Why So Many Developments Are Failing in 2025 - And How Property Developers Can Protect Their Projects

In recent months, the property development sector across the UK, particularly in the North West, has seen a sharp rise in contractor failures, delayed completions, and cost overruns. Mid-sized builders are walking off sites.

Material shortages are no longer the main story. The bigger problem? Developers are signing contracts with poor cost controls, no commercial safeguards, and little understanding of their contractor’s actual financial position.

This article explores the real risks facing property developers in 2025, and how a qualified Quantity Surveyor can safeguard your investment from start to finish.

Do you need a chartered quantity surveyor to accelerate your project? Contact Kingsmead Consultants on 01270 323 515 or email info@kingsmeadconsutlants.co.uk

The Current Reality: Rising Costs and Increasing Contractor Failures

Across the market, we've seen examples of:

·         Contractors going bust mid-way through projects, leaving sites half-finished

·         Developers being forced to pay twice for the same work to get new teams on board

·         Disputes over payment applications due to poorly drafted contracts and unclear scope

·         Inflation being used as a cover for margin padding and unsubstantiated variations

A single contractor failure can derail a profitable scheme and force you into reactive decision-making that compromises margins and increases risk exposure.

Why Are Contractors Failing Right Now?

Contractors are being squeezed from both ends:

·         Fixed-price contracts signed pre-2023 are no longer financially viable

·         Cashflow management is poor – many subcontractors are paid late, causing site slowdowns and walk-offs

·         Too many developers rely on trust rather than data – with no cost-checking or independent valuations in place

The outcome? Property developers are left vulnerable to delays, budget blowouts, and reputation damage when trying to market unfinished or poorly delivered units.

A Quantity Surveyor Is Your Commercial Safety Net

At Kingsmead Consultants, we’re seeing a marked increase in developers seeking support after things have gone wrong. But the reality is, the best time to engage a Quantity Surveyor is before you break ground.

Here’s what we do to help you mitigate the risks outlined above:

Pre-Contract Due Diligence

We assess your contractor’s financial standing and review contract terms to ensure your build is viable before any money changes hands.

Cost Verification of Contractor Pricing

We benchmark tender returns and cost plans against real market data, ensuring you’re not being overcharged or misled by optimistic allowances.

Robust Contract Drafting and Risk Allocation

We structure the contract so that you remain protected in the event of non-performance. We ensure clear stage payments, variation control, and termination clauses are built in from day one.

Ongoing Valuation Checks and Financial Monitoring

We don’t just check that work has been done, we ensure that what’s being paid for matches progress, scope, and specification. This ensures value for money at every stage and identifies red flags early.

Project Recovery Support

If your contractor has already walked off site or issued a Notice of Termination, we assist with damage limitation, re-tendering, and revised cost projections.

Real Case Example: £2m Project Recovery in Lancashire

One of our developer clients engaged Kingsmead Consultants after the main contractor abandoned a high-end residential scheme due to cashflow failure. Within 10 days, we:

·         Verified the value of incomplete works

·         Re-priced the remaining works using trusted contractors

·         Provided a re-baselined budget and programme

·         Assisted in novating a new contractor to resume works with minimal delay

Outcome: Project recovered, investor confidence restored, profit margin preserved.

Final Word for Developers

If you’re a property developer managing schemes between £500k - £10m, you cannot afford to operate without clear commercial control. Whether you’re building to sell or to retain, construction cost blowouts, contractor insolvencies, and programme overruns will kill your margins.

Kingsmead Consultants provides FRICS-accredited, hands-on Quantity Surveying and project cost assurance services that give you the certainty you need to grow your development pipeline with confidence.

 

Get in Touch

If you’re starting a new project, facing issues on site, or want a second opinion on pricing, we’re ready to help. Call Kingsmead Consultants on 01270 323 515 or email info@kingsmeadconsutlants.co.uk