The construction pipeline for the education sector is showing signs of revival, with project starts on site increasing in the three months to July.

However, there are fears that a poor pipeline of projects could hinder more-widespread activity moving forward.

According to the latest Glenigan Construction Review, published earlier this month, while main contract awards declined compared to both the previous quarter and the previous year, more positively, project starts increased compared to both the previous quarter and the previous year.

Totalling £1.7bn, education work starting on site grew 6% on the preceding three months to stand 24% up on the previous year.

No major projects – worth £100m or more – started during the period, unchanged from the preceding quarter and a year ago.

And underlying education work starting on site (less than £100m) decreased 1% against the preceding three months on a seasonally-adjusted (SA) basis, but grew 6% if not accounting for seasonality and was 24% up on a year ago.

Education main contract awards decreased 14% against the preceding three months to total £1.1bn, with the value remaining 31% lower than the previous year.

Underlying contract awards also decreased 12% (SA) against the preceding three months and declined by 26% against the previous year.

No major projects reached the contract awarded stage, unchanged on the preceding three months, but down against the previous year.

Totalling £11.3bn, detailed planning approvals climbed 13% against the preceding three months to stand 4% down on last year while major project approvals totalled £120m, an increase on the previous quarter when no major projects were approved, but 14% down against last year.

Underlying project approvals also fell 5% (SA) against the previous three months and decreased 3% against last year, totalling £1.2bn.

Project types

School project starts totalled £1.3bn during the three months to July and accounted for the largest share of education construction starts (75%), having grown 27% on the previous year.

College starts also experienced a strong period, with the value having grown 29% against the previous year to total £169m, accounting for a 10% share of education sector work starting on site.

Universities, on the other hand, fell 1% against last year to total £175m, despite also accounting for a tenth of the total value.

Regional variation

Scotland was the most-active region for education project starts during the three months to July, accounting for a 20% share of the sector to total £354m, having increased 99% on last year’s levels.

London accounted for 14% of starts in the sector and climbed 8% against the previous year to total £185m.

And, accounting for the same share, the South East more than doubled on a year ago to total £243m.

London was the most-active region for detailed planning approvals in the education sector, accounting for a 19% share, with the value remaining unchanged from a year ago to total £265m.

The South East, on the other hand, grew 86% in value against last year to total £190m, a 14% share of all consents during the period.

Adding up to £155m, the North East jumped more than 40 times against last year, accounting for 11% of education consents.

But, in contrast, at £118m, the East of England faced a 21% slump, accounting for 9% of consents.

Wales also accounted for the same share of education consents with the same total value, but fell by 45% year on year.

In the league tables, the top contractors for the period were Kier, with 28 projects worth £754m, and Morgan Sindall, with 41 projects worth £417m.

The top clients were the Department of Health (128 projects valued at £754m , and Kier, with five projects worth £108m.