Seven out of eight contractors (87%) have experienced price hikes as a result of the war in Ukraine, according to the latest UK market report by Gleeds.
The construction consultancy’s spring market report, published on 20 May, also said more than two-thirds of the contractors questioned said some schemes are stalling because of the uncertainty resulting from the conflict.
Around two thirds (62%) of contractors report reduced availability of specified materials since Russia’s invasion of Ukraine, with 60% experiencing disruption in the supply chain. Almost 90% said steel was the material most heavily impacted. The report voiced contractors’ concerns about the impact that cost escalation will have on schemes’ viability.
The war in Ukraine is likely to affect some timber supplies before the end of this year, according to the Construction Leadership Council’s Product Availability working group. It said most products continue to be ‘well stocked’, but pointed to ongoing challenges continuing to affect the supply of bricks, aircrete blocks, concrete products, PIR insulation and gas boilers, resulting in long lead times.