{ "query": "current steel construction cost trends UK 2026 NEC contract norms for quotation review", "raw_results": [ { "url": "https://group.atradius.com/knowledge-and-research/reports/industry-trends-construction-february-2026", "title": "Industry trends construction February 2026", "content": "### United Kingdom: Building projects continue to be delayed\n\nThis year construction output is forecast to increase by 1.5% in 2026. Interest rate cuts are ongoing, but from a high point and will take time to flow through to improved building activity.\n\nResidential construction is set to increase by 3.5% this year. The government announced to build 1.5 million new homes by 2030, but there are serious doubts that this target is achievable under current market conditions.\n\nRecent increases in National Insurance Contributions and the national living wage weigh on the profitability of UK businesses. This impacts their financial capacity to invest in buildings. Therefore, non-residential construction activity is forecast to contract by 1% in 2026. [...] Richard Smink expert profile\n\nAcross the EU and the UK, material costs will remain higher than in the past, and labour shortages are structural. Both issues negatively impact margins of builders. Credit risk for construction businesses remains high in most European markets.\n\n### France: Political uncertainty weighs on the outlook\n\nConstruction activity will level off in 2026 after a 1.5% contraction last year. The industry currently lacks any major growth driver, and political uncertainty weighs on the outlook. [...] Targeted tariffs on key inputs like steel affect the industry in the US, and the construction labour market is tight.\n\nMatt Nathan expert profile\n\nThe construction labour market is tight. Project costs are rising to meet higher wages, negatively affecting companies that have a lot of fixed price contracts. The current policy to curb immigration and implement more deportations is exacerbating labour shortages in the industry.\n\nRecent interest rate cuts by the Fed are supporting construction activity but borrowing costs remain elevated for the time being. It is currently assumed that the Fed will pause before cutting interest rates again in June and September.", "score": 0.5815176, "raw_content": null }, { "url": "https://www.deloitte.com/us/en/insights/industry/engineering-and-construction/engineering-and-construction-industry-outlook.html", "title": "2026 Engineering and Construction Industry Outlook | Deloitte Insights", "content": "Recent tariffs, especially on steel and aluminum, reaching up to 50%5—have sharply raised construction material costs.6 The effective tariff rate for construction goods climbed to a 40-year high of 25% to 30% in 2025.7 The financial impact is evident: Material prices have risen steadily from May through August 2025.8 [...] ### 2026 Energy, Resources, and Industrials Outlooks\n\nThe E&C industry enters 2026 confronting rising material costs, persistent labor shortages, and shifting project demand. Meanwhile, digital transformation, data center expansion, and strategic mergers and acquisitions are reshaping project sourcing, financing, and delivery.\n\n#### Table of contents\n\n### Share infographic\n\n### Or copy link\n\nAgainst this backdrop, E&C firms may consider focusing on four key trends when planning their growth strategies.\n\n### Share infographic\n\n### Or copy link\n\n## 1. Evolving tariffs: Building resilience against supply chain disruptions and rising material costs [...] Contract language is evolving as a resilience tool against tariff uncertainty. Many mid-market builders are incorporating tariff-adjustment or escalation clauses to pass cost increases directly to project owners.13 Where such clauses are absent, contractors operating under fixed-price agreements bear the full impact of tariff-related cost pressures, often resulting in project delays or redesigns.", "score": 0.3866482, "raw_content": null }, { "url": "https://www.eversheds-sutherland.com/en/finland/insights/using-contracts-nec-in-ireland-and-northern-ireland-five-practical-tips", "title": "Using NEC contracts in Ireland and Northern Ireland – five practical tips", "content": "in Ireland and Northern Ireland – five practical tips April 13, 2026 United KingdomIreland United KingdomIreland United KingdomIreland The NEC suite of contracts continues to gain significant traction across the Irish construction market, particularly on public sector infrastructure, utilities and large-scale commercial developments. Having been the focus of public sector construction contracts since the late noughties, the NEC also continues to be a firm favourite in Northern Ireland. Its collaborative ethos and focus on proactive risk management offers a welcome alternative to more traditional, reactive forms of contracting like the Public Works Contract (PWC) and JCT. However, the benefits to NEC are often only realised where the contract is properly understood and rigorously [...] Alice Maloney\n\nPartner\n\nUnited Kingdom\n\n## Latest Insights\n\n## Latest News\n\n## Latest Events\n\nmodern office interior glass roof geometry architectural light lines\n\nlegal updates\n\nMay 20, 2026\n\nCommercially Connected shorts - 20 May 2026\n\nModern office building glass facade exterior\n\nlegal