A perfect storm of increased demand, continued supply chain issues and labour shortages is continuing to drive up construction costs.
Turner & Townsend's latest market report predicts that ongoing rises will continue well into next year as construction firms look to pass on costs which can't be absorbed to end users.
Building Magazine reports that Mace is the latest firm to raise its tender price forecast.
Amid further recent reports that tender prices could jump by as much as 10% by the end of 2021, developers are likely to be all the more reliant on their professional team to monitor ongoing project delivery against quality, time and budget, particularly where contractors are under fixed price contracts. The advice of cost consultants is likely to be particularly important in the negotiation of commercial terms for future projects.
"The underlying expectation that market activity will continue to increase as the workforce starts to return to the workplace only heightens the sense that tender prices will continue to rise"