16 Sep 2021

‘Competitive tendering is a common method of procurement in the construction industry. Those tendering for a contract are often competing with others, and generally, none of the tenderers are aware of the quotes provided by each other; therefore, they are incentivised to submit their most competitive tender’

On larger schemes, not withstanding the hype surrounding rising costs in NI, evidence is emerging that inflationary pressures are easing and competition rising between tendering contractors. Whether tenderers are taking a gamble or basing their submitted bids on finding competitive material quotes and sufficient labour, it’s too early to say. But some are making such judgements to secure contracts for early 2022. Rising energy prices are also putting pressure on input costs.

Also evidence of clients pressing the brake pedal on schemes where schemes are exceeding budget allocations and deciding to hold off until Spring 2022 for review of marketplace generally.

Result is a reduction in the amount of actual work available for the last quarter of 2021 and first quarter of 2022. Time for material suppliers and trades to realise the marketplace is reacting to the high costs of schemes, and not willing to pay.

Perfect storm of Energy costs/Brexit/Covid-19 and not to mention the overarching game of politics.