A poll by infrastructure and support services group, Aecom has found that construction contractors in London are now demanding a further 10 per cent than they were last year.
This increase has emerged due to a skill shortage within the construction sector, meaning that some contractors in the capital are having to turn down 1 in 2 contracts, due to perceived higher risk from clients.
“Rise appetite among contractors is low, with a desire for certainty meaning that projects may be taken on a smaller margin if the return is guaranteed”, commented Brian Smith, Director of Aecom.
Construction Products Association (CPA) is forecasting significant growth in the next two years, however, it may be questionable at how realistic this is.
According to our 2015 contractor survey, out of the respondents who stated they worked within the construction industry (18), 68 per cent felt that over the previous year, day rates had increased, while 25 per cent said they stayed the same.
With 29 per cent stating that their average daily rate was between £400 and £500, this number may now increase with higher demand for construction engineers and consultants.
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