The healthcare construction sector experienced a poor period in the three months to September, with project starts on site, main contract awards, and detailed planning approvals all declining against the preceding three months and the previous year.

The UK sector has faced a tough period in recent months, with delays to various hospital programmes contributing to the overall decline, according to Glenigan’s October Construction Review.

High-profile schemes such as the New Hospital Programme (NHP) create cause for optimism for the future, but the programme has faced various delays, contributing to the poor performance of the sector.

And many hospitals expecting maintenance and refurbishment have seen plans stalled, while procurement challenges and budget allocation issues highlight the disconnect between spending announcements and practical delivery within the sector, says the report.

Types of projects

Nursing homes and hospices accounted for 31% of the activity in the three months to the end of September, having grown 97% year-on-year to total £318m.

Totalling £11m, the value of dental, health, and veterinary centres/ surgeries starting onsite declined 94% on a year ago.

And hospitals experienced a 24% decline against the previous year to total £274m, a 27% share of the total value.

Regional variation

The South East, at £283m, was the most-active region for project starts, accounting for 28% of the total, with the region declining 31% against the previous year.

The South West of England, at £235m, experienced sharp growth, rising 125% against the previous year to account for 23% of the total value, the second-most active region.

In planning approvals, Scotland accounted for the largest share (27%), increasing almost 25 times against the previous year.

The South East of England, at £143m, accounted for the second-largest share of approvals at 24%, declining 76% against the previous year.

Key players

The report also provides information on the top contractors and commissioners within the sector.

The Department of Health and Social Care, the Department for Environment and Food, and the Natural History Museum were the top three clients, with health projects worth £1.06bn, £927m, and £201m respectively.

Laing O’Rourke, Graham Construction, and Mace Group topped the contractor list, with 7 projects between them worth collectively over £1.5bn.