For the first time in a couple of years, despite softer market activity, the global professional services company has raised its tender price inflation (TPI) forecast, with its (UKMI) report.

Real estate forecasts in the UKMI have gone up from 3.5 to 3.75% through both this year and next year. Infrastructure tender pricing is anticipated to increase from 5.0 to 5.25% through this year and the following year. 

Total new work output recorded in the second quarter of this year was 6.1% down from the same period in 2025, with new orders down by 18.1% over the past year.

James Darrie, strategic lead for Scotland at Turner & Townsend, said: “Scotland’s construction market reflects many of the trends we’re seeing across the UK. 

“While overall activity levels remain mixed, demand associated with infrastructure investment, the energy transition and other major programmes continues to compete for labour, specialist skills and key materials.

“As a result, project teams need to look beyond national output figures and understand the realities of their local market.”

Darrie added: “Headline data can mask very different conditions on the ground, with contractors and specialist suppliers becoming increasingly selective about the opportunities they pursue.

“For organisations planning investment in Scotland, early engagement with the market is more important than ever. 

“Projects that are well-defined, backed by realistic delivery programmes and supported by balanced commercial arrangements will be better placed to secure the skills and capacity they need.”

Softer market activity in commercial and residential is being countered by investment in sectors including major infrastructure and energy programmes and data centres.

Two-thirds of contractors surveyed by Turner & Townsend said they are focusing on strengthening profit margins over growing revenue, signifying risk aversion in the supply chain.

The company is calling for clients to more closely evaluate contractor capacity and appetite in the regions and sectors where they intend to build, and to also start engaging early.  

The company asserts that well-developed designs, clear scopes and carefully balanced contractual arrangements will make projects more appealing and secure the supply chain required for progression.