With the UK economy poised to surpass the pre-recession peak in a matter of months, construction sector activity continues to strengthen. A decisive supply chain response to the improvement in demand conditions means that the extreme constraints on contractors’ estimating capacity, which peaked in early 2014, have started to ease.
However, the recovery is entering a dangerous phase as contractors invest to expand their operations at a time when input cost inflation is strengthening. Contractors’ cashflow will come under increasing pressure and the importance of comprehensive due diligence cannot be over emphasised to clients seeking to procure work at this time.
If you would like to receive a copy of the Core Five Central London Update, including our forecast for tender price inflation through to 2016, please email Kelly Forrest, our chief Construction Economist.
Connect with Kelly Forrest by clicking here.