Featured Sector: Education

Underlying value of construction projects starting on site. (Excludes individual projects of more than £100 million and framework agreements).

Sharp cuts to the Department for Education budget have taken their toll on the sector, with the value of underlying project starts falling by 28% last year.

However, several bright spots are expected to bolster project starts during 2013. Glenigan recorded a 19% year-on-year rise in the value of planning approvals for the three months to December.

In addition the Autumn Statement confirmed that the Priority Schools Building programme will be trialling the use of the Government’s new private finance regime, PF2. The programme aims to channel £2bn of capital spending to those schools in the greatest state of disrepair, with work expected to start on the first 42 schools this year.

In addition, rising primary pupil numbers is acting as a driver for increased investment by local education authorities to extend and refurbish existing school premises.  Higher education is also set to be an active area as institutions compete to attract UK and overseas students.