Material cost increases and your quotation
In May we wrote an article addressing material cost increases within the construction sector, and what they mean for self-builders. A month on, the perfect storm of COVID, stronger domestic demand for building supplies, transport issues, labour shortages, and global supply chain constraints mean that many materials remain in short supply and prices are continuing to rise. In fact, they are forecast to keep rising until at least the end of 2021, if not into 2022.
This presents a real challenge for Fleming Homes and companies like ours when it comes to manufacturing and delivering timber frame homes for our customers. With prices increasing daily and project schedules shifting from month to month, the process of getting quotations right for our customers is tough. That is why we are setting out the actions we are taking today to try to give enhanced certainty to our customers.
Firstly, to address lead times, due to manufacturing constraints we must prioritise those customers who are already in our manufacturing queue. This makes it almost impossible to “squeeze in” last-minute projects (even for our valued repeat clients). If you already have a confirmed delivery date with us, you will have the peace of mind of knowing that your project will not be bumped at the last minute to satisfy a more lucrative order. As a further commitment to our existing customer base, we are extending our current lead time to 16 weeks to ensure we can comfortably satisfy our current orders.
Secondly, we appreciate that knowing that your kit will arrive in line with your build schedule should ideally be accompanied by cost certainty. With constant price increases, this has been progressively difficult to offer as quotations have been updated in line with material cost increases. To mitigate against this and in line with our extended lead times we are stretching our quotation validity period to provide added comfort for our customers.
This longer validity period means that we will forecast price increases based on supplier communications so that you have the peace of mind of knowing that the price of your timber frame will not increase if you can take delivery within the validity period.
What to do next…
We regularly champion communication as the bedrock of a successful self-build project. Keeping lines of communication open and updating our sales team regularly on your target delivery date will help protect you against nasty surprises and ensure your quote remains up to date and in line with your planned project start date.
If you have any questions about a current quotation, please don’t hesitate to contact your sales manager on 01361 883785.
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