It's not the first housing client to fall out of love with design and build procurement, but it's probably the first high-profile PRS client to do so.
With a number of big housing associations switching to a Construction Management style delivery, it's interesting that Essential Living, an american-backed PRS (private rental sector) developer has decided increased costs and reduced risk transfer are worth switching procurement routes.
Today’s announcement comes at a time when many projects are increasingly suffering from viability challenges as construction costs spiral. Risk transfer is increasingly difficult and on site construction delivery has deteriorated. Ray Theakston, construction director at Essential Living, said: “This is about giving us greater control and will allow us to have a more hands-on management of cost and crucially, risk, which we are simply no longer willing to pay for using a main contractor. “Design and build contracts have been on the rack for a while now and we are of the opinion the market has now reached a tipping point.”