Signs of a building recovery as pipeline begins to stir | Construction Enquirer News
Summary
The construction sector shows signs of recovery as tender price forecasts rise and architect workloads improve, indicating a shift from project deferrals to active discussions.
Why It Matters
This article highlights a potential turning point in the construction industry, suggesting that despite ongoing challenges, there is renewed optimism and activity in project pipelines. Understanding these trends is crucial for stakeholders in the sector to navigate upcoming changes and opportunities.
Key Takeaways
- Tender price inflation forecast has increased to 3.0%, reflecting cost resilience.
- Architect workload index shows a positive shift, signaling tentative optimism.
- Projects previously stalled are re-emerging, particularly in residential sectors.
- Market conditions remain uneven, with private sectors facing competitive pressures.
- Public infrastructure projects are sustaining activity amidst tighter financing conditions.
Cost consultant Gardiner & Theobald has revised its 2026 average tender price inflation forecast up to 3.0%, from 2.5%, reflecting persistent cost pressures and a pipeline that is starting to stir rather than stall. It is not a demand surge driving the upgrade, but a combination of cost resilience and legacy schemes that are moving back into active viability discussions, says the cost consultant. Contractors surveyed by the cost consultant say projects parked at the end of 2025 are re-emerging, particularly in residential and mixed-use sectors where Building Safety Act Gateway 2 delays had become a critical bottleneck. Approval timelines are shortening and conversations around funding and appraisal are beginning to move again. G+T tender forecast The pattern emerging is one of deferral rather than abandonment. Many schemes are being pushed into late 2026 instead of being scrapped outright. The first half of the year is expected to be dominated by bid progression, feasibility work and funding negotiations, with stronger delivery conditions potentially following in the second half and into 2027. Fresh data from the Royal Institute of British Architects supports indicators of stirring client demand. January’s RIBA Future Trends survey recorded a +3 Workload Index, ending four consecutive months of negative balances and signalling tentative optimism at the front end of the pipeline. Adrian Malleson, head of economic research and analysis at the Royal Institute of British Archi...