Bathroom pod manufacturer Offsite Solutions has outlined how it can help construction clients and contractors mitigate some of the economic uncertainty during the Brexit transition period.
There is genuine concern that there could be severe disruption at the ports early in 2021. And in the event of no deal at the end of 2020, tariffs would apply to any products imported from Europe from 1st January 2021.
Offsite Solutions has now undertaken three extensive supply chain reviews to ascertain the security of supply of components and materials, and the certainty of prices.
The business has very limited direct supply of product components from Europe and has already fixed many prices contractually, so it is much less exposed to currency fluctuations or the imposition of tariffs.
If contractors or developers place orders for bathroom pods before 31st December 2020, prices are then fixed for the duration of the project, including orders manufactured from January 2021 onwards.
That avoids any risk of tariffs, cost inflation, currency variations and gives security of supply regardless of the effects of the UK leaving the EU with or without a trade deal.
By entering into contract for Offsite Solutions' factory-built bathrooms, contractors and developers can secure a fixed price for one of the largest packages in a building project and 12-24 months ahead of the traditional procurement process for in-situ bathroom construction.
Richard Tonkinson, Executive Director of Offsite Solutions, said, "The procurement of bathroom pods should be prioritised as these will be delivered at an early stage in the project – before the building envelope is installed.
"We can help to limit the effects of Brexit because the use of offsite construction for bathrooms gives the developer and contractor surety of supply and cost certainty to mitigate any risk of price increases.
"We can achieve this because we have considerable buying power for bathroom products and materials – from taps, tiles and sanitaryware to timber, steel and oil-based materials for GRP.
"Long-term agreements with our suppliers give us the benefit of fixed annual prices. We also place the orders for products and materials for an entire bathroom project as soon as our contract with the client is signed.
"Contractors need pods to be delivered to extremely precise construction schedules – and there is clearly much greater certainty of delivery on programme and reduced risk if the pods are manufactured in the UK.
"It is also important for developers and contractors to consider the wider customer service implications of procuring pods from outside of the UK as service standards can then be very difficult to maintain, particularly in a pandemic.
"As well as delivering a high quality product, we offer an elevated level of service – from the movement of sample boards as part of specification, pre-contract design input, signing off of the first pod to having a project manager attend site for the first pod deliveries, and aftersales."
Original Source: Construction Enquirer
