THE OVERALL VALUE OF construction contracts in 2019 held steady compared with 2018 at a total of £59.9 billion according to the research by Barbour ABI.
The figure itself is a small increase of 0.2% on 2018 which in turn was 15.7% lower than 2017.
Whilst contract awards values have levelled off in 2019, the value of £59.9 billion is about 20% lower than the peak of £75.1 billion achieved in 2015.
However the number of contract awards continued the trend of recent years and fell again to 9,580. This is a decrease of 7.3% on 2018 and is also 23.0% lower than 2014 when the number of contract awards peaked at 12,447.
Residential remained the leading sector in 2019, making up 38.4% of all construction contract awards, a slight 0.3% rise over 2018. The leading residential contract awarded during the year was the Nine Elms Parkside Plots B & D at Wandsworth in London, valued at £276.4 million.
The second largest sector in 2019 was infrastructure which had a 17.3% share of all contracts awarded. However, this is 2.0% lower than 2018. The largest overall infrastructure project awarded during 2019 was the £1.5 billion Sellafield SRP Process Facility.
Third largest in 2019 was commercial & retail with share of 12.7%, which is 0.5% lower than for 2018. The largest office award was the £400 million Paddington Square – Paddington Cube in London.
Tom Hall, Chief Economist at Barbour ABI and AMA Research said, “As we saw throughout 2019, development figures flatlined and a yearly round up shows similar levels to 2018.
“With the date for the UK to leave the EU less than two weeks away, and the future of HS2 hanging in the balance, uncertainty continues to engulf the construction industry.”