2022 Student Accommodation

CUSHMAN & WAKEFIELD 32

BUILD COSTS As the UK emerges from the pandemic and momentum gathers pace to return to a more ‘normal’ construction market, the global impact of the last two years continues create an increasing number of build-cost pressures. Costs caused by uncertainty and disruption have now become a constant factor and the pandemic has created supply chain bottlenecks. This coupled with the crisis in the Ukraine is creating inflationary pressures that have not been experienced for some time.

Main Contractors tendering schemes are being cautions when entering into fixed priced contracts and their focus is to push project cost risks back to the client or developer. Added to this is a growing appetite to drive towards Net Zero Carbon, wit ‘greenflation’ adding another tier of costs to construction projects. Clients need to ensure that fully robust costs are appreciated at the early stages of any developments, with potential inflationary implications considered from the outset.

TENDER PRICE INFLATION (TPI)

2022

2023

2024

6.5%

4.5%

3%

CUSHMAN & WAKEFIELD

7.3%

2.4%

4%

BCIS

OTHER COMMENTATORS (RANGE)

3 TO 7%

3% TO 7%

2% TO 5%