Firm says falls in new orders could see tender prices drop
Mace has said tender prices will stay the same for the rest of the year, according to its latest forecasts.
The firm said prices would stay at 3% in London and 3.5% for the rest of the UK, having earlier this year forecast a UK-wide rise of 2.5%.
In its latest report, the firm said materials prices dropped over the summer and were now noticeably down compared to a year ago. It said the reduction has been primarily driven by the reduced cost for steel and wood.
The firm’s head of cost and commercial management Andy Beard said. “Inflation may be easing but it is still far too high, and despite construction material prices now falling, the pressure caused from historical increases is still a major issue.
“Given the fiscal squeeze caused by higher interest rates and inflation, it was always likely that public spending would come under pressure. If Q3 sees another very low set of new orders data, we may need to lower our tender price forecasts.”
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