Key Points
- New research from construction and property management consultant Rider Levett Bucknall (RLB) finds that Scotland’s construction market is continuing to “hold strong”.
- RLB’s Construction Market Intelligence Q3 2026 report identifies public-sector and infrastructure investment as important foundations for Scottish construction activity.
- Energy, defence and data centres are identified as important long-term drivers of construction activity across Scotland.
- Strong project pipelines are supporting workloads and infrastructure tender pricing, although funding approvals and delivery timescales remain important factors in converting planned projects into work on site.
- Commercial and residential development remains more subdued, with viability pressures contributing to stalled projects and delayed investment decisions.
- Infrastructure tender prices have remained robust, reflecting strong pipelines and continuing input cost pressures.
- RLB expects construction input cost inflation to ease heading into 2027, despite continuing uncertainty associated with the conflict in the Middle East.
- Martin McConnell, RLB partner for Scotland, said that there are reasons for “cautious optimism” looking towards 2027.
- McConnell also warned that labour availability in civil engineering and specialist trades, particularly in remote locations, will remain an important consideration.
- RLB’s Q3 report forms part of its wider analysis of UK construction activity, costs, tender prices, regional markets and sector-specific trends.
- RLB’s report was published on 17 September 2026 and is authored by Paul Beeston, RLB’s Partner and Head of Industry and Service Insight.
- Separate coverage by Kenneth Booth of BDC Magazine highlighted wider findings from the same RLB report, including a softer national demand outlook and a reduction in RLB’s weighted-average 2026 Tender Price Index forecast from 3.98% in Q2 to 3.54% in Q3.
The Scottish construction market is showing resilience through public-sector and infrastructure investment, with energy, defence and data centres providing important sources of activity, while commercial and residential development continues to face viability pressures. According to Project Plant’s report of 23 September 2026, based on Rider Levett Bucknall’s Construction Market Intelligence Q3 findings, Scotland’s market is “holding strong”, although funding approvals, project delivery timescales, input costs and labour availability continue to shape the outlook.
What does the latest research say about Scotland’s construction market?
New research from Rider Levett Bucknall (RLB) has identified a mixture of resilience and continuing challenges in Scotland’s construction industry.
As reported by Project Plant on 23 September 2026, RLB’s latest Construction Market Intelligence Q3 report found that the Scottish construction market is “holding strong”. The report points to public-sector and infrastructure investment as a strong foundation for activity, while highlighting energy, defence and data centres as significant long-term drivers.
The findings suggest that the Scottish market is not experiencing uniform conditions across every part of construction. Instead, investment and workload are being supported by specific sectors while other areas, particularly commercial and residential development, remain under pressure.
RLB’s research therefore presents a market in which the strength of the project pipeline is important, but where the timing of investment decisions and the ability to move projects from planning and approval into physical construction remain significant considerations.
Which sectors are driving construction activity in Scotland?
According to Project Plant’s coverage of the RLB research, energy, defence and data centres are among the important long-term drivers of Scottish construction activity.
These sectors are contributing to workloads and helping to support tender pricing. Public-sector and infrastructure investment also provides a degree of continuity for the market.
The significance of infrastructure is particularly relevant because major infrastructure programmes can generate longer-term construction demand compared with projects that depend more heavily on short-term commercial viability.
RLB’s wider Q3 2026 report, authored by Paul Beeston, examines construction conditions across the UK and includes regional analysis covering Scotland alongside London, the Midlands, the North East, the North West, Northern Ireland, the South East, the South West, Wales, and Yorkshire & Humber.
RLB says its research combines national economic data with specialist insight from across its UK network and examines construction activity, construction costs, tender price forecasts and sector-specific trends.
Why are commercial and residential developments more subdued?
The latest Scottish findings also highlight a more difficult picture for parts of the private development market.
Project Plant reports that commercial and residential development remains more subdued, with viability pressures contributing to stalled projects and deferred investment decisions.
This distinction is important because a strong infrastructure pipeline does not necessarily translate into equivalent levels of activity across every construction segment.
