Estimators pricing worries into tenders, consultant adds
Rider Levett Bucknall has said geopolitical risks are now weighing more heavily on construction costs than input costs which are having a lesser impact than last year.
In its Global Annual Report 2025, the consultant said political instability and shifting government policies were among the reasons for increased construction costs.
US president Donald Trump is set to introduce tariffs on Canada and Mexico from tomorrow (Tuesday) with tarrifs on China also planned. He has also threatened 25% tariffs on EU imports.
It added: “Geopolitical risks have not only affected input costs but also shaped the ‘sentiment’ elements of pricing. Estimators often factor these risks into discretionary pricing, reflecting contractors’ reading of the market, order book replenishment and sustaining business margin.”
RLB said infrastructure and healthcare were the standout sectors although retail and offices have shown some signs of recovery over the last 12 months.
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