Commercial and retail construction thrives
The value of new construction contracts in September reached £5.6 billion, a 6.1% decrease compared to August but the second-best performing month of 2018 so far, highlighted by contracts worth over £800 million for commercial and retail construction.
The latest edition of the Economic and Construction Market Review from Barbour ABI highlights levels of construction contract values awarded across Great Britain. The largest project in September was the £187.5 million 10 Bank Street mixed-use development in London, almost double the value of the second largest project on the month.
With three of the four largest projects in September based in London, this greatly helped the capital account for the largest share of contracts awarded on the month, with a total of 18.2%, followed by the south east with a 15.3% share, and then the north west with 13.1%.
Across the construction sector in September, commercial and retail projects reached £814 million, its best month since July 2016. 75% of these projects were office-led, such as the £60 million Lidl headquarters development in Chessington. Infrastructure and residential, the two largest sectors within construction, both saw decreases last month – 11.7% and 5.9% compared to the figures from August.