Major project starts slump 20% in 2012

Aaron Morby 12 years ago
Share

Spending cuts, delays in the Government PFI review and falling private sector confidence are blamed for major project starts tumbling 20% so far this year.

The shortage of big projects is already hitting main contractors and prompted bosses to review future workloads and overheads at firms like Balfour Beatty and Morgan Sindall.

New research from industry information specialist Glenigan shows that for the year to October, the total value of £100m-plus project starts fell a fifth to £7.5bn.

Major road and rail projects hit a new post-crisis low, running at nearly half the levels seen in 2010 as government ideas fail to translate into new work on the ground.

“The continued slowdown in major projects that we have seen this year is the result of reduced capital budgets across Government departments, uncertainty regarding the PFI scheme and hesitation by the private sector to invest in large and often long term projects.” said Glenigan Economist Andrew Whiffin.

“Despite government attempts to promote infrastructure investment with UK Guarantees, private sector investors are unwilling to commit in the current climate when it comes complex large scale road and rail projects, and it is this that is constraining starts of major projects in the sector.” warned Whiffin.

Major utilities projects have held up well for the year to October, reaching £3.1bn only marginally short of last year’s total of £3.3bn.

Latest news

Early bond release key to averting industry surety crisis

Contractors must put pressure on clients to release bonds promptly
5 hours ago

Over 1000 building safety cladding retrofits completed

25% of safety retrofits finished seven years after Grenfell disaster
5 hours ago

Steel import delays make Rangers miss kick-off

Construction work at Ibrox will not be finished by start of next season
20 hours ago

Lidl looking for new contractors for store building plans

Sign up for events in Newcastle, Glasgow, Birmingham and Southampton
5 hours ago

Utility firm GTC revs up for ground source heat pump era

Contractor and heat pump maker strikes ground-breaking deal
5 hours ago

Amey switches kit supplier to Speedy from HSS

New plant and equipment hire deal worth £25m a year
1 day ago

Clients under spotlight after bond bombshell

Contractors call for action to avoid project delays
1 day ago

M&E specialist Lorne Stewart falls into the red

Parent group suffers £2.8m loss in face of cost inflation and insolvencies
1 day ago

Four men rushed to hospital after site accident

Eye-witnesses report a wall was knocked over on Edinburgh site
2 days ago

World’s tallest scissor lift set for UK sites

Hire Safe Solutions partners with Dingli to supply lift with working height of 37 metres
1 day ago

Barhale wins £36m East London sewer remediation

Northern Outfall Sewer in West Ham runs above railway lines in the city
1 day ago

Weston Homes thumbs-up for £220m Essex homes scheme

Colchester 600-home Viridis scheme gains outline consent
1 day ago

Balfour seals £192m deal for trio of Scottish substations

Work to start this summer to enhance electrical transmission in Argyll
2 days ago

Construction bond bombshell as major player quits market

QBE currently provides cover for 20 of the industry's 30 biggest contractors
2 days ago

United Utilities names another 18 winners for £2.7bn water spend

Water giant cuts out large management contractors in latest spending round
3 days ago

Green light for £130m Dundee Eden project

Former gasholder site to be transformed into green house
2 days ago

Four tower scheme in Glasgow gets green light

Go-ahead for major mixed-use scheme at Central Quay
2 days ago

‘Green collar’ construction workers earning £134,000

Cost consultant T&T says insulation and heat pump trades earning £70 an hour in London
2 days ago

£65m Trafford Waters resi blocks approved

X1 Developments plans over 200 homes in 13- and 8-storey blocks
2 days ago

Over 100 firms win £1.5bn ICN housing framework

Great Places Housing Group names key partners for new homes programme
3 days ago

Steelwork firm went down owing £4.5m to suppliers

Subcontractors left holding unpaid invoices from SH Structures
3 days ago

Scottish civils firm to buy stake in piling specialist

Advance Construction in talks for 25% stake in Northern Piling Ltd
3 days ago

RSK secures £500m for fresh acquisitions spree

Acquisitive group aims to buy another 200 businesses by 2030
4 days ago

Beal Homes gets green light for £105m Humber scheme

Work to start on more than 500 homes in North East Lincolnshire
3 days ago

RED wins £20m East London office refurb

Grade II listed Victorian building to be upgraded to Cat A offices
3 days ago

Employee-owned Neilcott staff share £250,000 payout

Employee-owned building contractor sales jump 38% to £139m
4 days ago

Geoffrey Osborne supply chain hit for £26m

More than 500 suppliers and subcontractors left holding unpaid bills
1 week ago

Race for £800m South West Wales framework

Up to 16 firms face fight to renew spots on regional contractors framework
5 days ago

SME contractors agree 4% pay rise for site workers

Workers will also get an extra day of holiday
7 days ago

South East expansion paying off for Meldrum Group

Turnover up to £55m as North East based contractor expands national coverage
4 days ago

Contractor services