RICS Economics

RICS construction market survey first quarter 2008 1

First Quarter 2008

RICS construction market survey

United Kingdom
Construction industry slows
sharply in the first quarter
Workload growth, while remaining positive, slowed
sharply to the lowest level since Q1 1996. Scotland
continues to be the strongest performer, followed by
Wales. The North, where workloads are now falling and
the net balance is the lowest since Q3 1995, is by far the
weakest. Growth in the other regions remains positive,
albeit at a slower pace.
In the industrial sector, workloads recovered strongly in
Northern Ireland, London and the South East. It remains
static in Wales and the rates of growth slowed somewhat
in Scotland and the North. Infrastructure workloads grew
significantly with London and the South East recovering
strongly, solid growth in Wales and a second successive
increase in Scotland. The workload in Northern Ireland
fell for the third quarter in a row.
However these two sectors were the bright spots in an
otherwise worsening national picture. Public housing and
private commercial workloads continued to grow but at a
slower pace than in the previous quarter. The former
recovered strongly in the Midlands and improved in the
South West, but slipped significantly in Wales and the
North and to lesser extent in other regions. Meanwhile
commercial workloads are now falling in the South West,
North and Northern Ireland. While workload growth
remained positive in other regions, they also suffered
reductions London and the South East were the least
affected and Wales the most.
But the biggest changes came in private housing and
other public works. Workload growth in these two sectors
turned negative for the first time since 1999. Private
sector housing workload growth, having weakened over
five successive quarters, is now falling. The fall is due
mainly to a downturn in the North, but private housing
weakened in all regions and is now static in London and
the South East, Wales, the Midlands and Northern
Ireland. Public non-housing workload growth is still
positive in London and the South East, the Midlands and
Scotland, but is falling in other regions. The contraction

Change in workloads, UK
% Balance

35
30
25
20
15
10
5
0
1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

was most pronounced in Northern Ireland. The

Midlands were least affected.
New enquiries grew at a slower pace in all sectors
except infrastructure. Private housing new enquiries
slowed particularly sharply and are now growing at the
slowest pace since the data started being collected in
2006 Q2.
Surveyors expectations were downbeat across the
board. On workload and employment expectations,
sentiment was still positive but below the surveys long
run average and the worst since 2003. Respondents
are expecting profit margins to fall for only the second
time in the surveys history.
Skills shortages reduced and now equal the record low
set in 2006Q1. Northern Ireland saw a dramatic fall in
shortages and they remain particularly low in London
and they Midlands. Scotland saw the only increase in
skills shortages and has the tightest labour market of
any UK region.

Proportion of surveyors reporting a rise, fall

Expected change over

or no change in construction workloads for quarter

the next quarter - % balance* reporting recruitment

Rise %

Same %

Fall %

Balance*

Workloads

Employment

% of surveyors

difficulties

----------------------------------------------------------Not Seasonally Adjusted-----------------------------------------------------2006 Q2

Q3
Q4
2007 Q1
Q2
Q3
Q4
2008 Q1

34
31
34
36
31
26
27
22

57
60
58
56
58
65
63
58

10
10
8
7
12
9
11
20

24
21
26
29
19
17
16
1

48
48
58
57
55
45
44
30

39
42
47
54
45
34
35
31

* Balance = Proportion of surveyors reporting a rise in workloads minus those reporting a fall
Please note that data for workload, employment, profit margin expectations and skill shortages are now weighted by region
and have been revised.

Total contribution to the survey was 149 forms.

2008

36
29
32
33
34
34
34
28

RICS construction market survey first quarter 2008

National workloads
Total workloads
Change in total workloads

Workload growth, while remaining positive,

slipped to the lowest level since Q1 1996.

Scotland continues to be the strongest

performer, followed by Wales.

The North, where workloads are now falling

and the net balance is the lowest since Q3
1995, is by far the weakest.

% Balance

40
30
20

Growth in the remaining regions remain

positive, albeit at lower levels.

10
0
-10
-20
-30
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Private/public housing
Change in private/public housing workloads

Growth in public sector housing slipped,

but remains solid. It recovered strongly in
the Midlands and improved in the South
West, but slipped significant in Wales and
the North and to lesser extents in other
regions.
The private sector housing workload,
growth having weakened over five successive quarters, is now falling. The fall is due
mainly to a downturn in the North, but private housing weakened in all regions and is
now static in London and the South East,
Wales, the Midlands and Northern Ireland.

% Balance
50
40
30
20
10
0
-10
-20
-30
-40
-50
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Public Housing

Private Housing

Private commercial/industrial

Workload growth in the commercial sector

weakened, but remains positive, whilst
workload in the industrial sector
accelerated.

Change in private commercial workloads

% Balance

60
50

Commercial workloads are now falling in

the South West, North and Northern Ireland.
While workload growth remained positive in
other regions, they also suffered reductions
London and the South East was the least
affected and Wales the most.

40
30
20
10
0
-10

In the industrial sector, work load recovered

strongly in Northern Ireland and London
and the South East. It remains static in
Wales and the rates of growth slowed
somewhat in Scotland and the North.

-20
-30
1994

1996

1998

2000

Private Commercial

2002

2004

Private Industrial

2006

2008

RICS construction market survey first quarter 2008 3

Public non-housing and infrastructure

Change in public non-housing/infrastructure workloads

Public non-housing workloads declined

slightly in Q4. Workload growth is still
positive in London and the South East,
the Midlands and Scotland, but is falling
in other regions. The contraction was
most pronounced in Northern Ireland. The
Midlands were least affected.

% Balance

40
30
20
10
0

Infrastructure workload grew significantly

with London and the South East
recovering strongly, solid growth in Wales
and another successive increase in
Scotland. The workload in Northern
Ireland fell for the third quarter in a row.

-10
-20
-30
-40
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Public non-housing

Infrastructure

Expected workloads
Expected change in workloads

Confidence in future workloads pulled

back for the fifth consecutive quarter
and is now below the surveys long run
average.
Respondents from Scotland remained
the most positive, followed those in the
South East.
Respondents in the South West, while
remaining positive, were the most
downbeat.

