Central Government Construction Market - UK 2009-2013

Central Government Construction Market - UK 2009-2013 published by AMA Research in November, 2009. This report consists of 92 pages and the price starts from US $ 1150.

Introduction

Abstract

INTRODUCTION and OVERVIEW

Key areas in the report

The Central Government Construction sector is worth over £3.5 billion and covers accommodation related construction in the following Government Departments:

• Ministry of Defence (Defence Estates)
• Home Office (Police Service, Immigration)
• Ministry of Justice (Prisons and Courts)
• HM Revenue and Customs
• Department for Culture, Media and Sport (Museums, Libraries, Sport, & Leisure)
• Department for Communities and Local Government (Fire & Rescue)

AMA Research have published the 1st Edition of its overview of the Central Government Construction Market in the UK, covering the defence, police, immigration, courts, prison, fire & rescue, central government offices and public leisure sectors. The report should be of particular interest to contractors, suppliers, FM providers and construction professionals and provides a comprehensive review of the sector.

Areas of particular interest:

• Analysis of key central government functions including defence, police services, immigration service, courts service, prison service, fire & rescue services, central government offices and public leisure services including current estate size and future estate strategy.
• A detailed review of major capital building programmes of key central government departments including MoD, MoJ, DCMS, HMRC and the Home Office.
• A detailed review of leading contractors and consortia involved in central government construction work including sector strengths and project activity.
• Forecasts of developments up to 2011 and underlying prospects for the next 5 years - impact of Election, potential funding cuts etc.
• Key factors affecting the central government sector including the impact of the economic downturn, the Public Value Programme, future public spending levels, sustainability and the use of offsite construction methods.

Some of the companies featured include:

Carillion, Enterprise Plc, Galliford Try, Interserve, John Laing, Kier, Sir Robert McAlpine, Skanska, Willmott Dixon

Key areas covered in the report include:

CONSTRUCTION MARKET OVERVIEW

• Value of construction new work output.
• Construction output by sector in 2002-08 and forecasts for 2009-2013.
• Central Government construction market: £3.5+ billion spending on new build and RMI - output by sector.
• Central Government Facilities Management market overview.

CENTRAL GOVERNMENT - CONSTRUCTION PROGRAMMES

• Central Government Capital Expenditure.
• Defence Estates - Future Estates Strategy, estates budget 2008-11, Living & Training Accommodation (number of new bed spaces 2007-2020), 10 Year Accommodation Management strategy (single/family living), new build/RMI, key projects, condition assessments, budgets/timescales, key influences etc.
• Police Service - capital expenditure, construction programmes & key projects - values and current status.
• Immigration Service - key expansion plans - budgets, key projects, bedspaces etc.
• Courts Service - Courts Estate, capital expenditure, key construction programmes and budgets up to 2011. New build and RMI.
• Prison Service - Prison Estate, prison population, capital expenditure, key construction programmes and budgets, new prison capacity (Mini-Titans), HM Prison Service Framework Agreements - public/private sector, use of MMC, procurement routes, new build/RMI, FM.
• Leisure - DCMS expenditure, key construction programmes and budgets, Olympics, museums, sport and recreation, cultural sites etc. - budget splits up to 2011.
• Fire & Rescue Services - capital expenditure, PFI programmes, budgets up to 2011.
• Central Government Offices - key projects & programmes, Carter review.

FACTORS AFFECTING THE MARKET

• Planned Future Public Investment including measures announced in the Pre-Budget Report, possible impact of change of government in 2010. Role of PFI.
• Public Value & Operational Efficiency Programmes - review of procurement routes, Carter review.
• Sustainability - BREEAM - impact on specifications/procurement.
• Use of Offsite / MMC - application to the Central Government construction market - MoD, prisons, immigration centres etc.

CONSTRUCTION MARKET SUPPLY

• Structure & Size of the Contracting Industry.
• Leading Clients in the Central Government construction market.
• Leading Construction Contractors and Consortia operating in the Central Government construction market - role of framework agreements.

Table of Contents

CONTENTS and LIST OF TABLES & CHARTS

1. INTRODUCTION 6

2. EXECUTIVE SUMMARY AND FUTURE PROSPECTS 8

3. CONSTRUCTION MARKET OVERVIEW 12

• 3.1 VALUE OF OUTPUT - CONSTRUCTION NEW WORK 12
  • 3.1.1 Value of Output - Construction New Work 12
  • 3.1.2 Construction Output by Sector 13
  • 3.1.3 Construction Output in 2009 and Outlook for 2010 14
• 3.2 CENTRAL GOVERNMENT CONSTRUCTION MARKET 15
  • 3.2.1 Central Government Construction Output 15
  • 3.2.2 Output by Sector 16
• 3.3 CENTRAL GOVERNMENT FACILITIES MANAGEMENT MARKET OVERVIEW 18

