Q3 2024
Tender Price Indicator
As interest rate cuts and anticipated planning reforms spark hopes for a construction revival, will inflationary pressures resurface and how will contractor capacity constraints restrict future workload growth?
The outlook for the UK construction sector has brightened in recent months. With election-related uncertainty behind us and borrowing conditions set to gradually improve, the stage may be set for an expansion in construction activity. As confidence begins to return, we could witness a renewed momentum in project starts. However, challenges remain.
A resurgence in activity may drive up costs across the supply chain, as materials, labour and contractor availability become increasingly constrained. The intensified competition for resources could lead to upward pressure on tender prices, especially in areas where capacity is already stretched thin.