% Balance

80

60

40

20

-20

-40
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Next 12 months

Expected employment
Expected change in employment

Employment expectations, having

risen slightly last quarter, decreased
somewhat and are now below the
surveys long run Q1 average.

% Balance
60

40

Respondents from Scotland remained

the most positive, followed closely by
those in the South East.
Respondents in the South West were
the most pessimistic.

20

-20
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Next 12 months

RICS construction market survey first quarter 2008

Expected profit margins

Expected change in profit margins

Overall, respondents now expect profit

margins to fall and expectations are the
lowest in the surveys history. Only respondents in Scotland and Northern Ireland expect growth in profits, and only in
Northern Ireland are expectations higher
than the long term average for a region.

% Balance
50
40
30
20
10

The falls in expectations were most pronounced in the South East, the Midlands
and the North. Expectations remained
positive in Scotland and Northern Ireland
and stable in Wales.

0
-10
-20
1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Next 12 months

Labour availability
Surveyors reporting recruitment difficulties, trades persons

The proportion of respondents reporting skills shortages fell having remained remarkably constant in previous
quarters.

% reporting yes

70
60

The only respondents in Scotland reported rise and the net balances were
significantly lower in Northern Ireland
and the North.

50

London, continue to enjoy exceptionally

low levels of skills shortages and the
shortages in the Northern Ireland and
the Midlands reach the lowest levels in
the surveys history.

20

40
30

10
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Regional information
London and South East

Overall workloads remained positive,

but growth slowed for the fourth consecutive quarter. There was substantial
growth in the private industrial sector,
an upturn in the infrastructure sector
that reversed the negative balances
reported in the previous two quarters
Profit expectations fell to the lowest
level in the surveys history, but workload expectations, although reducing
for the fifth consecutive quarter, remain
strong and employment expectations
rose.

Change in workloads, London and South East

% Balance
40

30

20

10

-10

-20
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

RICS construction market survey first quarter 2008 5

North

Overall, workloads declined, but the

picture is mixed: private housing workfell to the lowest balance in the surveys
history, private commercial is negative
for the first time since Q3 2002 and
other public works is falling, but growth
in the private industrial, infrastructure
and public housing sectors while
slower remain positive.
Respondents profits expectations fell to
its lowest level in the surveys history.
However, workload and employment
expectations, while lower, remain quite
positive although lower than the national averages. Skills shortages while
have eased significantly.

Change in workloads, North

% Balance

50

25

-25

-50
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 200
Quarterly series

Underlying trend, 4 quarter moving average

Scotland

Despite having slowed, Scottish workload growth is now the UKs strongest.
Infrastructure workload increased for a
second quarter, public housing growth
remains strong. Growth in private housing, while weaker, is the strongest in the
UK. Growth slipped the most in the
other public work and private commercial sectors.

Change in workloads, Scotland

% Balance
50
40
30
20
10
0
-10

While profit expectations slipped to the

lowest level since Q2 2003, they are the
most positive in the UK.

-20
-30
-40
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Workload and employment expectations

remain relatively high and skill shortages rose.

Quarterly data

Underlying trend, 4 quarter moving average

Northern Ireland

Workloads reduced, but overall the

balance remained positive. Workload in
the private industrial sector rose. Public
housing slipped the least to slightly
below the national average. Private
housing and infrastructure workloads
are no longer growing and other public
works and private commercial both fell.
Confidence in anticipated profits
slipped for the third quarter in succession, and are now negative. Workload
and employment expectations slipped,
but remain positive.

Change in workloads, Northern Ireland

% Balance

80
60
40
20
0
-20
-40
-60

Skill shortages reduced dramatically to

the lowest level, for any region, in the
surveys history.

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 200
Quarterly data

Underlying trend, 4 quarter moving average

RICS construction market survey first quarter 2008

South West

Workloads slipped substantially and

growth is now only slightly positive.
Despite two quarters of recovery, the
public sector housing figure is the
lowest in the UK. Private housing
slipped significantly, but growth
remains positive. Private commercial is
now declining, but private industrial
rose for the second successive quarter.
The infrastructure sector is remains
stable. Other public sector work fell.
Respondents confidence is low. While
workload expectations remain
marginally positive, profit margins are
expected to fall, and employment
expectations, while positive, remain the
lowest in the UK.

Change in workloads, South West

% Balance
35
30
25
20
15
10
5
0
-5
-10
-15
1998

1999

2000

Raw data

2001

2002

2003

2004

2005

2006

2007

2008

Underlying trend - Four quarter moving average

Wales

Overall workload growth slipped, but is

second only to Scotland. Public and
private housing workloads, having
risen, are again static. Growth in private
commercial slowed to the lowest level
since Q2 2005. Workloads remained
stable in the private industrial sector.
Infrastructure workloads rose for the
second quarter in succession. Other
public sector workload growth slipped
back, but remains the highest in the UK.

Change in workloads, Wales

Anticipated workload growth is the

lowest since Q3 2003, but the
employment outlook rose for the
second successive quarter. Anticipated
profits remain stable.

-40

% Balance
80
60
40
20
0
-20

-60
1998

1999

2000

2001

Quarterly data

2002

2003

2004

2005

2006

2007

2008

Underlying trend, 4 quarter moving average

Midlands and Eastern

Workload growth slowed. Private

commercial slowed significantly.
Private housing is no longer growing,
but public housing recovered strongly,
private industrial workload grew and
infrastructure again grew slightly.
Profits are expected to fall and the net
balance is the lowest in the surveys
history. Workload and employment
expectations are more pessimistic with
workload expectations the lowest since
Q2 2005.
Skill shortages eased for the third
successive quarter to the lowest level in
the surveys history.

