Main contract awards fall but rise significantly on 2020 and 2019 figures

The value of main contracts awarded slipped 1% in the three months to July against the previous three months but were 82% up on a year ago and 43% above the same period in 2019. Major contract awards rose by 11% against the previous three months and were three and a half times higher than a year ago and 98% ahead of the same period in 2019. Underlying contract awards have been more stable, rising by 9% (seasonally adjusted) on the previous three months to stand 51% up on a year ago.

Here we look at main contract awards performance across all sectors of the construction industry in the three months to July 2021.

Housing sector main contract awards

Residential main contract awards totalled £11,293 million during the three months to July, a 51% increase against the previous year and 19% growth compared to the same period in 2019. Underlying contract awards were strong, having climbed 52% against the previous year and 17% compared with the preceding three months (seasonally adjusted) to stand 43% higher than the same period in 2019. While major contract awards, at £1,320 million, were 43% higher than a year ago the value fell 48% compared with 2019 levels.

Industrial sector main contract awards

Adding up to £2,033 million, the value of industrial main contract awards climbed 128% against the previous year and 61% compared with the same period in 2019. Major-project contract awards, at £659 million, largely influenced growth against both the previous year and two years ago when no major-projects reached the contract awarded stage. Underlying contract awards totalled £1,374 million and declined 11% against the preceding three months (seasonally adjusted). However, the value climbed 54% against the previous year and 9% compared with the same period in 2019.

Office sector main contract awards

Office main contract awards totalled £1,718 million, growth of 70% compared to a year ago and 36% against the same period in 2019. Underlying contract awards performed strongly and increased 102% against the previous year and 20% compared with 2019 levels to total £1,523 million. Underlying contract awards also increased 51% against the preceding three months on a seasonally adjusted basis. Major contract awards added up to £195 million and declined by a quarter compared with the previous year.

Retail sector main contract awards

Totalling £608 million, underlying retail main contract awards climbed 30% against the previous year and 42% compared with the preceding three months (seasonally adjusted) to stand 9% higher than the same period in 2019. No major projects reached the contract awarded stage during the period, remaining unchanged on both the previous year and the same period in 2019.

Hotel & Leisure sector main contract awards

Totalling £1,392 million, hotel & leisure main contract awards increased 112% against the previous year and 38% compared with the same period in 2019. Growth was due to underlying contract awards which, at £1,272 million, increased 94% against the previous year and 81% against the preceding three months (seasonally adjusted basis) to stand 49% higher than 2019 levels. Major project contract awards totalled £120 million and, while they were up on the previous year when no major project awards occurred, they were 20% lower than the same period in 2019.

Health sector main contract awards

Health main contract awards added up to £1,148 million, 37% growth against the previous year to stand 119% higher than during the same period in 2019. Underlying contract awards totalled £988 million increasing 68% against the previous year, 15% compared with the preceding three months on a seasonally adjusted basis, and 89% up on the same period in 2019. Major contract awards fell 36% against the previous year to total £160 million. No major projects reached the contract awarded stage during the same period in 2019.

Education sector main contract awards

Totalling £1,184 million, underlying education main contract awards increased 60% against the previous year. Despite this, the value remained unchanged on the preceding three months (seasonally adjusted) and declined 18% compared with the same period in 2019. No major projects reached the contract awarded stage, although this was unchanged against the previous year and the same period in 2019.

Community & Amenity sector main contract awards

Totalling £526 million, community & amenity main contract awards climbed 223% against the previous year and 112% compared with the same period in 2019. Growth was largely influenced by major project contract awards which, at £202 million, were substantially higher than both a year ago and the same period in 2019 when no major projects reached the contract awarded stage. Underlying contract awards, totalling £324 million, were also strong and increased 99% against the previous year and 29% compared with the preceding three months (seasonally adjusted) to stand 31% up on 2019 levels.

Civil Engineering sector main contract awards

Totalling £7,856 million, civil engineering main contract awards increased 174% against the previous year and 126% compared with the same period in 2019. Major project contract awards, at £5,796 million, were very strong having increased 527% against the previous year and 289% compared with 2019 levels. Underlying project contract awards added up to £2,060 million, an increase of 6% against the previous year and 2% compared with the preceding three months (seasonally adjusted) to stand 3% higher than two years ago.

Glenigan customers can get a full view construction performance in the three months to July in the August 2021 Glenigan Construction Review to be found in your Insight pages.

Not a Glenigan customer but would like to see this comprehensive construction review? Please download the August 2021 Glenigan Construction Review here.