{"id":162366,"date":"2026-05-26T09:40:08","date_gmt":"2026-05-26T08:40:08","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=162366"},"modified":"2026-05-26T09:40:08","modified_gmt":"2026-05-26T08:40:08","slug":"tender-workload-increases-but-projects-fail-to-reach-site-report-finds","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/tender-workload-increases-but-projects-fail-to-reach-site-report-finds\/162366\/","title":{"rendered":"Tender workload increases but projects fail to reach site, report finds"},"content":{"rendered":"

According to a new report<\/a>\u00a0by Southern Construction Framework, tender workload has increased markedly over the last quarter, but conversion from tender to site start remains inconsistent<\/h2>\n

The survey of over 300 subcontractors across the southern UK found that tender workload increased by 2.6% since Q4 2025, reflecting an environment in which clients are continuing to test the market and progress schemes to the tender stage, despite ongoing macroeconomic uncertainty.<\/p>\n

Across the trades, brickwork tender workload led the increase, rising by 10.9% on the previous quarter. This was followed by steelwork (6.1%) and roofing and cladding (4.2%).<\/p>\n

Project selectivity is increasing across the construction sector<\/h3>\n

Contractors and sub\u2011contractors reported a notable increase in selectivity, with bidding strategies increasingly focused on projects that are fully funded, commercially viable and demonstrably capable of progressing without prolonged delays.<\/p>\n

Janara Singh, assistant framework manager, Southern Construction Framework, explained: \u201cSubcontractors told us there is often misalignment between design ambition and budget reality. This disconnect is driving repeated value-engineering exercises, redesign cycles, and extended pre\u2011construction periods.<\/p>\n

\u201cAs a result, the volume of enquiries continues to grow, while the proportion of projects converting to site remains constrained, contributing to inefficiency and increased bid costs across the industry.\u201d<\/p>\n

Increasing build costs are driving inflation<\/h3>\n

Build costs have increased<\/a> by\u00a05.8% since Q4 2025, significantly outpacing the UK CPI headline inflation rate of approximately 3%.<\/p>\n

This reinforces the persistence of construction\u2011specific inflation, driven primarily by material, labour and energy inputs rather than broader consumer price trends. The trades with the largest increases included: steelwork (+13.3%), groundworks (+6.3%), and concrete frames (+5.9%).<\/p>\n

Supply chain partners reported that they anticipate steel prices will increase by \u00a3300 by Q3 2026, partly\u00a0driven by anticipated steel import tariffs taking effect in July.<\/p>\n

Recent policy proposals outlined in the King\u2019s Speech<\/a> highlight the strategic importance of domestic steel production. While potential nationalisation could improve security of supply and support long\u2011term investment, its impact on pricing and competitiveness remains uncertain, adding to short\u2011term volatility for contractors seeking cost certainty and reliable supply.<\/p>\n

Predicted tender workload trends for 2027<\/h3>\n

Looking ahead to Q1 2027, build costs are anticipated to increase by 8.0%.<\/p>\n

The trades with the greatest anticipated change in building costs are: steelwork (+11.2%), roofing & cladding (+10.0%), and brickwork (+9.0%).<\/p>\n

The report also found that contractors are deliberately avoiding employment until start dates are secure, which in turn reinforces mobilisation delays.\u00a0Employment levels are expected to grow by +5.0% by Q1 2027, reflecting cautious confidence as workloads increase.<\/p>\n

However, the report predicts workforce resilience will remain uneven, with contractors managing labour growth carefully to avoid over\u2011exposure ahead of secured site starts.<\/p>\n

Adrienne Turner, framework manager, concluded: \u201cIn a volatile market, projects are more likely to reach site when clients engage earlier with the supply chain, build flexibility into procurement routes and allow time to resolve affordability and design issues before formal tender. That upfront collaboration is vital to helping avoid project stalling.<\/p>\n

\u201cIn relation to steel, which is a key factor behind rising costs throughout the sector,\u00a0having early insight into future demand will help improve procurement planning and contribute to greater price stability.\u201d<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

According to a new report by Southern Construction Framework, tender workload has increased markedly over the last quarter, but conversion from tender to site start remains inconsistent.<\/p>\n","protected":false},"author":37,"featured_media":162368,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[583,908,173189,173310],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-162366","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-planning-construction-news","8":"tag-construction-products","9":"tag-economy","10":"tag-productivity","11":"tag-projects"},"acf":[],"yoast_head":"\nTender workload increases but projects fail to reach site, report 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