Tender prices hit rock bottom
Published: 28 September, 2012
LONDON: Industry forecasters believe that tender prices, which dropped another 2.2% during the first quarter of this year, are close to bottoming out.
Figures from the UK construction Tender Price Index show bids fell by a full 1% more than predicted during the quarter.
Peter Rumble, information services manager at compilers BCIS, said: "With input costs rising, contractors have little downward flexibility in their tender prices, and we believe they are close to levelling out.
"However, this is likely to lead to a modest rise in building tender prices next year followed by further increases throughout the forecast period to the first half of 2017 as demand growth beings to return."
Tender prices are now 4% above the low in early 2010, but input costs have risen by 7% since then, leaving contractors unable to absorb any further costs.