Morgan Sindall has seen its order book grow from £3.2 billion to £3.5bn since the start of this year with the closure of BSF and PFI schemes.
The contractor secured Hull BSF and Tayside Mental Health PFI during the first half of the year but concerns remain over the extent of the public sector cuts.
In a trading update for the six months to 30 June, the firm said the fit-out division has benefited from improved market conditions, driven in particular by demand for larger project with revenue increasing by around 10 per cent in comparison to the same period last year.
The newly combined construction and infrastructure division has converted its entire £900 million of preferred bidder opportunities since January.
The company said the uplift in trading would offset the £2m net cost of integrating the construction and civil engineering divisions.