Tender levels dive 40% as double-dip looms

Aaron Morby 14 years ago
Share

Tender levels plummeted 40% in the second quarter compared with the first three months of 2010, according to contracts service the Builders’ Conference.

The latest figures fuel fears that construction is careering into a double dip recession.

More worrying still, tender values are down around 30% on the same period last year when the construction industry fell into recession.

The Builders’ Conference chief executive Neil Edwards says these latest figures are not a post-election blip but indicative of a double-dip recession.

“During the second quarter of 2009, we compiled details of around 2,400 individual tenders that together had a value of just under £7.4 billion.

In the first quarter of 2010, that figure had risen to £8.25 billion on 2,066 tenders,” he says.

“In the second quarter of 2010, the number of tenders was very similar – 2,060 – but the value has fallen by around 40 percent to just £4.98 billion.

The falls are most pronounced in the housing and health sectors that are down 36 and 88% respectively.

Alarmingly road and rail tender levels have collapsed from £676m and £1.02bn respectively in the second quarter of 2009 to just £56m and £88m  in the same period this year.

Edwards warned that current Government policy is making a double-dip recession more likely and storing up problems for the future.

“Part of the new coalition Government’s austerity measures has been an immediate freezing of budgets for affordable housing but this is having a double knock-on effect,” he said.

“Not only does that mean that we’re falling further behind in our housing stock shortfall, it is also impacting upon private house-builders whose planning permissions are dependent upon a degree of affordable housing.

“If housing associations are unable to commit, housing projects will stop.  The Government needs to take immediate action to relax planning regulations to ensure that the housing market does not grind to a halt,” he warned.

Edwards believes that similarly bold action will be required to safeguard spending on schools, colleges and universities, a sector that has so far survived the cutbacks but which is likely to be in the Chancellors’ sights when he announces his emergency budget today.

Latest news

Lendlease puts construction arm up for sale

Radical global restructure to raise £2.3bn and focus on Australia
2 hours ago

Former Crossrail boss Mark Wild to lead HS2

Wild to bear down on spiralling costs and bring rejigged scheme in on time
20 hours ago

Receivers in at £125m Manchester tower developer

Domis Construction walked away from scheme following doubts over funding
2 days ago

Costain A1 £260m dualling job finally gets go-ahead

Ministers sat on planning inspectors report for nearly three years
7 hours ago

Election delays decision on Lower Thames Crossing

Planning decision on £1.2bn Luton airport expansion also pushed back six months
7 hours ago

Caddick steps-in at former Lane End housing job

Contractor to restart phase of £262m scheme hit by administration
7 hours ago

Plans in for Leeds iconic Tetley building revamp

Former brewing giant's HQ to become indoor market and offices
7 hours ago

BAM wins first phase of North Devon hospital revamp

New staff accommodation to kick-off hospital redevelopment
7 hours ago

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
5 days ago

Strabag UK suffers further big trading loss

Austrian contractor is gearing up for major presence in the UK market
4 days ago

Durham Uni picks UPP for £130m student scheme

Firm will deliver 1,000 self-catered bed spaces
4 days ago

Architects now upbeat after 10-months of work gloom

Larger practices see rising workloads in next three months
4 days ago

Motorist dies after collision with road paver

Police Scotland investigating fatal crash
5 days ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
5 days ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
5 days ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
5 days ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
5 days ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
5 days ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
5 days ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
6 days ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
6 days ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
6 days ago

Bowmer & Kirkland trading profit halves

Contractor buys HVAC specialist Adcock despite challenging market
6 days ago

Piling specialist Van Elle plans further job cuts

Piling specialist plans further cost savings in face of lower demand
6 days ago

Civils contractor A Catlow files administration notice

High voltage cable specialist lodges court notice
6 days ago

Green light for ARC Oxford lab campus

Work to start later this year on £40m Ascent building job
6 days ago

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
1 week ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
1 week ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
1 week ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
1 week ago

Contractor services