The fall in tender prices accelerated in the three months to October, leaving them 15% lower than a year ago, according to Davis Langdon’s latest market forecast

Provisional statistics for the third quarter of the year show tenders fell 5% on the previous three months. This was a higher rate of decline than in the period to August, when prices fell 3% quarter-on-quarter.

Prices are expected to fall by a further 5-8% in the next 12 months as more clients return to competitive tendering, and could drop by as much as 25% on their 2008 peak by the end of 2010.

Tenders for steelwork fell 40% in 12 months and reinforcement prices have suffered a similar decline.

However, the report says there are signs of “hibernating developers and estate owners beginning to stir” as prices approach their low point.