As predicted in the last Market Forecast (30 April 2010), the small rise in tender prices recorded in the first quarter of 2010 eased off in the second quarter – the tender price index registering a provisional fall of 0.5%. This leaves prices in Greater London 17% below their peak in the second quarter of 2008. Most regions have experienced similar falls in prices, though in some instances clients have been able to achieve even greater savings by selecting contractors whose order books were particularly thin. In such circumstances, it is even more important to ensure that the price offered is viable, that the management offered is adequate and that contingency sums are in place, either above or below the line, to cover legitimate claims that may well arise as the project progresses.

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