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Civils bid prices expected to soar

Money

Civil engineering tender prices will soar by almost a third over the next five years, according to data released this week.

The Royal Institution of Chartered Surveyors said increasing workloads and rising costs would push bid figures up significantly over the rest of this decade.

A report from the institution’s Building Cost Information Service (BCIS) predicted growth in tender prices every 12 months from the third quarter of 2015 to the same period in 2020.

It forecast 1.5% growth in bid figures in the year to Q3 2016, followed by rises in excess of 5% for the following four years.

BCIS head of forecastimg Peter Rumble said: “With civil engineering costs set to fall over the next year, a moderate increase in annual tender prices is expected in the year to to Q3 2016.

“Over the next three years input cost increases are likely to be the key driver of tender prices, but, over 2020, the final year of the forecast period, stronger output growth, in addition to upward pressure from input costs, is expected to lead to a greater gap between costs and tender prices.”

Official figures published this month showed that infrastructure output grew by almost a third last year.

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