Bovis Homes purges poor performing trade contractors

Aaron Morby 1 year ago
Share

Southern house builder Bovis Homes has been forced to replace a swathe of trade contractors on sites for poor productivity and quality.

Bovis Homes

Trade contractors have been struggling with skills shortages in the last year and the house builder warned that had impacted on productivity at some sites forcing it to cull firms.

The firm revealed that replacing poorly performing trade contractors contributed to an 8% rise in building costs last year.

David Ritchie, chief executive, said that Bovis was now also working closely with a group of select groundwork contractors to ensure fast starts on sites to speed on production rates.

The deals are similar to favoured material supplier arrangements used to manage building material delivery time and cost risks.

Ritchie said: “We have seen double-digit labour inflation in certain occasions, impacting both our own construction staff as well as labor from our key trades.

“We have incurred some additional costs where we’ve replaced subcontractors on sites either to ensure we hit the production rates that we’re required or to hit the quality that we’re required on site.”

He said Bovis Homes was now assessing contractors much more vigorously and checking they have enough labour to deliver production targets.

Ritchie set out some of the challenges facing house builders as Bovis Homes delivered record profits up 20% to £160m on the back of an 8% rise in completions to just under 4,000 homes.

Revenue grew 17% to £946.5m, driven by a 7% rise in average sales prices to £216,600 and strong demand for new homes.

He added: “In the current housing market, our plan envisages the business delivering sustainable growth over the next few years to achieve annual volumes of between 5,000 and 6,000 new homes.

“We have invested well during 2015 in new consented land and achieved a strong level of conversion from our strategic land bank.”

Bovis Homes boasts 142 consented sites putting it on track for the estimated 150 sales outlets needed to deliver its annual completions target.

The house builder has either secured or is in the final stages of securing planning consent on eight major strategic sites: Bishop’s Stortford, North Whiteley, Bexhill, Witney, Edwalton, Gravesend, Taunton and Tavistock.

In total, these sites will deliver over 5,000 consented plots.

Ritchie added: “Our site at Wellingborough obtained revised planning consent in December for 3,650 plots which supports the start of housebuilding on site during 2016.”

“Overall, around 8,000 plots of the strategic land bank have planning agreed. In a number of cases, development partners are being identified for these larger sites, in line with the group’s aims for capital efficiency.”

Latest news

London concrete specialist soars to record profit

JRL quadruples profit on strong concrete frames and crane hire trading
7 hours ago

Graham bags £50m Kew Gardens revamp

Firm to refurbish historic Grade I and Grade II listed buildings over five years
7 hours ago

Firms sentenced after four killed in site excavation tragedy

Companies fined £700,000 after disaster in Norfolk
4 days ago

BAM books in £35.5m refurb deal at listed castle

Studley Castle will become hotel owned by Butlin's group
4 days ago

Carillion plans job losses as rail spending cuts bite

Union vows to fight against redundancies as renewal spending falls
5 days ago

Ardmac wins fit-out deal at Kirkstall Forge

Work to start next month on new offices for vehicle leasing specialist
4 days ago

McLaren lands £38m Brighton College sports and science centre

Contractor bags third major deal in five years with college
5 days ago

CITB to sell awarding body

Cskills Awards to have new owners
4 days ago

Balfour to close seven offices in Scotland

All operations north of the border to be directed from one new main office
5 days ago

Cemex drivers call off strike plans

Fear of disruption to site materials deliveries subsides as pay deal struck
5 days ago

Nine firms win places on £225m modular framework

Fusion 21 picks winners for education authorities to use
6 days ago

Winners revealed for LHC modular buildings deal

Big week for offsite as another major framework agreed
5 days ago

Helical bullish about London office market

Developer focuses on London, Manchester and logistics sites
5 days ago

Tarmac poaches director from FM Conway

Surfacing boss Toby Pyper to join Tarmac next month
5 days ago

Private rented sector fund raises £250m

Investors pile-in to new PRS fund looking for stakes in new schemes across the country
5 days ago

Race starts for first £15m Brent Cross infrastructure deal

Roads and utilities work to pave way for £1.4bn shopping centre revamp
5 days ago

Developers scale down plans for Wylfa nuclear plant

Number of construction workers needed falls to 8,500 from 10,000
6 days ago

Facebook snub prompts refurb rethink on Oxford Street

Great Portland Estates considers more extensive revamp at Oxford House
6 days ago

McLaren lands deal to fit-out new home of the FT

Newspaper staff will have a running track on the roof of New Bracken House
7 days ago

Skanska appoints new head of building business

Katy Dowding promoted as contractor unveils management reshuffle
7 days ago

Bid race begins for £20m mega car park

Port of Southampton plans largest car storage facility yet
6 days ago

MVS Group lands mechanical deal at new Spurs stadium

Midlands specialist boosts turnover and opens new North West office
6 days ago

BAM wins £20m Sheffield school

Mercia secondary school will open late next year
7 days ago

Sparks down tools on Skanska Crossrail sites

Electricians "cabin-up" in row over bonus pay and union recognition
7 days ago

Renew pulls out of low pressure gas mains work

Forefront Utilities business to focus on medium pressure replacement schemes
7 days ago

Wonky crane gets Multiplex out of a tight fix

Ingenious crane design at London's tallest tower site
7 days ago

200 Quadrant Construction staff face restructure

L&Q to close Quadrant Construction brand in big shake-up of development activities
7 days ago

Construction to start on £100m Bath resi scheme

Investment fund buys former Bath Press site
7 days ago

Three bosses jailed after fatal roof fall

Court hears how safety measures were ignored to save money
1 week ago

Property firm merges with main contractor

Wigley Building and Development will target projects up to £12m
1 week ago

Contractor services