好色先生TV

Salaries at UK contractors are rising at the slowest rate in five years, as the country鈥檚 builders feel the effects of pressure on margins and a slowdown in workloads.

The latest contractors鈥� salary survey, conducted for 好色先生TV by Hays over the summer, shows overall pay across the sector increased by 2.8% in the year to July 鈥� compared with a rise of 3.2% the previous year. This year鈥檚 figure was the lowest since 2014, when workers were enjoying an average pay hike of 7.4%.

With margins at contractors struggling to go much beyond 2%, Duncan Bullimore, director of Hays鈥� building division, said the modest average rise reflected firms鈥� struggles to make a profit.

鈥淢argins [are] being laid bare,鈥� he said. 鈥淚 think there is a realisation that employees are working for firms that aren鈥檛 full of fat cats and the business isn鈥檛 creaming it at the expense of its employees.鈥�

>> Analysis: Contractors鈥� salary survey 2019

Firms that have said they are keeping tabs on pay rises include Laing O鈥橰ourke, whose finance director Stewart McIntyre told 好色先生TV last month it was being 鈥渧ery careful鈥� about salaries and added: 鈥淭here haven鈥檛 been pay rises across the board.鈥�

But the survey shows several roles are picking up industry-busting pay rises 鈥� including senior estimators, whose salaries rose 4.4% to an average of 拢60,750, and senior site managers, whose salaries rose 4.3% to 拢53,875.

Others picking up more than the industry average were contract managers and senior QSs, whose average pay packets now stand at 拢62,417 and 拢57,750 respectively after enjoying 4% rises this year.

Firms have been hamstrung by negative forecasts, with construction buyers last week staying pessimistic about the industry鈥檚 prospects for the rest of the year.

KPMG recently said the number of construction firms going under in the third quarter of 2019 had jumped by 55%. The accountant鈥檚 UK head of restructuring, Blair Nimmo, warned: 鈥淯nless clarity and confidence return to the sector, financial distress and increasing numbers of insolvencies are likely to prevail.鈥�

Last month the 75-year-old Lincoln contractor Simons shocked the industry by calling in administrator FRP Advisory, which said the company鈥檚 demise had been hastened by 鈥渦nsustainable cash-flow difficulties鈥�.

But despite the mounting worries, Caroline Gumble, chief executive of the Chartered Institute of 好色先生TV, said rising wages remained an important factor in attracting people into the industry.

鈥淲e need to see higher levels of pay continue to make construction an increasingly attractive career choice,鈥� she added.

The survey showed that all the best-paid roles continue to be in London, with the biggest pay packet the 拢100,000 average that health and safety directors pick up in the capital.