| 1. |
INTRODUCTION |
4 |
| 2. |
EXECUTIVE SUMMARY AND FUTURE PROSPECTS |
6 |
| 3. |
PUBLIC SECTOR CONSTRUCTION MARKET |
10 |
| 3.1 | CONSTRUCTION MARKET OVERVIEW |
10 |
| 3.1.1 | Value of Output – Construction New Work |
10 |
| 3.1.2 | Construction Output in 2009 |
11 |
| 3.1.3 | Outlook for 2010 and Beyond |
13 |
| 3.2 | PUBLIC SECTOR (NON-RESIDENTIAL) CONSTRUCTION MARKET |
15 |
| 3.2.1 | Public Sector Construction Output in 2009 |
15 |
| 3.2.2 | Outlook for 2010 and Beyond |
17 |
| 3.3 | SECTOR ANALYSIS |
20 |
| 3.3.1 | Healthcare Sector |
20 |
| 3.3.2 | Education Sector |
21 |
| 3.3.3 | Defence Sector |
23 |
| 3.3.4 | Other Public Sector Categories |
23 |
| 4. |
FUNDING OF PUBLIC SECTOR WORK |
26 |
| 4.1 | PUBLIC SECTOR INVESTMENT |
26 |
| 4.1.1 | Current & Forecast Public Sector Investment |
26 |
| 4.2 | EDUCATION SPENDING |
27 |
| 4.2.1 | Total Education Spending |
27 |
| 4.2.2 | DCSF Spending |
28 |
| 4.2.3 | Education Capital Investment |
29 |
| 4.2.4 | Education Output - Government Targets and Progress to Date |
30 |
| 4.3 | HEALTHCARE SPENDING |
37 |
| 4.3.1 | Total Healthcare Spending |
37 |
| 4.3.2 | NHS Spending |
37 |
| 4.3.3 | Healthcare Capital Investment |
39 |
| 4.3.4 | Healthcare Output - Government Targets and Progress to Date |
40 |
| 5. |
PROCUREMENT OF PUBLIC SECTOR WORK |
43 |
| 5.1 | PRIVATE FINANCE INITIATIVE (PFI) |
43 |
| 5.1.1 | PFI in Education |
44 |
| 5.1.2 | PFI in Healthcare |
48 |
| 5.1.3 | Procurement in other Public Sectors |
51 |
| 6. |
MAJOR CONTRACTORS |
55 |
| 6.1 | STRUCTURE OF THE CONTRACTING INDUSTRY |
55 |
| 6.1.1 | Consolidation Activity |
56 |
| 6.2 | LEADING CLIENTS IN THE PUBLIC SECTOR MARKET |
56 |
| 6.3 | LEADING CONSTRUCTION CONTRACTORS IN THE PUBLIC SECTOR MARKET |
58 |
| 6.3.1 | Overview |
58 |
| 6.3.2 | Key Contractor Profiles |
59 |
| 7. |
FACTORS AFFECTING PUBLIC SECTOR CONSTRUCTION |
68 |
| 7.1 | PLANNED FUTURE PUBLIC SECTOR EXPENDITURE |
68 |
| 7.2 | IMPACT OF A CONSERVATIVE GOVERNMENT ON PUBLIC SECTOR CONSTRUCTION |
73 |
| 7.3 | SUSTAINABILITY |
76 |
| 7.3.1 | BREEAM |
76 |
| TABLES AND CHARTS |
| TABLE 1 | GOVERNMENT SPENDING BY DEPARTMENT (HEALTH, EDUCATION, DEFENCE ETC) 2008 – 10 (£BILLION) |
6 |
| CHART 2 | VALUE OF NON-DOMESTIC CONSTRUCTION OUTPUT 2008 – 2014 BY VALUE (£ BILLION AT CURRENT PRICES) |
