Tender bids set to fall
A new report by Mace’s consulting arm has warned that tender prices could fall by as much as 2.5% next year.
The report says the industry is expected to suffer a substantial drop in new projects, with increased focus on maintaining pipelines and costs becoming a ‘secondary concern’. It adds that a return to ‘race to the bottom’ bidding and reduced cashflows are some of the biggest issues facing the industry in the coming months
Managing director of Mace Cost Consultancy Steven Mason said in Construction Enquirer: “The usual inflationary or deflationary pressures of construction input prices that have such major influence on market forecasts have, at least in the short term, been heavily disrupted due to material and labour shortages, prices spikes and significant uncertainty in output and productivity levels.
“We expect this uncertainty to continue until the final quarter of 2020 along with the level of suppressed tender prices that such market sentiment usually brings.”