26/04/2022
Tender Price Inflation for Construction Predicted to Soar to 8.5%
Since forecast tender price inflation for buildings is predicted to almost double from Winter 2021/22 prediction of 4.5% to 8.5% by the end of the year. We wondered how contractors should approach new bids in the current environment?
Cost management expert Martin Sudweeks, UK Managing Director at Turner & Townsend said: “Now is the time for calm, clear and programmatic thinking – focusing on setting up projects for success with full recognition of challenging cost pressures and a plan to manage them that starts with getting the basics right.
“Contract scrutiny needs to be front and centre. Businesses must avoid panicked procurement in the hope of locking-in pricing, instead taking time to eliminate ambiguity that can be a bigger risk than inflation itself.
“This is about picking the best team and ensuring you have capable and resilient contracting partners. Clients should map out the supply chain and identify weak links, then work to eliminate risk and where necessary share the burden of disruption. Those that successfully diversify their supply chains and build strong relationships with trusted suppliers will maximise resilience and benefit most long-term.”
Click below to read the latest market report published by Towner & Townsend (Q1 2022 Spring).