The cost efficiency of managing defects has become a significant issue for developers. While the developer can expect the contractor to meet their share of the cost, this doesn’t always happen. Most importantly the developer’s own costs to manage homeowners represent two thirds of the overall expense. This is largely attributable to the following factors:
Although the developer is responsible for 70% of the costs, they can and do absorb some of the labour and material costs. This can happen
These costs have been calculated using After Build’s Case Study exercises. The larger the developer’s business, the lower the plot cost should be. As an average across the industry, managing defects is £574 per plot pa (£97M).
Labour, based on industry rates and statistics represents 17% of overall costs. An average of £140 per plot pa (£24M), and materials a further £108 per plot pa (£18M).
Overall, the cost per plot pa is £822 (139M).
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During this difficult time After Build’s service continues as normal. Given our technology platform, the team is able to operate remotely without impacting on service levels – this includes Out of Hours Emergency cover.
In the event that a developer’s contractor is unable to attend a property (either because they are instructed not to, or because a homeowner does not wish it) the Property Coordinator will take full details of the issue, recording it on our system in readiness for making an appointment just as soon as matters return to normal.
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