The contracting giant said the strategy is working in an upbeat trading statement today which revealed construction order books are full for the year to June and 80% of work is already secured for the following 12 months.

Kier has picked-up £600m of contracts since January as workloads shift from the public to private sector.

The statement said: “Our Construction division continues to achieve encouraging results benefitting from high quality order books which generate good margins and healthy cash balances.”

Kier is looking to grow in the infrastructure and power business following £480m of joint venture Crossrail wins and places on shortlists for the project worth a potential £1.2bn.

But the firm is being hit by the slowdown in housing maintenance work as contract extensions are delayed while local authorities sort out their finances.

Kier is on track with its target to sell 500 private homes this year but is winding down the division and selling-off its land bank.

The update said: “Our integrated business model serves the Group well in attracting a diverse range of work opportunities through our wide network of local offices, established client relationships and the numerous frameworks in which it is involved in both the public and private sectors.

“We have a strong balance sheet, an excellent track record of service delivery and very talented and capable people, all of which keeps Kier on track to deliver a good performance this year.”