The Building Cost Information Service (BCIS) is the leading provider of cost and carbon data to the UK built environment. Over 4,000 subscribing consultants, clients and contractors use BCIS products to control costs, manage budgets, mitigate risk and improve project performance. If you would like to speak with the team call us +44 0330 341 1000, email contactbcis@bcis.co.uk or fill in our demonstration form
Published: 03/07/2025
BCIS produces five-year construction industry forecasts, covering projected input costs, tender prices and output, and examining the latest construction market trends.
The quarterly BCIS infrastructure briefing is a civil engineering market report and presents our view of water and sewerage, electricity, roads, railways, harbours and flood defences, gas, air and communications, and infrastructure repair and maintenance output against a backdrop of civil engineering costs, including labour and materials, and the wider economic background.
The full briefing is available to subscribers of BCIS CapX.
BCIS infrastructure forecast – 1Q2025 to 1Q2030
Civil engineering costs are forecast to rise by 16% over the next five years to 1Q2030, with growth in labour costs expected to be the main driver over the next two years, according to our latest data.
Dr David Crosthwaite, Chief Economist at BCIS, said: ‘The Spending Review delivered a welcome boost for the construction sector, setting out what appears to be a substantial long-term commitment to capital investment in infrastructure.
‘Funding is earmarked, among other sectors, for transport and energy generation, with hopes that government action can unlock the necessary private sector investment. But persistent labour shortages and market uncertainty continue to cloud delivery prospects, raising questions over whether new projects can be completed on time, on budget, or at all.’
Civil engineering tender prices are predicted to increase by 24% over the next five-years, with the BCIS Civil Engineering TPI panel agreeing a 1% quarterly uplift in 2Q2025. Panellists noted that civil engineering prices are currently rising more sharply than in general building, driven by pent-up demand and increasing selectivity among contractors.
Dr Crosthwaite said: ‘Market activity remains uneven across sub-sectors. Aviation and energy are particularly active, while the rail market is beginning to cool. Investment in roads and water, meanwhile, has yet to gather momentum.
‘Although the Spending Review signalled strong long-term infrastructure commitments, the sector remains in a holding pattern as the market awaits further detail, particularly the forthcoming Infrastructure Pipeline update. Panellists expect a gradual rise in tendering activity during the second half of 2025, with more momentum likely once greater clarity emerges.’
New work infrastructure output declined by 9.3% in 2024 but is set to grow by 2.6% in 2025. Output in the sector is forecast to rise by 18% over the next five years.
Dr Crosthwaite added: ’With much of the investment horizon stretching over a decade, the sector has time to mobilise. Yet, based on the current picture, it’s clear the industry will struggle to meet rising demand unless there is a significant shift in supply-side conditions. The central question remains: does the sector have the capacity to deliver?’
The full details of the forecast are available in BCIS CapX.
To keep up to date with the latest industry news and insights from BCIS register for our newsletter here.
Quarterly updates to forecasts are published for infrastructure, building, and maintenance, cleaning and energy, while an annual update is published for the economic significance of maintenance.