4. CENTRAL GOVERNMENT - CONSTRUCTION PROGRAMMES 20

• 4.1 CENTRAL GOVERNMENT CAPITAL EXPENDITURE 20
• 4.2 DEFENCE BUILDING PROGRAMMES 20
  • 4.2.1 MOD Estate 20
  • 4.2.2 Defence Capital Expenditure 22
  • 4.2.3 Defence Training Accommodation 23
  • 4.2.4 Living Accommodation 26
• 4.3 POLICE SERVICE/IMMIGRATION BUILDING PROGRAMMES 32
  • 4.3.1 Police Service Estate 32
  • 4.3.2 Police Service Capital Expenditure 33
  • 4.3.3 Police Service Construction Programmes & Key Projects 34
  • 4.3.4 Immigration Service 36
• 4.4 COURTS SERVICE BUILDING PROGRAMMES 38
  • 4.4.1 Courts Service Estate 39
  • 4.4.2 Courts Service Capital Expenditure 40
  • 4.4.3 Courts Service Construction Programmes & Key Projects 41
• 4.5 PRISON SERVICE BUILDING PROGRAMMES 44
  • 4.5.1 The Prison Service Estate 44
  • 4.5.2 Prison Service Capital Expenditure 46
  • 4.5.3 Prison Service Construction Programmes and Key Projects 47
• 4.6 LEISURE/CULTURE BUILDING PROGRAMMES 51
  • 4.6.1 Overview 51
  • 4.6.2 DCMS Expenditure 52
  • 4.6.3 Leisure/Culture Construction Programmes & Key Projects 54
• 4.7 FIRE & RESCUE SERVICES BUILDING PROGRAMMES 56
  • 4.7.1 FRS Capital Expenditure 57
• 4.8 CENTRAL GOVERNMENT OFFICES 60
  • 4.8.1 Carter Review 60
  • 4.8.2 Central Government Office Projects 60

5. FACTORS AFFECTING THE MARKET 62

• 5.1 PLANNED FUTURE PUBLIC SECTOR EXPENDITURE 62
  • 5.1.1 Pre-Budget Report 62
  • 5.1.2 Impact of Public Spending Cuts on Central Government Construction 64
• 5.2 PUBLIC VALUE PROGRAMME 64
• 5.3 OPERATIONAL EFFICIENCY PROGRAMME (CARTER REPORT) 65
• 5.4 SUSTAINABILITY 66
  • 5.4.1 BREEAM 66
• 5.5 PREFABRICATION 69
  • 5.5.1 Application to the Central Government Sector 69

6. CONSTRUCTION MARKET SUPPLY 73

• 6.1 STRUCTURE AND SIZE OF THE CONTRACTING INDUSTRY 73
• 6.2 LEADING CLIENTS IN THE CENTRAL GOVERNMENT CONSTRUCTION MARKET 74
• 6.3 LEADING CONSTRUCTION CONTRACTORS IN THE CENTRAL GOVERNMENT CONSTRUCTION MARKET 76
• 6.4 CONSORTIA AND FRAMEWORKS 78
• 6.5 CONTRACTOR PROFILES 80
  • 6.5.1 Carillion 80
  • 6.5.2 Galliford Try 81
  • 6.5.3 Interserve 82
  • 6.5.4 John Laing 84
  • 6.5.5 Kier 86
  • 6.5.6 Sir Robert McAlpine 87
  • 6.5.7 Skanska 88
  • 6.5.8 Willmott Dixon 90
  • 6.5.9 Other Contractors 90

