AVERAGE tender prices for the construction industry by the end of this year will be 5 to 7 per cent higher than at present, according to the latest estimates from quantity surveyors Bruce Shaw.

The company said that an analysis of tender price trends indicated a slow-down in the rate of increase. Nevertheless building prices would show increases in excess of consumer price inflation. Bruce Shaw is also forecasting that the volume of construction output will grow this year by 5 per cent, equalling the general growth in the economy.