Civil engineering costs up by 15% over next five years, forecasts BCIS
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Civil engineering costs are forecast to rise by 15% over the next five years to 2Q 2029, while civil engineering tender prices are predicted to increase by 23% over the same period, according to the latest forecast from the Building Cost Information Service (BCIS).
New work infrastructure output is expected to decline by 3% in 2024, before recovering from 2025 onwards. Output in this sector is forecast to rise by 19% over the next five years, driven by strong growth in the electricity sub-sector.
Dr David Crosthwaite, chief economist at BCIS, said: “Although infrastructure output has historically remained relatively high, it has declined over the past year. We forecast that output growth will resume in the second half of this year and plateau through 2025, before showing marginal growth later in the forecast period.
“Output will be driven by continued work in the energy sector and large-scale projects like HS2, Hinkley Point C, and offshore wind developments within the electricity sub-sector.
“The government has made various announcements around its infrastructure plans, proposing a 10-year infrastructure strategy but, as with other sectors, much of the detail will not be clear until at least the Autumn Budget.
“Investment is crucial for infrastructure so, while the government is at pains to describe the dire state it has inherited, it also needs to inspire confidence in the sector and encourage investors to come here. Hopefully that will be reflected in spending plans and policy moving forward.”
For further information about BCIS please visit: www.bcis.co.uk
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Editors notes
Notes to editors
BCIS produces five-year construction industry forecasts, covering projected input costs, tender prices and output, and examining the latest construction market trends.
The quarterly BCIS infrastructure briefing is a civil engineering market report and presents our view of water and sewerage, electricity, roads, railways, harbours and flood defences, gas, air and communications, and infrastructure repair and maintenance output against a backdrop of civil engineering costs, including labour and materials, and the wider economic background.
About BCIS:
The Building Cost Information Service (BCIS) is the leading independent provider of construction data to the built environment and insurance sectors. For some 60 years, BCIS has been collecting, collating, analysing, modelling and interpreting cost information to support built environment professionals, helping them provide cost advice, to have confidence in commercial decision-making and to mitigate risk. BCIS was recognised at the Engineering Matters Awards 2024 with The Net Zero Champion Gold Award for its leading role in the development of the Built Environment Carbon Database.
