Political and Economic Uncertainty with Glimmers of Hope as RLB Launches its Tender Price Forecast for Q4
November 25, 2019.
With a backdrop of the political and economic situation remaining unresolved both on the national and international stage, RLB UK releases its Tender Price Forecast for Q4 2019.
With caution and hesitation within the built environment the norm, feedback from RLB’s regional offices reports of project deferrals, ongoing cost increases, workload requirements and labour availability concerns.
However, there are glimmers of hope. Some predict a short term lift post-Election as pre-Election parties’ promises, including possibly large injections of government health, education and infrastructure spending, come to fruition and those activities paused in the tender pipeline eventually are progressed.
Although developers are hesitant about committing to new office development, the RLB London office continues to see a significant increase in office refurbishments and refreshes. The South West and Thames Valley regions are benefitting from individuals and businesses moving out of London, with a consequent increase in residential projects and the related boost in local economy. The ageing population is resulting in an increase in development of supported living and elderly care accommodation, especially in the Yorkshire and Humber region. Whereas retail has stalled, the industrial and logistics sector has gained momentum as mega shed storage and distribution centres and last mile fulfilment depots are needed to meet the demand for online commerce.
Public sector activity, such as healthcare and higher education, continues to flourish, with University of Bristol in the South West and the Royal Liverpool University Trust and Salford NHS Trusts, among the many live projects. Maintenance and estate management remain key where budgets are tight yet there is a requirement for quality of service.
RLB UK’s National Head of Cost Consultancy, Russell Lloyd comments “There is no doubt that the on-going political agenda and European uncertainty will continue to affect the built environment, with sub-contracting costs and labour supply likely to be unknown factors in procurement in the immediate, if not long term, future. However, what our Tender Price Forecast for Q4 shows is even with all of this caution, there is still the need to take steps forward, however hesitant they might be.”
With a network that covers the globe and a heritage spanning over two centuries, Rider Levett Bucknall is a leading independent organisation in cost management and quantity surveying, project management and advisory services.
Our achievements are renowned: from the early days of pioneering quantity surveying, to landmark projects such as the Sydney Opera House, HSBC Headquarters Building in Hong Kong, the 2012 London Olympic Games and CityCenter in Las Vegas.
We continue this successful legacy with our dedication to the value, quality and sustainability of the built environment. Our innovative thinking, global reach, and flawless execution push the boundaries. Taking ambitious projects from an idea to reality.