QS EC Harris this week predicted that building tender price rises in London are likely to outstrip the retail prices index over the next two years.
The company said this was despite economic uncertainties caused by the 11 September attacks on the USA. EC Harris said it predicted tender prices in London would rise 4.3% over the next two years.

The firm predicted that tender prices nationally would rise 2.75% next year and 3% in 2003. Retail price inflation is expected to remain around the 2% mark over this period.

EC Harris chairman Richard Clare said some commercial schemes in London had been delayed because of the uncertainty and this had meant tenders were not rising as fast as they had over the past 18 months.

He said: "The shock of 11 September hit the markets very hard and caused a number of clients to reassess their current and future commitments." But he added that government spending on education and health would boost workloads.