Construction companies in the UK are charging the highest rates for commercial building work in more than two decades.
Aecom said the hike was the result of soaring labour, material and energy costs, as its UK tender price index rose at an annual rate of 10.7% in the last quarter of 2022. That is the fastest rise since 1998.
The price of delivering a typical new central London commercial office rose to about £440 per sq ft, roughly triple the 1998 rate of £130-£150.
The cost increases came alongside an uptick in demand, with construction output 4.1% higher in October than before the pandemic in January 2020.
