Tender prices up by 4.6% since January

Tender prices for the construction industry rose by 4

Tender prices for the construction industry rose by 4.6 per cent in the first six months of this year, according to an index compiled by the Society of Chartered Surveyors. The 12-month figure up to the end of June was 8.6 per cent. The findings are based on actual tender returns for non-residential projects. The society says the latest findings reflect the current state of the market, with the industry working at close to capacity. Despite this, the volume of construction output was predicted to grow by a further 12 per cent this year, putting greater pressure on resources and on prices. The findings also reveal that the pay rates for brickwork and blockwork showed the greatest increases because of a shortage of craftsmen. Uncertainty over future labour costs before the conclusion of a new national wage agreement and the ongoing heated nature of the industry is likely to lead to a similar level of increase in tender prices for the second half of 1999, the society said.