JLL forecasts warn of further increases in the Tender Price Index (TPI), with a 2.5% increase projected in 2025 and 3.0% in 2026. This continued upward trend demands strategic approaches to cost management.

While 2023-2024 saw only minor fluctuations in construction material prices, these costs remain 29-43% higher than 2019 levels, and stabilised prices in recent years represent a new baseline rather than a return to pre-pandemic levels.

Certain products and materials face more acute pressures - steel and metalwork have seen slight reductions but remain at elevated levels, while M&E equipment faces ongoing supply chain pressures. Further to this, energy costs continue to influence the entire construction ecosystem, impacting not only material production but also contractor operations and building performance.

In this environment, robust budgeting with professional cost planning is vital, rather than reliance on published rates which may not reflect market conditions. Early market engagement helps uncover capacity constraints before project launch, preventing costly delays later in development.

Timing market engagement requires sophisticated market intelligence that goes far beyond published indices to avoid both wasted pre-tender efforts and exposure to further cost inflation.