Today, Glenigan releases the May 2026 edition of its Construction Index. The Index focuses on the three months to the end of April 2026, covering all underlying projects, with a total value of £100 million or less (unless otherwise indicated), with all figures seasonally adjusted.  It’s a report which provides a detailed and comprehensive analysis of year-on-year construction data, giving built environment professionals a unique insight into sector performance over the last 12 months. The May edition continues the general theme of sector-wide decline, as the US-Iran War drags on, disrupting international supply chains.  Overall, the value of work starting on site in the three months to April fell by 9% and finished a fifth (-22%) below 2025 levels. Whilst the fall is less severe than seen during previous months, there’s a general fear that the industry is within the eye of the storm and these results are a harbinger of potentially worse to come, as the supply chain disruption really hits home. Aside from international turmoil, political in-fighting on the home front has led to policy stagnation and a lack of investor and consumer confidence means contractors and subcontractors are keeping their shovels clean until greater certainty returns. Commenting on the Index, Glenigan’s Economics Director, Allan Wilen said, “Construction markets are becalmed. Faced with heighted geopolitical uncertainty generated by the Iran War, investors are reassessing their development plans. Whilst a rise in office, retail and health projects helped stabilise non-residential starts during the three months to April, both residential and civil engineering starts continued to decline. Parliament has now been prorogued and hopefully the King’s Speech, which comes after a successful State Visit to the United States, will provide an opportunity to reassess and reset the national direction.” He cautions, “However, whatever the outcome of the coming weeks, there’s a general consensus that there will be fewer opportunities in the back half of this year, which also implies far fiercer competition. Savvy players will no doubt have strategies in place to capitalise on this risk and opportunity, and I’d urge those who are currently behind the curve to start seriously considering their own game plans and how they can stay afloat during an upcoming period of disruption. Niches, including data centres, purpose-built student accommodation and supermarkets, present pockets of growth and those than can either already service or diversify to meet requirements stand to weather the headwinds currently gathering force.” Taking a closer look at individual sectors and verticals… Sector Analysis – Residential Residential construction remains stuck in a downward spiral as buyers hesitate and demand continues to stagnate. Developers face massive economic pressures, coupled with steep regulatory hurdles and planning headaches, stifling activity. Glenigan’s data revealed that starts declined 8% during the Index period, falling a third(-33%) against 2025 figures. Drilling deeper, private starts plummeted 39% compared to last year, dropping 9% on the preceding three months. The fall for social housing was slightly less severe, dipping 4% against the previous three months and it fell 16% on last year. Sector Analysis – Non-Residential There were a few bright spots within the non-residential verticals which posted a relatively modest increase of 2% against the previous year and remained flat during the Index period. This slight uptick was predominantly driven by offices, which experienced an exceptionally strong period, rocketing 99% over the preceding three months and remaining an impressive 94% above 2025 results. According to Glenigan, this was largely driven by activity in the capital, with standout projects like the £50 million 105 Old Broad Street office refurbishment in the City of London contributing to growth. In other verticals it was a mixed bag. Encouragingly, retail increased 13% against the preceding three months, but this renewed momentum failed to make up for lost ground on 2025 levels (-9%). Likewise, health rose 12% compared to the previous three months but faltered compared to last year’s figures (-10%). Conversely, education fell 10% during the Index period but finished 12% up on 2025 results. Unfortunately, all other verticals saw substantial decline as the geopolitical turmoil started to really bite, disrupting vital supply chains, driving up costs and dampening confidence, inevitably leading to delays. As Glenigan’s data show, this was most acutely seen within civils where work starting on-site crashed, tumbling 42% against the preceding three months and seeing performance slashed almost in half (-47%) compared to the previous year. Diving into the detail, Infrastructure work starting on-site fell 19% against the preceding three months and declined by 48% on last year. Utilities fared even worse, nosediving 56% against the preceding three months and by 46% against 2025 levels. Community and amenity project-starts also registered a particularly poor period, cascading by over a third (-39%) during the Index period to stand 45% down on the previous year. Slightly less severe, yet still disappointing, Hotel & Leisure activity stumbled, having declined 32% against the preceding three months to stand 17% down against the previous year. Similarly, Industrial fared no better, falling 23% against the preceding three months, finishing 29% below the previous year. Regional Outlook Regionally, there were a handful of outliers with London experiencing a particularly robust Index period, soaring 25% against the preceding three months to finish 59% up on 2025 results. As previously noted, a strong performance in the office sector helped drive this growth. Northern Ireland was also in clover, rising 20% compared to the preceding three months to stand 53% up on the previous year. More modestly, yet no less impressive, the North East also performed well, posting a 14% increase during the Index period, up by almost a fifth against the previous year. Elsewhere, the picture painted was one of decline. The West Midlands experienced an especially poor period, declining 17% against the preceding three months and declining 36% against the previous year. The South West also performed poorly, declining 44% against the preceding three months to stand a dismal 60% down against the previous year. Not to be outdone, the South East also declined, by 17%

