Barbour ABI’s Economic & Construction Market Review found that the total value of contracts awarded in the sector last year exceeded £61 billion.
According to the monthly release, £61.6 billion worth of construction contracts were awarded; however, this is 13.1% down from the levels recorded in 2017, which itself saw a 0.6% rise in contract awards from 2016.
The Economic & Construction Market Review – put together based on a three-month rolling average – revealed that the value of construction contracts are at a similar level to 2013.
The number of contracts awarded also fell in 2018; at 10,352, this is a decline of 8.2% from 2017. November and October saw huge increases in the number of contracts awarded. However, the overall 2018 data suggests that the upturn was not quite enough to change the wider trend.
According to the Economic & Construction Market Review, the number of construction contracts peaked in 2014, at 12,440; since then, there has been a downturn of 16.8%, with Barbour saying that last year saw a ‘significant’ decline.
In terms of regions, London was the best performing, with a 19.4% share of the contracts awarded, compared to 20% in 2017.
Residential, and commercial & retail sectors were responsible for some of the largest contract awards in the capital in 2018, with the Spire development at West India Quay the largest residential award, costing £800 million.
The largest commercial & retail project awarded last year was the £650 million House of Commons Northern Estate refurbishment.
Elsewhere, the North West and South East both benefited from a 12% share of projects awarded, while Scotland enjoyed an 11% share.
In the North West, the residential sector accounted for the largest contract award – the £159 million project for the refurbishment of 256 houses, retail units and a neighbourhood centre at Preston Road in Longridge.
The largest project handed out in 2018 came in the East Midlands, and was in the utilities sector for the £1.8 billion project that will see the development of an offshore wind farm at Triton Knoll in the Greater Wash basin.