July 30, 2007—Early results suggest that the price of new construction work in the UK rose steadily in the first quarter of 2007, according to the latest Tender Price Index compiled by BCIS (the Building Cost Information Service from the Royal Institution of Chartered Surveyors), but rose behind the level of general inflation.
Peter Rumble, Information Services Manager at BCIS, commented, “With new work output expected to rise well above trend in 2007, together with rising orders and enquiries in 1st quarter 2007, and with contractors expecting workload to increase in 2nd quarter 2007, it is likely that tender prices will continue to rise next quarter.”
According to BCIS, new work output is likely to rise “significantly faster than trend” over the next three years. The private commercial sector is expected to be the prime contributor to growth over this period, through the offices sub-sector, PFI projects, and venue work for the 2012 Olympics.
