The total value of published UK construction projects has more than doubled from £11bn in Q2 to £25bn in Q3 this year, according to a new report by procurement services firm Constructionline.
The 127% value increase has been driven by significant new public infrastructure investments, with education, energy and health projects accounting for the largest construction pipeline values in the third quarter.
Conversely, the number of published projects fell from 849 in Q2 to 654 in Q3 (a 23% decrease).
The top three investments are a £15.4bn programme to build new schools, the £600m Wren Hall energy centre in North Yorkshire, and the Royal Victoria Hospital in Belfast, worth £389m.
The report also notes that construction activity is no longer concentrated in the South East of England, with regional markets showing strong growth in both project pipelines and contract awards.
In Yorkshire, published opportunities more than doubled, from £464m in Q2 to £1bn in Q3, driven by major projects such as Wren Hall 400kV converter station; Wellington Plaza, a new-build office scheme; and St Mary’s Menston Catholic Voluntary Academy.
Scotland recorded continued growth in the third quarter, with the number of projects awarded increasing from 40 in the previous quarter to 60, representing a total value of £217m.
‘Robust future for the industry’
Scott McVey, commercial director at Constructionline’s parent company Once For All, said: “Our Q3 data reveals an interesting shift towards larger, high-value contracts that are currently dominating the UK construction market.
“The £25bn pipeline indicates a robust future for the industry, but also a growing need for contractors to ensure they have the financial and compliance credentials necessary to secure a slice of the available opportunities.
“The report also underscores that the public sector, specifically education, health and energy, is the primary driver of this high-value activity, so a focus on supplier pre-qualification and compliance remains paramount.”
