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Published: 18/03/2026
Civil engineering tender prices rise as sub-sector activity remains mixed
Civil engineering tender prices rose by an estimated 1.0% between 4Q2025 and 1Q2026, according to the latest meeting of the BCIS Civil Engineering TPI Panel(1).
Panel members reported annual tender price increases of 4% for rail and electricity, 3% for roads and 2% for water.
Demand in the electricity sub-sector has strengthened, with increased activity in transmission and generation. Some generation work relates to projects converting coal-fired power stations to biomass.
Momentum in the water sub-sector has been slower than expected, with relatively few projects progressing.
In rail, some schemes are under way, particularly around Oxford and Cambridge. Northern Powerhouse Rail remains largely at the early planning stage.
Activity in roads during 1Q2026 was driven mainly by repair and maintenance activity rather than new construction.
On input costs, the panel said major transport schemes, including HS2 and the proposed expansion of Heathrow Airport, are expected to place pressure on steel supply over the next two to three years, which may contribute to higher prices.
The panel also noted that the UK’s Carbon Border Adjustment Mechanism could affect steel costs. A tax on imported, carbon-intensive steel may reduce the likelihood of the market being supplied with lower-cost imports.
Dr David Crosthwaite, chief economist at BCIS, said: ‘Input costs were a key theme at the latest panel meeting. Alongside steel, copper prices have reportedly increased, which may affect M&E installations. There is also uncertainty linked to the US-Israel war with Iran, with potential implications for production and distribution.’
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(1) The panel, comprised of cost consultants from firms involved in multiple civil engineering tenders in the UK, advises on the latest movement in tender prices, i.e. prices agreed between client and constructor at commit to construct, as well as providing commentary on conditions affecting pricing levels. This insight helps to inform quarterly updates to the BCIS Civil Engineering Tender Price Index.
