Tender prices drop as competition for work rises

Tender price index reveals price of new work fell 2%, with BCIS predicting further 8% fallse 7.7% and wages 4.8%

Rising competition for work has lead to a fall in tender prices, data published today has revealed.
The latest tender price index, complied by the Building Cost Information Service (BCIS) of the RICS, showed new orders for construction work fell by 8% between the third and fourth quarter of 2008, and 28% from the previous year. In line with this, the price of new construction work fell by 2% in the fourth quarter of 2008, compared with the previous quarter. The BCIS has predicted a further 8% fall over the course of the year.
Meanwhile, costs are going against the falling inflation trend, with an annual rise of 7.7% for materials and 4.8% for wage rates.

27 April, 2009
By Sophie Griffiths