Pestle Analysis Construction

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John O’Donnell

Gallagher Construction and Development are based in north London. They are a property development and refurbishment company. They have been in the construction industry for about twenty five years. They have a workforce of twenty directly employed and about fifty self employed workers at the moment.

The major political influences on the construction industry in London at the moment are the Mayor of London’s Sustainable Design and Construction Supplementary Planning Guidance to the London Plan, the Climate Change Action Plan, and the Governments lack of response to the effects of the recession. The recession has almost completely stopped the building of new houses and has led to the mothballing of most of the commercial developments planed for the capital.

This means that the only sector in construction that has any work is the refurbishing sector. The effect of this for Gallagher’s is fierce completion for contracts and price-cutting to stay competitive which has very negative long term implications for the growth of the company. The implications of the Mayors initiative regarding the Climate Change Action Plan is that there work must comply with BREEM which sets and maintains a robust technical standard for construction work and have there work assessed so that the environmental impact of the work can be awarded an overall rating. This has impacts on time, cost and construction methods for tightly priced contracts. The economic environment for construction business in London at the moment is not good due to the recession. Even though the development for the 2012 Olympics is well under way, there are still a large number of construction workers unemployed. The Credit Crunch for Gallagher’s, who traditionally bought and refurbished buildings and then sold them on, as well as taking on contracts from a number of property development clients, has changed the nature of there business in two ways. One, most of there refurbishing work is now...
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