Log in | Register
04/06/2020

36% decline in construction contracts value in April

Words: Laura Edgar
Decrease / iStock-109190483

The value of construction contract values totalled £4.4 billion, based on a three-month rolling average, a decline of 36.4 per cent compared with March 2020, according to statistics published by Barbour ABI. 

This total is also 16.1 per cent lower than April 2019 and the lowest monthly total since June 2018.

Contract awards numbers in April fell by 45.5 per cent to 314, which is around 68.7 per cent below the recent high point of 1,003 in February 2020. 

The statistics are published in the latest edition of the Economic & Construction Market Review from industry analyst Barbour ABI.

The infrastructure sector dominated the share of contract awards with a total of 31.2 per cent. The two largest infrastructure contract awards – and largest contracts overall – were the A30 Chiverton to Carland Cross (valued at £210 million) and the Bridgwater Resource Recovery facility.

Barbour ABI explained that since it reported in April, 33 of projects awarded contracts – worth a total value of £178 million – are now on hold.

Tom Hall, chief economist at Barbour ABI and AMA Research, commented: “We expected a large fall in contract awards for April, however, we are seeing increasing on-site activity as large projects reopen. The infrastructure sector has been less impacted than other sectors, leading to hopes of an infrastructure-led recovery towards the end of the year. We will continue to monitor closely the impact the current situation will have on the future pipeline of contract awards. Nonetheless, we expect to see a continued decline in contract awards in the short term.”

The full report can be found here on the Barbour ABI website.

Image credit | iStock

Tags