Industry boom causes big hikes in tender prices

Public non-housing orders show a rise of 11% over the same period, but private housing saw only a 1% rise on the year.

This overall growth is hiding strong variations in specific construction sectors. Private industrial orders fell by 12% in the three months to November, and plummeted 22% on the year. Private commercial orders also dropped by 18% in the three months to November, but rose by 10% on the year.

Cost consultants Davis Langdon & Everest reported that tender prices were hiked by 9% in 2000. The firm is expecting the trend to continue into 2001, with tender prices going up by between 5-7% in the next 12 months.

Industry pundit Construction Forecasting & Research believes that construction output will rise by 2.5% in 2001, with a further 2.5% rise in 2002. This is very much in line with the predications of the Construction Products Association which believes that overall construction output will grow by 2% in 2001 and by 3% in 2002.