A lack of contract awards and planning approvals has suggested that the increased activity in the construction industry that arose after the pandemic restrictions were lifted, has come to a halt.
Projects that were suspended during the height of the pandemic were in full swing again over the last year, causing the industry and its customers to gain confidence for the months ahead.
A jump in tender opportunities (contracts published by public sector organisations for goods, services, works and utilities) in March 2022, combined with strong customer demand, gave the construction industry its strongest performance since the summer of 2021.
So, what changed?
Construction insight specialist Barbour ABI revealed that concerns over the UK economy drove slow progress in the education and hotel sector, plus commercial, which saw the value of its contract awards decrease from £1 billion to £400 million from March to May 2022.
Additionally, planning approvals dipped in the industry dipped and saw their worst performance since September 2021. The value of planning approvals on the infrastructure decreased from £4 billion to £1.6 billion.
Do you need help with contract awards or planning approvals?
At Palmers Solicitors, we can help prevent disputes arising through the professional drafting of contracts and other agreements.
With such construction projects often proving costly and complicated, it pays to work with a company that specialises in construction law and appreciates the commercial impact of the advice provided.
To find out more about how we can help you, please contact us.