{
  "query": "UK construction and steel industry cost variance benchmarks 2024-2026 NEC contract norms",
  "raw_results": [
    {
      "url": "https://www.steelconstruction.info/images/e/e0/Costing_Steelwork-32.pdf",
      "title": "[PDF] COSTING STEELWORK #32 - SteelConstruction.info",
      "content": "MARKET UPDATE AND GUIDANCE ON SPECIALIST CONTRACTS COSTING STEELWORK #32 COSTING STEELWORK Forecast Quarter 2021 2022 2023 2024 2025 2026 2027 1 120.0 131.2 145.4 145.8 150.5 156.9 164.5 2 122.6 134.5 146.6 147.0 151.7 158.7 166.5 3 125.3 138.1 146.8 148.1 153.2 160.4 168.2 4 127.5 142.3 145.6 149.3 155.0 162.4 170.4 S P O N S O R E D F E AT U R E otal UK construction output is now forecast to grow by 1.9% in 2025 and 3.7% in 2026 – a slight downward revision compared with the forecast at the start of the year. Construction had a relatively slow and erratic start to 2025, with activity in January being weather-affected, and activity in February remaining subdued. Activity in March and early April showed an improvement, but both housebuilders and contractors were more cautious than six [...] In contrast, output in the factories sub-sector has proved more resilient over the last 12-18 months, supported by large projects awarded over the last five years related to giga-factories, as well as the manufacture of renewable energy and defence equipment Total industrial output contracted by 4.7% in 2024, and growth in factories in 2025 is forecast to drive overall sector growth of 1.0%. Growth of 2.6% is expected in 2026 as activity in both factories and warehouses accelerates.\nSOURCING COST INFORMATION Cost information is generally derived from a variety of sources, including similar projects, market testing and benchmarking. Due to the mix of source information it is important to establish relevance, which is paramount when comparing buildings in size, form and complexity. [...] Output in the industrial sector is dominated by the factories and warehouses sub-sectors, which accounted for 96.9% of total sector output in 2024. Warehouse activity remains subdued, due to flatlining economic growth and higher interest rates. Although take-up and investment are reported to have picked up in 2025, activity is likely to return to the levels seen pre-2020.",
      "score": 0.9995627,
      "raw_content": null
    },
    {
      "url": "https://medium.com/@nihanthreddy65/why-nec-contracts-are-revolutionizing-uk-construction-and-what-you-need-to-know-38de679222c8",
      "title": "Why NEC Contracts Are Revolutionizing UK Construction (And What You Need to Know)",
      "content": "Hong Kong has adopted NEC as a standard for public infrastructure. Singapore’s Building and Construction Authority announced NEC4 uptake in 2024, with specialized Y clauses published to align with local laws. Peru signed an agreement in August 2024 to officially translate and implement NEC for public infrastructure, with US$9 billion in projects already delivered using the suite.\n\nMajor international projects from tunnel boring machine procurement in France to nuclear waste containers in Germany to the world’s largest radio telescope observatory spanning Australia and South Africa have all used NEC contracts. [...] The proof isn’t in theory — it’s in delivery.\n\nCrossrail (now the Elizabeth Line) stands as Europe’s largest construction project procured under NEC3 contracts. With an estimated cost of £19 billion and peak workforce of 14,000 people, it included 21 kilometers of new twin-bore tunnels and eight new stations. The project used the full range of NEC contracts — Engineering and Construction Contracts worth £1.25 billion for tunneling alone, Professional Service Contracts for design partners, and Framework Contracts for enabling works. [...] Press enter or click to view image in full size\n\nImage 4\n\n## The UK Government Mandate: Why NEC Is Now the Standard\n\nUnderstanding NEC isn’t just about being informed — it’s increasingly about meeting procurement requirements.\n\nThe UK Government’s Construction Playbook and Infrastructure and Projects Authority now effectively mandate NEC for publicly funded construction projects. With an estimated £700–775 billion to be invested in 660 major public and private projects from 2025–2035, NEC contracts will govern an unprecedented volume of UK infrastructure delivery.",
      "score": 0.9988575,
      "raw_content": null
    },
    {
      "url": "https://www.glenigan.com/wp-content/uploads/Glenigan-Construction-Industry-Forecast-June_2024_2026.pdf",
      "title": "[PDF] CONSTRUCTION INDUSTRY FORECAST 2024-2026 - Glenigan",
      "content": "2023 2024 Source: Glenigan N.B. 2024 data is based on January to April pro rata 0 400 800 1000 1200 1400 1600 1800 2000 600 200 Wales Yorkshire & the Humber Scotland East Midlands London North West South East West Midlands East of England North East Northern Ireland South West £ million Chart 4: Value of Underlying Social Housing (under £100 million) Detailed Planning Approvals THE FUTURE OF THE SECTOR Greater cost stability in the construction industry is expected to allow housing associations to increase development activity in 2024. Additionally, a gradual recovery in the general housing market could lead to more mixed-tenure projects. Despite a recent decline in affordable housing planning approvals, there is a healthy pipeline of already approved projects that can move forward to [...] • Build 380,000 new homes a year across the UK including 150,000 social homes. This increased supply would include 10 new garden cities.