The prediction comes as tender prices dropped another 2.2% during the first quarter of this year.
Figures from the UK construction Tender Price Index, compiled by the Building Cost Information Service (BCIS) of RICS, show bids fell by a full 1% more than predicted during the quarter.
Peter Rumble, BCIS Information Services Manager, said: “With input costs rising, contractors have little downward flexibility in their tender prices, and we believe they are close to bottoming out.
“However, this is likely to lead to a modest rise in building tender prices next year followed by further increases throughout the forecast period to the first half of 2017, as demand growth beings to return.”
Tender prices are now just 4% above the low in early 2010.
But input costs have risen by 7% since then leaving contractors unable to absorb any further costs.