Development projects can depend on a combination of financing conditions, expected returns, construction costs, demand and wider economic confidence. When viability becomes more difficult to demonstrate, developers may postpone decisions or delay projects until market conditions improve.
RLB’s findings therefore point to a Scottish construction market where infrastructure-led activity can remain comparatively resilient while some commercial and residential schemes face more uncertainty.
How are tender prices performing in Scotland?
Tender prices for infrastructure have continued to hold up robustly, according to the latest RLB research reported by Project Plant.
The report attributes this resilience to strong project pipelines combined with continuing input cost pressures.
Tender prices are important to developers, contractors, consultants and clients because they influence the cost at which construction work can be procured. Changes in tender pricing can affect project viability, procurement decisions and the timing of investment.
The latest findings indicate that strong demand in particular infrastructure-related areas is continuing to support pricing, even while the wider construction environment remains uncertain.
RLB’s broader Q3 2026 report also says that regional and sector-specific pockets of growth are emerging against a national backdrop of softer demand. The report is intended to help developers, investors and construction professionals understand current market conditions, future demand and emerging opportunities.
Could construction input cost inflation ease in 2027?
One of the reasons behind the cautious outlook for Scotland is the expectation that input cost inflation will fall heading into 2027.
Project Plant reports that RLB expects input cost pressures to ease despite the continuing effects of the conflict in the Middle East.
Construction input costs can influence project budgets and tender prices through the cost of materials, labour and other resources required to deliver projects. A reduction in the pace of cost inflation could therefore provide greater predictability for projects and investment decisions.
However, RLB’s Scottish analysis does not suggest that all cost-related risks have disappeared. Instead, the expected easing in input cost pressures is one factor contributing to the more positive outlook towards 2027.
What did Martin McConnell say about Scotland’s construction outlook?
Martin McConnell, RLB’s partner for Scotland, said the market has reasons for cautious optimism when looking towards 2027.
As reported by Project Plant, McConnell said:
“Looking towards 2027, there are reasons for cautious optimism as input cost pressures are expected to ease, but labour availability in civil engineering and specialist trades, especially in remote locations, will remain an important consideration.”
McConnell’s comments identify two contrasting forces affecting the Scottish construction market.
On one side, easing input cost pressures could create a more favourable environment for projects as the industry moves towards 2027. On the other, the availability of appropriately skilled workers remains a constraint.
The reference to remote locations is particularly relevant to Scotland, where major infrastructure and energy developments can take place in areas where access to specialist construction labour may be more limited.
Why does labour availability remain an issue for Scottish construction?
Labour availability remains an important consideration for the Scottish construction industry, particularly in civil engineering and specialist trades.
RLB’s findings indicate that even where there is a strong project pipeline, the availability of people with the necessary skills can influence how quickly projects can be delivered.
This means that construction demand and workforce capacity need to develop alongside one another. A growing pipeline does not automatically mean that every planned project can progress at the same pace if contractors face difficulty securing specialist workers.
The issue is also relevant to project planning because labour availability can affect procurement, scheduling and delivery timescales.
For organisations involved in construction projects, understanding workforce requirements, project coordination and delivery planning is therefore increasingly important as infrastructure activity develops.
How important are funding approvals and delivery timescales?
The RLB research also highlights the importance of funding approvals and delivery timescales.
Project Plant reports that these factors will determine how quickly the existing project pipeline can translate into work taking place on site.
A project can appear within a construction pipeline without immediately becoming an active site project. Funding must be secured, approvals completed, procurement undertaken and contractors appointed before physical construction can begin.
This creates a distinction between potential future workload and confirmed activity.
For Scotland’s construction sector, the continued strength of the infrastructure pipeline therefore provides a positive foundation, but the timing of approvals and delivery remains an important variable.
What does RLB’s wider Q3 2026 report say about the UK construction market?
RLB’s Construction Market Intelligence Q3 2026, published on 17 September 2026 and authored by Paul Beeston, provides a broader UK perspective.
RLB describes the report as an analysis designed to help developers, investors and construction professionals understand current market conditions, future demand and emerging opportunities.
