Builders Conference Build UK: Construction Activity Holds Steady

The latest information from Builders’ Conference shows that the number of contracts increased again in February, despite it being the shortest month of the year. Whilst the value of contracts dipped slightly, it was broadly in line with the monthly average recorded over the last 12 months. Although the remaining coronavirus restrictions have now been lifted, construction like all sectors is going to be affected by the war in Ukraine and there may be an impact on construction activity over the coming months.

Number of Contracts Increases Slightly

The number of contracts awarded in February was 451, a 6% increase compared to January (424) and the highest number recorded in a month since August 2021. However, it is still 7% lower than the monthly average over the last year (484) and 25% down on last February (600) when the country was still in lockdown.

Value of Contracts Remains Consistent

The value of contracts awarded in February was £6.1 billion. Whilst this is 3% down on the previous month (£6.3 billion), it is consistent with the monthly average over the last year (£6.2 billion). It was 24% lower than February 2021 (£8 billion) but this included a number of large housebuilding and mixed-use development projects, making it difficult to draw a comparison across the two years.

The Marketing to Contractors & Housebuilders feature (which is sponsored by South East Construction Expo) in the Sectors section of our Directory provides an overview of the sector, including
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78% of all contracts awarded by value were in the private sector. Overall, there were 152 housing projects worth £2.4 billion (39%), the largest of which was a £320 million project to build over 1,200 homes in Watford; 64 office projects totalling £684 million (11%); and 56 education projects worth £524 million (9%).

England continued to dominate, recording 86% of the value. London accounted for 26% of the total, followed by the West Midlands (9%) and the North West (8%). Scotland represented 8% of the total value, whilst Northern Ireland (3%) outperformed Wales (2%) for the first time in years, thanks to a £200 million contract for a transport hub in Belfast.

Lack of Tender Opportunities

The number of tender opportunities available in February was 330. This was 9% lower than January (361) and 49% below the monthly average of 641 projects available for tender between February 2021 and January 2022.

At present, there are 225 tender opportunities available until the end of May 2022, according to Builders’ Conference.

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