APTSec has just stumbled upon an interesting blog , drawn by this title,
How to save 150,000 construction jobs, earn the Treasury £16 billion and create 200,000 new homes
The post says in part:
"The outline idea is for the Government to fund, through an arms-length private market focused body, the development of 200,000 homes over two years and then to sell them again when the market price recovers, say in 2014.
To get a handle of the cost breakdowns I went to the presentations to analysts made by Bovis, Persimmon and Barratt. These together provided some detail on the typical cost elements of a new-build home. From this I estimated a rough cost model, which I checked against the sort of numbers provided in the Callcutt review.
I took the average selling price of a new home to be £180,000 up to the end of 2007. That is just below peak. I called the gross margin 20% (that is a pre-collapse margin) which put total costs at about £144,000.
The elements will vary place to place, product to product, but an average breakdown looks something like:
£39,000 - Land
£38,000 - Labour
£55,000 - Materials
£12,000 - Sales & Marketing and other costs
If the build rate is 100,000 a year that would require about 150,000 people engaged in the house building process. "
The link for the whole posting is
http://www.contractjournal.com/blogs/brickonomics/2008/11/how-to-save-150000-constructio.html
I will add to the list of some blogs visited.
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