According to data gathered by Barbour ABI, the value of total construction contracts awarded in the UK last year reached £74bn, up 16% from 2014's total of £64bn.
However, there was a 4.7% decrease in number of contracts awarded that Barbour ABI recorded, from 12,440 in 2014 to 11,857 in 2015. This resulted in the average construction project value increasing by 18% to £6.2m for the year.
An example of some of the large projects commissioned in 2015 include the £1.3bn Rampion offshore wind farm, the £1bn Thames Tideway Tunnel and a £330m extension of Walney offshore wind farm. The infrastructure industry had a bumper year, increasing its total contract value by 47% to £18.9bn.
Barbour ABI lead economist Michael Dall said: “The return of the ‘higher value project’ has certainly been one of the biggest focal points for construction in 2015. Confidence seems to have returned for many of the larger companies within the industry, who must have felt that the time was right in 2015 to start commissioning mega projects that should provide a boost to the industry for years to come.
“It’s also clear that the number of large offshore wind farm projects has had a major effect on the infrastructure sector and its success last year, boosting construction in general with a major increase in contract value.
“However, the question remains as to whether the construction industry has the supply, principally skilled labour, to deliver on these contracts awarded in the timescales envisioned. Solving these supply side problems will be critical for constructions prospects in 2016 and beyond.”
|
Year |
Overall construction value |
|
2013 |
£62 billion |
|
2014 |
£64 billion |
|
2015 |
£74 billion |
|
Year |
Total construction contracts |
|
2013 |
11,271 |
|
2014 |
12,440 |
|
2015 |
11,857 |
|
Year |
Average construction project value |
|
2013 |
£5.5 million |
|
2014 |
£5.1 million |
|
2015 |
£6.2 million |
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