Industry Challenges Impacting Construction Tender Cost

28th June 2018

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The skills shortage currently facing the UK construction industry is pushing up the cost of supply chain and main contractor tenders, as these organisations are forced to increase wages in an attempt to secure staff.

The shortage is expected to worsen in the immediate future as the rate of retirement outstrips the recruitment of new talent to the industry.

Tender prices are also being affected by the inflation on imported construction materials – a result of the impact of Brexit on exchange rates.

In its report published earlier this year, Mace outlined that these factors mean that, in its opinion, tender prices will rise more than previously expected in 2018.

Soben chairman Paul Moultrie commented: “The traditional view of the construction industry has made it somewhat unattractive to young people resulting in the skills shortage imbalance. As we are aware, the recent high profile collapse of construction giant Carillion has further damaged the reputation and attractiveness of our industry. Presently we believe the skills shortage, material price inflation, as well as political factors currently at play in the UK and wider economies are all producing added margin pressure for main contractors.

“At Soben we work in partnership with our main contractor clients to utilise our experience as contractor-centric quantity surveyors, working with the latest technology to produce accurate and robust Bills of Quantities, enabling our clients to maximise their profitability in these challenging times.

“We strongly believe that by investing in our quantity surveying trainees, we are investing in the success of the next generation of construction professionals.”