‘Weak’ Short-Term Confidence Drives New Tender Inflation Forecast
Stace’s Q2 outlook projects construction tender‑price inflation at 3.5% for 2026, easing to 3% in 2027 and rising to 3.5% through 2029. The forecast exceeds the Building Cost Information Service’s more modest estimates, which range from 2.4% to 3.3% over the same period. Stace attributes higher inflation to geopolitical instability, rising energy costs, and supply‑chain disruptions, while noting that long‑term demand from infrastructure and housing remains robust. Contractors face squeezed margins and cautious pricing on higher‑risk projects.
Business Lobby Calls for Offsite Mandate in New PPP Models
The Confederation of British Industry (CBI) is urging the UK government to make modern methods of construction (MMC) mandatory in new public‑private partnership (PPP) projects. The CBI’s report argues that MMC and design‑for‑manufacture‑and‑assembly can accelerate delivery of hospitals, schools, prisons...
‘Not Clear’ if Sizewell C Investors Are Incentivised to Keep Costs Down
The UK National Audit Office (NAO) warned that investors in the Sizewell C nuclear plant may lack strong incentives to curb construction costs, which are estimated at $48.9 bn and could rise to a regulatory ceiling of $61.1 bn. While investors would face...
Contractors Lined up for Specific New Hospital Programme Jobs
The NHS has earmarked ten contractors for the first £15 bn wave of its New Hospital Programme under the Hospital 2.0 Alliance framework. The list includes Graham for Airedale, Willmott Dixon for Royal Cornwall, Sacyr UK for Frimley Health, and others, with...
Port Operator Outlines £1.3bn Belfast Regeneration Plan
Belfast Harbour, the trust port for Northern Ireland, unveiled a £1.3 bn (≈$1.65 bn) 25‑year masterplan to expand capacity, add logistics facilities and drive housing‑led regeneration. The plan targets a rise in Irish Sea trade from 24 million tonnes today to over 30 million...
HS2 Applies Reset Lessons to ‘Nerve Centre’
HS2 Ltd awarded a £856 million (£1.07 bn) design‑and‑build contract to the TWA joint venture of Vinci’s Taylor Woodrow and Aureos for the Washwood Heath nerve centre and depot. The contract reflects a sharp cost increase from an earlier £275 million (£344 m) estimate,...
Pipeline Calculations Must Factor in Building Safety Levy, Says Analyst
The UK Building Safety Levy, effective 1 October 2026, will be charged on building‑control applications and initial notices for new residential projects. Pick Everard warns that schemes not submitted before that date must embed the levy into viability assessments to avoid...
Real Ways to Change the Industry’s Mental Health Culture
Sarah Bolton, CEO of the Lighthouse Charity, reports a 25% rise in families seeking support and a 44% jump in counselling sessions in Q1 2026, signalling a shift in construction workers’ willingness to address mental health. The charity urges industry...
Scape Launches £4bn Scottish Construction Framework
Scape Scotland has opened procurement for a $5.1 billion public‑sector construction framework that will run four years, with a possible two‑year extension. The programme is divided into seven lots, the three largest each valued at $1.27 billion and requiring a £150 million ($190 million)...
Strabag UK Returns to Profit but Warns of Iran Conflict Fallout
Strabag UK posted a pre‑tax profit of £8.1 m ($10.3 m) on £196.9 m ($250 m) revenue, delivering a 4.1% margin after a loss the prior year. The firm cut its wage bill by 17% and reduced headcount while remaining debt‑free and paying no...
Why Are Construction Material Prices Rising?
Construction material price inflation hit new highs in the year to March 2026, with aggregates rising 8.4% and fabricated structural steel up 8.2%. The surge is linked to higher oil prices, supply constraints, and margin recovery among builders’ merchants, while...
Bachy Soletanche and Kilnbridge Launch Partnership for Urban Projects
UK contractors Bachy Soletanche and Kilnbridge have formed a strategic partnership called UrbanCore to deliver complex urban construction projects through a single integrated package covering demolition, ground engineering, foundations, and structural works. The model aims to eliminate interface risks between...
Tribunal Strikes Out Electrician Claim After Violent Threats to Colleagues
A UK employment tribunal struck out the claims of Daniel Niculae, an electrician at the Hinkley Point C nuclear project, after he sent a barrage of threatening emails and WhatsApp messages to former colleagues. Niculae had filed unfair dismissal, disability...
Fusion21 Opens Bidding for £350m Repairs Framework
Fusion21 has launched a £350 million (≈$440 million) four‑year responsive repairs and void‑property framework for UK social housing, set to start in October 2026. The procurement, governed by the Procurement Act 2023, is divided into five lots covering repairs, void improvements, security, disrepair and...
Brace for 5% Tender Price Inflation, Report Says
Turner & Townsend warns UK infrastructure tender prices could climb up to 5% in 2026, with real‑estate tenders expected to rise 3.5%. The consultancy cites surging energy costs and the ongoing Middle East conflict as the main inflationary pressures, noting...