Movement in tender prices in Scotland 

Building tender prices in Scotland rose by an average of 1% in 4Q2025 on the previous quarter and by 3% compared with 4Q2024, according to the BCIS Scottish Tender Price Assessment Panel.

The panel, which comprises cost consultants from firms involved in multiple construction tenders in Scotland, helps to measure the trend of pricing levels in accepted tenders.

It reports on quarterly and annual movement in tender prices and the conditions affecting pricing levels on construction projects in Scotland.

Appetite to tender

More panellists found the desired number of suitable tenderers after searching in 4Q2025 than in the previous quarter (60% compared with 50% in 3Q2025).

One-fifth said it was difficult to get anyone to tender, while another fifth reported that contractors were very eager to tender.

Pipeline

Panellists noted that the market has not meaningfully picked up and that they are not seeing a particularly strong pipeline. They cited:

• universities facing well-publicised financial challenges
• limited activity coming through council frameworks
• healthcare still slow, although with some positive signs
• defence spending yet to translate into projects
• the education programme weakening, with fewer £80 to £100 million projects and an expectation of a shift towards refurbishment or lower-value primary school projects

Overall, the position remains similar to last quarter, with some movement but not at pace.

40% of respondents said their anticipated pipeline of projects going to tender in the next 12 months had increased slightly compared with the previous 12 months. A further 40% said it had reduced slightly, and 20% said it was unchanged. Together, this reflects a slightly less optimistic outlook than last quarter.

Sub-sector movement

Panellists reported that the refurbishment market is not particularly attractive to contractors, saying it is harder to deliver, carries more risk and creates higher bidding costs, especially when contractors are competing against multiple firms.

As the energy sector remains more attractive and more lucrative, panellists said it is drawing resources away from other sub-sectors, including consultants who are moving into energy-focused roles, which increases pressure on wider project delivery.

Resource and logistic challenges

Skills shortages and a busy subcontractor market, in which subcontractors can be selective about what they price, continue to affect labour availability. Panellists also highlighted difficulties in securing accommodation in remote areas.

Challenges were reported across both public and private sector projects. Public funding remains difficult, and financing arrangements for commercial developers are still a constraint. Much private sector work is at feasibility stage, with some schemes progressing but others unlikely to move forward in the short term.

Logistics factors reported include:

• increased cladding costs, affected more by supply-chain capacity than material prices
• limited suppliers for complex cladding packages that need to meet airtightness and net zero ambitions
• a range of façade choices (brick, curtain walling, rainscreen), influenced by planning and design factors
• anecdotal reports of shorter working weeks on remote projects, typically linked to travel requirements, but also block-working patterns where teams stay on site for extended periods.

Differential price movement

All respondents in 4Q2025 reported differential movement between building work and mechanical and electrical work.

There were mixed reports on differential movement by region, project size and sector. 80% of panellists said there was differential movement depending on procurement route.

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Panel members:

• Gordon Ritchie, Gardiner & Theobald
• Iain McLean, Doig+Smith
• John McGuire, Thomas & Adamson
• Lynsay Turnbull, Thomas & Adamson
• Ken Wilkie, Arcadis
• Stuart Scott, Arcadis
• Jamie MacDonald, AECOM
• Ross Lovatt, Thomson Gray
• Ross McKenzie, AtkinsRéalis
• Simon Brooke, Currie & Brown
• Suzanne Graham, Turner & Townsend

BCIS Scottish Tender Price Assessment panel – methodology.