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Tender prices fall in Q2
03/11/09
Edited by Andy Jowett. Tender prices in the construction industry declined by four per cent during the second quarter of 2009, leaving them 11.7 per cent down year-on-year, according to the latest figures from the Building Cost Information Service (BCIS) of the Royal Institution of Chartered Surveyors.
Since prices peaked in late 2007, they have dropped 13.1 per cent and the BCIS is predicting they will slide a further 3.3 per cent over the next year before a recovery starts in 2011.
The organisation said the main factor behind the latest drop in prices is increased competition in the market due to the steep decline in orders, which is leaving companies chasing fewer jobs.
Joe Martin, BCIS executive director, said: "The next year will remain tough and with new work output expected to fall in 2009 and 2010 as a whole, tenders will continue to edge downwards, although at a slower pace."
BCIS has been compiling and analysing construction industry cost information since 1964.
