Home Commercial News 2.5% fall expected in bidding prices as re-sizing of contractors in place

2.5% fall expected in bidding prices as re-sizing of contractors in place

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2.5% fall expected in bidding prices as re-sizing of contractors in place

Mace’s cost consultancy predicts that clients may shift more risk back to contractors. This may lead in single-stage design and build contracts in the market. Also the bidding prices are expected to fall by 2.5% next year. This unusual situation in the construction industry due to the covid-19 crisis may take some time to recover.

While it is expected to see the fall in new projects during the next 18 months, there might be uncertainty until the industry gets balanced. Furthermore the focus might turn towards maintaining pipelines as the worse conditions in the construction industry take an all time high in the recent decades.

Housing and private commercial that are the major sources of income for many companies, are on a line of uncertainty. There are many new works (around 2/3rd) which are under way already with few others approved to start. However the present wave of contractor re-sizing might cause pressure until at least the end of next year, with calling in tender prices falling across the country.

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