Upturn boosts tender prices

Stagnating tender prices are expected to take a turn for the better in response to a surge in demand over the next 12 months, according to cost consultancy EC Harris.

It says that national construction tender prices could rise by up to five per cent and in London and the South East by up to six per cent, in the year to the third quarter of 1997.

A further increase of around six per cent is expected in London over the following 12 months while the rest of the country will see a further 5.5. per cent rise.

The rise will follow an increase in demand for contractors' services caused by more activity in the commercial development sector, including the Channel Tunnel Rail Link, Terminal 5 at Heathrow and the Millennium Exhibition at Greenwich.

National workload will remain at 1995 levels this year but will rise by three per cent next year, particularly in the private housing and private commercial sectors, predicted to increase by 6.5 and 6 per cent respectively.

The predictions mask slightly gloomier news for Yorkshire & Humberside, the Midlands, East Anglia and the South West which are expected to remain up to two per cent below the national average on tender pricing.

Northern Ireland is expected to fare the worst of all with a 1.5 per cent rise in prices.