Construction outlook: poll of industry professionals

Construction professionals expect further increases in materials and labour costs over the next 12 months, while workload expectations remain mixed, according to an audience poll at BCIS’s latest Construction Outlook webinar.

Around 250 construction professionals, the majority cost consultants and surveyors, took part in the poll. Their responses point to continued pressure on project budgets, with high construction costs, delayed investment decisions and funding constraints among the barriers to getting projects on site.

Karl Horton, data services director at BCIS, said: ‘A key challenge in the sector right now is keeping project budgets aligned with changing costs while helping clients understand what they can afford to deliver. A scheme may be in the pipeline, but its progress depends on funding, approvals and the client’s willingness to commit.

‘Cost advice needs to reflect both the latest input costs and the market in which a project will be tendered. Subdued workloads can encourage competitive bids, but clients also need to understand how contractors have allowed for future cost increases and what risks remain within the budget.’

Expectations of further cost increases

Almost nine in ten respondents (88%) said they expect materials costs to rise over the next 12 months. Just 5% expect them to stay the same, while only one respondent said they were anticipating a fall.

For labour costs, 62% said they expect an increase, 30% think they will stay the same, and just 2% are anticipating a fall.

The BCIS General Building Cost Index, which tracks overall movement in labour, plant and materials costs, is forecast to increase almost 4% between 3Q2026 and 3Q2027.

Horton said: ‘The responses suggest that construction professionals expect continued pressure on input costs, particularly materials. Our forecast also points to further increases in overall building costs over the next year.

‘For clients and cost consultants, this means keeping budgets under review, allowing for movement between the estimate and the planned construction period, and testing how changes in individual resources could affect their projects.’

Views on labour availability were more mixed, with 41% expecting availability to stay the same, 27% believing it will fall, and 21% anticipating a rise.

The latest data from ONS show the construction sector’s workforce was 0.2% smaller in 2Q2026 than in 2Q2025, and has seen a 15% decrease since 2Q2006.

Workload outlook remains subdued

Almost half of respondents (46%) said they expect their workload to stay the same over the next 12 months. One-quarter anticipate a rise, while 18% expect a fall.

Asked what is currently preventing construction projects from progressing from pipeline to site, 53% cited clients or developers delaying investment decisions, followed by high construction costs (51%).

Planning and regulatory delays were selected by 45%, uncertainty over government policy or investment by 44%, and financing costs or access to finance by 42%. Skills and labour shortages were cited by 14%.

Horton said: ‘The responses highlight the range of issues that project teams need to resolve before work can start. Quantity surveyors and cost consultants can help clients assess the cost implications of delays, test options against the available funding and understand how changes to scope or programme could affect viability.

‘If a project is delayed, its cost plan needs to be revisited. Keeping assumptions visible and updating the advice as the programme and market change gives clients a stronger basis for deciding when and how to proceed.’

You can access the construction outlook poll results here.

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