This blog was written by Jessica Evans and Theo Wapshare .
Following growing demand from the construction industry for the Government to reveal a clear picture of the public sector projects to be put to market in the short to medium-term, the Infrastructure and Projects Authority has now responded by publishing the new National Infrastructure and Construction Procurement Pipeline. With the industry grappling with the uncertainty caused by COVID 19 – which, of course, follows hot on the economically challenging heels of Brexit - the pipeline's aim is to re-assure companies and markets that the Government intends to invest in a broad range of infrastructure projects in a significant way. By publishing details of the public contracts planned to be brought to market throughout2020/2021, Government is hoping to demonstrate its commitment to the recovery of the constructionAnalysis of the National Infrastructure and Construction Procurement Pipeline 2020/2021 industry, in these unprecedented times.
The pipeline includes 340 procurements across more than 260 projects with a combined value of up to £37 billion. Work packages, projects and programmes that are planned to go out to market for procurement during the 2020/2021 financial year are all included in the pipeline. Projects and programmes have been earmarked across the country.
Sectors due to benefit from projects outlined in the pipeline range from transport to social infrastructure (which encompasses education and health). Economic infrastructure is to receive the largest investment, with the maximum contract value of procurements in the sector worth £22.3bn. Other sectors set to benefit are defence (£5bn) and utilities (£4.7bn). The pipeline also includes procurements in the energy sector (£3.9bn).
According to the pipeline, over half of the work going to market in 2020/2021 is construction work. Up to £11.6bn is to be designated to architectural and engineering services, with the remaining to be committed to repair and maintenance services, research and development and consultancy services. The procurement pipeline includes projects from all over the UK however most are to take place in England, as infrastructure spending is a devolved power of the administrations of Scotland, Wales and Northern Ireland.
The recognition of the lynch pin role the public sector is to likely play in the future recovery of the industry will offer a degree of re-assurance to those who are navigating the challenges presented by COVID 19 and have been appealing to the Government for clarity and certainty. With many companies concerned with forward workload, the pipeline announcement will be welcomed by the industry. Only time will tell if the Government and public sector machinery can deliver, particularly as the economic reverberations of Brexit continue to be felt.
For more information on the National Infrastructure and Construction Procurement Pipeline please see the full report using the link above.
"Up to £37bn of infrastructure work up for grabs"