Bovis Homes purges poor performing trade contractors

Aaron Morby 7 months 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

BBC starts hunt for contractor to rebuild Eastenders set

Procurement race starts for £15m revamp of Albert Square
2 days ago

Lakehouse job losses could hit 170

Redundancy programme continues at Essex contractor
3 days ago

Contractor hunt starts for £185m mixed-use Manchester job

Green light from planners for twin resi towers and office block
3 days ago

Mobile crane explodes causing fireball on M40

Highway contractors are planning to resurface the damaged part of the M40 today
3 days ago

Morgan Sindall on recruitment drive for £750m highways deal

Recruitment events in East Anglia next week: Register now
3 days ago

John Sisk front runner for £28m Manchester PRS flats

Finance secured for developer Mulbury's 135-home Port Street project
3 days ago

Near-miss for Crossrail workers as train hits power cable

Investigation launched after construction train rips electricity panel from tunnel wall
3 days ago

Nationwide Platforms md takes Ardent chief executive role

Jeremy Fish joins Ardent to steer expansion drive
3 days ago

Kier posts loss after £116m raft of one-off costs

Kier counts cost of Caribbean closure and Mouchel and May Gurney integration
4 days ago

Council set to tender £26m Dover leisure centre

Contractor due to be appointed next August for new Whitfield swimming and sports complex
3 days ago

Betting Spy: Leicester a big price to beat misfiring Man Utd

Spurs, Everton and Man City can land a 5/1 treble
3 days ago

Willmott Dixon unveils off-the-shelf police cell design

Contractor works with Canadian architect to draw up modular cell block design
3 days ago

Celebrity hosts confirmed for Construction Enquirer Awards

Comedian Russell Kane and TV architecture expert George Clarke to host big night: Last few tables remaining
4 days ago

Highways workers move to new coloured hard hat regime

Days numbered for green and yellow hard hats
4 days ago

Vinci set for £73m student scheme in Coventry

Work to start next month transforming former Royal Mail sorting office site
4 days ago

Midlands council sets up loan-funded house builder

Wolverhampton Council aims to build 800 homes on council land over next four years
4 days ago

Plans in for third office at Brum Arena Central

Developers to push ahead with post-Brexit 230,000 sq ft spec office scheme
4 days ago

Scaffolders get suspended jail sentences after site death

Court hears how safety railing was removed from site
4 days ago

Crunch Crossrail meeting as sparks demand £75,000-a-year

Threat of industrial unrest looms on project as contractors hampered by skills shortages
5 days ago

Queensferry bridge sets record as longest free-standing cantilever

Bridge builders prepare for the final deck sections to link 2.7km Forth crossing
5 days ago

Styles & Wood buys data centre builder

Fit-out specialist makes move on £1bn data centre market
5 days ago

Carillion submits plan for £100m Lambeth College

Skills Centre £45m construction cost to be funded by new hotel and flats receipts
5 days ago

Wates starts on £70m Hoxton resi towers

Twin 20 and 16 storey towers to be completed by summer 2018
5 days ago

Loughborough Uni plans £40m student digs scheme

Work to start next August on 600-room student village
5 days ago

Hochtief wins £11m M4 junction 16 upgrade

Work to start in November on Spittleborough Roundabout improvements
5 days ago

Foreman run over on Crest Nicholson site

£800,000 fine after cement lorry accident
5 days ago

Credit insurance claims stalled in Dunne debt dispute

Subcontractors claim they are owed three times more than initial estimates
6 days ago

Green light for £80m Liverpool PRS tower block

Moda Living and Apache Capital get green light for 34-floor private rented resi tower
5 days ago

Manchester Uni picks partners for projects up to £10m

Graham, Kier and Willmott Dixon among firms picked for £175m programme
6 days ago

Skanska team starts Hinkley preparation work

RK Bell and Forest Traffic Services join Skanska in infrastructure alliance
6 days ago