Latest figures suggest that the construction industry is experiencing a healthy upturn in contracts in recent weeks.
According to the latest edition of the ‘Economic & Construction Market Review’ from Barbour ABI, construction contracts totalling £5.5billion were awarded in January 2020 based on a three-month rolling average, which represents an 18. 5per cent increase on the previous month and a 2.1 rise on the same period last year.
During January 2020, infrastructure saw the largest increase in contracts, with a 42.7 per cent share of awards. The residential property sector experienced the second largest share with 25.5 per cent of all contracts.
London maintained its top position, receiving 32.5 per cent of all construction contract awards. The nation’s capital was also awarded the second largest single value contract – the £1billion Silvertown Tunnel project – second only to the £2billion Dogger Bank Wind Farm project which was finally signed off in January.
Tom Hall, Chief Economist at Barbour ABI and AMA Research, said: “January’s strong contracts awards data suggests construction industry activity may be starting to respond after a clear general election result and the UK’s exit from the EU finally occurring, even if it is largely symbolic at this early stage.
“Whether the fog of uncertainty descends again as the upcoming UK-EU talks commence remains to be seen. Positive signs, such as the approval of HS2, indicate growth for the sector but at the moment it is too soon to tell whether January’s increase will convert into a sustained boom for the industry.”
Adam Davis, a Partner with Palmers who specialises in construction law, said: “These figures are very positive news for the construction industry and will hopefully lead to continues growth and opportunities for local construction and engineering sub-contractors in our region.
“Our experience in working with the construction and engineering sector means we are ideally placed to provide independent, practical advice to help firms with their contracts, as well as tender submissions.”
For help and support on contract submissions and project delivery compliance, please contact Palmers specialist construction team.