Imtech forced to 'guestimate' jobs as materials prices soar

Imtech Technical Services is having to "guestimate" copper and steel prices as the cost of commodities continues to soar.

Chief executive Jim Steele said: "We are having to do a guestimate on a weekly basis. The vast majority of clients want you to fix a price, but it's a case of holding up a wet finger when you're looking to settle on a price on a job that will only finish in 2011 or 2012. So everything goes in that much over budget, to be on the safe side.

"No-one likes this guessing game. It was much better when there was more certainty and you could sharpen your pencil more."

Steele forecasts increasing pressure on margins as new names come pouring into Imtech's central London building services market as they find work drying-up in other areas.

He said: "New names are already appearing on bid lists, Balfour Kilpatrick is one, it wasn't in central London before. And there is Lorne Stewart, though it has restructured and is probably looking to a new approach."

Turnover at the firm rose to £180m in 2007 compared to £110m the previous year.

Latest figures covering the 21 months to December 31 2007 show pre-tax profit rising to £11m from £8m.