|
|
 |
|
Viewing report
|
|
|
|
Building Contracting Market Report 2006
Key Note Publications Ltd, June 2006
This Market Report analyses the UK market for building contracting, including construction and support services. The focus of the report is on contracting, which is the subject of competitive bids (although there is some coverage of housebuilding). The report addresses all aspects of building contracting, i.e. finance, design, building operation, maintenance and related services. In 2005, total construction output in Great Britain was worth £107.01bn, having increased by 4.5% on the previous year.
Construction work is broadly divided into new work, and repair and maintenance, with new work accounting for the larger share of output, and both are further divided into public- and private-sector work. After housing, the largest new work sector is private commercial work, much of which is for offices, education, health and transport. Other public work is the next most significant sector, followed by infrastructure projects. Private industrial output is the smallest new work sector. In the repair and maintenance market, output from private work is almost twice as large as output from public-sector work.
The building contracting market has expanded to include support services and other facilities in framework contracts. In large complex projects, contractors can be involved in total lifetime aspects of the work, involving finance, design, construction, operation and maintenance, often through a consortium of companies, some of which might not be building contractors, e.g. banks. Private Finance Initiative (PFI) and Public Private Partnership (PPP) projects for government-related work are an important feature of the building contracting market and this report gives examples of this type of project.
The building contracting industry faces a number of challenges. Sustainable development is a key theme that is being addressed through government-led initiatives, some of which include new Planning Policy Statements (PPSs) on planning, climate change and waste management. The construction industry has a serious shortage of skilled workers, a situation that is likely to worsen in the London area, owing to the forthcoming Olympic Games in 2012.
The building contracting industry is set to grow, with major government-funded and private work lined up for the next 5 years (2006 to 2010). However, the commissioning of government projects will depend on a continuation of favourable economic factors. Future developments in building contracting will include more attention to climate change and greenhouse-gas emissions, new building materials and construction techniques, and greater recycling of materials and buildings.
|
|
|
|
