The latest UK construction Tender Price Index compiled from The Building Cost Information Service (BCIS) of the Royal Institution of Chartered Surveyors (RICS) showed bid prices were static.
Industry experts think contractors may be willing to absorb some of the increases in input costs expected over the next year, in a bid to get work.
Building costs in Q4 2011 remained largely unchanged compared to the previous quarter, rising by just 0.3%t, with material costs falling by 0.4%.
There was little sign of improvement in the labour market, with employment in the construction industry increasing by just 0.2% per cent compared to the previous quarter.
Only 2% of contractors reported problems in recruiting skilled labour, compared with the pre-recession levels of 60-80%.
Average weekly earnings rose by an annual 1.4%, lagging behind the national average of 2.1%.
Peter Rumble, BCIS Information Services Manager said: “Despite the further expected fall of new work output in 2013, tender price increases in the year to Q1 2014 are expected to keep more in touch with input cost increases, with contractors more reluctant to absorb these for another year.
“We anticipate tender prices then rising in line with input costs in 2014 as growth begins to return, with them increasing a little faster than input costs in 2015 and 2016.”