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

Selective bidding by contractors causes tender price rise

Tenders are forecast to rise by 4.6% over the next year and by 4.8% the following year, according to the latest Economics Survey by EC Harris.
'Contractors are now opting to minimise risk, and are being selective with tenders. This has led to it becoming increasingly difficult to get contractors to tender for more tricky schemes,' said Paul Moore, Head of Cost Research at EC Harris.The report says that in London the rises will be stronger, thanks to the impact of the Olympics and an upsurge in commercial offices, rising to 6.3% over the next year, and 6.5% the following year.'The construction industry has bounced back from the relative slowdown in 2005, and we have seen good levels of output over the last 12 months. With construction workload rising faster then previously expected, building tender prices are also set to follow suit,' said Moore.'The price of the London Olympics went from £2.3bn to £3.2bn, and is now estimated at £9.3bn. With the main construction build running from mid 2007 to mid 2011, it is unlikely that prices will slow down before then.'The biggest risks to the forecast remain an uncontrolled flood of schemes going out to tender and a slowdown in labour from Eastern Europe, which could combine to push tender price inflation even higher,' he said.

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.