Self-building during a pandemic
Bob Branscombe surveys the impact of Covid-19 on self-build and renovation projects, makes observations about where we’re headed, and advises on how to get your project back on track
The impact of lockdown on projects
We live in unprecedented times. We have all realised that some things in life are important, while others can take a back seat when needed, and that our projects fall into the latter category. I hope that everyone reading this will be able to look back in a few months from a safe, well and comfortable position, and realise the value of those around us, and the lives we take for granted. I also hope that your projects will be back on track, planned properly and moving forwards!
Construction has been affected by the pandemic, and is only just emerging back into the world, blinking and tousle-headed, wondering what the new world is like.
Here, I reflect on this emerging frontier.
What has changed?
Lead in times Suppliers will continue to experience delays in obtaining materials, especially given the UK’S reliance on the EU member states for supplies. Goods are getting through, but the next-day delivery that many of us had become used to will take some time to get back to normal.
Programme slippage Most schemes have experienced at least six weeks of full shut down, including many that have been closed since March 2020. Our self-builds are likely to be impacted by at least two months of delay, and we need to consider the impact of this, mainly in terms of lending costs and interest — remember, as self-builders, time is one of the few resources we can be flexible with.
Availability of funds The brave new world will have spooked lending institutions which, if we are frank, have bigger problems than supporting the self-build market. As such, expect to see requirements surrounding loan-to-cost ratios becoming harder to satisfy, fees potentially increasing, and overall loan covenants becoming more restrictive. This does not mean we won’t be able to get funding, but it will become tougher as lending markets seek to reduce their exposure to risk, in the short-term at least.
Release of funds, inspections and building control The backlog of schemes requiring building control and warranty inspections is likely to impact upon the speed they can be carried out at, at least for the next six months or so. Accordingly, we will need to be more proactive in booking inspections, giving a longer notice period to allow the surveyor to fit us into their diary.this will be compounded by an increase in the time it takes to get funds released from lenders. Keep in mind that these functions might be being carried out by home workers, and given the lack of preparation they were given to work from home, it is not surprising that these routine procedures are taking a little longer to process.
‘‘ The best advice I can offer at this stage is to focus on research and planning to a greater degree than before
Production rates Social distancing has taken away the option to increase production by flooding a scheme with labour. Getting more plasterers in to speed
up the works is no longer something you can do, and I can see this being the case for several more months at least. Some sites have had to drop down almost to having only one person working on them at any one time, which will make your programme a lot more linear, as multiple tasks can no longer happen at once.
Availability of site resources
A significant backlog of work now exists, meaning that, all other things being equal, materials and labour will tend to go to the most lucrative jobs first. This has the potential to become a bidding war, where – even more so than usual – the scheme that pays the most will be the one that gets the resources. Lack of labour from other countries with their own quarantine schedules will also impact this pool of resources in some areas, all of which will push prices upwards.
Deliveries Even non-contact deliveries still bear a risk of transmitting coronavirus, albeit a reasonably small one. Thankfully, most suppliers have created processes to keep all parties safe and ensure deliveries can still be made.
Planning and other local authority requirements The process of discharging local authorities’ requirements has slowed down, and given the underresourcing faced by our councils, in addition to the challenges of remote working, it seems unlikely that they will be able to improve their turnaround in the short to medium term.
It is still too early to quantify or fully understand the impact of the pandemic on our builds.there will be opportunities, as well as ongoing restrictions and costs, but all of these will vary from site to site. Challenges will arise when finishing works, and performing internal tasks that require more than one person to carry them out. However, as always, tradespeople are already finding solutions to these issues, and are returning to work in droves.
Self-building still remains an efficient and viable way to build, but be mindful of the current restraints on working methods. Money is always an issue in our segment of the construction market, and although this will not be helped by the recent pressures on companies there may well be a shortterm bounce as suppliers look to recoup some business via discounts and offers. If you are cash rich, now may well be the time to leap in.the most significant impact on our work will be delays, and greatly increased timeframes for tasks to be carried out while social distancing remains in place. However, as I’ve mentioned, time is often the one thing we self-builders and renovators can be flexible with. Therefore, these longer lead times may well work to our advantage, as stretching out a programme eases the pressure it puts on your cashflow.
The best advice I can offer at this stage is to focus on research and planning to a greater degree than before. Speak to suppliers and subcontractors to understand their workload and timing pressures, give commitments to ‘book them in’, and build in greater periods in between essential tasks to ensure flexibility. Your scheme’s programme will increase in length, but this is better than sticking to a ‘just in time’ approach, which will not work well in these currently restrained times.
‘‘ It is still too early to fully understand the impact of the pandemic on our builds… there will be opportunities as well as ongoing restrictions and costs