Construction Industry Spotlight | Challenges lead to change
The last 12 months have seen the construction industry face many challenges. These include:
- Brexit negotiations and uncertainty in the industry since the 2016 referendum
- The effects of the unforeseen COVID-19 pandemic
- Ongoing sustainability and environmental issues
- The prospect of a second referendum on Scottish independence
- The ongoing Hackitt report, with the second phase of the Grenfell enquiry underway
- Demands for diversity and inclusion at a time when there will be reduced access to foreign labour
Our existing workforce is ageing and reducing at a significant rate. Off-site Construction is high on the agenda because pent up demand leads to house builders seeking a faster solution. This attracts new entrants and a different way of working which may lead a new, younger generation to the industry, optimising use of digitalisation and Artificial Intelligence.
So many changes: potential barriers, but also positive opportunities for the future of construction.
Changes to Structural Warranty and Latent Defects
Against this backdrop, the structural warranty and latent defects insurance market has also witnessed many changes.
In the last 12 months, we have seen longstanding underwriting relationships come to an end with certain insurers leaving the market. On the positive side, we have seen new capacity and relationships begin. There have been significant price changes and impacts to insolvency cover, alongside changing security requirements.
Benefit from our knowledge and experience in changing times
There has never been a better time to consider using an insurance broker to help navigate this new landscape. At Watson Laurie, we have vast experience and excellent relationships with insurers to negotiate the best terms and pricing for each project.
Each project is individual and there is often no ‘one size fits all’ solution. So, we work alongside you to bring consistency and a relationship that supports you each step of the way.
We ensure you will work with a financially secure A-rated capital provider, meeting the requirements of UK finance and the Lenders Handbook to ensure your properties can be sold using a vast range of mortgage providers.
The structural warranty is very important. It gives comfort to your homebuyers for the first 10 years after making the biggest investment of their lives. It is more than just a piece of paper to enable sale. We want to ensure all parties are covered, to make the housebuilding and sales process as easy and secure as possible.