Prices of construction services up again

In August 2026, construction services in Slovenia continued their upward price trend, with average costs rising by 1.7 per cent compared to the previous quarter. This marks the second consecutive quarter of increased pricing in the sector, following a 3.8 per cent increase in the first quarter of the year. Over the past year, prices have climbed by 8.6 per cent, reflecting a sustained inflationary pressure within the industry. The data reveals varying degrees of cost increases across different segments of the construction sector. The most pronounced rise was observed in civil engineering projects, which saw a 2.3 per cent increase, while specialized construction works recorded a slightly lower growth of 1.5 per cent. Residential building work experienced a 1.6 per cent increase, down from 5.1 per cent in the prior quarter. Notably, road and railway construction saw a sharper rise, climbing 2.6 per cent, driven largely by material and labor shortages. Within the category of specialized construction services, final construction works registered the highest increase at 2.5 per cent, although this figure remained below the 3.8 per cent recorded in the previous quarter. Preparatory works on construction sites showed minimal growth, with a mere 0.5 per cent increase, indicating limited activity in this area during the reporting period. Installation services, however, experienced a more substantial rise of 1.3 per cent, suggesting ongoing demand for these specific services. Over the past year, the overall inflation rate in the construction sector has reached 8.6 per cent, with residential building services leading the charge at 10.4 per cent. Civil engineering projects followed closely behind, with a 7.8 per cent increase, while specialized construction services averaged an 8.0 per cent rise. These figures highlight a broad-based expansion in costs, affecting nearly all aspects of the construction process. Comparing the current quarter’s performance against the same period last year, the rate of price growth has slowed somewhat. While the annual inflation rate stands at 8.6 per cent, the quarterly increase of 1.7 per cent suggests a moderation in the pace of cost escalation. This could be attributed to seasonal factors or adjustments made by contractors in response to economic conditions. Industry experts suggest that the persistent upward movement in construction costs is primarily driven by supply chain disruptions, rising material prices, and a shortage of skilled labor. These challenges have been exacerbated by broader macroeconomic trends, including inflation and interest rate hikes. As a result, project budgets are under increasing strain, prompting some firms to reassess their tendering processes and contract terms. Looking ahead, stakeholders anticipate that the upward trend in construction costs will likely continue, albeit at a slower pace. With ongoing uncertainties surrounding global markets and domestic policy changes, the sector faces a complex landscape. Contractors are advised to maintain close monitoring of input costs and to consider alternative sourcing strategies to mitigate financial risks. The government is also expected to review its support measures for the construction industry, potentially introducing new incentives aimed at stabilizing the market.