Construction tender opportunities continue downward trend
Research by Builders Conference has found that construction tender opportunities fell 23% during April and there are only 217 tender opportunities available until July 2020. Partnering with Build UK, the research highlights weakening forward workload during the coronavirus crisis.
Builders’ Conference, a trade body providing members with market intelligence, says that between April 2019 and March 2020, an average of 621 contracts have been won. However, this fell to 524 contracts in April 2020, this is 16% below the average. It is a decrease of 23% in comparison to March 2020 and 32% when comparing to April 2019.
Although the number of contracts awarded fell in April 2020, the value of contracts increased to £9.7 billion. This was 62% higher than the monthly average of £6 billion awarded between April 2019 and March 2020; however, it included two significant infrastructure contracts with a combined value of £3.7 billion.
In total, £4.3 billion (44%) covering just 27 rail and road projects and £3.2 billion (33%) includes 279 housing projects. The final £2.2 billion (23%) spreading across 218 other projects.
Minister for Business and Industry Nadhim Zahawi confirmed on an industry conference call last week that the Government will be looking to accelerate public sector construction projects as part of the coronavirus recovery plan. The news that HS2 has issued its ‘Notice to proceed’, together with confirmation from Highways England of £27.4 billion investment in the road network, reinforces that commitment to investing in infrastructure across the UK.
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