Construction Demand Set to Drive Tender Price Increase of 5% Per Annum to 2020
The latest quarterly report from RICS’ Building Cost Information Service (BCIS) predicted a rise of tender prices by 28% over the next 5 years. Although materials costs are also estimated to increase, it is not at the same rate as the tender price increase, allowing for greater profit margins for contractors.
Combined with the predicted 20% growth in overall output, this means more work and not only that, but more profitable work over the coming 5 years!
The biggest increases in tender and materials cost price is estimated to come between 2018 and 2020, as construction output will increase by 8%, but due to the sharp increase in demand, workers wage rates are set to increase by 3.9% in this period.
For a detailed breakdown of statistics visit the RICS article here.