The latest information from Builders’ Conference shows that both the number and value of contracts awarded in October fell to the second lowest level recorded in the last 12 months. The industry will be hoping that the recent Budget will provide a welcome boost for the sector with confirmation of investment in infrastructure including £11.5 billion for affordable homes, £7.6 billion for road upgrades and maintenance, and £5 billion for the remediation of unsafe cladding.
Continued Reduction in Number of Contracts
The number of contracts awarded in October decreased for the third month in a row to 362. This is 18% down on the previous month (441), 30% lower than the monthly average over the last year (527) and a 25% reduction compared to October 2020 (485). Against this backdrop, the industry will be looking for the Budget to deliver on the Chancellor’s promise of an ‘infrastructure revolution’ and generate increased construction activity over the coming months.
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
details of its various media channels and events, together with access to our downloadable database of those with responsibility for procurement at key firms.
Value of Contracts Decreases
The value of contracts awarded in October was £4.7 billion, which was 33% lower than the monthly average recorded over the last year (£7 billion). It was also 27% down on the value awarded in October 2020 (£6.4 billion).
82% of all the contracts awarded by value were in the private sector. There were 127 housing projects worth £2.2 billion (46%), including a £380 million development in Bermondsey Place, South London, 54 education projects totalling £730 million (15%), the largest of which was a £220 million project to expand Sheffield Hallam University, and 47 office projects with a total value of £485 million (10%).
England dominated again with 91% of the value, over a third of which was in London.
Tender Opportunities Remain Scarce
The number of tender opportunities available in October was 350, which was slightly higher than September (345). However, it remains 48% below the monthly average of 667 projects available for tender between October 2020 and September 2021.
At present, there are only 222 tender opportunities available until the end of January 2022, according to Builders’ Conference.
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