TABLES AND CHARTS

• CHART 1 CENTRAL GOVERNMENT CAPITAL EXPENDITURE 2009-10 (£M) BY SECTOR - DEFENCE, PRISONS, COURTS, FIRE & RESCUE, IMMIGRATION, POLICE, LEISURE 8
• CHART 2 VALUE OF CONSTRUCTION OUTPUT NEW WORK 2002-2013 (£ BILLION) 12
• CHART 3 VALUE OF CONSTRUCTION OUTPUT NEW WORK BY SECTOR - % BY VALUE 2008 14
• TABLE 4 CONTRACTORS OUTPUT - CENTRAL GOVERNMENT 2008 - 2013 (£M) - NEW WORK, MAJOR REFURBISHMENT, SMALL RMI 15
• CHART 5 CENTRAL GOVERNMENT CONSTRUCTION OUTPUT NEW WORK BY SECTOR - % BY VALUE 2009 - DEFENCE, COURTS, POLICE, ENTERTAINMENT, FIRE & RESCUE ETC 18
• TABLE 6 DEFENCE ESTATES UK LIVING ACCOMMODATION - NO. UNITS BY GRADE - FAMILIES & SINGLE LIVING. 21
• TABLE 7 MOD - THE DEFENCE BUDGET 2007-2011 - RESOURCE, CAPITAL AND DEFENCE ESTATES. 22
• CHART 8 DEFENCE ESTATES 10 YEAR ACCOMMODATION MANAGEMENT STRATEGY - % OF NEW BUILD VS. REFURBISHMENT WORK 23
• TABLE 9 MOD ESTATE - ROYAL NAVY TRAINING REQUIREMENTS AND PLANS 24
• TABLE 10 MOD ESTATE - ARMY TRAINING REQUIREMENTS AND PLANS 25
• TABLE 11 MOD ESTATE - ROYAL AIR FORCE TRAINING REQUIREMENTS AND PLANS 26
• CHART 12 MINISTRY OF DEFENCE - NO. BED-SPACES ADDED TO THE UK PORTFOLIO 2006 - 2020 (SHARE BY FAMILIES AND SINGLE LIVING). 27
• TABLE 13 MOD - MAJOR SLA UPGRADE PROGRAMMES 2003 - 2013 - ACCOMMODATION TYPE, NO. OF BEDSPACES & TIMEFRAME 31
• TABLE 14 POLICE SERVICE BUDGETS - 2008-2011 34
• TABLE 15 POLICE SERVICE PFI/PPP PROJECTS - BY PROJECT, STATUS & CAPITAL VALUE 35
• TABLE 16 UK IMMIGRATION REMOVAL CENTRES - LOCATION & BEDSPACES 37
• TABLE 17 HM COURTS SERVICE BUDGET 2008-2011 NEW BUILD / RMI 40
• TABLE 18 HM COURTS SERVICE - MAJOR PROJECTS IN PROCUREMENT AND CAPITAL VALUES 2009-2013 42
• TABLE 19 HM PRISON SERVICE - PROJECTED PRISON POPULATION 2010 - 2015 46
• TABLE 20 NOMS BUDGET 2008-09 BY SECTOR - PRISONS, PROBATION ETC 47
• TABLE 21 DCMS RESOURCE & CAPITAL BUDGET 2007 - 12 (£M) BY SECTOR 53
• TABLE 22 DCMS - MAJOR PFI PROJECTS SIGNED & IN PROCUREMENT (CAPITAL VALUES) 56
• TABLE 23 FIRE & RESCUE SERVICE - MAJOR PFI PROJECTS SIGNED & IN PROCUREMENT (CAPITAL VALUES) 57
• TABLE 24 FIRE & RESCUE SERVICES - GRANT ALLOCATIONS 2009-10 AND 2010-11 (£' 000) BY AUTHORITY 58
• CHART 25 PUBLIC SECTOR INVESTMENT 2007 - 2014 (£BILLION) 63
• TABLE 26 BREEAM - PROJECT EXAMPLES IN THE CENTRAL GOVERNMENT SECTOR 68
• TABLE 27 MAIN PRIVATE CONTRACTORS - BY NUMBER OF EMPLOYEES 2007 -2008 73
• TABLE 28 TOP CENTRAL GOVERNMENT CLIENTS - KEY PROJECTS & CAPITAL VALUES 2009-10 75
• TABLE 29 TOP 15 CONTRACTORS IN CENTRAL GOVERNMENT WORK 77
• TABLE 30 LEADING CONTRACTORS AND PRINCIPAL CONSORTIA IN CENTRAL GOVERNMENT WORK 79
• TABLE 31 CARILLION - RECENT EXPERIENCE IN CENTRAL GOVERNMENT WORK 81
• TABLE 32 GALLIFORD TRY - RECENT EXPERIENCE IN CENTRAL GOVERNMENT WORK 82
• TABLE 33 INTERSERVE - RECENT EXPERIENCE IN CENTRAL GOVERNMENT WORK 84
• TABLE 34 JOHN LAING - RECENT EXPERIENCE IN CENTRAL GOVERNMENT WORK 85
• TABLE 35 KIER - RECENT EXPERIENCE IN CENTRAL GOVERNMENT WORK 87
• TABLE 36 SIR ROBERT MCALPINE - RECENT EXPERIENCE IN CENTRAL GOVERNMENT WORK 88
• TABLE 37 SKANSKA - RECENT EXPERIENCE IN CENTRAL GOVERNMENT WORK 89
• TABLE 38 WILLMOTT DIXON - RECENT EXPERIENCE IN CENTRAL GOVERNMENT WORK 90
• TABLE 39 OTHER CONTRACTORS - RECENT EXPERIENCE IN CENTRAL GOVERNMENT WORK 91

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