Firm says tender prices will stay flat this year and next
Mace expects markets conditions to remain as they are over the coming months, with this Thursday’s general election unlikely to trigger a significant uptick in spending.
The firm’s latest quarterly report said UK tender prices would hold steady at 2.5% for this year and 3% for 2025 and 2026, while the figures for London would remain at 2%, 2.5% and 3% respectively.
It added there were some signs of optimism with materials prices down, labour costs also on the slide and new orders higher than they were six months ago.
But it added that output was down in the first quarter while thousands of vacancies remain unfilled – impacting the sector’s ability to take on jobs.
Mace Consult’s director of cost and commercial management Oliver North said: “The next government needs to help create the right environment for infrastructure projects to help productivity and in turn attract investment to the UK. However, long-term growth is something that the industry will need to be patient for as key metrics remain mixed.”
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