Construction costs in the capital are set to rise by 2.8% this year alongside cooling tendering activity, according to a new study by Turner & Townsend.
The quantity surveying firm’s International Construction Market Survey 2018 states that, while global construction volume is increasing, there is an overall reduction in the UK.
London continues to push the UK economy but is witnessing the effects of slowing economic growth. Tendering activity has declined slightly in the capital, reflecting a drop in desire for investment amid Brexit-related fears. The cost inflation forecast for London this year is 2.8%, down from 3.9% in 2017 but still above the rates forecast elsewhere in the UK, reflecting the high demand and pressures on supply in the capital – in particular, skilled labour.
Despite the short-term forecast, there is cautious optimism for future growth; Brexit uncertainties are lessening amidst signs that devolution of power may be driving spending on infrastructure and housing. More autonomous regions such as Manchester and Birmingham are enjoying increased developer activity, especially on the back of the HS2 project, contributing to rising construction costs across both areas.
Steve McGuckin, Global Head of Client Programmes at Turner & Townsend, said: ‘We need to adopt digital tools, modern manufacturing methods and automation if we are to ease the pressure on resources and help attract new talent to our dynamic sector.’
Adopting digital tools, as advised by McGuckin above, is easier than ever before with the range of construction management software in the UK now available. Software like Eque2’s EVision ERP solution automates a range of business processes and helps manage the full construction and contracting life cycle – even on mobile devices.
With construction costs set to rise, as the market leaders for construction management software in the UK, Eque2’s EVision software helps you complete projects on time and within budget, which is particularly important in a climate of economic uncertainty.
EVision’s project cost control and supply chain management functionality means you’re always on top of your finances, from project tender to completion. Plus, EVision’s forecasting capabilities for future workloads allow you to make more effective decisions and get ahead of the competition with an informed plan for sudden rises in costs or an influx of work.
Contact a member of the Eque2 team to discuss how our construction management software can enhance your business, giving you back control and saving you money.