this year and 3% each year after that until 2006. The report said it was unlikely there would be any dramatic rise in tender prices because competition was strong and there were few labour shortages. But it did warn that overheating could occur if too many large schemes were concentrated in one area.
Gardiner & Theobald's report predicted that tender prices would rise 3.5% this year and next and then increase 3% in 2004. It said tender prices across the UK had risen less than first predicted.
The reports both say that fears of a construction slowdown in the aftermath of 11 September have proved unfounded, although there was a blip.
The G&T report says: "The general uncertainty following September and fears that economic slowdown might spiral into a deep recession have now evaporated."