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.