Construction orders held up well in November, just topping the
previous month at around £1.6 billion. Encouragingly, the
total value of orders is around £450 million up on November
1997, with much higher figures this year for private commercial and
industrial orders and infrastructure. Only other public non-housing
projects are down, though this may be due to the switch to PFI for
many projects which used to be directly funded by Government -
these are now often classified as private commercial schemes.
That sector has certainly reasserted its dominance, with a rise of
£230 million in private commercial orders after a fine showing
by the infrastructure sector in October.
Public housing remained almost static, while other public
non-housing work dropped off quite sharply by £80 million.
Infrastructure orders remained strong even without the distorting
factor of a few huge contracts on the Channel Tunnel Rail Link to
boost it this month.
Private industrial orders showed a welcome rise, but it has to be
noted that over half of this total derived from one large contract
won by this month's winner, Kvaerner.
success
Kvaerner has continued its run of success, topping the CJ50 for the
second month running and for the fifth time this year. Last month's
success was due to rail and water infrastructure but the major
boost for November came from a rather more unexpected quarter, the
North Sea.
Kvaerner Oil and Gas has scooped a £100 million contract to
engineer, construct, install and commission a new process and
utilities platform for Texaco. The firm also managed a good average
elsewhere by picking up over £10 million in every other sector
except housing.
Taylor Woodrow was bolstered by the signing of a major PFI
healthcare project, the £150 million Bromley Hospital
development in Kent. The private finance nature of the deal means
it has provided a significant boost to the private commercial
sector, rather than other public non-housing, where hospital
schemes would normally have been classified in the past.
Tarmac remains comfortably in the top 10 thanks to a £50
million corporate track alliance contract with London Underground,
an £18 million development of flats for Regalian in London and
a £10.9 million leisure development for Richardson
Developments in Birmingham.
Bovis has blasted its way into the CJ50 at 5 with £156 million
worth of private commercial orders gained from only three projects.
Bovis was also the only firm to post a management contract in
November, where it won nearly £70 million worth of contracts,
again in the private commercial arena.
Laing moved up two places to 5 with a healthy total of private
commercial work and handy support from other public non-housing
contracts. Amec moved into the top 10 at 6, with its best sector
proving to be infrastructure work. Edmund Nuttall rose from 19 last
month to 7 thanks to its winning a £23.5 million contract for
highways maintenance in Area 17 - Lancashire, for the Highways
Agency. The firm also secured a £9 million contract for flood
alleviation works on Humberside for client the Environment
Agency.
Balfour Beatty dropped back from last month's high of 3 to 8, with
its chief wins being an £11.5 million office refurbishment
contract in London for PACE and a £7.7 million health club for
EICC in Edinburgh. Mowlem moved into the top 10, with other public
non-housing proving to be its most lucrative sector of work.
HBG Construction settled back from 4 to 10, but still pulled in a
handy £33 million worth of private commercial work - the
principal contract was a £15.9 million leisure complex for THI
Leisure in the Wirral. Just behind at 11 is Kier which also
benefited the most from private commercial orders as did Try
Construction which came in at 12 from outside the top 50.
notable
Try's most notable job was a £9.5 million contract for the
Wellcome Break Group covering motorway services in the Hereford and
Worcester region.
The cluster of Birse, Mansell/ Hall and Tawse and Morgan Sindall
Group all tapped in to the private commercial sector, though public
housing and other public non-housing played their part. Alfred
McAlpine dropped back from last month's high at 2 down to 18 with
all its work coming from the infrastructure sector, including an
£8.2 million roadworks scheme on the M6 between junctions
13-16 for Staffordshire County Council.
Other public-non housing work pushed Jarvis up from 30 to 18, while
Morrison clinched a useful spread of public housing, infrastructure
and private commercial work. The top 20 was rounded off by Tilbury
Douglas, which also capitalised on the pool of private commercial
work.
Other notable performers in November including Dean and Dyball
which moved from 50 to 22. Lovell, Clugston and Galliford all
remained largely unchanged, while the top 30 saw new entries in the
form of Watkin Jones and Llewellyn. Styles and Wood also had a good
month with nearly £12 million worth of fit out work in the
private commercial sector, while Haymills at 31 pulled in almost as
much work from the same area.
November proved a thinner month by their standards for Willmott
Dixon, Amey, Costain and Miller, all of whom languish the wrong
side of the top 30.
The race to secure the top contractor for 1998 has only one month
to go and big wins for Bovis this month have helped the firm pull
away from Tarmac which in turn moved ahead of Laing. However, with
a difference of only £70 million between them, will Bovis'
wins be enough to keep Tarmac as well as Laing and Kvaerner at bay?
The next CJ50 out in January 1999 will reveal all.