Construction companies might be concerned that the recent spell of good news in the industry has come to an end, after findings from the Royal Institution of Chartered Surveyors’ Building Cost Information Service (BCIS) revealed that tender prices saw a fall during the first quarter of 2013.
However, construction firms should not panic too much, as the BCIS said that fall in tender prices was not due to a reduction in prices, but is in fact evidence that it is settling down at the higher level, which was seen in the previous two quarters.
Peter Rumble, BCIS information services manager, said: “Latest data suggests tender prices have bottomed out and are anticipated to rise slowly over the first year of the forecast period, slightly ahead of building costs.”
He also anticipated that while 2013 might see new work output fall, there is expected to be modest growth during 2014 and further momentum gathered over the coming years.
Mr Rumble suggested that infrastructure will help to stimulate growth, following the £70 billion allocated by the government for these projects between 2015 and 2021.