Change in workloads, Midlands and Eastern

% Balance

50
40
30
20
10
0
-10
-20
-30
-40
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 200

RICS construction market survey first quarter 2008 7

Chartered Surveyor market comments

EAST MIDLANDS
Diane Anstey BSc(Hons) MRICS
Anstey & Associates
"The gloomy market conditions
have not resulted in a decrease
in tender rates."
Greg Fanning BSc (Hons)
MRICS
The Davidson Partnership
"Public Sector works are
increasingly secured by
frameworks, and public sector
clients are introducing
competition within these
frameworks"
Simon Holden MRICS
A E Thornton-Firkin & Partners
"Fear regarding the impact of an
economic slowdown is on
people's minds - more so than in
last quarter. Front end contacts
are reporting a noticeable
slowdown, and this, coupled with
real developer and private sector
caution, leads to nervousness.
However, enquiries continue to
arrive and current workload
shows no obvious signs of
slowing down. A mixed
message."
Ian McKinlay FRICS
Gleeds
"In certain sectors our clients are
relaxing their requirements in
respect to specialist sector
knowledge. Clearly this is a
reflection of difficulties in
resourcing their projects with
ideal teams. Conversely, having
some sector specialists has
assisted in securing workload."
Alan Robinson FRICS
Tompkins Robinson Surveyors
"Current workload remains busy
with annual emphasis on
achieving year-end spending
levels. Future prospects based
on the level of new enquiries over
the last three months make for
uncertainty.
EASTERN
Brian Austin FRICS
Haden Young Limited
"There are opportunities in health
and education and various
frameworks that compensate for
the lack of developer led work."
David Jenney FRICS
Heckler Associates
"Volume housebuilders are
cutting back, making the subcontract market slightly easier,
but that is affected by the
Olympic programme"
Anthony Parisi FRICS
Johnson & Partners
"There a lack of competent/
quality building surveyors."

John Sherriff FRICS

Sherriff Tiplady Associates
"Procurement documentation
appears to be declining in level of
detail, etc. and this puts more
pressure on contractors' tenders
etc. Procurement procedures for
publicly funded projects are
resulting in an increase in tender
levels in an attempt to reduce
business risk to the client."
Robert Walton BSc FRICS
Mowlem Aqumen Defence
Services
"Since the turn of the new near,
contractors have sharpened their
pencils in tendering in competition
on the back of fears of a downturn
in commercial property orders.
They are filling their order books
while they can."
LONDON
Bola Abisogun BSc (Hons) MRICS
Accessible Advice - City
"With such a diverse number of
key capital projects coming on
stream, it has become wholly
apparent that the larger, national
players are indeed experiencing
bottlenecks in the sourcing of
requisite white and blue collar
staff. This is likely to continue to
be an issue for senior
management, and exacerbated by
the repatriation of EU and
international personnel."
Bruce McAra MRICS
Turner & Townsend Cost
Management
"Two stage tendering is proving
challenging in controlling prices
and predictability. A number of
contractors seem to be increasing
there tenders at 2nd stage which
may be due to market forces or an
unresponsive market."
NORTH EAST
Walter Jonas FRICS
Baker Mallett LLP
"There has been a gradual decline
in enquiries and workload over the
last six months reported by local
contractors and subcontractors.
Suppliers' prices are holding
steady as a direct result of this.
These factors are causing an
easing in tender prices that will
probably continue until mid 2008."
NORTH WEST
R S Hayward FRICS
Hayward Associates (Cumbria) Ltd
"Planning embargo by
Government is stopping redevelopment of brownflield and
redundant buildings in many areas
despite a desperate need for new
affordable housing. Even when the
Planners are on board with the
schemes, the Housing Corporation

funding limits and controls make

the projects unaffordable without
some alternative sales which then
are at variance with the local
planners requirements. The
whole situation is a "non funny"
farce!"

which in many areas continue to fall.

This coupled with a nervousness of
potential buyers wanting to avoid
entering into an immediate negative
equity situation have effectively
brought new build projects (housing)
to a halt."

Bruce McAra MRICS

Turner & Townsend Cost
Management
"The construction market is fairly
stable given the completion of
major redevelopment projects in
recent years."

SCOTLAND

D L Nicholson FRICS
Johnstons
"Uncertainty in the nuclear sector
has a "knock on" effect elsewhere
in Cumbria's economy and,
coupled with the current credit
squeeze, is having the effect of
either canceling or postponing
private sector projects."

Neil Cameron FRICS

Tulloch Homes Ltd
"The ever-increasing number of
consultees to planning applications
is prolonging the planning process
and delaying project starts by
several months."

C H Nixon BSc FRICS

Thornber & Walker
"Apart from private housing which
is a no go area, all other sectors
remain buoyant with lots of
enquiries. Just don't mention the
'R' word."
Brian Williams MRICS
Fletcher McNeill
"The first quarter of 2008 appears
to be marginally quieter than
previously although the second
and third quarters should
improve"
NORTHERN IRELAND
Peter Carson FRICS
V B Evans & Co
"Indecision in local government is
a major factor."
W H M McEvoy FRICS
W H McEvoy Limited
"Due to the downturn in house
prices, the market for construction
is not as buoyant as it was this
time last year."
Hugh N Samuel McGurk MRICS
Williamson Johnson Partnership
"Private housing sale costs have
dropped considerably over the
last quarter, as have house sales.
Contractors have been reporting
a renewed keenness in tender
levels caused by housing
development contractors seeking
work in other areas"
John Reid MRICS
KS&P
"The banking credit crunch is now
affecting housing development
with a marked reduction in new
schemes coming forward."
George Williamson MRICS
Brian Canavan Associates
"There is uncertainty in sales
prices of residential property

David Adam FRICS

WJR Christie & Partners
"The lack of professional consultants
to produce construction information
is an issue."

