- Language: English
- Published: July 2009
- Region: United Kingdom
Central Government Construction Market - UK 2009-2013
- Published: December 2009
- Region: United Kingdom
- 92 pages
- AMA Research
The 1st Edition of the overview of the Central Government Construction Market in the UK covers the defence, police, immigration, courts, prison, fire & rescue, central government offices and public leisure sectors. The report should be of particular interest to contractors, suppliers, FM providers and construction professionals and provides a comprehensive review of the sector.
Key areas in the report:
The Central Government Construction sector is worth over £3.5 billion and covers accommodation related construction in the following Government Departments:
- Ministry of Defence (Defence Estates)
- Home Office (Police Service, Immigration)
- Ministry of Justice (Prisons and Courts)
- HM Revenue and Customs
- Department for Culture, Media and Sport (Museums, Libraries, Sport, & Leisure)
- Department for Communities and Local Government (Fire & Rescue)
Areas of particular interest:
- Analysis of key central government functions including defence, police services, immigration service, courts service, prison service, fire & rescue services, central government offices and public leisure services including current estate size and future estate strategy.
- A detailed review of major capital building programmes of key central government departments including MoD, MoJ, DCMS, HMRC and the Home Office.
- A detailed review of leading contractors and consortia involved in central government construction work including sector strengths and project activity.
- Forecasts of developments up to 2011 and underlying prospects for the next 5 years – impact of Election, potential funding cuts etc.
- Key factors affecting the central government sector including the impact of the economic downturn, the Public Value Programme, future public spending levels, sustainability and the use of offsite construction methods.
Some of the companies featured include:
Carillion, Enterprise Plc, Galliford Try, Interserve, John Laing, Kier, Sir Robert McAlpine, Skanska, Willmott Dixon
Key areas covered in the report include:
CONSTRUCTION MARKET OVERVIEW
- Value of construction new work output.
- Construction output by sector in 2002-08 and forecasts for 2009-2013.
- Central Government construction market: £3.5+ billion spending on new build and RMI - output by sector.
- Central Government Facilities Management market overview.
CENTRAL GOVERNMENT – CONSTRUCTION PROGRAMMES
- Central Government Capital Expenditure.
- Defence Estates - Future Estates Strategy, estates budget 2008-11, Living & Training Accommodation (number of new bed spaces 2007-2020), 10 Year Accommodation Management strategy (single/family living), new build/RMI, key projects, condition assessments, budgets/timescales, key influences etc.
- Police Service – capital expenditure, construction programmes & key projects – values and current status.
- Immigration Service – key expansion plans – budgets, key projects, bedspaces etc.
- Courts Service – Courts Estate, capital expenditure, key construction programmes and budgets up to 2011. New build and RMI.
- Prison Service – Prison Estate, prison population, capital expenditure, key construction programmes and budgets, new prison capacity (Mini-Titans), HM Prison Service Framework Agreements – public/private sector, use of MMC, procurement routes, new build/RMI, FM.
- Leisure – DCMS expenditure, key construction programmes and budgets, Olympics, museums, sport and recreation, cultural sites etc. – budget splits up to 2011.
- Fire & Rescue Services – capital expenditure, PFI programmes, budgets up to 2011.
- Central Government Offices – key projects & programmes, Carter review.
FACTORS AFFECTING THE MARKET
- Planned Future Public Investment including measures announced in the Pre-Budget Report, possible impact of change of government in 2010. Role of PFI.
- Public Value & Operational Efficiency Programmes – review of procurement routes, Carter review.
- Sustainability – BREEAM – impact on specifications/procurement.
- Use of Offsite / MMC - application to the Central Government construction market – MoD, prisons, immigration centres etc.
CONSTRUCTION MARKET SUPPLY
- Structure & Size of the Contracting Industry.
- Leading Clients in the Central Government construction market.
- Leading Construction Contractors and Consortia operating in the Central Government construction market – role of framework agreements.
