BCIS tender price index

Citation

(2002), "BCIS tender price index", Property Management, Vol. 20 No. 1. https://doi.org/10.1108/pm.2002.11320aab.010

BCIS tender price index

BCIS tender price index

Tender prices have risen well ahead of inflation over the last year, according to the Royal Institution of Chartered Surveyors' (RICS) tender price index forecast to second quarter 2003 compiled by its Building Cost Information Service (BCIS).

Tender prices rose by 7.0 per cent in the year to first quarter 2001 compared with general inflation which rose by 2.2 per cent. Material costs rose 1.8 per cent in the past year, while nationally agreed wage rates rose 5.9 per cent.

New work output is expected to decline slightly this year, mainly as a result of the considerable fall in orders in the second half of 1999. Next year, new work output is likely to recover to a level similar to its long term annual growth rate. Total construction output is expected to rise in 2001 and 2002.

Peter Rumble of BCIS commented:

Tender prices are expected to increase faster than inflation over the next two years due to rising input costs and the increase in new work output in 2002. However, if the economic slowdown in the USA has an adverse effect on the UK economy, this may have a dampening effect on tender price increases.

The indices and forecast are published in the BCIS Indices and Forecasts and Quarterly Review of Building Prices priced £84.00 per issue each and £260 annual subscription and are available from BCIS, 12 Great George Street, Parliament Square, London SW1P 3AD.

For further information, please contact Peter Rumble at BCIS Ltd, 12 Great George Street, Parliament Square, London SW1P 3AD. Tel: 020 7695 1500; Fax: 020 7695 1501.