Build UK Daily Update
Source - Build UK
Build UK joined the latest industry conference call with Minister for Business and Industry Nadhim Zahawi yesterday, where he confirmed that Government is backing the Construction Leadership Council (CLC) Roadmap to Recovery. He said that:“it is the beginning of a long journey but by working together we should see a robust construction sector emerging from this crisis”.
Business Ministers are in discussions with the Treasury about further support for the industry. This is anticipated to cover a combination of fiscal and nonâ€fiscal incentives, including direct investment in infrastructure, which will all be geared towards a ‘net zero’ future.
The clear support for construction from Government is welcome news, particularly in light of the latest information from Build UK partner Builders' Conference on contracts awarded and tender opportunities, which shows the significant impact of coronavirus on the industry.
Preâ€coronavirus between May 2019 and March 2020, the number of contracts awarded each month averaged 608. This fell to 524 contracts in April 2020 and just 359 contracts in May 2020. This is 41% below the average and a decrease of 52% compared to May 2019.
Following the spike in the value of contracts awarded in April 2020 due to two extremely large infrastucture contracts, the value awarded in May 2020 dropped by 60% to £3.9 billion. This is 35% lower than the monthly average of £6 billion between May 2019 and March 2020, and 24% below May 2019. Almost half of all the contracts awarded were housing projects (171 projects with a total value of £1.8 billion).
Read our latest statement which contains further information from Builders’ Conference on contracts and tender opportunities.