Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Mace expects 'modest' post-Brexit slowdown

NCE stock business

Mace has revised its tender costs for Q2 2016 downwards due to the post-Brexit economic environment. 

Mace Cost Consultancy expects a modest slowdown in construction demand during the medium term due to the Brexit.

Tender prices are likely to fall as demand slackens.

Nationally, the firm predicts a 2% price increase during 2016 followed by a 1% drop in 2017 due to reduced demand. It further predicts that costs will remain flat in 2018.

London will see stable prices in 2017 due to pipeline work, although 2018 is expected to see a 1% fall.

Mace managing director Chris Goldthorpe said: “Although we have seen a handful of projects affected by the referendum result due to occupiers reviewing their risks and appraisals, the vast majority of our workload is currently unaffected and contractors and supply chain companies remain busy, particularly in London and the South East.

“Despite this, we feel that the resulting slowdown in demand will lead to tender prices softening, leading us to revise our forecasts downwards. We believe there’s a strong role for industry to promote opportunities across the country and support mobility of goods, services and labour between the regions. With support from the Government and clear local engagement targets for major projects and programmes, this could help bring communities together.”

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.