updates\n\nMay 15, 2026\n\nChina’s first blocking response to foreign sanctions: What you need to know\n\nEU flag\n\nguides and reports\n\nMay 15, 2026\n\nExecutive Compliance Guide: Critical Raw Materials Act & Updates\n\nContemporary high‑rise buildings urban cityscape sunlight\n\nlegal updates\n\nMay 14, 2026\n\nCommercially Connected Shorts - 14 May 2026\n\nCharging an Electric vehicle at outdoor charging station \n\nclient news\n\nMay 19, 2026\n\nPowering Pod’s next phase of fleet electrification with EO Charging acquisi... [...] updates May 20, 2026 Commercially Connected shorts - 20 May 2026 Modern office building glass facade exterior legal updates May 15, 2026 China’s first blocking response to foreign sanctions: What you need to know EU flag guides and reports May 15, 2026 Executive Compliance Guide: Critical Raw Materials Act & Updates Contemporary high‑rise buildings urban cityscape sunlight legal updates May 14, 2026 Commercially Connected Shorts - 14 May 2026 View all latest insights Charging an Electric vehicle at outdoor charging station client news May 19, 2026 Powering Pod’s next phase of fleet electrification with EO Charging acquisi... Electricity pylons with power lines across rural landscape at sunset client news May 13, 2026 We acted as legal counsel in Fingrid ownership", "score": 0.3802761, "raw_content": null }, { "url": "https://www.newcivilengineer.com/latest/modest-rise-in-global-construction-costs-expected-for-2026-while-uncertainty-poses-delivery-risks-04-02-2026/", "title": "Modest rise in global construction costs expected for 2026 while uncertainty poses delivery risks | New Civil Engineer", "content": "New Civil Engineer\n\n# Modest rise in global construction costs expected for 2026 while uncertainty poses delivery risks\n\n04 Feb, 2026\n\nBy Thomas Johnson\n\nGlobal construction costs are projected to rise by about 2.4% in 2026, with industry experts warning that growing uncertainty across labour, supply chains, energy and geopolitics could make delivery on projects more difficult.\n\nThe forecast, produced by project and cost advisers Currie & Brown, finds most national markets will see cost escalation of between 2% and 6% next year. The UK sits near the middle of that range, with estimated cost inflation of 3.6%, supported by continued public-sector investment in areas such as infrastructure, health and technology. [...] For the UK, the combination of steady public spending in priority sectors and constrained private investment reflects that tension. Currie & Brown confirms demand exists but higher financing costs and economic caution mean many developers are adopting incremental approaches to delivery.\n\nIndustry participants will be watching several indicators closely next year with changes in labour availability and wage growth, movement in key commodity and freight prices and the evolution of energy markets being high on the watchlist.\n\nCurrie & Brown UK and Europe chief operating officer Nick Gray said: “Cost increases in the UK remain moderate, but uncertainty is holding the market back. Many projects are only just viable, so development is moving carefully, often step by step. [...] #### Most Popular\n\n#### Most Recent\n\n#### Comments\n\n260512_CuzonNo2Completion_Drone_007-4032x2268-09749dd-160x110.webp\nScreenshot-2026-05-15-141131-160x110.webp\nMotts stock image\nTrain-at-Marchwood-station-160x110.jpg\nNottingham-City-Hospital-aerial-view-of-hospital-site-credit-Vital-Energi-160x110.webp\nLTC-southern-tunnel-entrance-web-scaled-1-160x110.webp\nTobin-Contract-Signing-13-05-26-5-160x110.webp\ndublin-metrolink-5-rsz-160x110.jpg\nshutterstock_2245588861-160x110.webp\nAn-aerial-view-of-dry-Lindley-Wood-Reservoir-North-Yorkshire-UK-160x110.webp\nshutterstock_2667577555-160x110.webp\nHull-Archaeological-Finds-1-160x110.webp\nEast-West-Link-Aerial-West-1-160x110.webp\nsizewell-c-viz-160x110.webp\nEarly-Careers-160x110.webp\nheathrow-arora-expansion-160x110.webp\n\n#### Job of the week", "score": 0.32008815, "raw_content": null }, { "url": "https://www.fenwickelliott.com/research-insight/newsletters/international-quarterly/cost-increases-construction-contracts", "title": "Managing Cost Increases in Construction Contracts", "content": "If the impact of the war presents as the Employer preventing the Contractor from proceeding, then the Contractor may rely on the applicable Relevant Event (2.26.6), which also constitutes a Relevant Matter.\n\nIf the Employer instructs a change to the Works because of material shortages, price inflation or agreed solutions to address them, then the Contractor could rely on this Relevant Event (2.26.1) and Relevant Matter. Employers may be careful not to do this, or at least not without agreeing the time and cost implications upfront.\n\nThe exercise after the Base Date by the UK Government of any statutory power directly affecting the execution of the Works may come into play if it is the sanctions applied to Russia by the UK that causes the delay. There is not a related Relevant Matter. [...] ## Existing Contracts\n\n### Price Inflation Clauses\n\nParties should check their contract to see if it provides for price inflation for all or specified materials. Subject to bespoke amendments:\n\nJCT DB 2016 includes a standard fluctuations clause, provided it is selected in the Contract Particulars. Otherwise, the risk sits with the Contractor.