As global construction leaders face rising cost pressures, digital construction strategies play a key role in reshaping project delivery.
Global construction costs are forecast to increase by 2.4% in 2026, according to Currie & Brown’s latest industry outlook, placing cost management and digital construction project delivery at the centre of decision-making across international markets. While cost escalation remains moderate in many regions, uncertainty across labour supply, trade, energy pricing and policy environments is creating delivery risks that demand greater agility from project teams.
The report, Construction in 2026: Where Certainty Comes from Agility, highlights how organisations in the digital construction sector must move beyond simple cost forecasting towards data-led, technology-enabled planning to maintain control over programme, procurement and investment outcomes.
UK construction market cost forecast and delivery pressures
The UK construction market is forecast to see construction cost escalation of 3.6% in 2026, placing it mid-range compared with global markets. Public investment continues to support activity, yet slow economic growth and high borrowing costs have weakened developer confidence. Many schemes remain financially marginal, leading to phased project commitments rather than immediate full-scale delivery.
Nick Gray, Chief Operating Officer, UK and Europe at Currie & Brown, explains: “Cost increases in the UK remain moderate, but uncertainty is holding the market back. Many projects are only just viable, so development is moving carefully, often step by step. The Autumn Budget did little to shift that trajectory. It fell short for construction, offering no new tax incentives, increasing pressure through wage and tax changes, and providing scant detail on housing or digital infrastructure investment.
“In this environment, agility is essential. The ability to adapt quickly helps teams respond sooner, make firmer decisions, and avoid delays before they become costly.”
For UK digital construction firms, this environment reinforces the need for accurate cost intelligence, early design decisions and integrated project delivery systems that reduce exposure to future disruption.
Global construction cost escalation trends in 2026
Across most international markets, construction cost growth is expected to fall between 2% and 6%, driven by continued infrastructure, healthcare, data centre and industrial investment. However, regional conditions vary widely.
China is forecast to experience flat construction costs, pulling down the global average, while Japan faces possible escalation between 10% and 12% due to labour shortages and material supply constraints. These differences demonstrate how local economic and workforce factors shape cost outcomes in global construction markets.
Alan Manuel, Group Chief Executive Officer at Currie & Brown, notes: “In 2026, we’re predicting moderate cost escalation across most markets. But the real challenge comes from how quickly this picture can change.
“This volatile environment means that resilience is more important than ever. And that resilience comes from planning for change early. That means using data to test options, using technology to spot pressure sooner, and being clear about what must be fixed and what needs to stay flexible.”
How digital construction supports agile project delivery
The report outlines practical steps organisations can take to manage construction cost risk while improving delivery confidence in uncertain markets:
- Establish realistic cost and programme assumptions early using current market data and benchmarking.
- Plan for several credible delivery scenarios while locking in critical elements early.
- Assess labour and supplier capacity across locations before final procurement decisions.
- Confirm project phasing and long-lead items early to limit later exposure.
- Deploy digital construction technologies that improve cost visibility and accelerate decision-making.
- Digital construction tools, including BIM-enabled cost modelling, data-driven procurement and integrated programme management platforms, are increasingly supporting faster responses to emerging risks across complex supply chains.
Agility becomes the foundation for construction delivery in 2026
With moderate global construction cost growth expected but volatility rising, the focus for project sponsors and contractors is shifting from prediction towards resilience. Organisations that combine market intelligence with digital construction delivery methods will be better positioned to manage cost escalation while maintaining programme certainty.
Agility supported by data and digital construction practices will help organisations control costs, manage risk, and deliver projects confidently across uncertain global markets during 2026 and beyond.
Read next: AI in construction market set to reach US$32bn by 2033 – Build in Digital
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