Since Russia invaded Ukraine just over two weeks ago, the UK has seen another disruption to the supply chain after overhauling the disturbance that Brexit and Covid caused.
Now, main contractors are urged to act quickly to avoid disruptions because of the conflict caused by Russia.
There is currently a shortage and price hiking of materials and deliveries, which could bring major products to a halt in the upcoming months unless there is immediate action.
Last week industry analysts warned that the invasion could cause a spike in inflation in the cost of products used within construction sites and jobs in the UK.
Additionally, oil prices have hit a 14-year high as world leaders have banned imports to Russia that benefit Vladimir Putin’s control. The construction sector has already felt the impact of higher oil prices, but will likely see another rise, warns experts.
A Policy and Public Affairs Consultant at the Scaffolding Association, Chris Seaton, commented on the lack of access to vital commodities for the construction sector, as many SMEs were locked in fixed-price contracts that relied on these resources:
“If a contract can’t progress because a supplier can’t provide or afford a key product, a principal contractor would have to look at it.
“Unless they do something they would have no scaffolders to do their work.
“Do they pause a contract, do they allow suppliers to re-bid for work? About 99 per cent of businesses in the construction sector are SMEs, but they keep the sector going. The other one per cent can’t function without them.
“Main contractors need to talk to their suppliers, see what is coming and work out what they can do. They need to consider where they may need to pay more to make work viable for smaller guys.”
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