Bidding for new UK construction work is most likely to become more competitive in the upcoming 12 months as firms look forward to plugging workloads, according to the latest tender price report from Rider Levett Bucknall.
The UK consultant has gone on to say that the race for jobs is going to get tighter as cautious clients postpone their project, while the firms are yet to see when and where the money allocated for the cancelled HS2 leg between Birmingham and Manchester is going to be spent.
In its report for quarter 1 this year, the firm has gone on to say that with the increasing flexibility when it comes to contractors and subcontractors because of the requirement to have a fresh workload, anticipations would be that bidding is going to become more competitive and that the projects can very well go on to benefit from more broadly available building resources within the marketplace.
And it also went on to add that while inflation was falling and interest rates were indeed easing momentarily, uncertainty appears to be a reason for constraints on a few project advancements to market.
The fact is that all is not yet business as usual due to the ongoing economic as well as geopolitical considerations that are yet to be taken care of and may even go on for some time.
The report further said that it expected tender price inflation within the first three months of this year to be 3.19%, which was down from 3.79% for the same period in 2023.