The UK property development sector is under mounting pressure. Across the Northwest and beyond, developers are facing a growing wave of contractor failures, stalled projects, and spiralling costs. The landscape that once rewarded good planning and strong partnerships has become unpredictable, with even well-established builders walking off sites mid-project.
Material shortages may have dominated headlines in recent years, but that’s no longer the real story. The true threat lies deeper – in weak cost control, poor commercial safeguards, and a lack of financial due diligence.
According to Tim Hamlett FRICS, Director of Kingsmead Consultants, “Too many developers are still signing contracts on trust alone. Without proper checks on contractor stability and clear commercial oversight, you’re effectively gambling your profit before the first trench is dug.”
The Reality on the Ground
Across the UK, developers are witnessing an uncomfortable trend:
- Contractors collapsing part-way through builds, leaving sites half-finished.
- Developers forced to pay twice for the same work just to keep projects moving.
- Payment disputes dragging on due to vague or poorly written contracts.
- Inflation used as a cover for inflated claims and overstated costs.
Hamlett adds, “A single contractor failure can derail a profitable scheme overnight. The financial and reputational damage can take years to recover from. The warning signs are usually there, but only if you know where to look.”
Why Contractors Are Struggling
Behind the scenes, many contractors are battling unviable fixed-price contracts signed before 2023, when inflation and labour rates were significantly lower. Margins have since been wiped out, cashflow has tightened, and subcontractors are feeling the squeeze. The result is site delays, walk-offs, and in many cases, insolvency.
“Far too many developers are operating blind,” Hamlett warns. “They’re not getting independent cost checks or regular valuations. They’re relying on what they’re told, not what’s proven by evidence. When that happens, all the risk sits squarely with the developer.”
The consequences are costly, delayed completions, overspent budgets, and unfinished projects that are impossible to refinance or sell.
Protecting Your Project Before It’s Too Late
Kingsmead Consultants has seen a marked increase in developers seeking help after projects have gone wrong. But, as Hamlett points out, the best protection comes from early involvement.
“Our role is to protect your investment from day one,” he says. “From vetting contractors and verifying costs to checking every payment against real progress, we ensure you get value for money and avoid nasty surprises.”
Kingsmead’s Chartered Quantity Surveyors provide:
- Pre-contract due diligence – assessing contractor financial health and reviewing contract terms before signing.
- Cost verification – benchmarking tenders against real market data to flag inflated pricing.
- Robust contract drafting – setting clear payment terms, variation controls, and termination safeguards.
- Ongoing financial monitoring – ensuring every valuation reflects genuine progress and performance.
- Project recovery – re-tendering and stabilising schemes after contractor failure.
For developers managing projects between £500k and £10m, strong commercial control isn’t just good practice, it’s essential. Without it, even a well-planned development can unravel into costly disputes or unfinished work.
As Hamlett concludes, “Whether your goal is to build to sell or to hold long-term, cost control is the foundation of success. A Chartered Quantity Surveyor gives you that control, protecting your margins, your programme, and your reputation.”
Kingsmead Consultants provides MRICS-accredited Quantity Surveying and cost assurance services across the UK, supporting developers, investors, and contractors to build with confidence and certainty.
