CONSTRUCTION CONTRACTING POST-COVID19

CONSTRUCTION CONTRACTING POST-COVID19

Jul 20, 2020

As the UK begins to move further into the second phase of Coronavirus recovery, several Government announcements seem to have placed the construction industry at the centre of economic revival.

The second half of 2020 hopefully brings a more positive outlook than the first for the construction industry, and the UK in general, with the Government promising to invest billions into UK construction to help facilitate economic recovery. Following the unprecedented outbreak of the Coronavirus, hundreds of construction sites were suspended across the nation, leaving many construction contractors without employment.

According to Glenigan over the past few weeks, suspensions have begun to lift, with only 6% of sites in England still on hold. This is excellent news for contractors who currently have an assignment, but what is the outlook for the future of the sector when these contracts end?

Since the Prime Minister, Boris Johnson, announced his plan to ‘build build build’, the Chancellor, Rishi Sunak, has revealed a variety of schemes that will positively impact the construction sector. One of these includes the plan to ensure a ‘green recovery’ with a Green Homes Grant, which allows homeowners and landlords to apply for vouchers that will make their homes energy efficient, and a pledge of £1billion to help make public sector buildings greener. The scheme is set to launch in September and would see up to 650,000 homes retrofitted and up to 140,000 new green jobs. This is excellent news for construction contractors.

Similarly, the introduction of a Stamp Duty Holiday is set to kickstart the real estate industry. The Holiday will save homebuyers in England and Northern Ireland an average of £4,500 for both first-time buyers and those who already own a property. If this scheme works, we’ll hopefully see a rise in new housing development proposals, creating a variety of jobs for construction contractors.

It has also been announced that firms will be paid £1,000 to hire trainees, with a sum of £100million promised to high-demand sectors such as construction and engineering. This falls under the Kickstart Scheme which will allow employers to create hundreds of thousands of new jobs!

While this is all positive news for the construction industry, the growth of the sector could be hindered by a range of factors including reduced staffing levels on-site, local lockdowns as we try to avoid a second wave of COVID-19, and the general state of the UK economy.

It’s clear that we will have to wait and see what the future holds, but we’re here to provide support whenever you need us to ensure you’re set up to work safely and compliantly.

At Crest Plus, we have supported construction contractors for over two decades, so we’d be happy to answer any of your questions and help you with all aspects of CIS or Umbrella contracting. Get in touch with us to find out more.

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