\n• On transport, support the delivery of Northern Powerhouse Rail, establish a ten-year rail electrification plan and review the cancellation of the northern leg of HS2. In contrast, the Liberal Democrats would block the expansion at any of the five London airports. [...] 13 14 PREPARING FOR THE FUTURE OF CONSTRUCTION Krystle Drover, B.Eng, P.Eng Associate Director, Major Project Advisory KPMG in the UK OVERVIEW As the forecast over the next three years in the UK construction industry stands to benefit from gradually accelerated economic growth, a continuing optimistic question will exist around the ability and capacity of industry to deliver against increasing demands. To capitalize on this positive trajectory, the industry will need to support a continued focus on new and innovative strategies, products, and ways of working to enable delivery at pace. Irrespective of the outcome of the general election in 2024, the UK government must continue to focus investment on enhancing and expanding infrastructure, which will continue to be accompanied with the",
      "score": 0.99711037,
      "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",
      "score": 0.99586606,
      "raw_content": null
    },
    {
      "url": "https://www.tmhcc.com/en/news-and-articles/thought-leadership/uk-construction-sector-report-december-2025",
      "title": "UK Construction Sector Report December 2025 - Tokio Marine HCC",
      "content": "#### Summary\n\nTo view a pdf version, click here.\n\n##### Inflation\n\nPositively, inflationary pressures in the sector have come down over the past years, thereby providing support for UK construction companies (which predominantly operate on fixedprice contracts). According to data from the Office for National Statistics (ONS), construction material prices have moved lower since mid-2023, in line with general consumer price index developments. In June 2022, the “all work” construction price inflation had peaked by 26.8% year on year (y/y), the highest growth rate in 40 years. The “repair and maintenance” (24.7%) and the “new housing” sub-indices (24.0%) also saw immense increases with “other new work” inflation coming in at an even higher 30.5% y/y in mid-2022. [...] Worryingly, while material price inflation has moderated in recent years, construction companies’ operating costs are still under pressure because of rising wages (see Labour Market chapter below). In addition, in absolute terms, the early 2025 “all work” construction price index reading of 151.8 points compares very unfavourably with the 2020-value of 110.6 points, highlighting a persistent rise in building costs since Covid2 .\n\nUK Construction Materials Price Indices (y/y change)\n\nSource: ONS [...] Although the 2025-projection is up from the April World Economic Forecast, the 2026 figure has not been revised downwards since spring. While the UK will outperform euro zone growth once again, the growth figure remains far below medium and long-term averages10.\n\nConsumer Price Index (including owner occupiers’ housing costs), y/y change in %\n\nSource: ONS",
      "score": 0.9914887,
      "raw_content": null
    }
  ],
  "formatted": "Source: [PDF] COSTING STEELWORK #32 - SteelConstruction.info\nURL: https://www.steelconstruction.info/images/e/e0/Costing_Steelwork-32.pdf\nMARKET UPDATE AND GUIDANCE ON SPECIALIST CONTRACTS COSTING STEELWORK #32 COSTING STEELWORK Forecast Quarter 2021 2022 2023 2024 2025 2026 2027 1 120.0 131.2 145.4 145.8 150.5 156.9 164.5 2 122.6 134.5 146.6 147.0 151.7 158.7 166.5 3 125.3 138.1 146.8 148.1 153.2 160.4 168.2 4 127.5 142.3 145.6 149.3 155.0 162.4 170.4 S P O N S O R E D F E AT U R E otal UK construction output is now forecast to grow by 1.9% in 2025 and 3.7% in 2026 – a slight downward revision compared with the forecast at the start of the year. Construction had a relatively slow and erratic start to 2025, with activity in January being weather-affected, and activity in February remaining subdued. Activity in March and early April showed an improvement, but both housebuilders and contractors were more cautious than six [...] In contrast, output in the factories sub-sector has proved more resilient over the last 12-18 months, supported by large projects awarded over the last five years related to giga-factories, as well as the manufacture of renewable energy and defence equipment Total industrial output contracted by 4.7% in 2024, and growth in factories in 2025 is forecast to drive overall sector growth of 1.0%. Growth of 2.6% is expected in 2026 as activity in both factories and warehouses accelerates. SOURCING COST INFORMATION Cost information is generally derived from a variety of sources, including similar projects, market testing and benchmarking. Due to the mix of source information it is important to establish relevance, which is paramount when comparing buildings in size, form and complexity. [...] Output in the industrial sector is dominated by the factories and warehouses sub-sectors, which accounted for 96.9% of total sector output in 2024. Warehouse activity remains subdued, due to flatlining\n\n---\n\nSource: Why NEC Contracts Are Revolutionizing UK Construction (And What You Need to Know)\nURL: https://medium.com/@nihanthreddy65/why-nec-contracts-are-revolutionizing-uk-construction-and-what-you-need-to-know-38de679222c8\nHong Kong has adopted NEC as a standard for public infrastructure. Singapore’s Building