Blog
Thriving construction sector lifts Covid gloom
There are some really positive construction activity trends emerging after the industry rode out the strict lockdown earlier this year. We've seen it for ourselves with our clients have long since restarted on site and many are still progressing with new projects, supporting what we are seeing from the likes of the Federation of Master Builders (FMB) and Barbour ABI data.
Major projects are leading the recovery thanks to the Government's commitment to larger civil engineering schemes such as road projects, as well as the ability of larger firms to be able to mobilise more quickly and get back up to speed following the shutdown of sites across the country.
According to the FMB's State of Trade Survey covering the three months to the end of August, almost half of SME builders enjoyed an uptick in demand over the summer, with 40% expecting workloads to increase through the autumn. In a further sign that the construction industry is bouncing back strongly, half of firms also reported an increase in enquiries over the summer.
The last Barbour ABI Economic & Construction Market Review was equally upbeat. It reported in September that construction contract awards increased to £4.4bn in August, up 21.2% compared to the previous month, which it said showed an improvement in industry conditions. Its survey indicated that residential maintained the lead status in August, accounting for 37.6% of awards, with infrastructure second at 30.5%, followed by the education and industrial sectors accounting for 9.4% and 9.0% respectively.
Starting back better
It is great to see the construction industry continue to show signs of recovery a few months on from the Prime Ministers 'Build build build' speech in June.
Things are looking really bright for the development pipeline, with many sectors experiencing year-on-year growth and mostly recovering from the lockdown period well. However, the immediate challenges for the industry is how fast work commencing on site can reach normal levels, as well as the potential threat of another lockdown and site closures.
It means that making sure your business is in good shape has never been more important, to give you some stability during these uncertain times.
The Pandemic is no longer likely to be a Variation or Compensation Event under Force Majeure, so you need to check your contract as ever - if there is further disruption due to Covid-19 you need to make sure you do not become liable. So maybe it's time for a review of your contract administration systems so you can start back as you mean to go on?
This is an area that Quantum CPM will help you with. We provide a complete range of specialist services that will help to make sure your contracts are written and delivered to suit your business as much as the goals of the client. And the good thing is that it doesn't cost the earth - it is a small investment that our clients know can prevent major financial losses at the end of the day.
Please contact us if you would like to discuss how we can help. You can call us on 0161 974 6655 or email .
