{"id":518987,"date":"2025-04-23T12:45:28","date_gmt":"2025-04-23T11:45:28","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=518987"},"modified":"2025-04-24T10:21:17","modified_gmt":"2025-04-24T09:21:17","slug":"jersey-watchdog-threatens-crackdown-over-contractor-costs","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/government\/jersey-watchdog-threatens-crackdown-over-contractor-costs-23-04-2025\/","title":{"rendered":"Jersey watchdog threatens crackdown over contractor costs"},"content":{"rendered":"

Jersey\u2019s markets watchdog has warned contractors to be \u201caware of their responsibilities\u201d after research revealed a widespread belief that a lack of competition was pushing up the price of construction on the island.<\/span><\/p>\n

The Jersey Competition Regulatory Authority (JCRA) said it would \u201cpinpoint areas\u201d requiring action in light of the poll\u2019s findings, and has warned that those in breach of competition law could face hefty financial penalties.<\/span><\/p>\n

Three in four respondents to a survey commissioned by the watchdog said there was not enough competition among contractors \u201cto ensure fair pricing\u201d.<\/span><\/p>\n

Meanwhile, 82 per cent of people said household projects were unaffordable and 71 per cent said unexpected cost hikes were common on residential schemes.<\/span><\/p>\n

Three in five respondents did not believe there was enough regulation in the market to protect consumers.<\/span><\/p>\n

The JCRA put the findings out to consultation and said it would then \u201cassess whether it needs to use any of its powers to ensure the island receives the full benefit of competitive construction markets\u201d.<\/span><\/p>\n

The consultation is open until 16 May.<\/p>\n

\u201cAction taken may include further market studies, increased outreach to the sector, warning letters or, ultimately, enforcement action,\u201d the JCRA said.<\/span><\/p>\n

\u201cPenalties for breaching competition law include financial penalties up to 10 per cent [of] turnover for a period of three years so it is important construction companies are aware of their responsibilities within the competition law.\u201d<\/span><\/p>\n

Commenting on the construction sector in<\/span> Jersey<\/span><\/a>, JCRA chief executive Tim Ringsdore said: \u201cConsumer sentiment is broadly negative, and while island constraints play a key role in sector outcomes, competition is not as effective as it could be.<\/span><\/p>\n

\u201cThrough the review and future work, we will pinpoint areas affecting competition, and will continue to work with consumers, industry and government to help deliver improved competitive outcomes.\u201d<\/span><\/p>\n

Research carried out for the JCRA showed that materials and labour cost about a fifth more in Jersey than in the South East of England.<\/span><\/p>\n

It also uncovered the knock-on impact of Storm Ciar\u00e1n, which caused major damage to parts of the island 18 months ago, increasing construction demand but also leading to the closure of businesses in the sector.<\/span><\/p>\n

The availability of contractors ranked as the biggest challenge in the Jersey residential sector, with high costs second.<\/span><\/p>\n

One person questioned for the research described a \u201creally big\u201d roof job that cost \u00a3150,000 but turned into a nightmare with \u201carguments\u201d and a programme that ballooned from six weeks to 18 months.<\/span><\/p>\n

Another said a three-month extension scheme had turned into a \u201cvery stressful\u201d 18-month job.<\/span><\/p>\n

One respondent bemoaned a 20 per cent increase in cost on their project, saying tradespeople \u201ccharge for a day\u201d when they only attend \u201cfrom 11am to 2pm\u201d.<\/span><\/p>\n

Contractors juggling multiple projects was a common gripe. One person said it was often a case of \u201cwho shouts loudest to get work done. They end up using your job as a base to take other work.\u201d<\/span><\/p>\n

Another commented: \u201c[Contractors] say it will take [them] two weeks to do you a new kitchen… but they\u2019re also doing another kitchen at the same time.\u201d<\/span><\/p>\n

Costs were found to be difficult to get to grips with. \u201cThere seems to be no rhyme or reason for how they arrive at a quote,\u201d said one.<\/span><\/p>\n

Another wondered \u201cif the quotes are confusing on purpose\u201d.<\/span><\/p>\n

Almost six in 10 respondents had faced delays in their most recent projects.<\/span><\/p>\n

Contractor availability was the number one reason given for programme slippages, followed by material delivery timings and contractor coordination challenges.<\/span><\/p>\n

The JCRA undertook both qualitative and quantitative research, including four 90-minute focus groups and a 15-minute online survey. Responses were anonymised and no specific projects were named.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Jersey\u2019s markets watchdog has warned contractors to be \u201caware of their responsibilities\u201d after research revealed a widespread belief that a lack of competition was pushing up the price of construction on the island. The Jersey Competition Regulatory Authority (JCRA) said it would \u201cpinpoint areas\u201d requiring action in light of the poll\u2019s findings, and has warned …<\/p>\n","protected":false},"author":87938,"featured_media":376657,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[565,578],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\t\n\t\n\t\n