Public Sector Construction Market: 2022 Analysis

The public sector is spending more and more on construction. In the 12 months to September 2021, authorities spent a record £29 billion with construction suppliers: a 15% increase on the period prior.

To better understand this critical sector, we've harnessed data from Tussell's market intelligence platform to conduct a cross-section analysis of construction procurement across England from 2016 - 2021.

Click here to download the full factsheet.

Below, we've condensed the main findings of our analysis:

• In the 12 months to September 2021,* the public sector spent a record £29 billion on construction: a 15% increase on 2019/20's £25 billion.
  
  

• Central Government bodies have remained the largest procurers of construction services since 2016/17, spending £13 billion in 2020/21 vs. £11bn spent by Local Government bodies in the same period.
  
  

• Transport-oriented bodies were the largest construction procurers, with the Department for Transport accounting for nearly 50% of construction spend since 2016/17.
  
  

• From 2016/17 to 2020/21, the East Midlands experienced the largest growth in construction spend, at a substantial 157%.
  
  

• Nearly all construction contract award value has originated outside framework agreements: just £9bn of the £127bn worth of construction-related contracts awarded from 2016/17 - 2020/21 originated from framework agreements.

* Due to the lag between actual spending and the publication of the associated invoice, yearly periods in this analysis span October to September.