Construction Contract Awards Falls by a Quarter

The value of new construction contracts awarded in the UK fell by 24% in November.

Data collected by the Builders’ Conference shows that the total value of all new construction contracts awarded last month was £3.36 billion, in comparison with £4.4 billion in October, which is a fall of almost a quarter.

A similar rate of decline is seen when compared with the number of contracts awarded in the previous year, with the total value of new construction contracts signed in November last year standing at £4.37 billion.

The slowdown in November has had an impact on the rolling year total for the BCLive league table, which at this time last year stood at a record-breaking £57 billion. Today, it is down by 23% to £43.8 billion.

Graham Construction topped the league for November, with a £192.5 million total haul. The biggest of these was a £150 million order for the refurbishment and construction of several civic buildings for the London Borough of Barnet.

However, the table was close at the top. Sir Robert McAlpine came in a close second with a combined £184m of orders, including a £100m order from Nikal for the construction of five blocks of flats at Birmingham’s Exchange Square. Galliford Try came in third place with £180.2 million.

Neil Edwards, Chief Executive of Builders Conference, said: “The industry now enters the Christmas season and a month shortened by festive holidays and slowed by the usual round of office parties. So there is unlikely to be any last minute rally that will allow a gloomy year to end on anything other than a gloomy note.

“And sadly, that gloom looks set to stick around like the hangover and expanded waistline that is part and parcel of the Christmas festivities. In 2015, the BCLive league table identified – on average – 850 new tenders each month. In 2016, that average has plummeted to 650. Projecting forward, that threatens to throw up a very tough start to the New Year.”

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Issue 323 : Dec 2024