Consultant holds tender price forecasts unchanged
Opportunity and risk for the UK construction market are moving in parallel, according to a report from Mace Consult.
The consultant’s latest quarterly UK Market View highlights the opportunities devolution could create for the built environment, while noting the dismal conditions currently prevailing.
Output declined 1% in the three months to August and is 1.6% below a year ago.
Meanwhile, new orders fell 11.8% in Q2 and material price inflation reached 6.4% in August, its highest level since March 2023.
“The UK construction market is entering a period in which opportunity and delivery risk are moving in parallel,” said Ceri Evans, global director of cost and commercial management, Mace Consult.
“Devolution, planning reform and changes to the methodology behind public sector appraisals could unlock a stronger pipeline across housing, transport and public services, giving local leaders greater influence over investment.”
However, she said that policy ambition would not be sufficient, stressing the need for “clear funding, realistic programmes, robust supply-chain due diligence and early commercial engagement”.
“Those that combine local ambition with disciplined decision-making will be best placed to improve certainty, manage inflation and convert the emerging policy opportunity into successful outcomes,” said Evans.
The consultant left its 2026 tender inflation forecasts unchanged at 3.5% for national real estate, 4.5% for national infrastructure and 3.5% for London, noting that weaker demand was being balanced by renewed cost pressures.
No comments yet