Movement in tender prices in Scotland 

Building tender prices in Scotland rose by an average of 0.70% in 3Q2025 on the quarter and by 2.90% in the year from 3Q2024, according to the BCIS Scottish Tender Price Assessment Panel.

These were lower increases than those reported by the panel in the second quarter of 2025.

The panel, which comprises cost consultants from firms involved in multiple construction tenders in Scotland, helps to measure the trend of pricing levels in accepted tenders in Scotland.

It reports on quarterly and annual movement in tender prices and the conditions affecting pricing levels on construction projects in Scotland.

Appetite to tender

More panellists found the desired number of suitable tenderers in 3Q2025 than in the previous quarter.

Less than one-fifth could not secure any tenderers while more than 30% found contractors very eager to tender. This was down from 40% in 2Q2025.

Panellists agreed that the default procurement type among contractors was two-stage.

Panellists said there has been a reluctance among tier one contractors to take on major project work due to capacity issues.

Appetite among subcontractors for two-stage procurement was reportedly low in 3Q2025 too.

Panellists suggested subcontractors are more focused on work occurring in the immediate months ahead and can be put off by the later start dates that can come with a prolonged two-stage process. According to the panel, this is because there’s a risk prices won’t hold.

Pipeline

Panellists broadly agreed that the pipeline of future work was more optimistic in 3Q2025 than in the previous quarter.

40% said that in the 12 months to 3Q2025 their anticipated pipeline of projects going to tender had increased slightly.

A further 40% said their pipeline remained unchanged while 20% reported a slight reduction.

Labour and logistics

Other issues raised by the panel included the lack of available apprentices. Some put this down to potential funding cuts in further education, suggesting this could restrict the supply of specialist labour in future.

Stone masons were given as an example, but the panel suggested that funding cuts were likely affecting the future supply of multiple trades.

Panellists broadly agreed that demand continues to outpace the nation’s labour supply and that labour shortages are driving price increases in building and M&E work.

Wage increases were cited as a particular challenge, echoing commentary from the previous panel meeting when panellists said the employers’ National Insurance Contributions increase had been working its way into tenders.

Planning delays, difficulties securing funding for certain projects, and uncertainty over trade tariffs were also flagged as ongoing issues for the sector.

Some panellists pointed to the heightened level of insolvencies – a symptom of the difficult climate in which construction businesses continue to operate.

Differential price movement

On price movement, 80% of the panel said there was no differential price movement between regions.

Some reported higher premiums for work undertaken in the North and the Scottish Isles.

When comparing work by type, panellists cited MEP as a key driver of cost increases in 3Q2025, with some stating that MEP prices had been exceeding the percentage uplift of other trades.

They added that supply pricing and a lack of regional MEP contractors in certain cases are possible contributing factors.

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Panel members:

• Gordon Ritchie, Gardiner & Theobald
• Iain McLean, Doig+Smith
• John McGuire, Thomas & Adamson
• Lynsay Turnbull, Thomas & Adamson
• Ken Wilkie, Arcadis
• Stuart Scott, Arcadis
• Jamie MacDonald, AECOM
• Ross Lovatt, Thomson Gray
• Ross McKenzie, AtkinsRéalis
• Simon Brooke, Currie & Brown
• Suzanne Graham, Turner & Townsend

BCIS scottish tender price assessment panel – methodology.