David Cation MRICS

Systems Aluminium Limited
"Several projects have been
postponed whilst funding is
reviewed."
Ronnie Dool FRICS BSc
Turner & Townsend
"Current high levels of activity will
continue in the short to medium term
with anticipated health sector activity
increasing towards year-end."
John Fletcher FRICS
John Fletcher Associates
"Labour shortages are an issue."
Tom Greig FRICS
Gardiner & Theobald
"The shortage of contractors,
particularly on the larger and more
complicated projects, is making
competitive tender lists more difficult
to compile. With at least five major
projects in the Edinburgh pipeline,
this shortage will increase with
contractors becoming even more
selective."
Stephen Johnston BSc FRICS
David Adamson & Partners
"General increase in the volume of
all types of construction work, in
hand and planned, coming after a
relatively quiet period is putting
pressure on limited resources (in
Shetland) leading to prices
increasing and probable delays to
some contracts."
John Macdonald MRICS
Macdonald Alexander
"Public utility companies are still
causing significant disruption to
construction projects and this
influence appears to be a prime
factor in programme and cost
overruns. Despite what government
and the various related industry
organisations state, this problem has
just not been addressed."

RICS construction market survey first quarter 2008

Ian McBroom MRICS

Brownriggs
"A high level of activity continues
across all sectors."
T McQuade MRICS BSc
Morham & Brotchie
"The marketplace is still
overheated with too many projects
competing for scare labour
resources. Polish bricklayers are
now helping fill the void on Tiree."
Martin Reid FRICS FCIOB
Thomas & Adamson
"With the lack of contractors
generally at all levels - if a project
has inherent risk, it is difficult to
achieve good competition. One is
forced down a two stage route.
However, one can achieve good
competition in green field
industrial/business homes type
projects."
Taylor FRICS
CBA
"The credit squeeze is affecting
the viability of projects"
A Ron Thomson MRICS
Thomson Gray Partnership
"Construction industry output
continues to show steady growth.
However, we are anticipating a
flattening out in 2008 and into
2009/10. Subsequently, we expect
tender price increases to show a
drop during 2008 and 2009.
Significantly, we are experiencing
a marked increase in enquiries
and interest from main
contractors."
SOUTH EAST
Richard Colston FRICS
Nigel Rose and Partners
"QS recruitment remains under
considerable pressure."
Kevin Dougall MRICS
The Andrews Partnership
"There is a lot of uncertainty in the
property sector generally and,
whilst the construction industry
remains busy at present, the fall
off in new enquiries could result in
lower workloads, and fee income,
later on this year and early next
year."
Robin Goddard BSc MRICS
Brodie Plant Goddard
"Surprisingly, contractors seem to
be honing their prices with tenders
coming in below estimated costs.
This is especially true of contracts
for elemental works, rather than
general refurbishment projects."
Anthony Green MRICS
Hadland Manning Bullock &
Partners
"A surprising increase in the
individual one-off housing
construction market indicates a
certain level of consumer
confidence despite contrary
press."

Graham Harvey-Browne BSc

FRICS
CM Parker Browne
"The Olympic effect is not fully
affecting the market at present."
Philip Jones FRICS
Ridge & Partners
"Cost of metal products is still
rising. Costs of other materials,
e.g timber and plaster, are also
rising. Environmental concerns
are having an increasing impact
on projects."
David Metcalf FRICS
Calford Seaden Partnership
"There is a continuing shortage of
experienced professionals for
recruitment."
Peter Read FRICS
Christopher Smith Associates
"Uncertainty over estimating the
cost of future likely requirements
to reduce energy consumption/
alternative energy on new
schemes is an issue."
Andrew Wainewright FRICS
John Smith Projects
"We have seen a significant rise
in the number of good quality
enquiries since the turn of the
year, compared with the previous
quarter. We have converted a
number of these into live projects,
and confidence is at a high level
here."
SOUTH WEST
T R M Denley FRICS
Denley King Partnership
"The slight downturn in private
housing starts is resulting in
additional labour resources
availability for other projects."
John King FRICS
Nigel Rose and Partners
"The skills shortages within the
South East continue to impact on
local workload."
Simon Large BSc FRICS MAPM
Magna Partnership Ltd
"Despite all the talk of economic
downturn just around the corner,
there is still a frenetic level of
activity in our experience.
Although, the number of wholly
fresh enquiries is less than in the
previous quarter. The desire for
stability means we have
concentrated on larger long term
and sustaining projects in the
hope that this will provide an
adequate cushion for the
inevitable downturn in our
industry."
Christopher Pacey FRICS
Christopher Pacey
"The housing market and financial
market uncertainties are reducing
enquiries and workload for
contractors, leading to a period of
keener tendering."
David Perry MRICS
Wm G Weller & Son Ltd.
"There is growing apprehension
within the private sector to invest

due to the market realigning. We

do not anticipate a recession, just
consolidation and steady growth."
Martyn Stubbs MRICS
Nixey Powell Partnership
"It is very difficult to see what the
overall effect of changes in the
financial markets will have on
construction workload in the
coming twelve months."
John Tilley BSc MRICS
Complete Construction
Management Ltd
"The emergence of sport facilities
to support the Olympics is a
factor."
Nicholas Trolley MRICS
Dickson-Powell Partnership
"My suspicion is that large
industrial and commercial projects
will reduce during the coming year
resulting in some of the larger
construction companies reviewing
their prime markets and actively
tendering for lower value projects,
thus squeezing and hardening
tender prices in the sub-10m
market."
Christopher Varey FRICS FFB
Beaufort Ellis Associates
"Minor works is now competitive.
Larger projects are becoming
more competitive."
WALES
S P Baker FRICS
Hills
"Large projects in Swansea and
further west continue to impact on
prices in south east Wales."
John Peel MRICS
J O Peel & Associates
"There is uncertainty due to
impact of HIPs and interest rate
on housing sales. The end of
public sector financial year is a
factor."
Nicholas Soady BSc MRICS
RPA Chartered Quantity
Surveyors
"Increased partnering frameworks
are very much having an effect good if you are included, bad if
you miss out on selection."
Neil Taylor FRICS BSc
ChandlerKBS
"Availability of technical staff
remains an issue."
WEST MIDLANDS
Adrian Aston FRICS MAPM
Wakemans Ltd
"Increasing legislation is putting
pressure on project costs and
making schemes harder to stack
up."
Lee Jones BSc MRICS
Davis Langdon LLP
"The expected downturn seems to
be driving up subcontractor
quotations, probably in a last ditch
attempt to grab some additional
profits."

