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How is the rising cost of skips affecting construction workers?
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Posted on Jun 14, 2021
For those that work in the building and construction trade, you may have noticed that the price of hiring skips is rising and it could spell bad news for both your business and the homeowners you work for.
The hike in skip hire prices is not a new issue. Previous rises were seen in 2012 when the HMRC changed the rules to governing landfill tax. This meant that fines from transfer stations and waste materials used to cover landfill sites were subject to pay the full £64 per tonne landfill tax rate rather than the subsidised rate of £2.50.
This time, the price increase means that two thirds of builders pass skip price increases onto their clients, which means that renovation and home improvement projects are increasingly costly.
Builders need to ensure to price their projects suitably in accordance with material price hikes, skip hire and even the rise in the price of diesel. All of this makes it more difficult to provide a competitive quote for a job, but it’s better than cutting too heavily into your profit margins.
The repercussions of a hike in prices doesn’t just affect the construction industry, either. The impact of this rise could also bring a marked increase in fly-tipping, so landowners and farms may have to deal with the consequences of this.
However, it’s not all doom and gloom. Whilst skip hire, diesel and material costs are rising, the UK is set to see a rise in growth for the construction sector and the demand for private homes is increasing.
If you work in the building and construction industry, do you have robust insurance to protect you in the event that something goes wrong? At Watkin Davies we will work with you to conduct a risk assessment of your business and tailor a policy to help combat these, give us a call on 02920 626226
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