\n\nNEC4’s main options A and B place the risk on the Contractor, with options C and D splitting the risk between the Parties. Option X1 allows for price increase before the Completion Date under these 4 options (if selected), subject to details being included. Cost reimbursable options E and F place the risk with the Employer. [...] Ukraine and Russia export raw materials include copper, aluminium, oil, bitumen, neon (used in semi-conductors for micro-chips), timber and iron ore used for steel. Reduced supplies from both countries to the UK (or Europe where the UK then sources the materials) caused by the war, or sanctions imposed in response to it, will trigger shortages and delay. The impact will be felt at almost every stage of construction, from the erection of steel frames to installation of aluminium windows and timber cladding, from M&E works to roofing.", "score": 0.16273929, "raw_content": null } ], "formatted": "Source: Industry trends construction February 2026\nURL: https://group.atradius.com/knowledge-and-research/reports/industry-trends-construction-february-2026\n### United Kingdom: Building projects continue to be delayed This year construction output is forecast to increase by 1.5% in 2026. Interest rate cuts are ongoing, but from a high point and will take time to flow through to improved building activity. Residential construction is set to increase by 3.5% this year. The government announced to build 1.5 million new homes by 2030, but there are serious doubts that this target is achievable under current market conditions. Recent increases in National Insurance Contributions and the national living wage weigh on the profitability of UK businesses. This impacts their financial capacity to invest in buildings. Therefore, non-residential construction activity is forecast to contract by 1% in 2026. [...] Richard Smink expert profile Across the EU and the UK, material costs will remain higher than in the past, and labour shortages are structural. Both issues negatively impact margins of builders. Credit risk for construction businesses remains high in most European markets. ### France: Political uncertainty weighs on the outlook Construction activity will level off in 2026 after a 1.5% contraction last year. The industry currently lacks any major growth driver, and political uncertainty weighs on the outlook. [...] Targeted tariffs on key inputs like steel affect the industry in the US, and the construction labour market is tight. Matt Nathan expert profile The construction labour market is tight. Project costs are rising to meet higher wages, negatively affecting companies that have a lot of fixed price contracts. The current policy to curb immigration and implement more deportations is exacerbating labour shortages in the industry. Recent interest rate cuts by the Fed are supporting construction activity but borrowing costs rem\n\n---\n\nSource: 2026 Engineering and Construction Industry Outlook | Deloitte Insights\nURL: https://www.deloitte.com/us/en/insights/industry/engineering-and-construction/engineering-and-construction-industry-outlook.html\nRecent tariffs, especially on steel and aluminum, reaching up to 50%5—have sharply raised construction material costs.6 The effective tariff rate for construction goods climbed to a 40-year high of 25% to 30% in 2025.7 The financial impact is evident: Material prices have risen steadily from May through August 2025.8 [...] ### 2026 Energy, Resources, and Industrials Outlooks The E&C industry enters 2026 confronting rising material costs, persistent labor shortages, and shifting project demand. Meanwhile, digital transformation, data center expansion, and strategic mergers and acquisitions are reshaping project sourcing, financing, and delivery. #### Table of contents ### Share infographic ### Or copy link Against this backdrop, E&C firms may consider focusing on four key trends when planning their growth strategies. ### Share infographic ### Or copy link ## 1. Evolving tariffs: Building resilience against supply chain disruptions and rising material costs [...] Contract language is evolving as a resilience tool against tariff uncertainty. Many mid-market builders are incorporating tariff-adjustment or escalation clauses to pass cost increases directly to project owners.13 Where such clauses are absent, contractors operating under fixed-price agreements bear the full impact of tariff-related cost pressures, often resulting in project delays or redesigns.