YORKSHIRE & HUMBERSIDE

David Bishop MRICS
DBA Management Ltd
"The house building market is
envisaged to become more
competitive as market conditions
tighten and inflation comes more
under control. Standards are
driving cost upwards,
mainstreaming will ultimately
rebalance the inflationary effect."
Bob Macgregor FRICS
GVA Grimley
"We are kept afloat by the
continued perceived demand for
private housing, although it is
unclear whether such a demand
now actually exists."
Paul Mackie MRICS
Rex Procter & Partners
"Significant factors include:
planning delays, rising costs,
increased legislative cost,
bureaucracy in planning
departments, and environmental
impact on cost and programme."
Bruce McAra MRICS
Turner & Townsend Cost
Management
"There has been a change to the
economic climate which is now
affecting design teams and will
shortly affect contractors and
subcontractors. We are
anticipating a slow down which
should make the availability of
labour and materials, and
consequently costs, more
realistic."
Jonathan Park MRICS
Appleyard & Trew
"Generally there seems to be
feeling of non-commitment at
present which is expected to
reduce in the summer."
EAST MIDLANDS
Diane Anstey BSc(Hons) MRICS
Anstey & Associates
"Steel prices have increased."
Simon Holden MRICS
A. E. Thornton-Firkin & Partners
"None to report."
Alan Robinson FRICS
Tompkins Robinson Surveyors
"North Northamptonshire is
identified by government for large
scale housing development (plus
related works)."
Robert Spencer FRICS
Sir William Baird & Partners
"Labour probably more readily
available now that a large
shopping centre development has
been completed."
Peter Willows FRICS
W T Partnership
"Nothing to report as far as
significant effects are concerned
this quarter."

RICS construction market survey first quarter 2008 9

EASTERN
Brian Austin FRICS
Haden Young Limited
"Currently no particular projects
causing distortion to labour costs
and availability of resource. Base
metal prices on increase again."
Michael Harris MRICS
Philip Pank & Partners
"Steelwork costs and availability
are preventing projects from
starting quickly."
David Jenney FRICS
Heckler Associates
"Concrete up by 9%Copper up by
85%"
Anthony Parisi FRICS
Johnson & Partners
"Not yet, but there is a definite
feeling that contractors are waiting
for the "Olympic factor" to kick in."
John Sherriff FRICS
Sherriff Tiplady Associates
"No apparent change."
Robert Walton BSc FRICS
Mowlem Aqumen Defence
Services
"Structural steelwork has
increased. Steel has increased in
price and fabricators are busy.
Fenestration systems are
expensive just now as well."
LONDON
Bola Abisogun BSc (Hons) MRICS
Accessible Advice - City
"Continued inflationary cost
pressures prevail with marked
increases on base commodities, a
direct consequence of current
global demand(s). Key public
sector projects appear to be
selectively procured amidst an
awareness of labour and potential
material shortages."
Bruce McAra MRICS
Turner & Townsend Cost
Management
"In the South East a combination
of Olympics,associated projects,
Heathrow plans, major projects int
he city are projected to outstrip
capacity particularly in the fit out
market."
Michael Morter BSc MRICS
Abacus Project Services Ltd
"None"
NORTH WEST
R S Hayward FRICS
Hayward Associates (Cumbria) Ltd
"Continuing delays by Utilities
companies delaying completions
of many projects"
Jack Lyall FRICS
Thomas and Adamson
"Impact of Olympics could cause a
shortage of professional and
skilled tradesmen in Northwest."
Bruce McAra MRICS
Turner & Townsend Cost
Management
"Major projects in Liverpool such
as Arena & Convention Centre

and Paradise Street

Development.Steel and copper
component based materials."
D L Nicholson FRICS
Johnstons
"There are no particular projects
causing distortion to the local
markets. There have been notable
changes in material prices on
steelwork, copper, sand and
aggregates."
C H Nixon BSc FRICS
Thornber & Walker
"Mechanical and electrical
installation costs still continue to
rise disproportionately to other
building elements."
NORTHERN IRELAND
W H M McEvoy FRICS
W H McEvoy Limited
"There is a general downturn in
construction demand which has
resulted in no skills shortages."

John Meechan FRICS

Gardiner & Theobald
"Structural steel continues to be a
rising cost and services are harder
to get at competitive prices."
David Miller BSc FRICS MAPS
McGown Miller Partnership
"Major PPP Scheme commencing
on site."
Martin Reid FRICS FCIOB
Thomas & Adamson
"No particular projects. We find the
lack of big contractors (15m plus)
causes commercial projects to be
expensive if the contractors
become committed elsewhere.
Curtain walling, concrete, re-bar."
David Taylor FRICS
CBA
"Steelwork and glass"

Hugh N Samuel McGurk MRICS

Williamson Johnson Partnership
"Ready mix concrete costs have
increased considerably in Northern
Ireland"

A Ron Thomson MRICS

Thomson Gray Partnership
"The focus is currently on the 2012
Olympics, however, Poland and
the Ukraine are to host the 2012
UEFA European Championships
which we anticipate will put further
strain on the UK construction
industry."

SCOTLAND

SOUTH EAST

David Adam FRICS

WJR Christie & Partners
"PFI schools projects increased
the requirement for professional
staff working for contractors"

Anthony Green MRICS

Hadland Manning Bullock &
Partners
"Local Natural stone, copper, steel
products generally"

Ronnie Dool FRICS BSc

Turner & Townsend
"Ongoing general high level of
activity putting pressure on all
resources and materials."

