Developers behind schemes that have already been squeezed by the current economic conditions are moving fast to limit the financial impact of the new Part L and F of the Building Regulations on future projects.
Facing estimated increases in construction costs of up to 6% to meet the new Regulations there are fears that the further erosion of margins will lead to many schemes being halted. They are therefore taking advantage of the Government’s transitional arrangements which allow them to fix their cost risks by ensuring their schemes are covered by the existing – not the new – Regulations.
“The 6% estimate for the increase in costs should not be taken at face value as it is a generic estimate and may not accurately reflect the effect on all schemes,” said HCD Group Director Steve Highwood. “The actual cost will depend upon the building and developers will not know the truth until they try applying the new Regulations. One thing is for sure, when you factor-in the additional certification, testing and design requirements, we expect that a lot of people will find their margins cut even further.”