Drowning in Red Tape
Construction is more expensive in the UK than anywhere else in the world. And it is easy to understand why.
On Thursday last week, I reported that construction in the UK costs more than anywhere else in the world. As a journalist who is fuelled by little more than curiosity and coffee, I was keen to understand why.
I didn’t have to search too hard for an answer. The UK construction sector (and, by association, the UK demolition industry) is drowning in red tape. It is weighed down under a gargantuan deluge of bureaucracy. In fact, the pendulum has swung so far towards the administrative side of the business that construction (and demolition) is fast becoming a sideshow; something that companies do between bouts of paperwork.
I’ll tell you right now, I was aware of the red tape in which the sector is being suffocated. But it was only when I saw it laid out, end to end, in black and white, that I began to understand the sheer depth of our obsession with bureaucracy.
So, if you will allow me, I will take you through just some of the deluge of rules and regulations; the hurdles that demolition and construction companies must overcome in order to do anything. They must:
Obtain timely planning permission from local authorities; ensure compliance with building regulations and codes, which may vary by region; and navigate heritage and conservation area restrictions.
Adhere to the Health and Safety at Work Act and Construction (Design and Management) Regulations; manage risk assessments, safety plans, and worker safety training; handle inspections and audits by the Health and Safety Executive (HSE); comply with environmental impact assessments (EIA) and sustainability standards; adhere to regulations on waste management, recycling, and emissions.
They must address concerns related to protected species and habitats; ensure all workers hold relevant qualifications and certifications; manage VAT, corporation tax, and other financial obligations; navigate grants, subsidies, and funding opportunities; and ensure compliance with financial reporting standards and audits.
They are required to adhere to employment laws regarding worker rights, wages, and working conditions; manage subcontractor agreements and ensuring their compliance; understand and negotiate contract terms; manage contractual disputes and claims effectively; navigate public sector procurement rules and tendering processes; and ensure fair competition and transparency in supplier selection.
They must manage procurement fraud risks; secure adequate insurance coverage for public liability, employer's liability, professional indemnity; manage claims and ensure compliance with insurance policy terms; understand liability issues related to defects and delays.
And they must comply with the General Data Protection Regulation (GDPR) in handling personal data; ensure robust cybersecurity measures to protect sensitive information; manage data breaches and reporting obligations; address community concerns and objections to construction projects; engage with stakeholders to ensure transparency and cooperation; and navigate public consultations and feedback processes.
It’s quite a list. Yet you will note that the list does not contain reference to actually demolishing or building anything.
There is not a single mention of digging a hole, laying a brick, erecting a façade, or demolishing one.
Every time a rule has to be followed, a box has to be ticked, or a compliance proved, someone, somewhere will need to action something. That adds to the overall cost of any project.
Weirdly, many of the strands contained in that heap of bureaucratic spaghetti is either stuff we have brought upon ourselves or that we have allowed to be imposed upon us.
How much does all this cost? How many people are employed merely to tick boxes or shuffle papers? And how big a proportion of the construction pie do these people make up?
But here’s the kicker. Thanks to our apparent love for administration and our willingness to have bureaucracy rained down upon us, the balance of business has shifted inexorably. Where there were once demolition companies with administrative responsibilities, we are ushering in an age administration companies with a small and undervalued demolition division.