Civil Costs Inflation continues… Supply Chain issues remain…

By Scott Marsh

JFP’s Engineers have recently reviewed and analysed tenders on current Civil projects so as to inform the rates used to calculate Development Cost Estimates (DCE’s). This exercise is done regularly by JFP’s Engineers to ensure that our DCE’s are as accurate as possible and that they reflect current market conditions.

Our most recent analysis found that Civil Cost inflation has continued over the last 6-12 months and has been in the range of 5-10%, with significant variation across material types. The rate of inflation is significantly less than for the previous 6-12 months but the rate of increase still remains significant.

Reflecting on the analysis, JFP’s Associate Director – Engineering – Scott Marsh commented that “Supply Chain issues, particularly in relation concrete pipes, are still affecting pricing and project commencement dates. Civil Contractors are also advising that finding suitable staff and recent wage increases are also adding to the project cost inflation that we are experiencing”.

Although cost inflation and supply chain issues continue to persist, the reduced rate of inflation and increasing supply of materials gives some hope that a sense of normality may return to tendering for Civil Projects sometime later this year. Time will tell…

To gain a more detailed understanding on current Civil Costs or Supply Chain issues, we would encourage you to Contact Us to speak to JFP’s experts, such as Scott Marsh, further on these issues.