好色先生TV

Mace has revised up its tender price forecasts for this year in the latest sign the contracting market is heating up.

The firm鈥檚 cost consultancy arm said it has revised up its tender price forecast for this year to 2% growth in the UK and 3.5% growth in London, up 0.5% and 1% on Mace鈥檚 last set of forecasts in the fourth quarter of last year.

Mace said that the increased inflation forecasts for construction reflected the fact that contractors were taking a 鈥渕ore realistic assessment of risks and inflation鈥� and firms down the supply chain were pricing costs and margins 鈥渁t more realistic levels鈥�.

The company also found that while input costs were rising in some areas 鈥� particularly trade wages in the booming housing sector 鈥� the biggest factor behind inflation was 鈥渞educed risk taking鈥�, with contractors now pricing projects that made 鈥減roper allowances for risks and inflation鈥�.

Mace is likely to be the first of many cost consultants to revise up tender forecasts for 2014 as the recovery gains momentum.

Gardiner & Theobald 鈥� which currently forecasts 2.5% tender price growth in the UK and 3% growth in London 鈥� told 好色先生TV that it was also in the process of revising up its forecasts.

Partner Gavin Murgatroyd said tender price inflation this year could hit 5% on some 鈥渟pecific types of projects in London鈥�.