Developers and main contractors face increased supplier costs in the coming months; labour costs are expected to rise 7% across trades, and more for joinery, and materials costs by 9% with “significantly higher increases in steel, bricks and mechanical and electrical” supplies, according to research by the North West Construction Hub.
Each quarter the contractors on NWCH’s frameworks, used extensively by public sector clients, ask suppliers in different works packages how they expect costs to change in the future.
The latest data covers brickwork, carpentry and joinery, concrete frames, curtain walling, dry lining, M&E, steelwork and windows.
The NWCH said: “This exercise gives us some good indications of the buoyancy of the market directly from the supply chain.”
The growth in development activity has put pressure on property companies to deliver viable and timely projects as strong demand for materials and labour adds to construction inflation and saps supply.
The NWCH’s regional figures are fed into the National Association of Construction Frameworks and analysis is then carried out for all the participating regions.