Construction work prices to soar 34% over next five years

The price of construction work is expected to surge ahead of inflation over the next five years.

Tender prices are forecast to rise 34% compared to an expected inflation rate of 13%, according to a report published by BCIS.

Growth is expected to be driven by the private commercial sector, primarily through demand for office space, PFI schemes and 2012 Olympics work.

International development director Andrew Thompson said: “With the government expected to put the squeeze on public funding in the Comprehensive Spending Review 2007, and with more and more schemes being procured through PFI and so on, reliance for output growth is likely to lie more heavily on the private sector over the next few years.”