CECA

Inflation

Inflation

Issue Date: 25 November 2017

Associated Document: n/a

Rising global commodity prices have the potential to have a significant and detrimental impact upon the UK infrastructure sector.

Escalating costs for materials such as steel, aggregates and fuels can make the difference between a project being deliverable or not. Unanticipated rises can also impact upon the ability for contractors to deliver work within the agreed cost.

For this reason CECA is keen to work with representatives from across industry and its client base to identify ways to mitigate construction inflation risk.

CECA supported the Highways Term Maintenance Association in its development of a new price adjustment index for the highways sector

We have also put on a  series of seminars covering hedging of prices for fuels, steel and copper.

Finally we are looking at options to replicate the highways work in other sectors, to reduce members exposure to material price risk.