BCIS Tender Price Index – Forecast to 2nd Quarter
Early results suggest that the price of new construction work rose steadily in the year to 1st quarter 2007, according to the latest Tender Price Index compiled by BCIS, but rose behind the level of general inflation.

Peter Rumble, Information Services Manager, BCIS commented:

"With new work output expected to rise well above trend in 2007, together with rising orders and enquiries in 1st quarter 2007, and with contractors expecting workload to increase in 2nd quarter 2007, it is likely that tender prices will continue to rise next quarter".

New work output is likely to rise significantly faster than trend over the next three years.

The private commercial sector is expected to be the prime contributor to growth over this period, through the offices sub-sector, PFI projects and venue work for the 2012 Olympics.

Peter Rumble continued:

"Tender price rises are expected to outstrip general inflation over each of the next two years, as a result of new work output increasing significantly above trend throughout the forecast period, and upward pressure from increased input costs."

Andrew Thompson International Development Director, BCIS said:

"Of course with the new Chancellor in place it will all be very interesting to see if public expenditure on construction is tightened within the coming months. Only time will tell."

Further information
Please contact BCIS Press Officer, Joy Coker e jcoker@bcis.co.uk.