Builders forced to hold down prices.Byline: BILL GLEESON CONSTRUCTION firms are being forced to hold down prices as recession looms. Research by the Royal Institution of Chartered Surveyors | The Royal Institution of Chartered Surveyors (RICS) is an independent, representative professional body which regulates property professionals and surveyors in the United Kingdom and other sovereign nations. (RICS RICS Royal Institution of Chartered Surveyors RICS Royal Institute for Chartered Surveyors RICS Right Intercostal Space (medicine) RICS Return Inventory and Classification System RICS Range Instrumentation Control System ) showed the price of construction work in the second quarter remained the same as the previous three months, despite costs continuing to rise. According to the Tender Price Index, compiled by the RICS' Building Cost Information Service (BCIS BCIS Bureau of Citizenship and Immigration Services (US Department of Homeland Security) BCIS Building Cost Information Service (Royal Institution of Chartered Surveyors - UK) ), the cost of materials rose 5.5%, while wages rose 4.4% in the year to the end of June, 2008. But overall new orders for construction fell 8% in the second quarter to the end of June compared with the previous quarter, and were down 20% on last year. Peter Rumble, BCIS information services manager, said: "With the construction industry heading to a prolonged recession, contractors are being cautious with their tenders. "Contractors will have to bear the brunt of any increases in costs, and will not be able to pass them on to the client in order to secure new orders." |
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