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2. EXECUTIVE SUMMARY AND FUTURE PROSPECTS
3. CONSTRUCTION MARKET OVERVIEW
3.1 VALUE OF OUTPUT – CONSTRUCTION NEW WORK
3.1.1 Value of Output – Construction New Work
3.1.2 Construction Output by Sector
3.1.3 Construction Output in 2009 and Outlook for 2010
3.2 CENTRAL GOVERNMENT CONSTRUCTION MARKET
3.2.1 Central Government Construction Output
3.2.2 Output by Sector
3.3 CENTRAL GOVERNMENT FACILITIES MANAGEMENT MARKET OVERVIEW
4. CENTRAL GOVERNMENT – CONSTRUCTION PROGRAMMES
4.1 CENTRAL GOVERNMENT CAPITAL EXPENDITURE
4.2 DEFENCE BUILDING PROGRAMMES
4.2.1 MOD Estate
4.2.2 Defence Capital Expenditure
4.2.3 Defence Training Accommodation
4.2.4 Living Accommodation
4.3 POLICE SERVICE/IMMIGRATION BUILDING PROGRAMMES
4.3.1 Police Service Estate
4.3.2 Police Service Capital Expenditure
4.3.3 Police Service Construction Programmes & Key Projects
4.3.4 Immigration Service
4.4 COURTS SERVICE BUILDING PROGRAMMES
4.4.1 Courts Service Estate
4.4.2 Courts Service Capital Expenditure
4.4.3 Courts Service Construction Programmes & Key Projects
4.5 PRISON SERVICE BUILDING PROGRAMMES
4.5.1 The Prison Service Estate
4.5.2 Prison Service Capital Expenditure
4.5.3 Prison Service Construction Programmes and Key Projects
4.6 LEISURE/CULTURE BUILDING PROGRAMMES
4.6.2 DCMS Expenditure
4.6.3 Leisure/Culture Construction Programmes & Key Projects
4.7 FIRE & RESCUE SERVICES BUILDING PROGRAMMES
4.7.1 FRS Capital Expenditure
4.8 CENTRAL GOVERNMENT OFFICES
4.8.1 Carter Review
4.8.2 Central Government Office Projects
5. FACTORS AFFECTING THE MARKET
5.1 PLANNED FUTURE PUBLIC SECTOR EXPENDITURE
5.1.1 Pre-Budget Report
5.1.2 Impact of Public Spending Cuts on Central Government Construction
5.2 PUBLIC VALUE PROGRAMME
5.3 OPERATIONAL EFFICIENCY PROGRAMME (CARTER REPORT)
5.5.1 Application to the Central Government Sector
6. CONSTRUCTION MARKET SUPPLY
6.1 STRUCTURE AND SIZE OF THE CONTRACTING INDUSTRY
6.2 LEADING CLIENTS IN THE CENTRAL GOVERNMENT CONSTRUCTION MARKET
6.3 LEADING CONSTRUCTION CONTRACTORS IN THE CENTRAL GOVERNMENT CONSTRUCTION MARKET
6.4 CONSORTIA AND FRAMEWORKS
6.5 CONTRACTOR PROFILES
6.5.2 Galliford Try
6.5.4 John Laing
6.5.6 Sir Robert McAlpine
6.5.8 Willmott Dixon
6.5.9 Other Contractors
CHART 1: CENTRAL GOVERNMENT CAPITAL EXPENDITURE 2009-10 (£M) BY SECTOR – DEFENCE, PRISONS, COURTS, FIRE & RESCUE, IMMIGRATION, POLICE, LEISURE 8
CHART 2: VALUE OF CONSTRUCTION OUTPUT NEW WORK 2002-2013 (£ BILLION) 12
CHART 3: VALUE OF CONSTRUCTION OUTPUT NEW WORK BY SECTOR - % BY VALUE 2008 14
TABLE 4: CONTRACTORS OUTPUT – CENTRAL GOVERNMENT 2008 – 2013 (£M) – NEW WORK, MAJOR REFURBISHMENT, SMALL RMI 15
CHART 5: CENTRAL GOVERNMENT CONSTRUCTION OUTPUT NEW WORK BY SECTOR - % BY VALUE 2009 – DEFENCE, COURTS, POLICE, ENTERTAINMENT, FIRE & RESCUE ETC 18
TABLE 6: DEFENCE ESTATES UK LIVING ACCOMMODATION – NO. UNITS BY GRADE – FAMILIES & SINGLE LIVING. 21
TABLE 7: MOD – THE DEFENCE BUDGET: 2007-2011 – RESOURCE, CAPITAL AND DEFENCE ESTATES. 22
CHART 8: DEFENCE ESTATES 10 YEAR ACCOMMODATION MANAGEMENT STRATEGY - % OF NEW BUILD VS. REFURBISHMENT WORK 23
TABLE 9: MOD ESTATE – ROYAL NAVY TRAINING REQUIREMENTS AND PLANS 24
TABLE 10: MOD ESTATE – ARMY TRAINING REQUIREMENTS AND PLANS 25
TABLE 11: MOD ESTATE – ROYAL AIR FORCE TRAINING REQUIREMENTS AND PLANS 26
CHART 12: MINISTRY OF DEFENCE – NO. BED-SPACES ADDED TO THE UK PORTFOLIO 2006 - 2020 (SHARE BY FAMILIES AND SINGLE LIVING). 27
TABLE 13: MOD – MAJOR SLA UPGRADE PROGRAMMES 2003 – 2013 – ACCOMMODATION TYPE, NO. OF BEDSPACES & TIMEFRAME 31
TABLE 14: POLICE SERVICE BUDGETS – 2008-2011 34
TABLE 15: POLICE SERVICE PFI/PPP PROJECTS –BY PROJECT, STATUS & CAPITAL VALUE 35
TABLE 16: UK IMMIGRATION REMOVAL CENTRES – LOCATION & BEDSPACES 37
TABLE 17: HM COURTS SERVICE BUDGET 2008-2011: NEW BUILD / RMI 40
TABLE 18: HM COURTS SERVICE – MAJOR PROJECTS IN PROCUREMENT AND CAPITAL VALUES 2009-2013 42
TABLE 19: HM PRISON SERVICE – PROJECTED PRISON POPULATION 2010 - 2015 46
