Mace announces steadying of its 2022 tender price forecast
Mace Cost Consultancy has today (21 September) announced a steadying of its 2022 tender price forecast, despite the ongoing energy crisis, as it publishes its Market View report for Q3 2022.
The international consultancy and construction company has made no adjustment to its tender price inflation forecast for the remainder of the year - maintaining the previously anticipated rise of 8% - while the tender price forecast increase for next year has been reduced slightly to 3.5% (from 4.5%).
This follows sustained upward revisions in the forecast since 2020.
The Q3 2022 Market View report considers the impact of the Bank of England’s interest rate rise and recession forecasts on the sector. It also looks at recent economic data as well as considerations such as volatility in metal and natural gas prices.
Andy Beard, Global Cost & Commercial Practise Lead for Consult, Mace said:
“As energy prices continue to rise and the cost of living crisis mounts, clients, contractors and the wider construction industry face a tricky balancing act. With real incomes falling rapidly, consumer facing sectors are some of the most at risk from these challenges, but the ripple effect from higher energy prices will be far reaching.
“Given higher input costs, there is limited scope in the medium term for tender prices to do anything but continue to rise, and pressures will come from all sides to keep projects progressing. This is likely to be easier said than done.
“Suppliers who have invested in innovation to improve productivity will be able to offer the most credible solutions to keep projects viable.”