The latest statement from the CLC Product Availability Group confirms that average inflation for products and materials so far this year has been around 23% with further increases to come, particularly for energy intensive products. Cost escalation is now the key issue facing Build UK members across the supply chain. To help address this, Build UK has piblished comprehensive guidance on Managing Price Inflation with the support of Wedlake Bell LLP, which covers fluctuations clauses, negotiating new and existing contracts to take inflation into account, and how to mitigate its impact on projects. All members are encouraged to find ways to work together to manage the current pressures in the interests of projects and the supply chain.
The changes within Government this week have included the resignation of Construction Minister and CLC Co‐Chair Lee Rowley and the sacking of Michael Gove, Secretary of State for Levelling Up, Housing and Communities, who had oversight of building safety and the response to the Grenfell Tower fire. Following the appointment of new Chancellor Nadhim Zahawi, it remains to be seen what actions will now be taken by the Government to tackle rising inflation.