Why are wages and tender prices increasing in the construction industry, and what does this mean for your firm?
As construction demand continues to increase following a slow recovery, labour bargaining positions are set to become stronger, putting those in the construction industry in a better position to ask for more money. Already, wage increases of 3 per cent have been agreed for civil engineering workers for 2014/15, but these agreements are set to rise even higher – increasing by 4 per cent in 2017.
According to the data from RICS’ Building Cost Information Service, the rising labour and material costs are likely to drive up the price of infrastructure construction in the UK, as civil engineering prices have already returned to pre-recessionary levels. Price rises are expected to outstrip costs in the next five years, with civil engineering tender prices having already risen to 12 per cent above the pre-recession peak of 2007, which is fantastic news for contractors and suppliers.
Increased demand and increased wages are naturally welcomed by construction industry contractors, but it’s important to ensure that your firm is in position to take advantage of the opportunities presented to you over the next few years. Could construction accounts management software help to provide you with the time and space you need to negotiate more lucrative contracts? Integrity Construction Software can provide you with the tools you need to run a more efficient and successful construction business, enabling you to manage accounts and job costing with ease.
