Consultant says bidding has got more competitive as contractors fight for work
Rider Levett Bucknall has warned that tender prices are being squeezed as firms look to replenish order books in the face of dwindling workloads.
In its forecast for Q3, the consultant said: 鈥淭he lack of new orders is forcing contractors into tighter, more competitive bidding, with downstream risks for project delivery.鈥�
It said its forecast for the coming three months was 3.03% from the previous quarter鈥檚 3.22%.
鈥淕rowth remains patchy. Gains are largely driven by repair and maintenance work activity and a seeming recovery of housing, which is up 1.3%, while new orders show only limited expansion outside of infrastructure.鈥�
Earlier this month, S&P Global UK Construction Purchasing Managers Index said output remained stuck in reverse in August with a score of 45.5 鈥� the eight consecutive month of decline.
RLB鈥檚 chair of its global research committee said: 鈥淥ur construction market intelligence points to a sector that remains largely stagnant, with growth driven by public sector projects while private investment stays cautious in light of ongoing macro-economic uncertainty.鈥�
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