and Construction Authority announced NEC4 uptake in 2024, with specialized Y clauses published to align with local laws. Peru signed an agreement in August 2024 to officially translate and implement NEC for public infrastructure, with US$9 billion in projects already delivered using the suite. Major international projects from tunnel boring machine procurement in France to nuclear waste containers in Germany to the world’s largest radio telescope observatory spanning Australia and South Africa have all used NEC contracts. [...] The proof isn’t in theory — it’s in delivery. Crossrail (now the Elizabeth Line) stands as Europe’s largest construction project procured under NEC3 contracts. With an estimated cost of £19 billion and peak workforce of 14,000 people, it included 21 kilometers of new twin-bore tunnels and eight new stations. The project used the full range of NEC contracts — Engineering and Construction Contracts worth £1.25 billion for tunneling alone, Professional Service Contracts for design partners, and Framework Contracts for enabling works. [...] Press enter or click to view image in full size Image 4 ## The UK Government Mandate: Why NEC Is Now the Standard Understanding NEC isn’t just about being informed — it’s increasingly about meeting procurement requirements. The UK Government’s Construction Playbook and Infrastructure and Projects Authority now effectively mandate NEC for publicly funded construction projects. With an estimated £700–775 billion to be invested in 660 major public and private projects from 2025–2035, NEC contracts will govern an unprecedented volume of UK infrastructure delivery.\n\n---\n\nSource: [PDF] CONSTRUCTION INDUSTRY FORECAST 2024-2026 - Glenigan\nURL: https://www.glenigan.com/wp-content/uploads/Glenigan-Construction-Industry-Forecast-June_2024_2026.pdf\n2023 2024 Source: Glenigan N.B. 2024 data is based on January to April pro rata 0 400 800 1000 1200 1400 1600 1800 2000 600 200 Wales Yorkshire & the Humber Scotland East Midlands London North West South East West Midlands East of England North East Northern Ireland South West £ million Chart 4: Value of Underlying Social Housing (under £100 million) Detailed Planning Approvals THE FUTURE OF THE SECTOR Greater cost stability in the construction industry is expected to allow housing associations to increase development activity in 2024. Additionally, a gradual recovery in the general housing market could lead to more mixed-tenure projects. Despite a recent decline in affordable housing planning approvals, there is a healthy pipeline of already approved projects that can move forward to [...] • Build 380,000 new homes a year across the UK including 150,000 social homes. This increased supply would include 10 new garden cities. • On transport, support the delivery of Northern Powerhouse Rail, establish a ten-year rail electrification plan and review the cancellation of the northern leg of HS2. In contrast, the Liberal Democrats would block the expansion at any of the five London airports. [...] 13 14 PREPARING FOR THE FUTURE OF CONSTRUCTION Krystle Drover, B.Eng, P.Eng Associate Director, Major Project Advisory KPMG in the UK OVERVIEW As the forecast over the next three years in the UK construction industry stands to benefit from gradually accelerated economic growth, a continuing optimistic question will exist around the ability and capacity of industry to deliver against increasing demands. To capitalize on this positive trajectory, the industry will need to support a continued focus on new and innovative strategies, products, and ways of working to enable delivery at pa\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\n\n---\n\nSource: UK Construction Sector Report December 2025 - Tokio Marine HCC\nURL: https://www.tmhcc.com/en/news-and-articles/thought-leadership/uk-construction-sector-report-december-2025\n#### Summary To view a pdf version, click here. ##### Inflation Positively, inflationary pressures in the sector have come down over the past years, thereby providing support for UK construction companies (which predominantly operate on fixedprice contracts). According to data from the Office for National Statistics (ONS), construction material prices have moved lower since mid-2023, in line with general consumer price index developments. In June 2022, the “all work” construction price inflation had peaked by 26.8% year on year (y/y), the highest growth rate in 40 years. The “repair and maintenance” (24.7%) and the “new housing” sub-indices (24.0%) also saw immense increases with “other new work” inflation coming in at an even higher 30.5% y/y in mid-2022. [...] Worryingly, while material price inflation has moderated in recent years, construction companies’ operating costs are still under pressure because of rising wages (see Labour Market chapter below). In addition, in absolute terms, the early 2025 “all work” construction price index reading of 151.8 points compares very unfavourably with the 2020-value of 110.6 points, highlighting a persistent rise in building costs since Covid2 . UK Construction Materials Price Indices (y/y change) Source: ONS [...] Although the 2025-projection is up from the April World Economic Forecast, the 2026 figure has not been revised downwards since spring. While the UK will outperform euro zone growth once again, the growth figure remains far below medium and long-term averages10. Consumer Price Index (including owner occupiers’ housing costs), y/y change in % Source: ONS"
}