Tender prices are set to rise by as much as 5% in the next year, according to a new report by Gardiner & Theobald.

The hike is due to an increase in material and commodity costs, which has already seen Corus announce a £30 per tonne rise in the price of structural steel as of October.

The report stresses certain commodities, including copper, will increase more than others: “Copper prices affecting wiring and m&e installations could be most marked on office fit-out projects or process/production facilities, but may have less effect on residential.”

Gardiner & Theobald predicts a greater than average rise in tender prices in Scotland. The firm claims rates will jump by 5% in the next three years, with Scotland and London seeing a 5·5% jump in 2008. Other areas of the country will see a 4% rise this year and a 3·5% rise in 2007 and 2008.

The Olympics will also impose a premium on tender prices as competition for skills and resources impinges on a finite construction programme.

Source

Electrical and Mechanical Contractor