Public Sector Construction - UK 2006

Abstract

INTRODUCTION and OVERVIEW

AMA Research has recently published the 1st Edition of the Public Sector (Non-Residential Construction Market in the United Kingdom report. The report should be of particular interest to individuals and institutional investors, and provides a comprehensive and easy to use review of public sector (non-residential) construction.

Key features of this brand new building insight: -

• An overall review of the UK construction industry with estimated forecasts for growth over the next few years.
• Detailed assessment of the major sectors within public sector construction including education, healthcare, defence and law and order.
• An in-depth analysis of Government funding of public sector areas including education, healthcare and defence.
• A review of Government targets and current progress of construction initiatives within the education and healthcare sectors, such as Building Schools for the Future and the NHS Plan.
• A review of the major influences affecting the public sector construction market including increased government regulation governing minimum requirements for the energy performance of all new buildings and external factors such as rising energy prices and labour and transport costs.

Areas of particular interest include:-

• The way in which Government clients procure public sector construction work varies and the Report assesses some of the major procurement routes including PFI, NHS LIFT and Procure21.
• The use of prefabricated buildingsfor public sector work has increased as a result of government initiatives such as Building Schools for the Future and the emphasis of NHS care within the primary sector.
• A brief summary of the UK contracting industry and profiles leading contractors in the public sector construction market.
• Recent consolidation activity in the UK contracting industry has seen the restructuring and consolidation of a number of high profile contractors including Mowlem, M J Gleeson, Kajima, Jarvis and AMEC.
• Major restraining factors on growth in public sector construction include persistent high oil prices, increasing labour and materials costs and a shortage of skilled resources.
• Key drivers of growth in the public sector construction market and estimated forecasts for growth over the next few years

Key areas covered in the report:-

UK PUBLIC SECTOR CONSTRUCTION MARKET

• Value of Total Construction New Work Outputin the United Kingdom.
• Forecasts for construction output beyond 2005.
• Analysis of Public Sector Output in the UK Construction Industry with forecasts beyond 2005.
• Review of main public sector areas such as education, healthcare and defence.
• Analysis of the main drivers and constraints of growth in the construction industry.

FUNDING OF PUBLIC SECTOR WORK

• Analysis of public sector investment by the Government
• Review of the 2004 and 2007 Spending Reviews
• Current an forecast public sector investment
• Overall investment and capital expenditure in the education and healthcare sectors
• Review of Government targets and current progress of construction initiatives within the education and healthcare sectors, such as Building Schools for the Future and the NHS Plan.

PROCUREMENT OF PUBLIC SECTOR WORK

• Procurement processes for public sector work.
• Types of public sector procurement routes.
• Education work procurement routes including PFI.
• Healthcare work procurement routes including PFI, NHS LIFT and Procure21.
• Defence procurement routes.
• Specification issues including supply chain management.

FACTORS AFFECTING THE PUBLIC SECTOR CONSTRUCTION MARKET

• Analysis of the rise in construction costs and building materials prices with a review of recent % rises in specific building materials.
• The impact of rising energy prices on building materials with an analysis of wholesale energy prices.
• Overview of construction employment levels and labour costs.
• Major legislative drivers affecting the public sector construction market including energy performance of buildings and revisions to Part L of the Building Regulations
• Environmental concerns in public sector construction including sustainable construction.