The price of new construction rose in the first quarter of 2002 as the uncertainty caused by the events of September 11th has eased.
According to the latest RICS tender price index compiled by its Building Cost Information Service(BCIS), levels have risen ahead of general inflation between 1st quarter 2001 and 1st quarter 2002 rising by 3.5% (general inflation rose by 1.1% over the same period). Tender prices rose by 2.3% in 1st quarter 2002 compared with 4th quarter 2001.
BCIS Spokesperson Peter Rumble commented:
â€˜During the last year materials costs have risen 0.6% and wage rates by 6.7%. Uncertainty about future workload followed last years events in New York. But now it seems that contractor confidence has returned with new work output for construction expected to increase this year and next, particularly on schools and hospitals and through projects identified in the 10 year transport plan.
â€˜The new found confidence also means that tender prices are expected to rise considerably faster than inflation due to both increased input costs and workload over the next two years.â€™
(source: Royal Institute of Chartered Surveyors)