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Costing Steelwork #32 is a June 2025 snapshot of UK construction-market expectations, comparative steel-frame costs and advice on specialist contracts. Its forecasts are what the issue reported at publication—not current November 2026 market estimates—and its steelwork rates are benchmarks for comparison, not project quotations. The contract feature’s central warning is that extensive amendments to standard forms can shift disproportionate risk down the supply chain, raise review costs and make collaboration harder.
The issue was produced by AECOM, the British Constructional Steelwork Association (BCSA) and Steel for Life. It brings together a market update by Dr Michael Sansom, AECOM construction pricing data credited to Pablo Cristi Worm, and “Ditch the risk switch,” a feature by Deborah Harrison, BCSA legal director. The June 2025 issue is the primary source for the figures and recommendations below.
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What does Costing Steelwork #32 cover?
It covers three related but distinct tasks: understanding the market conditions forecast in mid-2025, using steel-frame rates as comparative cost-planning inputs, and considering how contract amendments allocate risk to specialist contractors. Keeping those strands separate matters. A construction forecast is not a final outcome; a benchmark rate is not a tender; and the feature’s contract recommendations are not legal advice for a particular project.
The series is a quarterly AECOM publication produced with BCSA and Steel for Life, and is intended to support cost planning and comparison. Issue #32 should therefore be read as a dated edition in that series, not as the latest available market update. SteelConstruction.info’s series and news page provides publication context; later issues, including #36 in July 2026, were available after #32.
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What did the June 2025 issue forecast for UK construction?
The issue reported forecasts for growth in total UK construction output of 1.9% in 2025 and 3.7% in 2026, based on recent Construction Products Association (CPA) forecasts. Elsewhere, it separately said that UK growth forecasts for 2025 had been revised down to 1.0%. Those are distinct statements in the issue and should not be merged into one figure or presented as though either were a confirmed outturn.
| Measure reported in Costing Steelwork #32 | Figure | How to read it |
|---|---|---|
| Total UK construction output growth forecast | 1.9% in 2025; 3.7% in 2026 | CPA forecasts as reported in the June 2025 issue |
| UK growth forecast for 2025, described separately | Revised down to 1.0% | A separate forecast statement in the issue, not a replacement for the total construction-output figures above |
| Infrastructure output growth forecast | 1.8% in 2025; 4.5% in 2026 | Forecasts reported in the June 2025 issue |
All figures in the table are forecasts reported in Costing Steelwork #32, not verified final growth rates. The issue cites CPA forecasts, but does not link to the precise underlying CPA document. The appropriate attribution is therefore to CPA forecasts as reported in the issue, rather than implying that the underlying publication has been independently examined here.
The market update described the start of 2025 as slow and erratic. It pointed to uncertainty around US tariffs and international trade as risks for the prices of globally traded products, and to investor caution. It also named contractor insolvencies—including ISG’s administration—delays involving the Building Safety Regulator on high-rise projects, and the availability and cost of skilled labour as pressures facing construction. These are the risks identified by the issue at that time; they are not a fresh assessment of conditions in November 2026.
How should readers interpret the materials and tender-price indices?
The materials chart and the AECOM Tender Price Index show different things. The first tracks selected construction-material price indices; the second presents tender-price index data. Both need their dates and bases attached when quoted, and neither should be treated as a current price quote.
The materials chart is captioned with a 2015=100 base and credits DBEIS. It plots monthly observations from August 2018 through January 2025. Its lines show fabricated structural steel and reinforcing bar rising sharply in 2021–22 and then falling toward roughly 145–155 by early 2025. That range is only an approximate visual reading of the chart, not an exact tabulated statistic. Use the chart to understand the broad movement shown, not to claim a precise index value or a price for a particular steel product.
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The AECOM Tender Price Index also uses 2015=100. The issue’s quarterly table contains historical values for 2021–24 and forecasts for 2025–27. The forecast entries are projections, not observed results. If citing a value, identify the relevant quarter and call it the AECOM Tender Price Index as printed in the issue; state clearly if the entry is a forecast. The available data does not supply the individual quarterly values, so they are not reproduced here.
How do you use the steelwork cost benchmarks?
Choose the frame type closest to the project, add the applicable floor-system rate and the required fire-protection allowance, then apply a BCIS location factor if needed. The result is a comparative frame rate per square metre—not a tender price, a guaranteed budget, or a substitute for project-specific cost advice.
- Select the closest frame type. The issue provides steel-frame rate ranges for different frame types. Select the nearest relevant option rather than treating one generic rate as suitable for every building.
- Add the floor system. Include the rate for the floor system relevant to the project. A frame-only figure and a frame-plus-floor figure are not like-for-like comparisons.
- Add the required fire protection. Use the allowance that corresponds to the required protection duration. The issue’s worked example uses 60-minute protection; it should not be assumed to apply where a different requirement is specified.
- Adjust for location where appropriate. The issue instructs users to adjust rates, if necessary, using BCIS location factors appropriate to the project location. It reports those factors as at Q2 2025.
- Keep the scope and date attached to the result. Record the selected frame, floor, fire-protection duration and any location adjustment. That makes the comparison interpretable and prevents a benchmark from being mistaken for a project-specific quotation.
The issue illustrates the addition with a typical low-rise frame, using the mean of each stated range: £173.50/m² for the frame + £114/m² for the floor + £34.50/m² for 60-minute fire protection = £322.00/m². The arithmetic demonstrates how the components combine. It does not establish the price of a current project, and the location factor may change the comparative figure.
AECOM’s caveat is important: the rates “should be used for comparative purposes only and should not be used or relied upon for any other purpose without further discussion with Aecom.” The issue also says to adjust, if necessary, using the BCIS location factor for the project. A project estimate may need current supplier pricing, design information, scope checks and other project-specific inputs that a benchmark table cannot provide. For other uses of the data, follow the issue’s instruction to discuss them with AECOM.
