Tender prices to rise 30% over next five years

Tender prices are forecast to rise over the next six months and spike by 30% over the next five years, the RICS’ Building Cost Information Service (BCIS) has said.

Peter Rumble, BCIS’ information services manager, said the construction industry was “expected to recover at a faster rate” than previously predicted, which, along with an expected increase in input costs “of around 17%” over the next five years, would stoke inflation.

The latest BCIS tender price index found that tender prices rose by 6.3% in the third quarter of 2013 compared to the previous year.

The volume of construction orders in the UK rose by 18% compared with a year earlier, fuelled by increased orders in the commercial, industrial and housing sectors.