The Q3 increase resulted in 2.1% annual growth in the BCIS All-in Tender Price Index, down from a peak of 10.3% observed in Q2 2022.
BCIS chief economist David Crosthwaite said: “All panellists commented that contractor selectivity and risk aversion are affecting tendering. There is an expectation among the panel, as there is across the wider industry, that the autumn budget will be a turning point for projects getting the go-ahead.
“While some uncertainty was resolved by the outcome of the general election, until the government announces its spending plans, a lot of that uncertainty remains.”
When asked how easy it was to get contractors to tender, 62% told the BCIS that the desired number of suitable tenderers was found after searching; 23% said it was more difficult; and 15% said it had become easier.
There were no reports from the BCIS panel of an inability to get anyone to tender or of contractors being very eager to tender.
Dr Crosthwaite added: “Overall, there has been more positivity around the project pipeline: 69% of panellists reported that their anticipated pipeline of projects going to tender within the next 12 months has increased slightly in the third quarter, compared with the previous 12 months. The remaining panellists said their pipeline was either unchanged (15%) or reduced slightly (15%).”
