The recent boom in the construction industry has been fuelling the continuing rise in tender prices across the Midlands as contractors increase margins and become more selective, it was claimed today.
According to the latest inflation forecast by international consultancy EC Harris, construction tender prices are predicted to rise by five per cent in the Midlands, ahead of the national average of 3.5 per cent in the year to the second quarter 2007.
The Midlands comes a close second to London, the fastest rising region which shows prices increasing by 5.3 per cent.
Phil Black, lead partner at EC Harris, said: "The construction industry in the Midlands is on a continual rise.
"Although construction activity is forecast to remain at a constant level for the remaining part of 2006, demand is expected to increase over the next few years. This surge in activity is associated with the private, commercial and housing sectors.
"Spending in health and education as well as in infrastructure will continue to grow and will provide a solid framework to the expected surge in building work."
He added: "The continuing demand for services will result in tender prices increasing faster than retail price inflation over the next couple of years.
"Also projects triggered by the Olympics will begin to kick-in from the middle of next year, so we are definitely not expecting to see a decrease in either workload or tender prices."
EC Harris has 40 wholly owned offices worldwide employing over 2,500 people and an annual group turnover of £160 million.
Meanwhile the West Midlands branch of the Faculty of Building is to host its annual awards ceremony on October 6 at Birmingham's Botanical Gardens.
Nominations are currently being sought.
Kam Birdee, FoB regional chairman, said: "The West Midlands' construction industry remains a buoyant one. The region features some of the most dedicated professionals from all areas of construction, combined with some of the most innovative buildings and awe-inspiring architecture in the UK.
"The annual awards ceremony is about recognising and rewarding those who have played a fundamental part in enriching the built environment and in pioneering building excellence the region can be proud of."
Nominations have to be in by July 28.