BCIS Tender Price Index – Forecast to Quarter 4 2009
The price of new construction work continued to outpace general inflation in the year to 3rd quarter 2007, according to the latest BCIS (Building Cost Information service) Tender Price Index.
The rise can largely be attributed to strong new work output growth and above inflation rises in contractors’ input costs (labour, plant and materials).
New work output rose by 4.4% in the first three quarters of 2007 compared with the same period in 2006.
As contractors expect workloads to increase in quarter four 2007, tender prices are also likely to rise in this quarter.
BCIS Information Services Manager Peter Rumble said:
"Whilst 2007 has shown impressive year-on-year growth in new work output, we expect momentum to slow down significantly in 2008, as the credit crunch begins to bite and investors delay or cancel schemes they had in the pipeline.
"Investor confidence should return in 2009.
"Above trend increases in new work output over the forecast period, and upward pressure from input cost rises are expected to lead to tender price rises outstripping general inflation over each year of the forecast period."
Further detail can be viewed in the Press release, available from the Word Downloads panel.
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