Royal BAM Group has reported a solid start to 2026, with revenue and adjusted earnings rising during the first quarter. The Dutch construction group said its order book remained steady at €13bn, while its solvency had improved and its cash position remained robust. The update also pointed to stronger profitability in the company’s UK construction division, supported by disciplined tendering and strong project delivery. Chief executive Ruud Joosten said BAM’s revenue and adjusted EBITDA had increased further in the first quarter, with both main divisions and Belgium contributing to the improved performance. He added that Construction UK had continued to strengthen its contribution, helped by the company’s selective approach to bidding and focus on execution. BAM said it is seeing strong opportunities across several key markets, including energy transition, infrastructure, defence, and sustainable and affordable housing. The group said these areas are being supported by government investment and initiatives in the Netherlands, the UK and Ireland. In the UK, BAM’s civil engineering arm continued to perform strongly, while the wider Construction UK business secured a number of new projects during the quarter. These included a contract for Wales High School in Sheffield, which is designed to meet net-zero operational standards, as well as the Eastwood Park Leisure Centre, theatre and library scheme for East Renfrewshire Council in Scotland. BAM has also been selected for the Department for Education’s multi-year CF25 school framework, strengthening its pipeline in the education sector. In addition, BAM’s Civil Engineering UK business secured a place on the refreshed Procurement Partnerships North West Framework. The results suggest BAM is entering 2026 with a stable order book, improving UK performance and a clear focus on sectors with long-term growth potential. Building, Design & Construction Magazine | The Choice of Industry Professionals

The Port of Dover has appointed a new group of contractors to support a long-term programme of civil engineering, marine and infrastructure works. The harbour authority has selected 14 firms across two multi-year frameworks, covering a wide range of projects including utilities, berth upgrades, highways, structures and building works. The appointments come as the UK’s busiest ferry port prepares for a major programme of investment to support future freight growth, ferry electrification and expanded cargo operations. FM Conway, Jackson Civil Engineering, Mitie and UK Power Networks Services were among the biggest winners, securing places on both the major projects and minor works frameworks. Knights Brown also secured positions on both agreements. The major projects framework will run for six years, until 2032, and will cover schemes valued at more than £3m. A separate four-year framework, running until 2030, will be used for projects worth less than £3m. Other firms appointed to the frameworks include Associated Asphalt Contracting, Blu-3, Concrete Repairs, Costain, CPE Projects, McLaughlin & Harvey, M Group Transport, REDEC Refurbishment and Walker Construction. The frameworks will play an important role in the Port of Dover’s wider modernisation plans. The port is currently progressing its Port of Dover 2050 masterplan, which aims to create a more efficient, sustainable and technology-led harbour. Planned investment includes improvements to ferry berths, expanded cargo handling facilities, upgraded roads and utilities, cruise terminal enhancements and new logistics development land. The new contractor line-up gives the port access to a broad range of specialist expertise as it prepares to deliver the next phase of its long-term transformation. Building, Design & Construction Magazine | The Choice of Industry Professionals

Hampshire Trust Bank (HTB) has provided a £13.5 million  facility to support the repositioning of the Kirkstall Brewery campus in Leeds, refinancing existing debt and partially repaying a previous lender. The 18-month facility is secured against a 664-bed former student village in Kirkstall. This comprises a 442-bed parcel with full planning consent for conversion into 151 Class C3 apartments, alongside 202 retained Purpose Built Student Accommodation (PBSA) beds, creating a scheme with multiple potential end uses across Private Rented Sector (PRS) and student accommodation. The structure provides time for asset management and stabilisation, enabling the repositioning of the scheme while maintaining flexibility across a range of exit routes. These include disposal or refinance of the PRS element, sale or long-term leasing of the PBSA accommodation, or a whole-site disposal. No development is planned during the loan term, with refurbishment of the PBSA element funded by borrower equity. The transaction builds on progress already achieved at the site, including the disposal of an eastern parcel to an institutional investor and a long-term lease agreed with Leeds City Council across part of the retained accommodation. The lease