Michael Morter BSc MRICS

Abacus Project Services Ltd
"Competition with London"

John Fletcher FRICS

John Fletcher Associates
"London building boom, the
forthcoming Olympics"
Tom Greig FRICS
Gardiner & Theobald
"Most materials have increased
due to the uplift in fuel charges,
with copper and glass being more
than the norm. Steelwork is to go
up by 60/tonne shortly."
Harris FRICS
Northcroft
"Timber prices appear to be still
rising."
Hamish Howard MSc MRICS
Pentarq
"None."
Colin McFadden BSc MRICS
McLeod & Aitken Ltd
"Lack of qualified and suitably
experienced QSs"
T McQuade MRICS BSc
Morham & Brotchie
"Large housing stock transfer from
local authority to newly formed
housing association has reduced
workload in short term. Future
workload in repair and
maintenance, as well as new build
work, should however increase
significantly in the longer term."

materials have inflated costs over

past three months."
Christopher Varey FRICS FFB
Beaufort Ellis Associates
"No"
WALES
John Peel MRICS
J O Peel & Associates
"HIPs and interest rate beginning
to impact on housing sales, but
(little) impact on alteration and
improvement work."
Nicholas Soady BSc MRICS
RPA Chartered Quantity
Surveyors
"There is not yet a noticeable
effect in the South Wales market
from the Olympics."
Neil Taylor FRICS BSc
ChandlerKBS
"The activity in the utilities and
road schemes remains high
maintaining pressure on
resources."
Wyn Walters MRICS
Faithful & Gould
"A mad panic to complete
Objective 1 projects by the end of
the programme in South and West
Wales is the main focus at
present."
WEST MIDLANDS
Andy Irvine FRICS
DTZ Debenham Thorpe
"Not yet experiencing, but
anticipate 2012 to impact."

Robert Owen BSc(Hons) MRICS

Boxall Sayer Ltd
"Copper and materials containing
copper are increasing in price."

Lee Jones BSc MRICS

Davis Langdon LLP
"The costs of steelwork is rising,
both reinforcement and
structural."

Peter Read FRICS

Christopher Smith Associates
"Oil based product prices under
pressure."

Malcolm Sales MRICS

Malcolm Sales
"The cost of aggregates is an
issue."

SOUTH WEST

YORKSHIRE & HUMBERSIDE

Douglas Cawley BSc MRICS

Douglas Cawley & Associates
"Need more tradesmen i.e. start
apprenticeships."

David Bishop MRICS

DBA Management Ltd
"Market fluctuations in specialist
systems and technologies
associated with residential
performance is an issue whilst
higher costs are experienced at
present, we anticipate more
competitive prices."

T R M Denley FRICS
Denley King Partnership
"We are not aware of any large
projects in this area which are
affecting labour costs/availability."
Christopher Pacey FRICS
Christopher Pacey
"Costs of certain key materials
have risen out of proportion to cost
of living."
John Tilley BSc MRICS
Complete Construction
Management Ltd
"This area is still suffering from the
after effects of the summer floods,
especially in the 100K to 500k
contractsCopper prices"
Nicholas Trolley MRICS
Dickson-Powell Partnership
"Oil based and metal based

Paul Mackie MRICS

Rex Procter & Partners
"There is a continued shortage of
professional staff at a intermediate
and senior level, and uncertainty
in the economic climate affecting
confidence across the
development arena"
Park MRICS
Jonathan Appleyard & Trew
"Steel prices are increasing
quarter on quarter."

10

RICS construction market survey first quarter 2008

Contributor details
East Midlands
Diane Anstey BSc
(Hons) MRICS
Anstey & Associates
01604 890299
Michael Armson FRICS
Armson & Partners
01332 558935
Anthony Barnes BSc
MRICS
Simons Estates Ltd
08082 023991
Greg Fanning BSc
(Hons) MRICS
The Davidson Partnership
0121 442 4070
David Gwynne FRICS
David J Gwynne
01604 637612
T Hartley BSC FRICS
Faithful & Gould
1159574800
Simon Holden MRICS
A. E. Thornton-Firkin &
Partners
01522 537466
Jonathan Howard
FRICS
Fletcher King Howard
01604 622721
Ian McKinlay FRICS
Gleeds
0115 977 8000
Nicholas Porter FRICS
Nic Porter Associates
01636 674585
Robert Quincey FRICS
QMP
01604 880808
Alan Robinson FRICS
Tompkins Robinson
Surveyors
01933 223307
Robert Spencer FRICS
Sir William Baird & Partners
01332 347203
Peter Willows FRICS
W T Partnership
0115 950 6351
Eastern
Brian Austin FRICS
Haden Young Limited
01923 295087
Laurence Brett MRICS
Davis Langdon LLP
01223 351258

Chris Brooks FRICS

Davis Langdon
01733 362000
Raymond Burch BSc
MSc FRICS APA
BDB Surveying Services
01799 531251
Kevin Gill FRICS
Gill Associates
01473 214646
Michael Harris MRICS
Philip Pank & Partners
01603 625 158
David Jenney FRICS
Heckler Associates
01234 354 269
Robert Juniper FRICS
Daniel Connal Partnership
01206 562727
Robert Muir MRICS
Robert K Muir Chartered Building Surveyors
01279 441911
Mark O'Neill BSc
MRICS
Davis Langdon &
Everest
01908 304700
Mark O'Neill BSc
MRICS
Davis Langdon Everest
01908 304700

London
Abisogun BSc (Hons)
MRICS
Accessable Advice City
020 7608 0600
Colin Bateman BSc
MRICS
George Corderoy & Co.
02070 151920
Andrew Halstead BSc
FRICS FonsE
Donald Halstead Associates
0208 445 7721
Stephen Jackson
FRICS BSc
W S Jackson & Associate
020 8349 8131
Gary Kitt MSc DipLaw
MRICS MCIOB FCIArb
Driver Consult
020 7377 0005
Bruce McAra MRICS
Turner & Townsend
Cost Management
0121 262 1100
W H M McEvoy MRICS
Summers Inman
020 7242 9152
Ailsa McGregor BSc
(Hons) MRICS MRSH
McGregor Consultancy
07971 694956

Anthony Parisi FRICS

Johnson & Partners
01442 212755

Michael Morter BSc

MRICS
Abacus Project Services Ltd
01277 234984

John Sherriff FRICS

Sherriff Tiplady Associates
01223 872717

Peter Read FRICS

Christopher Smith Associates
020 8943 2157

B H Smith MRICS
Brian H. Smith &
Associates
01603 700000

North East

Robert Walton BSc

FRICS
Mowlem Aqumen
Defence Services
01603 737 864
John Wilson MRICS
John Wilson & Co
01582 584336

