Bridging Finance News:- Productivity on construction sites is back up to 80 percent of levels before the pandemic, according to a panel of leading design and construction consultants.
The latest data from the Royal Institution of Chartered Surveyors building cost information service, BCIS, shows resilience among contractors.
The BCIS panel attributes this to contractors growing familiarity with government site operating procedures, longer site opening hours and fewer noise restrictions.
| Product | Max LTV | Up to 50% LTV | 50.01 – 65.00% LTV | 65.01 – 75.00% LTV | Term & Repayment | Arrangement Fee |
|---|---|---|---|---|---|---|
| Residential Including Light Refurbishment | Up to 75% Lower of PP or MV | 0.43% pm | 0.53% pm | 0.60% pm | Maximum term 24 months No minimum interest or ERCs Interest Fully Rolled Up, Part-Rolled Up or Serviced (subject to affordability) The net advance will be less total potential interest over the term with the gross loan calculated as interest for the entire term and the arrangement fee added. | 1% -1.5% Full fee added to the loan. |
| Semi Commercial Including Light Refurbishment | Up to 75% Lower of PP or MV | 0.6% pm | 0.6% pm | 0.6% pm | ||
| Commercial Including Light Refurbishment | Up to 70% Lower of PP or MV | 0.75% pm | ||||
| Residential Heavy Refurbishment | Up to 75% Lower of PP or MV | 0.60% pm | 0.65% pm | 0.7% pm | ||
| Commercial and Semi Commercial Heavy Refurbishment | Up to 70% Lower of PP or MV | 0.83% pm | 0.83% pm | 0.7% pm | ||
“Well run contractors are prioritising critical activities and limiting the impact with private housebuilders sequencing overlapping trades to improve productivity,” said the panel.
New site operating rules in the pipeline
The industry hopes output will gain a further boost when the 2-metre social distancing rule changes to one metre from July 4. The Construction Leadership Council has said it plans to produce the fifth version of its site operating rules imminently.
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Brokers Hank Zarihs Associates said developers had shown great flexibility over the lockdown period fine-tuning their work practices and supply chain to optimise efficiency. The brokerage added that property development lenders were keen to support building projects with a range of finance packages.
The BCIS all-in tender index price estimates for the second quarter show no change compared with January to March 2019. The index measures the trend of contractors’ pricing levels in accepted tenders at commit to construct. The 16-strong panel includes senior managers from a range of consultancies from Arcadis to Turner & Townsend.