The pace of change in the economy has been breathtaking, and between the publication of our third and fourth quarter forecasts, our prognosis has shifted from a slowing rate of price growth to price decreases in many sectors and regions of the country.

While falling inflation and price reductions will reduce the affordability problems that many projects are facing, such a rapid reversal in fortunes brings its own challenges. A low price of entry does not automatically equate to an affordable project and well advised owners may choose to review their project risk allowances at the same time as they reduce their inflation budgets. Both owners and project teams have an important role in creating conditions for success, and fully designed schemes that have been de-risked from the perspective of both the client and contractor will give all parties the best chance of a successful outcome. Now is not the time to attempt to deliver high risk projects on the back of low bids, based on an incomplete design.