\n\n---\n\nSource: Using NEC contracts in Ireland and Northern Ireland – five practical tips\nURL: https://www.eversheds-sutherland.com/en/finland/insights/using-contracts-nec-in-ireland-and-northern-ireland-five-practical-tips\nin Ireland and Northern Ireland – five practical tips April 13, 2026 United KingdomIreland United KingdomIreland United KingdomIreland The NEC suite of contracts continues to gain significant traction across the Irish construction market, particularly on public sector infrastructure, utilities and large-scale commercial developments. Having been the focus of public sector construction contracts since the late noughties, the NEC also continues to be a firm favourite in Northern Ireland. Its collaborative ethos and focus on proactive risk management offers a welcome alternative to more traditional, reactive forms of contracting like the Public Works Contract (PWC) and JCT. However, the benefits to NEC are often only realised where the contract is properly understood and rigorously [...] Alice Maloney Partner United Kingdom ## Latest Insights ## Latest News ## Latest Events modern office interior glass roof geometry architectural light lines legal updates May 20, 2026 Commercially Connected shorts - 20 May 2026 Modern office building glass facade exterior legal updates May 15, 2026 China’s first blocking response to foreign sanctions: What you need to know EU flag guides and reports May 15, 2026 Executive Compliance Guide: Critical Raw Materials Act & Updates Contemporary high‑rise buildings urban cityscape sunlight legal updates May 14, 2026 Commercially Connected Shorts - 14 May 2026 Charging an Electric vehicle at outdoor charging station client news May 19, 2026 Powering Pod’s next phase of fleet electrification with EO Charging acquisi... [...] updates May 20, 2026 Commercially Connected shorts - 20 May 2026 Modern office building glass facade exterior legal updates May 15, 2026 China’s first blocking response to foreign sanctions: What you need to know EU flag guides\n\n---\n\nSource: Modest rise in global construction costs expected for 2026 while uncertainty poses delivery risks | New Civil Engineer\nURL: https://www.newcivilengineer.com/latest/modest-rise-in-global-construction-costs-expected-for-2026-while-uncertainty-poses-delivery-risks-04-02-2026/\nNew Civil Engineer # Modest rise in global construction costs expected for 2026 while uncertainty poses delivery risks 04 Feb, 2026 By Thomas Johnson Global construction costs are projected to rise by about 2.4% in 2026, with industry experts warning that growing uncertainty across labour, supply chains, energy and geopolitics could make delivery on projects more difficult. The forecast, produced by project and cost advisers Currie & Brown, finds most national markets will see cost escalation of between 2% and 6% next year. The UK sits near the middle of that range, with estimated cost inflation of 3.6%, supported by continued public-sector investment in areas such as infrastructure, health and technology. [...] For the UK, the combination of steady public spending in priority sectors and constrained private investment reflects that tension. Currie & Brown confirms demand exists but higher financing costs and economic caution mean many developers are adopting incremental approaches to delivery. Industry participants will be watching several indicators closely next year with changes in labour availability and wage growth, movement in key commodity and freight prices and the evolution of energy markets being high on the watchlist. Currie & Brown UK and Europe chief operating officer Nick Gray said: “Cost increases in the UK remain moderate, but uncertainty is holding the market back. Many projects are only just viable, so development is moving carefully, often step by step. [...] #### Most Popular #### Most Recent #### Comments 260512_CuzonNo2Completion_Drone_007-4032x2268-09749dd-160x110.webp Screenshot-2026-05-15-141131-160x110.webp Motts stock image Train-at-Marchwood-station-160x110.jpg Nottingham-City-Hospital-aerial-view-of-hospital-site-credit-Vital-Energi-160x110.\n\n---\n\nSource: Managing Cost Increases in Construction Contracts\nURL: https://www.fenwickelliott.com/research-insight/newsletters/international-quarterly/cost-increases-construction-contracts\nIf the impact of the war presents as the Employer preventing the Contractor from proceeding, then the Contractor may rely on the applicable Relevant Event (2.26.6), which also constitutes a Relevant Matter. If the Employer instructs a change to the Works because of material shortages, price inflation or agreed solutions to address them, then the Contractor could rely on this Relevant Event (2.26.1) and Relevant Matter. Employers may be careful not to do this, or at least not without agreeing the time and cost implications upfront. The exercise after the Base Date by the UK Government of any statutory power directly affecting the execution of the Works may come into play if it is the sanctions applied to Russia by the UK that causes the delay. There is not a related Relevant Matter. [...] ## Existing Contracts ### Price Inflation Clauses Parties should check their contract to see if it provides for price inflation for all or specified materials. Subject to bespoke amendments: JCT DB 2016 includes a standard fluctuations clause, provided it is selected in the Contract Particulars. Otherwise, the risk sits with the Contractor. NEC4’s main options A and B place the risk on the Contractor, with options C and D splitting the risk between the Parties. Option X1 allows for price increase before the Completion Date under these 4 options (if selected), subject to details being included. Cost reimbursable options E and F place the risk with the Employer. [...] Ukraine and Russia export raw materials include copper, aluminium, oil, bitumen, neon (used in semi-conductors for micro-chips), timber and iron ore used for steel. Reduced supplies from both countries to the UK (or Europe where the UK then sources the materials) caused by the war, or sanctions imposed in response to it, wil" }