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Huge upheaval hits top clients and contractors in latest league tables

The top 50 contractors won £23bn of work in the year to July, the lowest value of total wins for four years.

The annual contractor table hit its lowest total value of wins for four years, down 15.2 per cent on the year to June 2016 alone.

 Top 10 contractors, year to July 2016 
  Click here for the full top 50  
  Contractor No Total (£m)
1 Bouygues UK 31 1,778.8
2 Royal Bam 67 1,528.8
3 Balfour Beatty 60 1,344.4
4 Morgan Sindall 269 1,262.3
5 Carillion 37 1,254.4
6 Kier 211 1,031.6
7 Galliford Try 114 1,020.8
8 Wates 98 930.2
9 Sir Robert McAlpine 17 897.8
10 Mace 30 828.2

The combined value of wins fell to £23.05bn for the 12 months to July, down from £27.17bn for the 12 months to June and marking the weakest period since the 12 months to June 2012, according to construction intelligence provider Glenigan.

This sharp decline was primarily due to a significant number of major contracts falling outside the period covered.

These substantial deals were led by £1.5bn-worth of work on smart motorways for Highways England awarded in July last year, the winners of which included Balfour Beatty, Costain, Carillion, Galliford Try, Kier and Vinci.

Also exiting the rolling total were contracts worth £1bn for Thames Tideway, which were signed in July 2015 by firms such as Bam Nuttall, Ferrovial, Laing O’Rourke and Morgan Sindall.

The £420m A6 project in Belfast, handed to Graham and Farrans, was another departure from the 12-month period.

As well as the effect on the table’s combined value, the combination of these annual league drop-outs meant it was all change among the top 12-month contractors.

Kier relinquished top spot for the first period since the 12 months to August 2015, dropping to sixth and allowing Bouygues to claim the summit.

Bam gained three places to sit second – its highest position since the 12 months to August 2013 – while Morgan Sindall was up from seventh to fourth.

Galliford Try fell five places to sit seventh and Vinci was down nine places into 20th.

Notable climbers also included Balfour Beatty, which edged closer to a return to the top, and Sir Robert McAlpine, which gained 13 places to take eighth.

 Top 10 contractors, July 2016
  Click here for the full top 50
  Contractor No Total (£m)
1 Sir Robert McAlpine 1 500.0
2 Balfour Beatty 11 212.9
3 Buckingham 6 129.0
4 Laing O’Rourke 1 102.0
5 Wates 14 91.2
6 Keepmoat 17 81.9
7 Morgan Sindall 22 77.9
8 Royal Bam 5 69.4
9 Interserve 8 58.4
10 ISG 19 51.6

McAlpine’s surge was primarily due to a £500m hotel deal in July that saw it top the monthly contractor table.

The £500m Peninsula Hotel is being developed by Grosvenor alongside Hongkong & Shanghai Hotels. Sir Robert McAlpine will replace existing offices on the Hyde Park Corner site with a five-star hotel plus apartments, construction of which is set to commence next summer.

Balfour Beatty was a distant second for the month despite recording 11 deals compared with McAlpine’s one, its haul underpinned by a £170m contract that will see the contractor upgrade baggage screening and handling systems at Heathrow Airport.

 Top 10 clients, July 2016 Top 10 clients, year to July 2016
  Click here for the full top 50   Click here for the full top 50
  Client No Total (£m)   Client No Total (£m)
1 HSH 1 500.0   Department for Transport 34 1751.4
2 Ferrovial 3 216.7   Network Rail 75 983.3
3 National Grid 1 102.0   Greater London Authority 16 934.2
4 Alstom  1 60.0   Department of Health 229 933.9
5 Severn Trent 1 60.0   Argent  7 413.0
6 Tata  2 42.0   Tottenham Hotspur 3 412.3
7 Barchester Healthcare 1 40.0   Department for Education 39 365.8
8 Wolstenholme Square 1 40.0   Ministry of Defence 38 328.4
9 Network Rail 9 39.0   Bristol City Council 12 322.4
10 UPS 1 38.0   ProLogis 11 294.1

In the monthly clients league Hongkong & Shanghai Hotels took first place but Network Rail was a notable re-entry to the top 10 after a few quiet months, awarding nine deals in July – a volume matched only by the Department of Health.

As with the contractors, it was all change in the annual client table after the exit of the smart motorway and Tideway contracts dealt a blow to the standings of Thames Water and the DfT. The former hung on to top spot due to falls elsewhere, but the latter fell out of the top 50 entirely.

Network Rail actually gained two places despite its haul shrinking by around £141m, while the GLA recorded a £379m contraction in its 12-month total yet clung onto third.

Buckingham was third in July thanks in part to winning a training centre scheme in Widnes valued at £60m, set to be delivered over three phases.

Other stand-out deals in the month included Newry Construction winning a £40m redevelopment of Wolstenholme Square in Liverpool, and Bam securing a £40m retirement village project in Evesham.

Despite the severe decline in the annual table, the monthly contractor league actually improved month on month: at £2.2bn, the total value of the top 50’s wins in July was 51.9 per cent higher than June’s £1.45bn.

The average contract value was also up, rising to £10.2m compared with £8m the previous month.

However, the value of July’s table was 65.4 per cent lower than the same month of 2015, when wins totalled £6.37bn.

 Top 10 engineering consultants, July 2016
  Click here for the full top 20
  Engineering Consultant No Total (£m)
1 Blyth+Blyth 1 102.0
2 Aecom 2 61.7
3 RVW  1 51.5
4 Clancy 3 45.3
5 Campbell Reith Hill  1 45.0
6 Woods Hardwick 1 42.0
7 WSP 1 28.6
8 Eckersley O’Callaghan 1 21.2
9 Skelly & Couch 1 21.2
10 Hydrock 2 20.6

Blyth+Blyth topped the engineering consultants table for the first time, in what was its first top 20 entry since March. Aecom returned to the top 10 having dropped out in June after topping May, while Arup fell to 11th following four consecutive podium places.

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