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www.hae.org.uk www.eha.org.uk HAE Insurance Services and EHA Insurance Services are trading names of Advisory Insurance Brokers Limited. Registered in England Company No 4043759. Registered Office: 2 Minster Court, Mincing Lane, London, EC3R 7PD. Authorised and regulated by the Financial Conduct Authority. This can be checked on the FCA`s register by checking the FCA website at fca.org.uk/register or by contacting them on 0800 111 6768. Contact us so you can benefit too Call HAE Insurance Services on 0330 018 2299 or email hae@towergate.co.uk Excellent cover No training requirements Income guarantee Quick to set up HIRESECURE THE SHORT PERIOD HIRE INSURANCE SOLUTION YOU ASKED FOR The Construction Industry Collective Voice (CICV) has reassured clients that ongoing price rises for projects are caused by global events not “profiteering”. Clients voiced concerns at the increasing costs of construction work, but the body insists this is down to ongoing global events sparking a rise in fuel costs and shortages of raw materials and labour. The CICV says as well as the negative impact of political, military and health issues, the withdrawal of red diesel in April led to higher costs for construction firms. CICV Policy Manager Chris Cassley, who is also a member the Construction Plant-hire Association (CPA), said: “The rise in energy and material prices, together with supply chain pressures and higher inflationary figures, has led to a tipping-balance for suppliers and customers alike, and in many instances resulted in necessary price increases. These increases are very likely to be passed back up to the client and for government projects, it will be the taxpayer who will ultimately have to pay.” CICV member Iain McIlwee, who is also Chief Executive of the Finishes and Interiors Sector (FIS), described the war in Ukraine, energy price hikes, impact of Brexit and fallout from COVID-19 as a ‘perfect storm’. He said we are now in a position where fixed prices could undermine the resilience of contractors or suppliers and a more collaborative approach is needed, with consideration for how fluctuations clauses can be deployed and risks fairly shared. m Andrew Richards, Strategic Director of Safedem and a member of the Construction Scotland Industry Leadership Group, added: “Clients should consider fluctuations and rises in construction costs as part of ‘the new normal’ and shouldn’t expect prices to fall any time soon.” << ‘RISE IN PROJECT COSTS REFLECTS GLOBAL TURMOIL’ Could the Post Covid Construction Boom be Over? – see page 46.