Too Little, Too Late - June 2020 review & commentary of construction contracts researched by Builder

The government is once again looking to construction to lead the nation out of recession with the promise of a £5 billion infrastructure cash injection.   But that undertaking arrived too late to help boost the contract award totals researched by Builders’ Conference and highlighted on its unique BCLive league table for June 2020.  Builders’ Conference CEO Neil Edwards looks over some gloomy if unsurprising figures.

Prime Minister Boris Johnson took a break from public displays of vim, vigour and push-up prowess to promise a £5 billion cash boost for the infrastructure sector in the hope of restoring some much needed confidence in the wider construction sector.   Welcome though that announcement is, it did little to detract from a beleaguered set of monthly statistics from validated research carried out by Builders’ Conference that saw the BCLive league table fail to break the £4 billion benchmark that had been the established norm for more than two years.

It is indicative of the relatively lowly nature of the BCLive league table that the top spot was secured with a single contract valued at just £250 million.   That contract (together with the number one position) was secured by Vinci Construction and is a new build of some 500 flats for client Muse Developments next to Manchester’s Victoria Station.   This project will comprise two buildings of 20 and 25 storeys and is the first phase in a wider scheme that will ultimately include a seven-storey office block.

The £170 million project to construct a new headquarters for banking giant Santander propelled Sisk Group to the heady heights of second position on the BCLive league table for June.   That new HQ in Milton Keynes will include event space for staff training and community events, a range of health facilities, a fitness centre and a rooftop running track.   A flexible collaboration space will also be made available to local businesses and community organisations.

Storming into an unfamiliar third place on the BCLive league table is Ballymore Properties, courtesy of a single £150 million contract.   That project is a mixed-use development at Brent Way in Hounslow that includes residential, retail, community and leisure facilities.

Galliford Try claimed fourth position with a three-contract haul valued at a combined £142 million.   The largest of these is an £85 million residential new build in Tottenham Hale for client Argent.

Also enjoying the rarefied air near the top of the BCLive league table in June is Mount Anvil with a single £120 million new build of almost 1,000 new residential units at The Verdean in Ealing.   

Meanwhile, in a month in which each of the top 11 companies on the BCLive league table picked up more than £100 million in new contract awards, Ardmore Construction which took sixth position also with a single £120 million project for a mixed-use development new build in London’s Hammersmith.   That development will include a four-screen cinema, café and shops built on the existing cinema and car ark site together with 204 new affordable homes.

Kier Group maintained its record of winning approximately a contract for each working day of the month, bagging 21 worth a combined £109.5 million to take the number eight position, just behind Acorn Property Group in seventh with £111 million.

With a total of nearly £1.6 billion, housing once again led the way in the sector standings, followed in a distant second place by offices with £571 million.   With the road and rail sectors contributing just £74 million and £20 million respectively, Boris Johnson’s planned cash boost for the infrastructure sector could not have come at a better time.

In the regional run-down, London once again claimed the top spot however it fell short of its usual £1 billion mark with just £972 million.   This is offset by fine performances in the North West and South West regions that contributed £652 and £549 million respectively.

Boris Johnson’s infrastructure cash pledge came too late to salvage the sector stats in June 2020 research by Builders’ Conference and we live in an age in which £5 billion is a small drop in a very large ocean.   But there is hope that – if nothing else – it will be seen as a shot in the arm for industry sentiment.   And, having been in complete or partial lockdown for the past three months and with holidays likely to be held in abeyance, there remains a possibility that the industry might just see a resurgence rather than the slowing that traditionally accompanies the summer months of July and August.   Stranger things have happened.

Quick review of BCLive table for June 2020

256 no companies were detailed as winning new contracts during June 2020

415 no new construction orders were researched by Builders’ Conference all detailed on our UNIQUE BCLive league table

Vinci Construction secures overall top spot with £250 million of new orders

Kier Group secured most number of new construction orders in the month with 21no totaling £250 million

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Download BCLive Full Table of Construction Contracts Researched by Builders’ Conference HERE

Watch our CEO Neil Edwards below talking June 2020 construction contracts with Mark Anthony from the Business Briefing at the Demolition Daily


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