Civil engineering tender prices rose by an estimated 0.5% between 3Q2025 and 4Q2025, resulting in an annual change of 3.6%, according to the latest data from the BCIS Civil Engineering Tender Price Index (TPI) Panel.

The panel, comprised of cost consultants from firms involved in multiple civil engineering tenders in the UK, advises on the latest movement in tender prices – prices agreed between client and constructor at commit to construct – as well as providing commentary on conditions affecting pricing levels.

This insight helps to inform quarterly updates to the Building Cost Information Service (BCIS) Civil Engineering TPI.

Dr David Crosthwaite, chief economist at BCIS, said: “Panellists reported a relatively stable pipeline in the fourth quarter with a number of subsectors performing well. However, capacity issues are still a defining challenge for the wider infrastructure sector.

 “For example, panellists noted transmission owners are reporting up to a ten-year wait on the installation of cables and transmission stations in some cases.

 “The wider sector is also losing more of its junior workers to international markets and, with them, opportunities to reinforce the next generation of talent. This is compounding certain skills gaps, such as the ability to facilitate contractor-client negotiation.”

 Nuclear and aviation subsectors were cited as key workload drivers by panellists.

This is largely due to progress on nationally significant schemes such as Hinkley Point C, Sizewell C and the proposed expansions of Gatwick Airport and Heathrow Airport.

However, in aviation, panellists warned that labour capacity and capability may become strained when future projects land.

Direct employment in the infrastructure sector has reportedly not increased, with subcontractors still undertaking the lion’s share of work.

Panellists further highlighted the growing competition domestic contractors face from European and other international counterparts for complex multi-billion-pound projects.

Updated five-year forecasts from BCIS estimate a 16% increase in annual new work output in the infrastructure sector between 2025 and 2030.

Dr Crosthwaite added: “The immediate challenge for infrastructure moving forward will be getting the right skills in the right places. On a project level, panellists said setting up an incentivisation model in the right way is key as this will attract the right people who can deliver the right outcomes.

 “On a wider level, reliable cost forecasting, robust planning and collaboration as ever are essential and the best tools for businesses to handle the cost implications of an increasingly competitive market.”