Sector and regional bright spots remain despite a softer national demand outlook beginning to feed through to tender prices reveals the latest Construction Market Intelligence Q3 2026 report from leading construction and property management consultant, Rider Levett Bucknall (RLB UK).
While RLB is observing sectorial differences in output, there is a backdrop of persistent global and domestic uncertainties influencing sentiment and forward expectations. This has led to RLB’s weighted average Tender Price Index forecast uplift for 2026 shifting from 3.98% in Q2 to 3.54% for Q3. While the supply chain may be absorbing some of the input cost increases, analysis by RLB experts found that it is not at any cost, with contractors acutely aware of the risk profiles of the work that they are taking on.
Demand and opportunity are primed
Construction output stabilised in Q2 to 0.3%, driven by repair and maintenance and infrastructure spending. Sector recovery remains mixed with advanced tech and data centres continuing at pace and capital to deploy in sectors such as residential but pivoted away from development. Longer term pipelines in many regions including Wales, the North West and Yorkshire remain strong with many developments primed pending improved viability.
Supply Chain adapting and absorbing
While the Middle East conflict continues to affect input costs, the supply chain has adapted with many absorbing costs and early engagement recommended.
Paul Beeston, RLB’s Head of Service Industry and Service Insight comments,
“While global challenges are more broadly leading to secondary impacts on pipelines, sectors and regions each have bright spots carrying construction momentum. In many sectors cost absorption into 2027 will be a feature of the market and pipelines are primed for activity when viability allows. Tender price levels indicate it is a good time to engage the market, but clients should be cognisant that it is risk profile and client governance that are key determinants of both pricing levels and appetite to bid.”
Click here to read RLB’s full Construction Market Intelligence Q3 report.
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