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Infrastructure grows in January

February 2019

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        We continue to see that the infrastructure sector remains open to considerable volatility in monthly contract award values.  However, looking at the trend over the last two years, the sector remains relatively robust with contract awards consistently above the £500 million threshold.

        The latest edition of our Economic & Construction Market Review is now available to Barbour ABI clients.  This month details that construction contracts awarded in January was £5.5 billion, 9.9% higher than December 2018.

        Looking at how these were awarded across the sectors, residential was the largest with a 28% share.  This was followed by infrastructure with a 21% share and then the commercial & retail sector with a 20% share.

        The largest contract awarded in January was the £400 million Paddington Cube in London, within the commercial & retail sector.  This development covers 49,676 sq m of office and retail space and was awarded to Mace Limited.

        The second largest contract was within the hotel, leisure & sport sector and was for the Manchester Town Hall redevelopment valued at £330 million.

        Hinkley Point C Connection Project was the third largest contract awarded.  This project will provide an overhead power line to connect Hinkley with substations in Bridgwater and Avonmouth.  Valued at £214 million, the project was awarded to Balfour Beatty.

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