Tender prices for construction work are expected to rise by 34% over the next five years, according to an industry forecast by the Building Cost Information Service (BCIS).

The prediction is more than two-and-a-half times the general inflation rate of 13%.

With the government expected to put the squeeze on public funding in the Comprehensive Spending Review 2007, the BCIS expects that the growth will largely be attributed to the private commercial sector.

Demand for office space, the 2012 Olympics and PFI schemes in the health and education sectors will be the main stimuli, with the government having recently given the go-ahead to £1.5 billion of PFI health schemes.

In addition, international development director Andrew Thompson predicted that new work output would rise above its long-term annual trend rate in four out of the next five years.

Source

Electrical and Mechanical Contractor