What does “Ditch the risk switch” mean for specialist contracts?
It means that a client or contractor should not use extensive amendments to a standard contract simply to pass risks down to a specialist firm that may have limited ability to control, price or insure them. Deborah Harrison argues that standard forms are intended to establish a fair, proportionate allocation of risk, while heavy amendment can make the supply chain less collaborative and contract administration more expensive.
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The feature focuses on amendments to JCT and NEC forms and the practice of shifting risk through the supply chain. If a specialist contractor receives a long list of changes, its team may have to spend substantial time identifying the effects, obtaining advice and negotiating wording. That work adds cost before the work is delivered. If the amended terms allocate a risk to the specialist without giving it meaningful control over the cause or a realistic way to price or insure the exposure, the contract may also create disputes rather than prevent them.
“Excessive amendment of standard forms – especially on risk allocation – undermines conflict avoidance.”
— Deborah Harrison, BCSA legal director, in the June 2025 Costing Steelwork #32 feature.
The practical comparison is not simply “standard form good, amended form bad.” A project may need changes to reflect its scope, interfaces, programme or commercial arrangements. The issue’s warning is about excessive or disproportionate changes, especially where the amendment transfers risks to a party unable to manage them. A focused amendment that clarifies responsibilities can be useful; a broad transfer of poorly defined exposure may instead increase uncertainty and negotiation friction.
How can a team review amendments without creating avoidable disputes?
Use a structured review to connect each amendment to a real project need, the party able to control the risk, and the practical consequences for payment and delivery. Harrison’s feature recommends avoiding excessive amendments and risk switching, carefully reviewing contractual changes, respecting payment terms and maintaining a collaborative approach.
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- Identify the risk owner. Ask which party can prevent, manage or mitigate the event described by each clause. Risk allocation is more workable when responsibility is aligned with practical control, rather than being passed downstream by default.
- Check whether the specialist can price or insure it. A clause may transfer an exposure without providing enough information or commercial opportunity for a specialist to account for it. If the answer is unclear, raise the issue while the wording is being negotiated rather than assuming the risk will be absorbed.
- Separate necessary changes from inherited boilerplate. For each amendment, determine what project problem it addresses and whether the wording is proportionate to that problem. Removing unnecessary changes can reduce review effort and preserve the predictability that standard forms are designed to offer.
- Review the combined effect, not just individual clauses. A set of changes may affect notices, programme obligations, payment, liability and dispute processes in interacting ways. Have the relevant contract specialists assess the package as a whole.
- Keep negotiation collaborative. Discuss the operational reason for a change and seek wording both parties can administer. The feature’s concern is that adversarial amendments can undermine conflict avoidance and make disputes more likely.
These are practical questions arising from the feature, not a legal checklist that replaces advice. The applicable position depends on the contract, the parties, project type and jurisdiction. The source refers to the Procurement Act 2023 and the Small Business Commissioner’s Fair Payment Code, but its discussion should not be treated as a current, complete statement of legal requirements. Check current guidance and obtain project-specific legal review before relying on a clause or statutory payment rule.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What does the issue say about payment?
The feature calls for respect for payment terms, refers to a stated 30-day payment requirement on public projects, and encourages prompt payment more broadly. It presents prompt payment as part of fairer specialist-contract practice, alongside proportionate risk allocation and collaboration.
Do not turn the feature’s brief reference into a universal rule for every UK contract. Payment obligations can depend on the applicable legislation, contract structure, project and jurisdiction, as well as any current amendments to relevant rules or guidance. The issue’s reference is a prompt to verify the rules that apply to the specific procurement and subcontract, not a substitute for doing so. It also notes that BCSA offers free contract reviews as a member service; availability and terms should be confirmed directly with BCSA.
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It is useful when a reader needs to understand what market concerns and forecasts were being reported in mid-2025, or wants a consistent starting point for comparing frame types and cost components. It can also prompt a project team to examine whether specialist-contract amendments allocate risk fairly and support timely payment.
It is not a source of November 2026 market forecasts or current tender prices. Its 2025–27 tender-index entries are forecasts in a June 2025 publication, and its location factors are reported at Q2 2025. Nor should a comparative steelwork rate be used as a project budget without the further discussion and project-specific checks the issue itself calls for. Read the relevant table notes, keep the date and scope with every figure, and seek current cost and contract advice before making a live procurement decision.
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The issue’s value is in showing how to think about the comparison: distinguish market measures, combine frame and floor and fire-protection inputs consistently, adjust for location where needed, and question risk transfers that a specialist cannot reasonably control. That framework remains more useful than lifting a single dated rate or forecast out of context.
Frequently Asked Questions
Where can I get the full Costing Steelwork #32 PDF?
The issue PDF is hosted by SteelConstruction.info and contains the market update, cost data and specialist-contract feature. Building also lists the sponsored-content article describing the issue, but the PDF is the source for its tables and charts.
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Is Costing Steelwork #32 the latest issue?
No. It is the June 2025 edition, and later issues were published, including #36 in July 2026. Use #32 for what it reported at that date, and consult the series page for newer editions when you need a more recent snapshot.
Can I use the £322/m² example as a budget for a steel frame?
No. It is a worked comparative example based on the mean of three ranges and a specified floor and 60-minute fire-protection allowance. A project budget needs current, scope-specific information and any relevant location adjustment.
Does the article provide legal advice on JCT, NEC or payment terms?
No. It summarizes recommendations from a BCSA feature and notes that legal requirements depend on the project and current applicable rules. For a live contract, have the wording and payment obligations checked by an appropriately qualified adviser.
