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Published 30 May 2014
The last few months have been a great time for the sector - most housebuilders have reported significant growth. However, the current market conditions place considerable pressure on the “engine room” of a residential developer’s business to keep "the machine" running smoothly.
When key resources are in short supply (materials, labour and indeed skilled and experienced staff) you need trusted suppliers as much as suppliers need your business. The "boom" has happened (particularly in some areas of the country) quite suddenly – it is not just growth, but the speed of change which brings challenges. Shortage of time is the constraining factor – not just in terms of the design phase and build programme, but also staff and management time. Now (more than ever) procurement processes need to be stream-lined.
This is where setting up framework agreements with key suppliers can help; whether they be with D&B contractors, trade contractors, materials suppliers or professional consultants, such as architects or engineers. Below are just a few examples of the benefits:
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Christopher Stanwell, Andrew Morgan