Intensive competition from second-tier contractors is likely to restrain increases in tender prices for major construction projects throughout the near term in Australia as builders in this segment compete for medium-sized projects in improving retail and residential markets, a new report on tendering conditions within the industry suggests.

Releasing its March 2014 Review of Australian Construction Market Conditions, building consultancy and quantity surveying firm WT Partnership says it expects modest tender price increases of between two and three per cent per year between now and 2017 notwithstanding the recent upturn in building activity as aggressive tendering keeps construction…