It argues for investment decisions to be ‘made not delayed’, and for project teams to secure their supply chains to help tackle stubbornly high inflation.

Despite continued headwinds, the cost consultant has revised up tender price forecasts in its Spring report .

Real estate inflation is set to increase to 3.2% this year, up from the 2.7% it previously predicted in December, while infrastructure remains at 4.5%.

T&T pointed to the high cost of borrowing, as well as a mismatch of the skills needed in the sector for its belief the industry will see resurgent price pressure.

While redundancies and unemployment have risen as demand falls, there are still acute specialist skills shortages, which are keeping labour costs elevated.

The consultancy also predicts that better times for the sector are just around the corner.

T&T says the current recession is due to be short-lived and shallow and is advising clients to make the most of the present lower contract demand while mitigating the remaining challenges.

It also warns against the temptation to put too much contractual risk onto suppliers – instead working collaboratively to understand and share the potential impacts.

Martin Sudweeks, UK managing director of cost management at Turner & Townsend, said: “While the construction sector is still facing a host of complex challenges, there is plenty of room for optimism in 2024.

“Even as we head into a period of political and economic unknowns, built asset investment decisions are now being made, not delayed.

“This is not to say we’ve got an easy ride ahead of us.  We still face structural issues, particularly the pressing skills shortage.

“To ensure growth while prices remain high and the future uncertain, effective cost and project management will be crucial.

“The greatest exposure to political uncertainty will run through the supply chain – so clients need to better understand their suppliers to identify and share risk.

He said: “New contracting strategies, more robust procurement, and careful apportioning of risk through project teams will be essential.”