色猫直播 tender prices are set to rise by up to 5.0% this year, threatening costs for key UK programmes and challenging project viability, according to new data from Turner & Townsend.
The firm鈥檚 Winter 2025 UK Market Intelligence report (UKMI) forecasts a rate of tender price inflation (TPI) of 3.5% per year across real estate and 5.0% for infrastructure through 2026 and 2027.聽 While these both represent only a modest 0.5 percentage point lift from the TPI rates experienced last year, sustained cost escalation is putting pressure on the viability of new projects at a time of economic uncertainty, it says.
色猫直播 output remains subdued, at its lowest slump since the financial crisis according to the latest figures from the S&P Global UK 色猫直播 Purchasing Managers鈥� Index (PMI).聽 However, the sector is seeing a fresh wave of demand as government plans for growth spur renewed confidence in logistics, manufacturing and office development.聽 Orders of new work made to construction firms were up by 29.3% in the year from Q3 2024, the fastest increase since the easing of pandemic lockdowns.聽
The report points to a risk of the TPI rate accelerating further, as the government鈥檚 Planning and Infrastructure Act seeks to speed up project starts, further boosting demand.聽 Against this backdrop, and with the sector losing workers at an alarming rate 鈥� 50,000 in the past year, according to the Office for National Statistics 鈥� Turner & Townsend warns that capacity constraints and continued market uncertainty are threatening delivery.
Stephanie Marshall, UK managing director of real estate cost management at Turner & Townsend, said: 鈥淚t was an uncertain final quarter of last year 鈥� from the chancellor鈥檚 budget to geopolitical tensions which have very much continued into 2026.聽 It鈥檚 no surprise then that clients remain nervous about committing to projects.聽 But we know the demand is there, both from public and private sectors, as the country works to revive economic growth.聽 With a number of major programmes set out in the Spending Review expected to come online in the next 24 months, we can鈥檛 afford for the construction sector to wait for the real capacity crunch to hit.鈥�
To ensure programmes get the funding, skills and materials needed, Turner & Townsend is advising developers to consider mutual incentives and effective risk allocation.
Marshall added: 鈥淐lients need to grasp the nettle and get ahead to ensure programmes get off the ground and stay on track.聽 In today鈥檚 complex environment of cost inflation, capacity challenges and regulatory reforms, close tracking of viability can鈥檛 be limited to the procurement phase or a single 鈥榞o / no go鈥� moment 鈥� it needs constant review throughout the programme.聽 Engaging with the supply chain early and working with them as true partners, rather than just suppliers, will also help in horizon scanning and addressing problems quickly.聽
鈥淭here are significant opportunities facing our industry 鈥� to make the most of these and deliver for the wider UK economy, we need to get the right business cases, models and skills in place now.鈥