Civil costs rising

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Large scale public sector projects are in danger of dipping further into the public purse due to significant increases in costs.

Large-scale public sector projects such as Crossrail and those linked to the 2012 Olympic Games, including the East London Line and Thameslink, are in danger of dipping further into the public purse due to significant increases in costs.

That is according to the new Civil Engineering Market Report from the Royal Institution of Chartered Surveyors’ Building Cost Information Service (BCIS).

Raw materials and labour costs have risen by 12.2 per cent over the past year and, with costs forecast to rise by a further 12 per cent over the next two years, public sector project contingency plans will come under pressure to stay out of the red.

With infrastructure output rising by eight per cent and new orders growing at a rate of 26 per cent in Q1 2008, the sector is expected to be one of the few growth areas in UK construction over the next few years, offering some firms an antidote to the current downturn in the market.

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