A new report produced for FIS Members by Barbour ABI indicates that the total value of construction contract awards in October was £4.9 billion based on a three month rolling average. This is a decrease of 9.4% on September and follows three consecutive months of good growth (see fig. 2.3). Annual comparison shows it is also 1.1% lower than for October 2019. In the three months to October 2020, total contract awards were valued at £14.7 billion which is 75.7% higher than for the previous quarter and is also 1.3% higher than for the comparable quarter ending October 2019.
There was an increase of 8.7% for contract award numbers this month at 871 compared to September. Annual comparisons show marginal (0.8%) improvement.
Project by Region
The North West was the leading region in October with 19.8% of awards and a total of 120 projects. The second largest region was London with value share of 13.8%, whilst tying for third place was the East of England and Scotland both with 11.1% of awards (see fig. 2.2).
Cumbria was the location for the largest contract award in October which was the £175 million Woodhouse Colliery Cumbrian Deep Coal Mine and which was awarded to Hargreaves Services. The second largest award this month was the £126.7 million Gull Wing Lake Lothing Third Crossing in Lowestoft and the successful contractor was Farrans Construction. The One City Road Redevelopment in Manchester was the third largest award at £121.4 million which was awarded to Marshall Construction (West Yorkshire).
Types of Project
The residential sector maintained its leading position in October accounting for 36.8% of contract awards and 202 projects. Underpinned by some major civils awards, infrastructure was the second largest region this month with 22.2% of awards and 131 projects. Accounting for 14.3% of awards and 148 projects, the commercial and retail sector was the third largest in October.
The leading residential award was the £94 million Strawberry Place development in Newcastle upon Tyne which will include 328 flats as part of a mixed use development and was awarded to Tolent Construction. The Metallurgical Coal Project Woodhouse Colliery was the largest infrastructure project valued at £175m which will see the development of a new Cumbrian deep coal mine. The largest commercial and retail award this month was the £121.4 million One City Road Redevelopment
in Manchester where Marshall Construction (West Yorkshire) will provide 48,570 sq m of new office space.