FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
The latest data from the Building Cost Information Service (BCIS), shows tender prices increased by an estimated 0.7 per cent between 4Q2025 and 1Q2026, resulting in a 2.8 per cent annual growth in the BCIS All-in Tender Price Index (TPI).
The estimate reflects the consensus view of the BCIS TPI Panel, comprising cost consultants from firms involved in multiple tenders each quarter.
BCIS Chief Economist, Dr David Crosthwaite, said: “Panel optimism for a recovery in certain construction markets has been tempered by the escalation of conflict in the Middle East.
“According to the panel, recent energy price volatility and supply chain disruption have not yet been reflected in tender prices, but prolonged unrest is likely to affect market activity.
“Even if conflict resolution is reached fairly swiftly, panel commentary suggested projects could stall, workloads may be reduced and tender prices could face downward pressure.”
Project pipelines have been relatively strong in the quarter so far according to the panel.
More than three-quarters (77 per cent) of panellists reported that their pipeline of projects going to tender over the next year had increased slightly in 1Q2026 compared with the previous 12 months. The remaining 23 per cent reported no change.
Contractor appetite to tender also remains robust. More than half (54 per cent) of panellists said contractors were quite eager to tender during the first quarter, while 39 per cent said they were able to secure the desired number of suitable tenderers after searching.
Dr Crosthwaite added: “Commentary on the first half of the quarter was mixed. Purpose-built student accommodation was performing well, the industrial sector saw some growth and there were indications of recovery in commercial and residential markets. However, the panel suggested that overall pipeline growth could be stronger. Challenges with converting projects and tougher contract negotiations were cited as factors constraining progress.
“With geopolitical tensions continuing and the implications for supply chains and input costs still unfolding, it’s unclear how construction activity will fare in the coming months.”
FMJ and Watco Webinar: Meeting compliance in a new culture of accountability
From January 2026, the Building Safety Regulator (BSR) formally separated from the Health and Safety Executive (HSE). Created under the Building Safety Act 2022 in response to the Grenfell Tower tragedy, the BSR is designed to raise safety standards across the built environment and introduce a stronger culture of accountability, transparency, and proactive risk management.
This shift places facilities managers in a more strategic safety assurance role – far beyond routine maintenance.
FMJ and Watco are hosting a webinar on 22 April at 11:00am to explore what this new regulatory landscape means for FMs. To register for the webinar click here.
Can’t make it no problem…
Simply register above and after the webinar has been broadcast, we will send you a link to watch the recording.
