Tender price rises outstrip inflation
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.”
For an illustration of Tender Price Inflation (year on year percentage change) download the Press Release Word document from the right-hand side of this page.
ENDS
Notes for editors:
The full report 'Indices and Forecasts' can be purchased for £180. To order a copy, order online at www.bcis.co.uk, T +44 (0)870 333 1600 (select option 2 for BCIS) quoting item code 4360, or email sales@bcis.co.uk.
The data is also available via a subscription to BCIS Online - BCIS' capital cost database. Copies of the printed reports are sent to all online subscribers. Contact BCIS for a free demonstration - T +44 (0)20 7695 1500.
About RICS
RICS (Royal Institution of Chartered Surveyors) is the mark of property professionalism worldwide. It covers all aspects of property, construction and associated environmental issues. RICS has 140,000 members globally and represents, regulates and promotes the work of property professionals throughout 146 countries. RICS is governed by a Royal Charter approved by Parliament which requires it to act in the public interest. It is also a professional regulatory body approved by Government (HM Treasury).
About BCIS
BCIS (Building Cost Information Service) publishes information on the capital cost of new and refurbished work collected from Chartered Quantity Surveyors and others working in the building industry. BCIS is a trading name of RICS and was established in 1962 to exchange detailed building price information.
For further information, please contact:
Peter Hogan
Media Relations Manager
RICS Communications
T: +44 020 7334 3891
