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Gardiner & Theobald has added a half percent to its predictions for tender prices rises across the UK this year and in 2007 and 2008.

In its second quarter index for this year, every region bar Scotland was up half a percent, while north of the border is to go up by 1% this year and 1.5% in 2007 and 2008.

The highest percentage rises for 2006 appear in Greater London and Scotland (5%) followed by the rest of England at 4.5%. Tender prices in Wales are set to rise by 4%.

The firm pointed to a busier construction market, especially the commercial sector, and increases in commodity prices as leading to higher tender price increases.

Commodity price hikes such as copper and timber would have a variable affect on the sector, G&T said. Increases in the first year would most affect office fit-out schemes while jumps in timber prices would have a significant affect on residential schemes. "Neither copper not timber price increases would have any significant affect on steel framed, metal clad industrial or warehouse buildings," the report added.