Bovis Homes slows build programme to boost quality

Grant Prior 8 years ago
Share

Bovis Homes is slowing its construction programme by up to 15% this year in a bid to boost build quality.

The firm said it is using 2017 to “re-set” the business following concerns from house buyers.

Bovis said: “Current production programmes have been extended to allow sufficient time to ensure each home is delivered to the high standard of quality that we and our customers expect.”

Interim chief executive Earl Sibley said: “Our customer service standards have been declining for some time and combined with the delays to production towards the year end, we have entered 2017 with a high level of customer service issues.

“The Group has taken a one-off £7 million customer care provision in 2016 to address this high level of customer issues.”

Sibley has conducted a review of build programmes resulting in the following changes:

•     Adding new senior operational resource to target a reduction in build times, improve build quality and ensure we have the optimum resourcing models

•     Investment in resourcing of and training in our build management system

•     Improved communication with our supply chain, working as a collaborative partnership throughout the build process

•     Ensuring common understanding and adherence to our best practices across all regions

•     Formal cross functional development project teams to bring effective collaboration and a high level of internal customer service

The Group’s average construction cost per square foot in 2016 was 11% higher than in 2015.

Bovis said: “We continue to see constraints on the availability of skilled labour across the sector resulting in increased market labour costs, and for the year inflationary pressures increased our total build costs by c. 5%.

“Product mix and the delivery of completions in higher value locations also increased our average build cost, whilst inefficiencies in our production processes and phasing, in particular the heavy weighting of completions to the year end, were also a factor.

“Managing our construction cost base remains a key focus for management and delivering on our operational priority of developing to programme will result in improved build efficiency across the Group.

“We are focused on strengthening our relationships with key subcontractors, working in closer partnership with them throughout the production process, and will continue to optimise materials costs through Group-wide purchase agreements.”

Results for the year to December 31 2016 saw pre-tax profits dip to £154.7m from £160.1m last time on turnover up to £1,054.8m from £946.5m.

 

Latest news

Cardo in talks to buy Breyer roofing arm

More than 100 jobs could be saved at Breyer Roofing
20 minutes ago

Plan in for £350m London Bridge life sciences hub

Snowsfields Quarter will consist of three buildings containing labs
46 minutes ago

Permasteelisa wins cladding deal on Multiplex city tower

Facade specialist wins work on Fenchurch Street ‘hanging gardens’ tower
55 seconds ago

Surging labour costs push tender price forecast up

Pick-up in tender prices despite weak growth
48 minutes ago

Wates wins fit-out for Manchester First Street Hub

Smartspace arm secures another Government hub deal
21 hours ago

Peel Ports reveals winners for £750m framework

18 firms win places on deal: Full list
22 hours ago

Big trade names dropped in M Group rebrand

Acquisitive group formed from Morrison Utility services in 2016
19 hours ago

Breyer Group files administration notice

Staff hope rival firm could buy assets and save jobs
24 hours ago

Former Severfield director takes helm at Embrace Steel

New CEO Martin Kelly aims to step up expansion of steelwork contractor
1 day ago

£302m upgrade funding awarded to FE colleges – list

Cash shared out between England’s 179 college groups
24 hours ago

FK Facades thrives but construction arm hit by ISG row

Dispute with failed contractor costs specialist £5.5m
1 day ago

Galliford Try gets go-ahead for Milton Keynes PRS tower

33-storey tower needs gateway 2 approval before work can start
2 days ago

Small house builders get £150m funding for green homes

Developers will have to meet-up to ten new criteria to benefit from interest rate discounts
1 day ago

Lendlease Construction renamed Bovis

US private equity firm completes £35m purchase of UK contracting business and rebrands
2 days ago

Breyer Group battles for survival as rivals circle

Housing maintenance firm fights three winding up petitions in a month
2 days ago

Careys facing £2.4m claim by developer over demolition cartel

Giant Hong Kong developer claims it was overcharged on Lots Road Power Station job
2 days ago

Multiplex profit drops a third as revenue rises to £780m

Spate of new orders sets contractor up for three years of work
2 days ago

Galliford Try and Breheny land latest Sizewell C road deals

More infrastructure deals for new nuclear power station
3 days ago

Worker trapped in collapsed septic tank pit

Contractor and director fined after worker suffers multiple fractures
2 days ago

Homes England buys stalled Broad Marsh site

Demolition to finally be completed as developer hunt begins
3 days ago

Vistry go-ahead for 353 homes at Rochester Riverside

Work to start on next phase of Kent town regeneration at end of this year
3 days ago

M&E firm J S Wright collapsed owing £19m

Trade creditors hit for £11.4m by employee-owned Midlands firm
3 days ago

Right to work checks to be extended to self-employed

Government plans crackdown on illegal working and rogue employers
3 days ago

Midlands developer turns to London with £1bn resi schemes trio

SevenCapital plans 1,000 flats in Kensington, Islington and the Isle of Dogs projects
3 days ago

Deck falls off huge scissor lift at Winvic site

Two men seriously injured as platform plunges to the ground
6 days ago

Weston targets Build to Rent with new division

Weston Partnerships signs first deals with asset managers and councils
3 days ago

Bouygues seals deal for £119m Cardiff college campus

Construction to start in June on two new buildings
6 days ago

£140m cash injection to speed-up flood defence schemes

Funding part of £2.65bn investment over the next two years
3 days ago

Bid race starts for £15bn schools framework refresh

DfE throws framework open to more contractors
6 days ago

Berkeley’s £600m Borough Triangle project approved

Controversial scheme features two towers of 38 and 44-storeys
7 days ago

Contractor services