is expected to deliver approximately £2.5 million per annum of savings to the council over its term. Full planning consent was granted by Leeds City Council in November 2025 for the conversion of the PRS parcel, providing a clear basis for the next phase of the scheme. Introduced by Johnny Grassick, Associate Director at GLPG, the deal was led by Alexia Evans, Lending Director at Hampshire Trust Bank, supported by Olivia Emmett. Alexia Evans, Lending Director at Hampshire Trust Bank, said: “This was a scheme where the key consideration was how the asset would be managed over time, not just its position today. “With planning in place and clear progress already made, the focus was on structuring a facility that allows that to continue without forcing an early decision, while remaining aligned to how the site will be worked through in practice.” Johnny Grassick, Associate Director at GLPG, said: “There wasn’t a single, defined exit here, but that reflects the strength of the site. “With planning in place, a number of viable routes forward and progress already achieved on parts of the scheme, including the lease to Leeds City Council, the key was putting a structure in place that didn’t restrict those options too early. “This gives the borrower the flexibility to build on that momentum and take the right route as the scheme evolves.” Neil Leitch, Managing Director, Development Finance at Hampshire Trust Bank, said: “This type of transaction is becoming more common where the focus is on repositioning existing assets rather than moving straight into development. “Where planning is already in place, the emphasis shifts to how the scheme is managed, how income is stabilised and how the exit is delivered over time. “That requires a structure which gives the borrower the flexibility to work through those stages properly, rather than forcing a single outcome too early.” Building, Design & Construction Magazine | The Choice of Industry Professionals

LEADING digital framework specialist Pagabo has begun an open procedure by inviting contractors to compete for a place on its largest infrastructure procurement offering to date – the National Framework for Civil Engineering, Infrastructure and Enabling Works 2026. Once launched in September, the new framework with an estimated total value of up to £4.15bn will run for a term of four years and is compliant with the Procurement Act 2023 and Procurement Regulations 2024. The new offering will combine the scopes of the National Framework for Civils and Infrastructure and the National Framework for Demolition and Land Preparation, which both helped to establish Pagabo’s presence in the infrastructure sector and support public sector organisations with procuring transformational schemes. Following the formation of a 10-year strategic delivery partnership that will see resources, reputation and expertise combined to establish a new benchmark for construction procurement, this is one installment in a series of new frameworks being brought to market by Pagabo and YPO in 2026. YPO is the centralised procurement authority for the framework, while Pagabo is the framework manager responsible for design, delivery and ongoing management. Created to connect public sector bodies and private organisations with appointed contractors that will collaboratively deliver quality service and value for money outcomes, the framework agreement can be used by sectors such as local government, NHS and health service providers, blue light, housing and education. David Llewellyn, construction and infrastructure director at Pagabo, said: “Significant consideration has gone into the decision behind merging two of the existing frameworks that we manage. In doing so, we are able to streamline the procurement of important works covering civil engineering, infrastructure and enabling works, while ensuring the compliance, transparency and impactful delivery that our clients expect from us. “This open procedure is set to be a competitive opportunity for contractors across the UK, with the new procurement regulations and our own commitment to SME inclusion meaning that the very best quality businesses are able to deliver the public sector’s infrastructure ambitions. From new roads and rail routes, through to brownfield regeneration and energy supply transformation, this latest framework is going to be a vital procurement offering in helping the UK create new infrastructure that will improve connectivity and economic prosperity.” The closed framework includes 13 main lots, as well as geographical sub-lots that cover areas including England, Wales, Scotland, and Northern Ireland. Lots 2 to 9 and 11 to 13 will also be split into value bands, from £0 up to more than £5m. The core lot structure includes: Lot 1 and Lot 10 are for suppliers able to cover all project types in their respective services.   Operating a digital-first, end to end delivery model, the national procurement specialist’s Pagabo+ system will be used as a central platform through which all framework activity will be managed. The single environment will play host to information on and management of new opportunities, call-off activity, performance monitoring and reporting, as well as compliance assurance. Supporting with enhancement of the full lifecycle of procurement and project delivery, appointed contractors will also be able to use Pagabo Group’s social value and contract management platforms Loop and Sypro. The framework’s tender submission deadline is set for 12 June at 12pm, and interested parties can find more information online via https://in-tendhost.co.uk/pagabo/aspx/ProjectManage/1282 To learn more about Pagabo, visit www.pagabo.co.uk. Building, Design & Construction Magazine | The Choice of Industry Professionals