{
  "query": "UK construction industry contractor cost overrun benchmarks 2024 2025",
  "claims": [
    {
      "claim": "UK construction companies face significant financial risk due to small profit margins and the inability to pass on unexpected cost increases under fixed-price contracts.",
      "verbatim_quote": "This is due to small profit margins, usually around 2%-4%, and the inability to pass on unexpected cost increases to customers due to fixedprice contracts20.",
      "source_url": "https://www.tmhcc.com/en/news-and-articles/thought-leadership/uk-construction-sector-report-december-2025",
      "relevance": "high"
    },
    {
      "claim": "The number of profit warnings issued by UK stock-listed construction and material firms in the first three quarters of 2025 was nearly triple the total for 2024.",
      "verbatim_quote": "14 UK stock-listed construction and material firms issued profit warnings in Q1-Q3 2025, almost three times the level recorded in the whole of 2024.",
      "source_url": "https://www.tmhcc.com/en/news-and-articles/thought-leadership/uk-construction-sector-report-december-2025",
      "relevance": "high"
    },
    {
      "claim": "The construction sector in the UK accounts for a disproportionately high percentage of total insolvencies relative to its economic output.",
      "verbatim_quote": "While the sector accounts for around 6%-7% of gross value added in the country, it is responsible for almost 17% of all insolvencies (4,032 out of 23,879 in 2024).",
      "source_url": "https://www.tmhcc.com/en/news-and-articles/thought-leadership/uk-construction-sector-report-december-2025",
      "relevance": "medium"
    },
    {
      "claim": "Tender prices are projected to rise by 20% over the next five years, outpacing building costs.",
      "verbatim_quote": "The Building Cost Information Service (BCIS) forecasts that as cost inflation eases and market activity revives, tender prices are anticipated to rise faster than building costs next year, and by 20% and 15% respectively over the next five years.1",
      "source_url": "https://www.munichre.com/hsbeil/en/insights/construction/2025-uk-construction-trends/report.html",
      "relevance": "medium"
    },
    {
      "claim": "The UK construction output price index grew by 3.4% in the 12 months leading to December 2024.",
      "verbatim_quote": "In the 12 months to December 2024, there was growth in the all-Construction Output Price Index of 3.4%.",
      "source_url": "https://www.ons.gov.uk/businessindustryandtrade/constructionindustry/articles/constructionstatistics/2024",
      "relevance": "medium"
    }
  ],
  "market_context": "- [HIGH] UK construction companies face significant financial risk due to small profit margins and the inability to pass on unexpected cost increases under fixed-price contracts. (source: https://www.tmhcc.com/en/news-and-articles/thought-leadership/uk-construction-sector-report-december-2025)\n- [HIGH] The number of profit warnings issued by UK stock-listed construction and material firms in the first three quarters of 2025 was nearly triple the total for 2024. (source: https://www.tmhcc.com/en/news-and-articles/thought-leadership/uk-construction-sector-report-december-2025)\n- [MEDIUM] The construction sector in the UK accounts for a disproportionately high percentage of total insolvencies relative to its economic output. (source: https://www.tmhcc.com/en/news-and-articles/thought-leadership/uk-construction-sector-report-december-2025)\n- [MEDIUM] Tender prices are projected to rise by 20% over the next five years, outpacing building costs. (source: https://www.munichre.com/hsbeil/en/insights/construction/2025-uk-construction-trends/report.html)\n- [MEDIUM] The UK construction output price index grew by 3.4% in the 12 months leading to December 2024. (source: https://www.ons.gov.uk/businessindustryandtrade/constructionindustry/articles/constructionstatistics/2024)"
}