Local authority
construction opportunities improving as projects in the community and amenity
sector are finally showing signs of improvement after years of decline brought
on by austerity cuts.
In an uncertain year
for construction as a whole, the underlying value of projects in this sector
starting on site actually edged up by 3% in 2019 according to Glenigan’s market
intelligence.
This was driven by
substantial increases in new work in Northern Ireland, Wales and also the West
Midlands, where projects such as a £38 million refurbishment of Wolverhampton’s
Civic Centre got the go-ahead.
The Wolverhampton
development stalled when the original contractor, Shaylor went bust, but
Willmott Dixon has taken on the work for the city council and is expected to
start on site this month (Glenigan Project ID: 19438069).
Willmott Dixon’s
Wolverhampton development is a rare major project moving forward in this
sector. Many of the schemes that helped edge up starts during 2019 and are also
driving work earlier in the pipeline are smaller in size, but often longer-term
in nature.
In December, for
example, Corrigenda started work on a £3.5 million mechanical measured term
deal for Southampton City Council that should run for the next five years
(Project ID: 19265799). A host of other long-term council-led frameworks are
also moving through the procurement process.
Sandwell
Metropolitan Borough Council has started prequalifying on a £3.2 million lift
maintenance framework (Project ID: 19419709), while Staffordshire County
Council is also looking for contractors for a windows and door replacement
framework (Glenigan Project ID: 19442771).
Councils spend
around £18 billion a year on construction according to the Local Government
Association. This total includes spending on swathes of projects in the
education and infrastructure sectors, which are also showing signs of steady
improvement but not all community & amenity spending is by councils.
A number of
crematorium schemes are also coming on line, including a £2.7 million scheme at
New Cannock Chase for Horizon Cremation, which should start this summer
(Project ID: 18374963).
A £3.5 million
crematorium in Blackwood is expected to start in the New Year after the client,
Crematorium Management awarded the construction contract to Cardiff-based
contractor Encon (Glenigan Project ID: 18444748).
Councils are also
spending money in this sub-sector, such as Coventry City Council’s £2.1 million
refurbishment of Lodge Cemetery, which should start this summer (Project ID:
19427817). Ayrshire Council is also refurbishing its main cemetery, Knadgerhill
(Glenigan Project ID: 19428895). Glenigan’s market research shows that both
schemes are out to tender.
Work is also moving
through the planning system and increasing at a faster rate than the value of
work moving onto site. Glenigan’s data shows that the underlying value of
projects securing detailed planning permission in the community & amenity
sector leapt by 21%.
This augurs well for
the future and shows there are opportunities going forward in a no longer
beleaguered sector.
