Information centre operators planning builds in London might face continued value and programme stress in 2026, as demand for specialist mechanical, electrical and public well being (MEP) subcontractors outstrips provide.
That’s in response to AECOM’s newest London Foremost Contractor Survey, which polled major contractors with a mixed turnover of £6 billion. The report suggests the market has turn into extra aggressive, however not cheaper, with the vast majority of contractors sustaining margins and passing on labour and materials value will increase by tender pricing.
AECOM additionally factors to higher-than-average inflation of three% (versus HM Treasury’s 2.2% forecast) and rising expert and unskilled labour prices as components behind low short-term confidence amongst contractors – circumstances that usually hit MEP-heavy tasks first.
Most notably for information centres, the survey says rising demand is ‘straining the already deeply restricted availability’ of MEP subcontractors, driving up costs and competitors. It provides that some contractors are responding by growing in-house MEP functionality to assist tasks.
“Inflation and labour shortages proceed to hamper an more and more aggressive London building market” mentioned Brian Smith, Head of Value Administration and Business at AECOM.
“This 12 months’s survey exhibits contractors are balancing the necessity to safe work with managing threat publicity. As competitors intensifies, some are ready to tackle better threat, equivalent to committing to lengthy programme durations, to win work, whereas others are prioritising lower-risk alternatives with trusted companions. The problem for 2026 will probably be sustaining stability by strengthening the trade’s resilience and labour capability forward of what’s anticipated to be a dynamic 2027.
“One rising development we’ve recognized this 12 months is the trialling of AI by contractors. If AI turns into extra deeply built-in of their operations, the potential advantages are more likely to speed up quickly as contractors search for new methods to drive efficiencies.”
