Firm predicts national rise of 4.5% this year, with this easing to 4% by 2017
Mace expects UK tender price inflation to remain at 4.5% this year and at 5.5% in London, according to its latest set of forecasts.
Mace set its tender price forecasts for the UK and London for the next two years at 4% in 2016 and 2017 nationally, and 4% and 3.5% in London respectively.
Mace cost consultancy managing director Chris Goldthorpe said margins continue to be the main driver behind tender price increases, as input cost inflation was subdued.
He added: 鈥淭he growth of the construction industry in London is well established and the market is stabilising, although complex or bespoke projects are still attracting a premium.
鈥淲e are now seeing a similar pattern developing in other regions where supply-chain constraints and risk aversion has led to reduced competition, particularly for major projects, where the choice of procurement method is critical to achieving value for the client.鈥�
Mace added that the result of May 7鈥檚 General Election could have a short-term effect on financial markets, particularly if the outcome is a coalition.
No comments yet