Keeping prices firm in a time of turmoil

This isn’t going to the prettiest of posts, but the point it will make should make this worth a read.

We’re working in unprecedented times in the construction industry, with materials shortages and price rises coming at us from every angle. This is happening at the same time as the world is beginning a programme of decarbonising the HVAC market, the like of which has never seen before.

Our Main Contractor clients may well be in the middle of final negotiations as these price rises begin to take effect, which for them gives the potential for real uncertainty.

So, working closely with these clients, we often have to find creative solutions to allow them the price certainty they need from their supply chain.

In this case, it’s for GMI, on our student accommodation project in Leeds. The picture above shows six Mitsubishi Heavy Industries Q-ton Air Sourced Heat Pumps, due to be installed later on in our programme. They are large. 400kg each. And with each being a 30kW unit, are capable of delivering hot water to the entire block at 70 degrees, whilst still maintaining an A+ energy rating. There was a significant price rise due imminently. The cost of these makes up a large proportion of the overall mechanical bill, so any price rise here would have a big impact on the overall price of the job.

We’re holding them until needed, but as you can see, they are very clearly marked as being the property of GMI, so there is no doubt about who owns them, or where they are heading.

In the grand scheme of things, it’s a very simple idea. But it’s an idea that isn’t for everyone. We always aim to partner with our clients, so we plan ahead to help ensure they are protected from price rises.

It’s another of the reasons why, at Kimpton, we tend to keep clients for many years.