The report considers UK economic conditions, construction pipeline prospects, construction costs, input cost trends and tender price forecasts. It also provides regional analysis and sector snapshots covering commercial, data centres, education, healthcare, logistics and manufacturing, public and civic projects, residential, retail, sport, and utilities and energy.
RLB says its latest findings show a nuanced UK picture, with regional and sector-specific pockets of growth existing alongside softer national demand and continued effects from geopolitical uncertainty.
This wider context helps explain why Scotland’s infrastructure-led resilience can exist alongside weaker conditions in some development segments.
What did BDC Magazine report about the same RLB research?
Further coverage of RLB’s Q3 report was published by BDC Magazine, with the article written by Kenneth Booth.
Booth reported that the latest RLB research showed sector and regional “bright spots” despite a softer national demand outlook beginning to affect tender prices.
According to BDC Magazine’s coverage, RLB’s weighted-average Tender Price Index forecast uplift for 2026 moved from 3.98% in Q2 to 3.54% in Q3.
The BDC Magazine report also said that RLB had identified continuing differences between sectors, with advanced technology and data centres continuing to progress while capital in areas such as residential had shifted away from development.
Booth also reported RLB’s assessment that construction output stabilised at 0.3% in Q2, driven by repair and maintenance and infrastructure spending.
The report described supply-chain businesses as adapting to input cost pressures, including through cost absorption, while noting that contractors remain attentive to the risks associated with the projects they undertake.
What does the wider market evidence mean for Scottish construction?
The combined findings indicate that Scotland’s construction market is being supported by a number of relatively strong areas, particularly infrastructure and sectors connected with long-term investment.
Energy, defence and data centres are significant because they can support substantial construction activity and create demand for specialist capabilities.
At the same time, the weaker position of some commercial and residential developments demonstrates that the market remains sensitive to viability.
The outlook is therefore not one of unrestricted growth. Instead, RLB’s findings point to a market where the strength of particular investment pipelines is being balanced against funding, delivery, cost and workforce constraints.
That distinction is central to understanding the phrase “cautious optimism”.
What could shape Scotland’s construction market through 2027?
Several factors are likely to remain important as Scotland’s construction market moves towards 2027.
The first is the expected easing of input cost pressures. If construction cost inflation moderates as anticipated by RLB, developers and contractors may have greater visibility when assessing project budgets.
The second is the progress of funding approvals and project delivery. A strong pipeline can provide substantial potential workload, but projects must move through approvals, procurement and mobilisation before they generate activity on site.
The third is workforce availability. Martin McConnell specifically identified labour availability in civil engineering and specialist trades as an important consideration, with remote locations presenting additional challenges.
The fourth is the performance of commercial and residential development. Viability pressures remain an obstacle in these segments, meaning that the pace at which stalled or deferred projects return to the market will be significant.
Finally, continued investment in infrastructure, energy, defence and data centres will remain an important source of construction demand.
For organisations involved in planning and delivering major building and infrastructure programmes, these developments underline the importance of structured Project Management, procurement knowledge and technical understanding within Construction and Civil Engineering. The evolving requirements of infrastructure and energy projects also make professional knowledge relevant to Oil and Gas and other major engineering environments, particularly where construction, project delivery and specialist technical disciplines overlap.
What is the outlook for Scottish construction heading into 2027?
The latest RLB research presents a Scottish construction market with clear areas of resilience but also significant constraints.
Public-sector and infrastructure investment continues to support activity, while energy, defence and data centres are identified as important long-term drivers. Infrastructure tender prices have remained robust, supported by strong pipelines and input cost pressures.
However, commercial and residential development remains more subdued, with viability pressures contributing to stalled projects and deferred investment decisions.
The expected easing of input cost inflation provides one reason for a more positive outlook towards 2027. Yet labour availability, particularly for civil engineering and specialist trades in remote areas, remains an important consideration.
As reported by Project Plant, Martin McConnell’s assessment is therefore one of “cautious optimism” rather than certainty. The Scottish construction market has a strong base of investment and project opportunities, but the speed at which those opportunities become physical construction activity will continue to depend on funding, viability, delivery timescales, costs and workforce availability.