TABLE 20: NOMS BUDGET 2008-09 BY SECTOR - PRISONS, PROBATION ETC 47
TABLE 21: DCMS RESOURCE & CAPITAL BUDGET 2007 – 12 (£M) BY SECTOR 53
TABLE 22: DCMS – MAJOR PFI PROJECTS SIGNED & IN PROCUREMENT (CAPITAL VALUES) 56
TABLE 23: FIRE & RESCUE SERVICE – MAJOR PFI PROJECTS SIGNED & IN PROCUREMENT (CAPITAL VALUES) 57
TABLE 24: FIRE & RESCUE SERVICES – GRANT ALLOCATIONS 2009-10 AND 2010-11 (£’000) BY AUTHORITY 58
CHART 25: PUBLIC SECTOR INVESTMENT 2007 – 2014 (£BILLION) 63
TABLE 26: BREEAM – PROJECT EXAMPLES IN THE CENTRAL GOVERNMENT SECTOR 68
TABLE 27: MAIN PRIVATE CONTRACTORS - BY NUMBER OF EMPLOYEES 2007 -2008 73
TABLE 28: TOP CENTRAL GOVERNMENT CLIENTS – KEY PROJECTS & CAPITAL VALUES 2009-10 75
TABLE 29: TOP 15 CONTRACTORS IN CENTRAL GOVERNMENT WORK 77
TABLE 30: LEADING CONTRACTORS AND PRINCIPAL CONSORTIA IN CENTRAL GOVERNMENT WORK 79
TABLE 31: CARILLION – RECENT EXPERIENCE IN CENTRAL GOVERNMENT WORK 81
TABLE 32: GALLIFORD TRY – RECENT EXPERIENCE IN CENTRAL GOVERNMENT WORK 82
TABLE 33: INTERSERVE – RECENT EXPERIENCE IN CENTRAL GOVERNMENT WORK 84
TABLE 34: JOHN LAING – RECENT EXPERIENCE IN CENTRAL GOVERNMENT WORK 85
TABLE 35: KIER – RECENT EXPERIENCE IN CENTRAL GOVERNMENT WORK 87
TABLE 36: SIR ROBERT MCALPINE – RECENT EXPERIENCE IN CENTRAL GOVERNMENT WORK 88
TABLE 37: SKANSKA – RECENT EXPERIENCE IN CENTRAL GOVERNMENT WORK 89
TABLE 38: WILLMOTT DIXON – RECENT EXPERIENCE IN CENTRAL GOVERNMENT WORK 90
TABLE 39: OTHER CONTRACTORS – RECENT EXPERIENCE IN CENTRAL GOVERNMENT WORK 91
While the downturn in the economy is expected to have a negative impact on the growth of the overall construction market, the Central Government sector is due to receive a boost over the short to medium term from the Government’s decision to bring forward £3bn of capital spending to 2009-10 from 2010-11 in order to provide some impetus to the economy. However, this measure will result in lower departmental capital expenditure limits in 2010-11, resulting in more moderate growth in the sector in the medium to longer term even though the overall economy is expected to slowly recover in that period.
While the programme of redevelopments in some sectors such as Central Government Offices is now largely over, some growth is expected to continue over the next few years, supported by government investment in increasing the provision of prison accommodation, improvements to the Fire and Rescue Services, investment in defence accommodation and developments in connection with the 2012 Olympics.
This 1st edition of our report specifically reviews key central government functions including defence, police services, immigration service, courts service, prison service, fire & rescue services, central government offices and public leisure services including current estate size and future estate strategy
The report also reviews the structure and size of the central government construction sector with an analysis of prospects for construction activity in the sector over the next five years and gives a detailed review of major capital building programmes and anticipated capital budgets of key central government departments including MoD, MoJ, DCMS, HMRC and the Home Office.
In addition, the report discusses the key factors affecting the central government sector including the impact of the economic downturn, the Public Value Programme, future public spending levels, implications for central government construction of a change in government including the future of services within the custodial sector, sustainability and the use of offsite construction methods.
Analysis of market developments has been based upon both quantitative and qualitative assessments of both primary and secondary source data. Interpretation of relevant data has been undertaken to explore and support trends within the central government construction market and to provide a basis for forecasts of future prospects.
- Enterprise Plc
- Galliford Try
- John Laing
- Sir Robert McAlpine
- Willmott Dixon