Whether we face a hard or soft Brexit, construction companies need to implement and amend insurance cover to avoid facing further challenges after 31 October
As the UK awaits a hard or soft Brexit result, construction firms are being urged to square up to the potential challenges now and implement insurance measures to help stave off the many risks that could lay ahead.
From the rising costs of importing building materials to a reduction in the number of EU workers on construction sites, to a potential reduction in funding from the European Investment Bank if projects are placed on hold, UK construction firms face numerous challenges.
Included in these challenges is the revisiting of the terms and conditions of insurance policies which could change in the coming weeks, according to insurance brokerage CEO Lyndon Wood of Construct a Quote.
“It’s vital that construction firms talk to their insurance brokers now to prevent losses and to ensure that adequate cover remains in place. If different materials are being used due to spiralling costs or security is increased because of a lack of staff onsite, insurers need to know this information or construction firms could find their policies are deemed invalid.
“While nobody quite knows the full impact Brexit will have on the UK construction sector, it is clear there will be challenges ahead for all of us, at least in the short-term, as we adapt and move forward,” said Wood.
The UK construction sector which accounts for 17% of all UK businesses, employs around 2.5 million people, and contributes £113bn to the economy – around 6% of GDP, saw minimal growth in August of this year with the Office of National Statistics stating there was a month-on-month decrease in new work of 0.2% in August 2019, while repair and maintenance saw growth of 1.1%.
For new work, the sector experienced a mixed profile of growth, with private commercial new work (1.0%), public new housing (3.3%) and private industrial (3.8%) experiencing increases whereas private new housing (0.9%), infrastructure (1.3%) and public other new work (3.1%) saw falls.
In repair and maintenance, the growth of 1.1% comprised growth across all the components within the sector. Non-housing, and private housing repair and maintenance saw the largest growth, increasing by 1.4% and 1.0% respectively.
Wood continued: “While figures indicate the construction sector has suffered ups and downs in recent times, I firmly believe the construction sector will continue to be a thriving, vibrant contributor to the UK economy that will prove to be a positive force once again as we negotiate new deals with other countries and adapt to a new way of conducting business.”