While the picture varies from state to state, the common theme in Rider Levett Bucknall's Oceania Construction Cost Commentary for the six months to October 2008 is widespread concern over availability and cost of funding for major construction works.
The report notes an emerging trend of tender prices being lower than expected, despite the higher costs, as uncertainty grows about forecasts for the order book.
The trend is more pronounced in less active markets, particularly Melbourne, where tender prices are forecast to increase by 3.5 per cent this year and next.