RLB Northern Ireland revises tender price forecast to 3.00% as industry awaits June’s Spending Review for clarity
The Irish construction sector continues to navigate a path of cautious but optimistic growth, according to the latest construction market intelligence from Irish independent construction and property management consultant, Rider Levett Bucknall UK (RLB UK). Its revised Q2 tender price forecast of 3.00% reflects a circumspect but steady outlook.
While the sector has demonstrated resilience and growth in certain areas, challenges persist that could temper momentum in the coming months. Northern Ireland has outperformed other UK regions, with an increase of 10% in output from the same quarter last year, with new project starts and a substantial surge in repair and maintenance being seen in the region.
Global Pressures, Local Consequences
Macro-economic events, including the US imposition and relaxation of tariffs, have dampened investment confidence, with knock-on effects in UK construction. However, with markets looking like being well on the way back to the highs of the turn of the year and expanding data centre growth, there is cautious optimism in the sector ahead of the Spending Review on 11 June.
While the recently signed UK trade deal has eased some international trade pressures, its impact on construction is felt to be limited. Industry stakeholders are now turning to the Spending Review on 11 June for signals on public investment and pipeline priorities.
In a current tight labour market with overall low levels of unemployment and ongoing shortages of skilled and unskilled labour, new workload distribution and local availability of labour could hold the key to whether any influx of project work could result in tender price breakout. Also, while public-private partnerships (PPPs) might be the financial injection needed for momentum, PPP solutions can be time-hungry, so what presents as an easy economic solution may not be all that straightforward.
Noel Devine, Partner at RLB Northern Ireland comments, “Looking ahead, we feel that the sector in Northern Ireland shows signs of resilience and will continue its steady growth. However, addressing cost pressures will be crucial to sustain this growth.”
For RLB’s full Construction Market Intelligence Q2 2025, please visit https://www.rlbinsights.com/publications/construction-market-intelligence-cmi-q2-2025/
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