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Rising energy prices has seen Turner & Townsend revise upwards building tender price inflation by nearly double its prediction from just three months ago.

Its spring forecasts for tender price rises in 2022 now sit at 8.5% for real estate and 6% for infrastructure 鈥� much higher than its winter 2021/22 predictions of 4.5% and 4%.

The firm said soaring energy prices, stemming from the ongoing war in Ukraine, were at the heart of the spike, with indices for crude oil, diesel and premium unleaded increasing by 99.4%, 33.8% and 30.5% month-on-year in March alone.

These price hikes have impacted logistics costs as well as energy-intensive manufacture processes.

T&T said inflated rates will continue through the remainder of this year before settling, with long-term tender prices forecast for 2025 at 4% in real estate and 5% for infrastructure.

It added firms must 鈥済et the basics right鈥� in the face of these pressures, factoring in time for early engagement with suppliers and ensuring risk is well understood.

It also raised concerns that inflation might undermine work to achieve net zero, warning of a tipping point at which early-stage projects are put on ice and clients postpone capital investment decisions.

Martin Sudweeks, the firm鈥檚 UK managing director for cost, said it was time for 鈥渃alm, clear and programmatic thinking鈥�.

He said contract scrutiny needed to be 鈥渇ront and centre鈥� and urged businesses to avoid 鈥減anicked procurement in the hope of locking-in pricing鈥�.

鈥淭his is about picking the best team and ensuring you have capable and resilient contracting partners,鈥� he added.

鈥淐lients should map out the supply chain and identify weak links, then work to eliminate risk and where necessary share the burden of disruption.鈥