Tender prices will fall by up to 9% in 2009 and a further 3-5% in 2010 according to the latest market forecast prepared for Building by cost consultant Davis Langdon

It said competition for work would intensify this year as jobs complete and firms chase a dwindling number of contracts. Prices fell by 1% in the first quarter and are down by 8% compared to the same time last year.

Concrete packages have fallen the sharpest, by up to 30% in the beleaguered London market.