What does 2023 hold in store ?
New ways of working have meant that during lock down some organisations made record profits by using modern technologies and reducing fixed costs.
Inflation is set to continue and this will eventually be reflected in tender prices which are forecast to rise between 5-6% next year.
The BCIS reports a 22% increase in material prices year on year from Jan 21 to Jan 22, although the rate of increase does appear to be slowing compared with the 20% year on year increases seen in mid-2021.
General inflation is expected to peak at 14% in 2023.
Construction wage settlements are expected to rise significantly.
Increases in energy costs have still to make an impact.
House prices expected to fall by 9% (ONS).
Construction costs are rising faster than prices.
Construction output as a proportion of GDP is still significant at 8%.
Sustainability; by in large, the construction industry still pays lip service to techniques such as life cycle costs and is still driven by bottom line capital costs.
Digital construction up take is still patchy and as with so many construction initiatives over the recent past will probably remain the domain of the top 3-5% of construction companies.
The RICS still fails to convince many members that it is about to enter a brave new world of greater transparency and inclusivity.
April 2023 sees the publication of the fifth edition of New
Aspects of Quantity Surveying Practice with a Foreword by
Martin Sudweeks, UK Managing Director of Turner & Townsend Cost Management. Included in the fifth edition are
chapters on;
Digital construction,
Ethics and ethical practice and
Sustainability
Comments