Awards for schemes under 拢100m have fallen by 15% in three months, new study finds
Contractors are finding it increasingly hard to find work as the economic outlook worsens, with the number of main contract awards for jobs valued under 拢100m shrinking by 15% since August.
The number of smaller construction jobs awarded was down by 13% compared to the same period last year, according to new figures by data provider Glenigan covering the three months to the end of October.
Project starts have also crashed, with those valued less than 拢100m plummeting by 17% in the last three months to a level 13% lower than last year.
However, the report found a jump in project starts and main contract awards for larger projects, those valued at more than 拢100m.
Starts on these schemes rose by 28% on the preceding three months and were 19% higher than a year ago, while awards grew by 20% since August and were 24% higher than a year ago.
Detailed planning approvals for projects of all sizes also rose by 29% in three months and were 22% higher than last year, pointing to a potential future recovery in work pipelines.
鈥淯K construction continues to be buffeted by myriad external headwinds, many of which are entirely out of the industry鈥檚 control,鈥� said Glenigan economic director Allan Wilen. 鈥淗owever, it was encouraging to see a significant uplift in major projects over the period covered by the Review.鈥�
Yesterday, the latest crane survey by Deloitte found nearly half of developers had reported softening demand for office space in the six months to September.
The survey also found many developers were letting their net zero targets slip amid growing caution about the economic outlook.
This month the Bank of England said it expects the UK is entering a two-year recession, the longest since records began in the 1920s.
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