John Burns, chief executive of Derwent London, said: 鈥淐onstruction cost inflation remains high and capacity constraints on many contractors have seen delays across the industry including at some of our schemes.鈥�
He said that he expected it to continue at close to 10% in London throughout 2016.
In November Derwent London agreed a fix-price contract price of 拢116m with Laing O鈥橰ourke for its Brunel Building development in Paddington. This sets the overall capital expenditure to complete at 拢122m.聽