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Increase in UK Civil Engineering Costs

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Tender prices for civil engineering projects in the UK rose an average of 1 per cent in the final quarter of 2024 according to the recently convened BCIS Civil Engineering TPI Panel.

The panel has been established to advise on the latest movement in tender prices, i.e. prices agreed between client and constructor at commit to construct, and to inform quarterly updates to the BCIS Civil Engineering Tender Price Index. Comprised of cost consultants from firms involved in multiple civil engineering tenders in the UK, the panel will also provide commentary on conditions affecting pricing levels on civil engineering projects.

At its first meeting, panellists reached consensus there had been a 4.7% average increase in civil engineering tender prices in the year to 4Q2024.

Dr David Crosthwaite, BCIS chief economist, says: “It’s fantastic to see the Civil Engineering TPI panel up and running. From our UK building TPI panel and our Scottish tender price assessment and contractor panels, we know just how valuable the insights are that we get from experts working on multiple tenders.

“They really help us to understand the context of what we see in the data and how different the tendering experience might be dependent on location, procurement route and sub-sector.

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“As is always the case, the sector needs clarity and commitment to schemes to properly plan and to give confidence to the supply chain.

“When asked about contractors’ appetite to tender, the civil engineering TPI panellists described a similar profile to the building TPI panel, with risk aversion among contractors meaning suitable tenderers are found after searching, but they’re not seeing very eager contractors. This was particularly the case with larger projects, where there needs to be agreement about who carries the risk.”

Panellists also described a ‘wait and see’ approach in the market, with the results of phase 2 of the government’s spending review and the National Infrastructure and Construction Pipeline due to be published later this year.

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FMIndustry.com covers the latest news, trends and opinion from the facilities management (FM) and corporate real estate (CRE) sectors. The FM market is currently estimated to be worth USD 1 trillion annually and is projected to grow at a compounded annualised rate of approximately 5% between now and 2026.

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    FMIndustry.com covers the latest news, trends and opinion from the facilities management (FM) and corporate real estate (CRE) sectors. The FM market is currently estimated to be worth USD 1 trillion annually and is projected to grow at a compounded annualised rate of approximately 5% between now and 2026.

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