BCLive data shows new contract awards in August 2016 were 12.5% above the previous month and 29% up on the same month last year.
It now appears that the downturn in work seen earlier this year was caused more by the uncertainty surrounding the event of the EU referendum, rather than the result of the vote. This is in much the same way that every general election leads to a slowdown in construction contracts being released, and then a return to normal business once the government is in post. This is the traditional shape of events, regardless of whether it is a blue, red or coalition government returned.
We will not see the real impact of the referendum, if any, until the UK has actually left the European Union.
, the construction industry purchasing managers鈥� index (PMI) for August bounced back to 49.0 鈥� close to the 50.0 no change score 鈥� after being deeper in negative territory for June and July.
Now we can report that the Builders鈥� Conference BCLive contracts league table also shows an industry rebounding, with 拢3,312m of new construction contracts being awarded during August 2016, compared to 拢2,944m in July and to 拢2,568.7m in August 2015.
That鈥檚 a 12.5% gain month-on-month and a 29% rise year-on-year.
Top of the league for August 2016 was LendLease, whose three contracts signed during the month were collectively worth 拢229.5m. Its biggest 鈥� and the biggest for anyone during the month 鈥� was a 拢200m contract to build 450 apartments in Nine Elms, London.
ISG was only narrowly beaten into second place with 11 new contract awards worth a combined 拢226.1m. The largest of ISG鈥檚 new contracts was a 拢62m order for a new science block at Imperial College London.
BCLive Contracts League Top 20 for August 2016 (click on image to enlarge)
Builders鈥� Conference chief executive Neil Edwards said that the construction sector still needed action from the government if it is to avoid a slip back towards recession. 鈥淚f ever there was a time for bold leadership, then that time is now,鈥� he said. 鈥淚f the UK government is to offer the construction sector the reassurance it so clearly craves, it must get off the fence, loosen the purse strings and give the green light on projects such as Hinkley C, HS2 and an additional London airport runway. Not only will this create and safeguard jobs on those contracts, it will help restore the confidence so damaged by the Brexit vote and it might just avert a slip back into recession.鈥�
BCLive Contracts League Top 20 for rolling year to 31st August 2016 (click on image to enlarge)
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