Alan Dunn BSc MRICS

Hall & Partners
0191 275 1600
Walter Jonas FRICS
Baker Mallett LLP
0191 226 7390
Colin McFadden BSc
MRICS
McLeod & Aitken Ltd
0113 246 9669
Ailsa McGregor BSc
(Hons) MRICS MRSH
McGregor Consultancy
07971 694956

Richard Neal MRICS

Balfour Beatty Management
01642 356688

C H Nixon BSc
FRICS
Thornber & Walker
01772 722288

George Penrice MCIArb FRICS

Sanderson Weatherall
0191 261 2681

Kevin Shea FRICS

Kevin Shea Associates
01204 307303

J M P Sammon
FRICS
James Sammon &
Company
028 7127 1323

Martin Round DipSurv

MRICS
Faithful & Gould
0191 233 4413

C J Taylor FRICS
Taylor Hutchinson &
Partner
0151 708 5939

P Watson MRICS
Ian Kirkpatrick &
Associates
028 9127 1118

Malcolm Scott LLB

MRICS ACIARB
Thompkins and
Thompkins
0191 239 9421

John Wardlaw
FRICS
Wardlaw Surveyors
01768 891821

George Williamson
MRICS
Brian Canavan
Associates
028 703 58484

North West
I G Backhouse FRICS
Design Group Chester
01244 320543
John Bridge FRICS
J P Jelly& Partners
01260 224022

Andrew Webster
FRICS
Calvert & Webster
01706 344826
Brian Williams
MRICS
Fletcher McNeill
0161 881 5216
Northern Ireland

E T Cookson MRICS
Eamonn T. Cookson
& Co.
01704 537 411

Peter Carson
FRICS
V B Evans & Co
02890 457000

Colin Eldridge BSc

MRICS
Davis Langdon
0161 819 7600

John H Dowse
MRICS
Moore McDade
Dowse
02890 661903

Stephen Gittins BSc

(Hons) MBA MRICS
Walfords
0151 236 0946
R S Hayward FRICS
Hayward Associates
(Cumbria) Ltd
01900 825781
David Latham MRICS
Davis Langdon &
Everest
0161 819 7600
M I Lomas FRICS
John Gibbs Partnership
01606 551498
Jack Lyall FRICS
Thomas and
Adamson
0161 833 1160
Bruce McAra MRICS
Turner & Townsend
Cost Management
0121 262 1100
D L Nicholson FRICS
Johnstons
01228 520137

Robert J Irvine
MRICS
028 6638 7780
John Murray
MRICS
Cyril Sweett Ltd
028 703 43518
W H McEvoy
FRICS
W H McEvoy Limited
02890 669541
Hugh McGurk
MRICS
Williamson Johnson
Partnership
02891 813354
Alex Murton MRICS
Hood McGowan
Kirk
028 9066 7932
John O'Neill FRICS
John D D O'Neill
028 7035 5155

John Reid MRICS

KS&P
02890 650009

Scotland
David Adam FRICS
WJR Christie &
Partners
01382 459988
B J Byrne MRICS
Bryan Byrne Consultants
0141 848 7201
Neil Cameron
FRICS
Tulloch Homes Ltd
1463229300
David Cation
MRICS
Systems Aluminium
Limited
01236 787300
Ronnie Dool FRICS
BSc
Turner & Townsend
0141 221 5358
John Fletcher
FRICS
John Fletcher Associates
01324 873042
Tom Greig FRICS
Gardiner & Theobald
0131 221 9555
Hamish Harris
FRICS
Northcroft
0131 226 1677
Brian Horsburgh
BSc Dip Proj Man
(RICS) FRICS
Binnie Murray and
Hutton
0141 889 8833
G G Houston Esq
KLM Partnership
01382 739511

RICS construction market survey first quarter 2008 11

Adrian Howard MSc

MRICS
Pentarq
01856 872022

Martin Reid FRICS

FCIOB
Thomas & Adamson
0131 225 4072

Graham HarveyBrowne BSc FRICS

CM Parker Browne
020 7928 1066

Stephen Johnston
FRICS BSc
David Adamson &
Partners
01595 696788

Alan Smith MRICS

Walfords
0131 226 2791

Philip Jones FRICS

Ridge & Partners

J B Sneddon FRICS
Summers Inman
0131 556 9464

James Le May MRICS

Le May & Co
020 8893 3341

John Strachan MRICS

HJG Samuel & Partners
01903 743231

Andrew Martin MRICS

PDD Surveyors
01908 690630

Gilbert Lawrie Dip BS

MRICS
Houston Property
Consultancy
01505 382006
Donald MacDonald
MRICS
Ogilvie Construction
Ltd
01786 812273
John Macdonald
MRICS
Macdonald Alexander
0131 558 1978
Ian McBroom MRICS
Brownriggs
01786 464998
Alistair McCracken
BSc FRICS
Reid Associates
0141 248 6545
Colin McFadden BSc
MRICS
McLeod & Aitken Ltd
0113 246 9669
Ailsa McGregor BSc
(Hons) MRICS MRSH
McGregor Consultancy
07971 694956

David Taylor FRICS

CBA
0141 248 5802
A Ron Thomson
MRICS
Thomson Gray Partnership
0131 226 5076
South East
Keith Andrews BSc
MRICS
EC Harris
020 7391 2718
Peter Bushnell FRICS
Peter Bushnell Associates
01234 714447
Richard Colston FRICS
Nigel Rose and Partners
0118 977 4702
Bill Dixon FRICS
Shambrooks Ltd
01892 540399

T McQuade MRICS
BSc
Morham & Brotchie
01631 563721

Kevin Dougall MRICS

The Andrews Partnership
01344 460100

John Meechan FRICS

Gardiner & Theobald
0141 568 7300

Peter Ficken BSc

MRICS
PITA Construction
Consultants Ltd
020 8893 3333

David Miller BSc

FRICS MAPS
McGown Miller Partnership
01387 254 283
Keith Milne FRICS
David Adamson
0131 229 7351
Danny Nisbet BSc
MRICS
Elim Construction Ltd
01505 612713
Bruce Rae FRICS
D. I. Burchell & Partners
01382 202712

