The Building Cost Information Service (BCIS) reports that civil engineering tender prices rose by an estimated 0.5% between the third and fourth quarters of 2025.
This resulted in an annual change of 3.6%, according to the latest data from the BCIS Civil Engineering Tender Price Index (TPI) panel.
The panel, comprised of cost consultants from firms involved in multiple civil engineering tenders across the UK, advises on the latest movement in tender as well as providing commentary on conditions affecting pricing levels. This insight helps to inform quarterly updates to the Building Cost Information Service (BCIS) Civil Engineering TPI.
BCIS chief economist David Crosthwaite said: 鈥淧anellists reported a relatively stable pipeline in the fourth quarter with a number of subsectors performing well. However, capacity issues are still a defining challenge for the wider infrastructure sector.
鈥淔or example, panellists noted transmission owners are reporting up to a ten-year wait on the installation of cables and transmission stations in some cases.
鈥淭he wider sector is also losing more of its junior workers to international markets and, with them, opportunities to reinforce the next generation of talent. This is compounding certain skills gaps, such as the ability to facilitate contractor-client negotiation.鈥�
Nuclear and aviation subsectors were cited as key workload drivers by panellists. This is largely due to progress on nationally significant schemes such as Hinkley Point C, Sizewell C and the proposed expansions of Gatwick and Heathrow airports.
However, for the airports, panellists warned that labour capacity and capability may become strained when future projects land.
Direct employment in the infrastructure sector has reportedly not increased, with subcontractors still undertaking the lion鈥檚 share of work.
Panellists further highlighted the growing competition domestic contractors face from European and other international counterparts for complex multi-billion-pound projects.
Updated five-year forecasts from BCIS estimate a 16% increase in annual new work output in the infrastructure sector between 2025 and 2030.
Dr Crosthwaite added: 鈥淭he immediate challenge for infrastructure moving forward will be getting the right skills in the right places. On a project level, panellists said setting up an incentivisation model in the right way is key as this will attract the right people who can deliver the right outcomes.
鈥淥n a wider level, reliable cost forecasting, robust planning and collaboration as ever are essential and the best tools for businesses to handle the cost implications of an increasingly competitive market.鈥�
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