
3 minute read
The UK construction sector continues on a positive trajectory amid economic climate woes
from AccessPoint Issue 22
by AccessPoint
In the midst of political upheaval, escalating energy and materials costs and labour shortages, the UK construction sector continues to deliver results above the expected norm for a traditionally quiet time of the year. How long this will last remains to be seen.
August 2022
In the midst of the traditionally slow holiday period, August was another upbeat month.
In what is traditionally a quiet month, the BCLive league table hit an impressive and unseasonal £6.2 billion. Kier Group landed an impressive haul of 21 new projects. The largest of these is a £400 million new build of a prison at Full Sutton, York.
Morgan Sindall reported 34 new contract awards worth a cumulative £320 million to take the number two position for August 2022. VolkerWessels secured six new contract awards worth a combined £301 million to take third position in the BC Live league table.
House-building took top spot, reporting 136 new projects for a total of £1.89 billion, the water and sewage sector contributed £505 million to the monthly total, which was further boosted by the factory and education sectors which contributed £325 million and £316 million respectively.
Regionally, London clung on to the top spot, reporting 99 individual projects worth a combined £1.45 billion. But Yorkshire (£666 million) Scotland (£566 million) and the North West (£492 million) all enjoyed a positive month. Sadly, the same cannot be said for Wales which just passed the £121 million mark.
June 2022
Construction contract awards for June 2022 hit a very healthy £5.9 billion. But with the number of contracts and the number of companies winning contracts markedly down on the previous month, it is difficult to paint this in a wholly positive light.
On the face of it, a monthly BCLive league table total that fell just a whisker short of £6 billion should be cause for celebration. However, the number of contracts recorded in June 2022 was down 19%, and the number of contractors winning work was down by 20%.
Despite this, the team at Winvic bagged the biggest single contract of the month: a £1 billion project for the construction of a mammoth industrial hub in Cannock, Staffordshire for client Oxford Properties. Coming in second place is a joint venture between Wates and Kier. The JV picked up six new contract awards during the month worth a total of £504 million. Kier Group secured third place with 15 new contract awards worth £337 million. The largest of these is a £300 million design and build contract for a new dual carriageway at the A417 in Cirencester.
Regionally, London failed to break the £1.0 billion mark, accounting for just £815 million split across 92 individual projects, and was beaten into third place by the South West (£1.22 billion) and the West Midlands (£1.2 billion). Scotland delivered £223 million in new work while Wales contributed just under £37 million.
July 2022

Against a backdrop of political upheaval, escalating fuel and materials costs, inflationary pressure and a rise in the number of liquidations, the UK construction sector once again posted monthly results that were above the accepted norm.
July saw more than £5.7 billion in new contract awards. Kier Group took the top spot courtesy of a 23-project haul valued at a combined £679 million. Taking the number two position was Sir Robert McAlpine who secured £567 million in new work split across three individual projects. Lendlease took the number three position with four new projects valued at £503 million.
Regionally, London reported £2.7 billion of new work split across 94 individual projects. The East and West Midlands reported £160 million and £1 billion respectively and Scotland slipped back to just £76 million across 18 projects.
The office sector finally wrestled the top sector crown away from housebuilding with a tally of £1.7 billion compared to housing’s £1.4 billion and the roads sector jumped to £862 million. However, health and education continue to lag behind with just £159 and £326 million. So despite all that is going on in the world, the UK construction sector is looking good well into the Autumn.
Quite how long the UK construction sector can remain removed and unmoved by the wider economic climate remains to be seen. But, for now, at least, the separatist sector continues to bask in positivity while fear and concern gathers all about them.
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