Property development projects rely on a consistent and reliable water supply throughout every stage of construction, from early groundworks through to the final handover. Despite this, many developers are unaware that water supplied to development sites is charged under business water rates (non-household) rather than domestic tariffs.

If you are a property developer operating in England or Scotland, then understanding how water for businesses is billed is essential for controlling costs and avoiding unnecessary charges. In this guide, we explain how business water rates apply to property developers, what charges to expect, and how comparing and switching suppliers could help reduce your overall project costs.

Property developers are usually billed through two main types of charges under their business water account. These charges apply regardless of the site’s size and can significantly affect overall project budgets.

Volumetric charges

Volumetric charges relate directly to how much water and wastewater your development site uses. This includes water used for construction activities such as concrete mixing, dust suppression, cleaning, and welfare facilities.

The more water your site consumes, the higher your annual costs will be. Sites with lower water usage will generally see lower bills. Unit rates vary depending on your site location in England or Scotland, the regional wholesaler, and the business water supplier, and the UK retailers available in that area.

For example, if your unit rate is £1.23 per cubic metre and your development site uses 500 cubic metres of water in a year, your annual water cost would be £615.00.

Standing charges

Standing charges apply even when little or no water is being used and can form a substantial part of a developer’s water bill. These charges often include water standing charges, wastewater standing charges, surface drainage charges, highway drainage charges, and retail service charges.

Depending on your supplier and region, these charges may be billed daily, monthly, or as a single charge covering the full billing period.
For example, a medium sized residential development site may use approximately 1,200 cubic metres of water over a twelve month period. If the combined unit rate for water and wastewater is £1.38 per cubic metre, the total volumetric cost for the year would be £1,656.00.

There is no single cheapest water supplier for all property developers, as pricing varies significantly depending on several factors. These include the location of your development site, the regional water wholesaler, expected water usage, and the pricing structure of different commercial water suppliers.

Some business water suppliers operate across England and Scotland, while others only supply specific regions. As a result, the most cost-effective option for one site may not be the best choice for another.

Our comparison service helps developers identify which business water suppliers can supply their site and which provider offers the most competitive rates for their specific circumstances.

Property developers can take a few straightforward steps to lower water costs during their projects. One approach is to keep a close eye on water usage by regularly checking the meters. This helps spot any unusual increases that might indicate leaks or inefficiencies. Because temporary pipes and site connections can be especially prone to leaks, catching issues early is essential to avoid extra costs and save water.

Using water-efficient welfare facilities and site equipment can significantly reduce consumption across the life of a project. What’s more, reviewing standing charges regularly makes sure you are not paying high fixed costs on sites with low or inconsistent usage.

Comparing and switching suppliers is also one of the most effective ways to reduce costs, particularly when reviewing multiple development sites at once.

The amount a property developer can save by switching water suppliers depends on current tariffs, usage levels, and the number of active sites. Developers managing multiple projects or sites with higher water usage often see the greatest financial benefit.

Beyond direct savings, switching can also improve billing clarity, cash flow management, and account support, which are particularly valuable on complex development projects.

If you are unsure how much you could save by switching, comparing suppliers is the quickest way to find out.