Business barometer Commercial projects worth 拢170m propel contractor past Kier

Skanska raced to the top of the contractors鈥 league last month with a strong performance in the commercial sector, where it scored 拢170m worth of work.

The workload, which was spread across five projects, lifted Skanska from 23rd place to overtake Kier, which was pushed into second place with 拢133.3m of work.

Kier also secured most of its work in the commercial sector, with 拢73.5m coming from commercial clients. This reflected the continuing strength of the sector, which provided 拢959.5m of the industry鈥檚 拢1.8bn workload throughout the month.

The housing market, in comparison, provided only 拢289.6m of work, which is evidence that recent rises in interest rates are beginning to cause a market slowdown.

Among those that did benefit from the housing sector was Apollo Group, which secured two large housing wins totalling 拢40m of its 拢53.2m workload. These included a 拢20m contract for Stevenage Homes in Hertfordshire and a 拢20m scheme for London Borough of Newham in east London.

Bangor-based Watkin Jones Construction also scored a significant win in the sector, a 拢30m housing scheme in Birmingham for Carlton. This pushed the regional contractor up to 19th place in the league.

Another regional contractor that performed well in August was Leadbitter, which secured a brace of leisure centre wins to push it to 11th place from 24th last time, with 拢63.2m of work. A leisure contract worth 拢17.9m for Corby council also helped boost Willmott Dixon鈥檚 performance, with the contractor rising to sixth place from 17th in July.

Skanska remained top when civils work was included, with 拢13.7m of work in the sector pushing its total workload to 拢184.1m. This put it ahead of Balfour Beatty, which won 拢166.4m of work 鈥 enough to keep it top of the rolling annual league with almost 拢3bn of work spread across 739 projects.