Swindon & Wiltshire News
Southern Construction Framework reports positive start to year as demand rises for decarbonisation projects
A new report released by Southern Construction Framework (SCF) has recorded a 4.2 per cent increase in tender workload in Q4 2023, compared with the same time last year as demand rises for decarbonisation projects.
SCF found that data from trade suppliers suggests that decarbonisation strategies are influencing levels of workload. Subcontractors reported an average 13.1 per cent reduction in tender workload for tower crane usage, indicating a rising demand for refurbishment projects.
SCF is a leading construction procurement framework delivered by the public sector for the public sector in the South of England. The quarterly benchmarking survey gives insight into the supply chain from suppliers and contractors.
The news comes as the ONS reported that while new work in the sector was 30 per cent down compared with Q4 2022, repair and maintenance has remained buoyant, increasing 0.4 per cent in December 2023 and 4.0 per cent in Quarter 4 (Oct to Dec) 2023.
Among the large construction projects was the Defence Infrastructure Organisation’s £250 million Salisbury Basing Programme.
The project involved the construction and delivery of 917 Service Family Homes at Bulford, Ludgershall, and Larkhill along with Section 106 off-site Highway works.
The collaborative project saw two timber frame providers working side by side collaboratively – not seen before in UK housing developments – which allowed a speed build of 22 weeks from foundations to superstructure.
Over 87 per cent of the total budget was spent with SMEs and the project created 32 apprenticeship places.
Adrienne Turner, framework manager at SCF, said: “While the decrease in new work reported by the ONS points to a challenging economic climate, the increase in repair and maintenance is evidence of a shifting priority among clients towards the improvement of their existing infrastructure.”
SCF’s data has also evidenced a shift towards the use of concrete frame over steel frame. It found tender workload for concrete frames increased by an average of 7.1 per cent across regions during Q4 2023 when compared with steelwork, which only increased by an average of 0.5 per cent.
SCF main contractors have suggested that this is likely driven by the increasing awareness and use of embodied carbon targets on projects, with concrete being a more sustainable building material.
The report also found that throughout Q4 2023, trades experienced a 4.6 per cent increase in their number of employees when compared with the previous year, aligning with an expected increase in tender workload of 4.9 per cent across all trades over the next year.
Adrienne said: “It is positive to see green shoots of recovery in the construction industry, with decarbonisation projects driving forward an increase in tender workload.
“While volatility within the construction market stabilised during the last quarter, meaning projects have seen an improvement in predictability, it’s important to note that we found that building cost was still 6.5% higher compared to the previous year.
“With this in mind, it’s important to engage early with your main contractor. This will ensure that design solutions incorporate current market pressures before detailed design.
“This is integral for driving forward decarbonisation projects and supporting the public sector to achieve their net zero goals at a time when this is a top priority.”
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