Why forecasts of a steep decline in building prices may be overstated

By Mark Cleverly 2020-05-20T05:00:00

Expect spooked investors and developers to hold onto cash, says CPC’s Mark Cleverly

Following the immediate disruption to construction sites and business caused by the covid-19 pandemic, debate and discussion has turned to what is the long-term outlook for the construction industry and tender prices.

CPC’s conversations with clients and contractors indicate that prices have not fallen yet – in most cases, labour and subcontractors have simply returned to site on the same day rates as before the crisis. With no exit strategy from covid-19 in sight, many parties across the UK are faced with higher costs to complete construction projects caused by +20% reductions in productivity, delayed programmes, higher expenditure against precautionary measures and dislocation to materials supply.

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