Tender prices drop sharply in Q1

The latest Tender Price Index from the Building Cost Information Service shows that the price of new construction work fell by 4.9 per cent in the first quarter of this year. New orders fell 19 per cent in the first quarter of the year, and were 38 per cent lower than the same period a year earlier. Materials costs rose 4 per cent between January and March, compared with 7.7 percent in the previous quarter, and wage rates remained constant at 4.9 per cent. The BCIS expects tenders will fall another 6.1 percent over the coming year, with a slight rise expected by 2011 of 0.5 percent.