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Tender prices continued to rise in the first quarter of 2011 as a result of increases in input costs.

There was a 0.9% increase in tender prices during Q1 2011 compared to the previous quarter according to the latest UK construction tender price index compiled by the 好色先生TV Cost Information Service of the Royal Institution of Chartered Surveyors.

Compared with the same quarter a year earlier, prices rose by a total of 4.8% in Q1 2011 鈥� but the increase is exaggerated by tender prices still falling in Q1 2010.

Analysis of new work output in Q1 2011 compared with Q1 2010 shows growth in all new work sectors except the private commercial sector.

However the total volume of construction orders in the UK fell by 23% in Q1 2011 compared with the previous quarter.  

This was accompanied by a small drop-off in construction employment during Q1 鈥� with numbers falling back 1% compared to the previous quarter   

Peter Rumble, information services manager at BCIS, said: 鈥淭ender prices are expected to rise by around 3% per annum over the next two years, primarily as a result of cost push factors.

鈥淲ith new work output expected to fall in 2011 and 2012, it is anticipated that the level of new work output will be around 8% below the pre-recession level of 2007 in 2012, but 8% above the low point of the recession in 2009.鈥