Construction Costs - A CEO's guide to navigating rising costs in 2023

What you can't control...

Material hikes

Construction material costs are expected to increase by 8.5%.

Access to credit due to high-interest rates

With the economy predicted to decrease by -1.3% and recession expected to soon follow, investments are set to slow.

Poor industry growth

Sector insight specialist Glenigan predicted a 2% fall in most projects.

Labour costs

Labor costs are set to increase by 3.7%.

Inflation

Inflation rates continue to rise to over double digits.

Skilled labour

Difficulty finding skilled labour has led to a 23% increase in the time typically taken for a project to progress from detailed planning consent to start on-site.

What you CAN control...

Wasted time on non-value-adding tasks

Project managers spend on average 16 hours per week conducting site walks and 17 hours on paperwork and emails.

Reworks

$250K out of every $5M spent on a construction project goes towards reworks.

Miscommunications between trades

Almost half of all reworks are caused by miscommunication.

Inefficient progress and task management

Main Contractors spend an average of 1,500 hours per month trying to understand the progress of a project.*

Delays caused by poor handovers

Handovers typically take more than one day per handover, per work area spent.*

Poorly planned sequence of work

Incorrect sequences cause at least one quality issue per apartment.*

SABLONO TO REDUCE CONSTRUCTION COSTS

How Sablono helps you get back your profits

Sablono helps to transform your processes and improve overall clarity on projects to boost the bottom line.
It’s saved our partners over 600 hours and £10,000+ per month, per project.
Multiply this across your enterprise and it has the potential to help you save millions.

Gives you back the time to focus on high-value tasks

Sablono transforms your project into an optimised production plan, eliminating paperwork and empowering project leaders with the necessary time, tools, and insights to make quicker, more informed decisions.

Reduces reworks

Fully digitalise your quality processes. Embed quality control into your execution phase for proactive defect management that helps you to prevent issues from happening in the first place.

Prevents miscommunications between trades

Connect everyone on a project with a centralised system that gives one version of the truth and instant, easy access to project information.

Streamlines progress and task management

Unlock clear, real-time project data that provides true clarity. Connect all aspects of time quality and cost and track hundreds of thousands of activities down to the finest detail.

Prevents delays caused by poor handovers

Streamline trade handovers by having trades easily report the status of their activities in the Sablono app and automatically notifying the next trade when work is ready for them to complete.

Allows for highly granular planning

Generate work sequences based on data insights that identify the optimal approach for completing tasks. Standardise these processes across your projects to minimise quality issues and maximise productivity.

“Sablono is very useful for tracking on-site progress and predicting and forecasting the potential impact of any delays that occur. It’s a helpful tool to quickly assess the amount of work that has been completed in a given period by any individual trade.”

Ballymore Quantity Surveyor
"Sablono is a truly collaborative working platform which enables multi-user live updates providing real-time progress reports. The biggest benefit of Sablono is when used with a repetitive work stream."

Interserve UK Senior Planner
"Intradepartmental tools for progress tracking are no longer used, instead a unified and official tracking system powered by Sablono enables us to take a major step towards digitalization."

Hydrodiseño Project Director
"My favourite part of Sablono is the way it keeps a record of handovers. It is very efficient to carry out a handover walk on site, sign a sheet, complete the QA checklist on my phone and attach the signed sheet on the app."

Lendlease Assistant Project Manager

A guide to navigating rising construction costs

Will construction costs go down in 2024?

Key threats to construction profit margins