Mixed outlook for education construction sector

The education construction sector experienced a mixed three months to September, with main contract awards increasing against the preceding three months, but remaining below previous years’ levels.
Elsewhere, detailed planning approvals and project starts onsite declined against both periods.
But, while there has been a short-term downturn in the education sector, with project delays holding back immediate performance, there is some cause for optimism in the future, according to Glenigan’s October Construction Review, with schemes such as the School Rebuilding Programme set to provide a much-needed boost to the sector over the next few years.

Types of projects
Schools, at £934m, accounted for the largest share of starts (68%). However, the segment declined 36% against the previous year.
Colleges, at £160m, accounted for the second-largest share of starts (12%), but declined 68% against the previous year.
And universities declined 51% against the previous year to total £130m, according to the report.

Regional variation
The South East, at £212m, was the most-active region for project starts, accounting for 15% of the total value – a 4% rise against the previous year.
The East of England, at £197m, experienced a strong period, increasing 28% against the previous year to account for 14% of the total value.
In planning approvals, Scotland accounted for the largest share (19%), increasing 261% against the previous year to total £157m.
Elsewhere, the North West accounted for 13% of the total value, a 34% decline against the previous year to total £109m.

The top players
The report also provides information on the top contractors and commissioners within the sector.
For education, The Department for Education topped the table for clients, with 65 projects worth £612m.
The University of Glasgow and Midlothian Council were second and third with two projects worth £301m and three projects worth £163m respectively.
Among contractors, Morgan Sindall, Kier, and Multiplex made up the top three with more than 60 projects worth over £1bn.
