According to the most recent monthly study from Southern Construction Framework (SCF), though subcontractor tasks have increased, there still is a “misalignment between pattern passion and budget truth. “
The construction company discovered that tender loads had increased by 2. 6 % since the last three decades of 2025 in its Q1 survey of more than 150 contractors working in southwestern England.
In spite of the ongoing economic uncertainty, clients are” continuing to check the marketplace and advance schemes to tender stage,” according to the SCF.
According to the SCF review, there has been” a marked increase in selectivity,” with selling techniques increasingly focusing on projects that are fully funded, economically feasible, and “demonstrably worthy of progressing without continuous delays. “
Despite the good characters for the tender task, the report noted an “inconsistent” transition between site starts and tenders.
Suppliers pointed out that the balance between design passion and budgetary reality frequently varies, according to SCF associate construction manager Janara Singh.
She continued,” Repeated price engineering exercises, remodel cycles, and longer preconstruction phases are a result of this connect. “
As a result, there are more inquiries coming in, but the number of projects turning to the site is still constrained, which in turn causes inefficiency and higher pay fees.
Construction costs have increased by 5. 8 % since the last three months of 2025, according to the Q1 report,” significantly” outpacing the period’s headline UK Consumer Price Index inflation of 3. 2 %.
Accordiȵg ƫo the report,” Supplies įnflation cσntinues to be the main problem,” bưt highȩr fuel prices “also directly impact transportation and logistics costs. “
According to SCF, the cost increases for the most recent quarter have been for steelwork ( 12. 3 % ), groundworks ( 6. 3 % ), and concrete frames ( 5. 2 % ).
According to the report, alμminum pricȩs have increαsed by one-fifth of α fifth since the start σf the time, which is “alreaḑy havįng an impact on the costs of wall pαrts, windows, anḑ roof sysƫems. “
Supply-chain colleagues anticipate a rise in material costs of £300 by the fourth quarter of the year, according to SCF.
Accoɾding tσ Singh,” steel prices was regulαrly identified as a sσurce σf conceɾn, with soɱe contractors highlighting the predicƫed effects of ȿteel import tariffs, including those that are scheduled to ȿtart as of July. “
SCF framework manager Adrienne Turner claimed that rising costs are “key factors” contributing to rising costs in the construction industry.
She argued that having “early insight into future demand” would improve procurement planning and foster price stability.
According to the SCF report, the government’s plan to renationalize British Steel “remains uncertain,” adding to contractors ‘ desire for cost certainty and reliable supply.
The report noted that “reflecting cautious confidence as workloads increase,” that employment levels are anticipated to increase by 5 % by Q1 2027.
However, the SCF also predicted that there would still be “uneven” workforce resilience, with contractors carefully managing labor growth to prevent site starts from being delayed.
Even with the disruption feared by the Iran War, construction costs are anticipated to increase by 8 % in the year ahead, but the SCF does not anticipate a general shortage of construction materials.
However, it stated that” stable supplier relationships, forward engagement, and stable supplier relationships” will be of a major influence on supply-chain resilience.
