Firm warns regulatory processes need to speed up to get jobs up and running
Mace has revised its tender price forecast upwards for the year, with the firm saying rising labour costs are behind the rise.
It said labour costs rose 1.6% in the last quarter of 2024 alone, putting them 6.5% higher than at the end of 2023.
It added that while pay growth across the whole economy was between 5% and 6% last year, construction pay growth more than doubled from March to the year end.
As well as increasing pay packets, Mace said worries about the economy, productivity and uncertainty around global logistics meant its national tender price forecast was up from 3.5% to 4% for 2025, although the figure for 2026, 2027 and 2028 was unchanged for now.
In London, the forecast is up from 3% to 3.5% this year with 2026, 2027 and 2028 also remaining the same.
In its Q1 report, the firm said that it expected output to beat that of last year but Mace Consult鈥檚 director of cost and commercial management for Europe, Oliver North, warned: 鈥淓conomic and political uncertainties remain and whilst the steps being made when it comes to planning, devolution and funding for the 精东影视 Safety Regulator will have a long-term impact, processes need to speed up to boost confidence, help secure pipelines and encourage investment.鈥�
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