Robin Goddard BSc

MRICS
Brodie Plant Goddard
01306 887070
Anthony Green MRICS
Hadland Manning Bullock & Partners
01295 253521
Michael Gulliford
FRICS
Gulliford & Smith
020 8941 6850

Bruce McAra MRICS

Turner & Townsend
Cost Management
0121 262 1100
David Metcalf FRICS
Calford Seaden Partnership
01689 888222

Douglas Cawley BSc

MRICS
Douglas Cawley &
Associates
01736 798200

Christopher Varey
FRICS FFB
Beaufort Ellis Associates
01793 542324

Peter Churchill MRICS

W T Hills
01392 218010

Wales

Paul Clark FRICS

Wood & Weir Ltd
01242 239788
T R M Denley FRICS
Denley King Partnership
01202 715300
M E Hallam MRICS
Croot & Partners
01305 788 666
Richard Harvey FRICS
Gleeds
0117 317 3200

Paul Moore BSc

MRICS
EBM
01702 557447

John King FRICS

Nigel Rose and Partners
01242 577998

Graham Moore FRICS

MS Associates
01243 539378

David Lake BSc MRICS

David Lake
01822 834218

Michael Morter BSc

MRICS
Abacus Project Services Ltd
01277 234984

Simon Large BSc

FRICS MAPM
Magna Partnership Ltd
01285 640460

Robert Owen BSc

(Hons) MRICS
Boxall Sayer Ltd
01243 792220
Peter Read FRICS
Christopher Smith Associates
020 8943 2157
Tony Sumners FRICS
King Sumners Partnership
01489 578811
Andrew Wainewright
FRICS
John Smith Projects
01962 861688
South West
Phillip Baker FRICS
Baker Ruff Partnership
01823 251356
Paul Bridges MRICS
BSc (Hons)
Leslie Clark Construction Consultants
0117 973 8195

Christopher Pacey
FRICS
Christopher Pacey
01258 840917
David Perry MRICS
Wm G Weller & Son
Ltd.
01209 215621
Ray Plowman FRICS
Bailey Partnership
01752 229 259
Martyn Stubbs MRICS
Nixey Powell Partnership
01225 424213
John Tilley BSc MRICS
Complete Construction
Management Ltd
01242 227974
B J Tipling FRICS
Jenkins Hansford &
Partnership
01278 785090
Nicholas Trolley MRICS
Dickson-Powell Partnership
0117 973 2431

S P Baker FRICS
Hills
02920 220438
Geraint Morgan MRICS
Watkins Jones & Sons
Ltd
01248 362516
Leonard Morley FRICS
Tweeds
01352 756161
D H Nurcombe FRICS
Nurcombe Yates &
Partners
02920 451065

Andy Irvine FRICS

DTZ Debenham
Thorpe
0121 200 2050
Mark Janssens BSc
(Hons) FRICS
Faithful and Gould
0121 483 5483
Lee Jones BSc
MRICS
Davis Langdon LLP
0121 710 1100
A H Millward MRICS
Allan Reynolds Partnership
01902 771802
Bob Pattern BSc
Hons FRICS
Franklin & Andrews
07798 854306

John Peel MRICS

J O Peel & Associates
01970 625355

Malcolm Sales
MRICS
Malcolm Sales
01538 757233

Nicholas Soady BSc

MRICS
RPA Chartered Quantity Surveyors
02920 226846

G C Smith FRICS
Townsend & Renaudon
01782 744888

Neil Taylor FRICS BSc

Chandler KBS
0292035 2300

Clive Stanway FRICS

Cyril Orchard & Partners
01952 608445

Wyn Walters MRICS

Faithful & Gould
02920 485181

Yorkshire & Humberside

West Midlands

David Bishop MRICS

DBA Management Ltd
01302 719919

Paul Anderson BSc

FRICS
RLF
0121 456 1474
Adrian Aston FRICS
MAPM
Wakemans Ltd
0121 454 4581
Paul Beeston BSc
(Hons) MRICS
Rider Levett Bucknall
0121 503 1500
Tony Clewett FRICS
Osbornes (Quantity
Surveyors) Ltd
024 7656 1510
Susan Fullard FRICS
AMRSH
Fullard Rosier
01564 779262
P S Griffin MRICS
Nicol Thomas Limited
0121 643 4571

Robert Boyle FRICS

MAPM
V B Johnson & Partners
01924 897373
G E Firth FRICS
Firth Partnership
01226 206021
Bob Macgregor
FRICS
GVA Grimley
0870 900 89 90
Paul Mackie MRICS
Rex Procter & Partners
01274 693622
Bruce McAra MRICS
Turner & Townsend
Cost Management
0121 262 1100
Jonathan Park
MRICS
Appleyard & Trew
01423 871471

12

RICS construction market survey first quarter 2008

RICS contacts
Construction market information
For general information about the construction market,
contact the RICS Library information service on FAX :
020 7334 3784, or the RICS Construction Faculty on
020 7334 3733.
The construction market survey is available from the
RICS web site www.rics.org, along with other quarterly
and monthly surveys covering residential sales &
lettings, commercial property, and the farmland market.

Survey subscription information

and data enquiries
If you wish to subscribe to any of the RICS Market
Surveys, and receive the latest editions as they are
released, please contact Building Cost Information
Service (BCIS): bcis@bcis.co.uk, T +44(0)20 7695
1500
Subscription rates are:
Housing market survey (12 issues per year)
Non RICS members 200 per year
RICS members 155 per year
All other quarterly surveys (4 issues per year)
Non RICS members 135 per year
RICS members 95 per year
For database enquiries, please contact Janet Guilfoyle
on +44 (0)20 7334 3890

The Royal Institution of

Chartered Surveyors
12 Great George Street
Parliament Square
London SW1P 3AD
T +44 (0)20 7222 7000
F +44 (0)20 7334 3795
economics@rics.org.uk
www.rics.org