10 |
| CHART 3 | VALUE OF NON-DOMESTIC CONSTRUCTION OUTPUT NEW WORK & RMI BY SECTOR - % BY VALUE 2009 |
11 |
| CHART 4 | PUBLIC SECTOR CONSTRUCTION OUTPUT - % BY TYPE OF WORK 2009 |
16 |
| TABLE 5 | CONTRACTORS OUTPUT IN THE PUBLIC (NON-RESIDENTIAL) SECTOR 2004-2014 (£M) |
18 |
| TABLE 6 | - SUMMARY OF PUBLIC SECTOR INVESTMENT AND MAJOR CAPITAL SPENDING PROGRAMMES IN EDUCATION & HEALTH 2006-2014 BY PROGRAMME VALUE |
19 |
| TABLE 7 | CONTRACTORS OUTPUT OF HEALTH SECTOR WORK (PUBLIC/PRIVATE) 1999-2009 (£M) |
21 |
| TABLE 8 | CONTRACTORS OUTPUT OF EDUCATION SECTOR WORK (PUBLIC/PRIVATE) 1999- 2009 (£M) |
22 |
| TABLE 9 | PUBLIC SECTOR GROSS SPENDING 2004 – 2014 (£ BILLION) |
26 |
| CHART 10 | PUBLIC SECTOR GOVERNMENT SPENDING - % BY FUNCTION 2009-10 |
27 |
| CHART 11 | VALUE OF TOTAL UK EDUCATION EXPENDITURE 2005-2011 (£ BILLION) |
28 |
| TABLE 12 | DCSF SPENDING 2006 – 2011 – MIX BY RESOURCES & CAPITAL (£ BILLION) |
29 |
| CHART 13 | UK SCHOOLS CAPITAL EXPENDITURE 2006-2011 (£ BILLION) |
30 |
| TABLE 14 | CONSTRUCTION ACTIVITY IN THE UK EDUCATION SECTOR – KEY PROGRAMMES -PROGRESS TO DATE DECEMBER 2009 AND TARGETS UP TO 2010-11 |
32 |
| TABLE 15 | BUILDING SCHOOLS FOR THE FUTURE – SUMMARY OF INVESTMENT AND BUILD PROGRAMME 2009 |
33 |
| TABLE 16 | PRIMARY CAPITAL PROGRAMME – FUNDING 2008 – 2012 (£M) |
36 |
| CHART 17 | VALUE OF UK NHS EXPENDITURE 2006-2011 (£ BILLION) |
38 |
| TABLE 18 | UK NHS PRIMARY CARE TRUST SPENDING ALLOCATIONS – 2006-2011 (£BILLION) |
39 |
| TABLE19 | NHS CAPITAL SPENDING – 2007-2011 (£BILLION) |
40 |
| TABLE 20 | CONSTRUCTION ACTIVITY IN THE UK HEALTHCARE SECTOR – KEY PROGRAMMES - PROGRESS TO DATE DECEMBER 2009 |
42 |
| CHART 21 | PFI INVESTMENT IN 2009 (BY GOVERNMENT DEPARTMENT) |
44 |
| TABLE 22 | LEADING EDUCATION CONTRACTORS AND PRINCIPAL CONSORTIA (PFI / BSF) |
47 |
| TABLE 23 | PFI HEALTH SCHEMES* – BY STAGE OF DEVELOPMENT & FUNDING VALUE (AS AT SEPTEMBER 2009) |
48 |
| TABLE 24 | MAIN PRIVATE CONTRACTORS - BY NUMBER OF EMPLOYEES 2007 -2008 |
55 |
| TABLE 25 | TOP PUBLIC SECTOR CLIENTS |
57 |
| TABLE 26 | LEADING CONTRACTORS BY PUBLIC SECTOR (NON-HOUSING) WORK WON (£M) – 12 MONTHS TO OCTOBER 2009 |
58 |
| CHART 27 | PUBLIC SECTOR CAPITAL INVESTMENT 2007 – 2014 (£BILLION) |
71 |
| TABLE 28 | CONSERVATIVE POLICY ON SCHOOLS |
74 |
