More appetite but not more capacity
The UK construction market has entered Q3 with contractor appetite improving as workloads soften, but conversion, viability and specialist capacity are still holding many schemes back. The market is becoming more selective, not cheaper.
Well-prepared schemes, particularly in the £10 to 30m range, may attract a wider field, while higher-value or more complex schemes may see fewer bidders, as complexity, risk and specialist requirements matter as much as value. Tier 1 contractors are engaging more actively on selected 2027 opportunities where budgets, funding and risk are credible, but they still draw on the same small pool of MEP, façade and structural specialists. More Tier 1 bidders do not always mean more deliverable capacity, and cost and capacity pressures persist in key trades such as MEP, façades and steelwork.
In this report you'll discover:
- Macroeconomics & Construction Output
- Project Conversion Pressures
- Selective Contractor Appetite
- MEP & Trade Package Pressure
- Input Cost & Labour Market Trends
- Our latest Tender Price Indicator outlook
Download and read the full report.
G&T’s Market Update provides an overview of the UK construction market, including changes to key macroeconomic indicators as well as construction-specific metrics such as construction output, new orders and key material costs. Our forecasts are based on quarterly industry surveys and regular discussions with the supply chain.
If you'd be interested in a market briefing from one of our teams or want to find out more about our Autumn Market Update, get in touch with your G&T expert or contact us today.
