Civil engineering tender prices continue to grow
The Building Cost Information Service (BCIS) reports that tender prices in civil engineering rose by approximately 0.5% between the third and fourth quarters of 2025. This means an annual change of 3.6%, according to the latest data. But what are the reasons for this growth, and how will the situation develop further?
The main source: Civil engineering tender prices soar
What is the reason for that situation?
Analysts identified the nuclear and aviation subsectors as key drivers of workload. This is largely linked to progress on nationally significant projects. It includes Hinkley Point C and Sizewell C, as well as the proposed expansions of Gatwick and Heathrow airports. However, regarding airports, panel members warned that labour resources and capacity could be constrained as future projects come forward. It was reported that direct employment in the infrastructure sector has not increased. Also, subcontractors continue to carry out the majority of the work. Panel participants also highlighted the growing competition faced by domestic contractors from European and other international counterparts for complex multi-billion-pound projects.
How will civil engineering tender prices develop in the future?
BCIS’s updated five-year forecasts estimate a 16% increase in the annual volume of new work in the infrastructure sector between 2025 and 2030. BCIS chief economist David Crosthwaite said: “Analysts reported a relatively stable project pipeline in the fourth quarter, with some sub-sectors performing well. However, capacity constraints remain a defining issue for the wider infrastructure sector. For example, panel members noted that transmission owners are reporting that in some cases there are waits of up to ten years for the installation of cables and substations.”
Fencyx, as one of the leaders in the UK building industry, is pleased to see this situation in the market. This means that the construction industry is still growing and is not in stagnation. Along with it, the UK economy continues to grow as well.