, the ramifications of Brexit and fall-out from Covid-19 to strip the construction industry of resources and increase prices.

Ukraine and Russia export raw materials include copper, aluminium, oil, bitumen, neon (used in semi-conductors for micro-chips), timber and iron ore used for steel. Reduced supplies from both countries to the UK (or Europe where the UK then sources the materials) caused by the war, or sanctions imposed in response to it, will trigger shortages and delay. The impact will be felt at almost every stage of construction, from the erection of steel frames to installation of aluminium windows and timber cladding, from M&E works to roofing.