Economic slowdown fails to halt rise in building tender prices

Building tender prices in Northern Ireland are likely to rise at around the rate of retail inflation despite uncertainties caused by the September 11 attacks on the US.

This is according to international consultancy EC Harris who revealed in its latest Economic Survey that its tender price index forecast for building tender prices in the province would rise by 2.5 per cent over each of the next two years.

EC Harris’ Survey also revealed that the industry’s profile is likely to change over the next two years. Increased spending on health, education and housing refurbishment supplemented by investment on infrastructure, would go some way towards countering the slowdown in the office and retail sectors, the survey said.

Commenting on the figures, Jim McClean, partner in EC Harris’ Belfast office said: “Despite weaknesses in the American and Euro-zone economics and the crisis in the manufacturing sector, the UK economy looks healthier than most.

“Construction workload in Northern Ireland, while inevitably affected, looks to be secure over the next couple of years, although some speculative commercial schemes have been put on hold.”

Mr McClean added that the shock of September 11 had hit the market extremely hard and had caused a number of clients to re-assess their current and future commitments. However, on a more positive note, the UK Chancellor appeared to be committed to higher spending on health and education. which it is hoped may lead to further building in these sectors. (MB)