Tender Price Index – August 2023
The latest Tender Price Index shows further easing of construction inflation with labour costs still being the primary driver of tender price inflation.
The commercial construction TPI increased by 2.4% in the first half of 2023. Inflation is still a factor in the construction sector, even though the Index increases are more subdued compared to 12-18 months ago.
As the labour shortage across the construction industry continues to be a cost driver, its impact is particularly acute in mechanical and electrical services, where resources are in high demand in the pharma and commercial sectors. Material price inflation still exists and is a factor of tender inflation. Although price rises for certain materials and construction inputs such as steel reinforcement, insulation and fuel are settling down, concrete prices continue to rise according to survey respondents and this is being noted as a concern for the construction sector.