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Summer slowdown bites as Galliford secures June win

The contractor top 50 fell back in June after May’s high watermark, despite impressive totals for both Galliford Try and Morgan Sindall.

 Top 10 contractors, June 2017  
  Click here for the full top 50  
  Contractor No Total (£m)
1 Galliford Try  10 320.3
2 Morgan Sindall  44 264.8
3 Willmott Dixon  22 148.1
4 Interserve 21 133.0
5 Kier  18 119.5
6 Keepmoat 11 110.4
7 North Midland  5 105.2
8 Skanska UK 2 104.4
9 Royal Bam 10 99.9
10 Lagan Construction Group 2 91.5
  League tables are subject to revision 

The league, which ranks contractors by the value of wins during the month, recorded £3.03bn-worth of deals across the top 50 in June, according to construction intelligence provider Glenigan

This figure was down by a third on May and represented the second-lowest total of 2017, above only February. However, June was still a whopping 108 per cent higher than the total for the same month of 2016, suggesting this year’s summer slowdown may not be as severe.

Galliford Try took first place in the month’s contractor table thanks primarily to two jobs for the Ministry of Defence. A total of 10 contracts in June worth £320.3m combined gave the contractor its second league win of 2017, having also topped April’s top 50.

Chief among Galliford’s deals was the £135m contract to design and build hangars for the RAF’s new fighter jets (pictured). The contractor, in a joint venture with Lagan Construction Group, will deliver the facility for 12 F-35B Lightning II aircraft at RAF Marham in Norfolk.

June also saw Galliford bag a £45m contract for works at the MoD’s Faslane naval base on the Scottish coast.

Morgan Sindall was not too far behind in second for the month, securing £264.8m of work. However, it was the number of deals sealed that caught the eye, with Morgan Sindall clinching a record-breaking 44 contracts during the period. This marked the highest volume on record for one firm in a single month, beating Sindall’s own mark of 43 recorded the same month last year.

The haul was dominated by low-to-medium-value jobs, but also included a £43.3m office fit-out for its Overbury subsidiary in east London, as well as a £25m office refurbish in Hammersmith for client MP Kings Lyric Sarl.

Willmott Dixon was third for June with £148.1m, its second top-three finish this year. 

 Top 10 clients June 2017   Top 10 clients, year to June 2017 
  Click here for the full top 50     Click here for the full top 50  
  Client No Total (£m)   Client No Total (£m)
1 Ministry of Defence 3 181.3   Department for Transport 44 2,262.7
2 Fraser Property  1 130.0   Department of Health 293 1,336.0
3 Severn Trent  2 102.0   Network Rail 112 1,164.9
4 LaSalle  1 100.0   Ministry of Defence 46 1,111.3
5 Department for Transport 4 80.3   TH Real Estate  4 856.2
6 Department for Education 5 78.5   Homes & Communities Agency 18 727.4
7 Land Securities 4 66.5   Greater London Authority 16 576.3
8 Sherwood Thames Ventures 1 55.0   Department for Education 50 480.2
9 Neath Port Talbot CBC 2 50.9   Tata 13 429.3
10 Dandara 2 50.4   Quintain 8 404.8
  League tables are subject to revision    League tables are subject to revision 

The Ministry of Defence was the busiest client in June, scoring its first monthly podium place since November 2016. The Department for Transport returned to the top 10 meanwhile after a relatively quiet few months.

This helped the DfT to extend its lead over the Department of Health in the annual client rankings. The MoD’s recent activity saw it close the gap on third-placed Network Rail, while the Greater London Authority returned to the top 10 for the first time since the year to August 2016. 

Elsewhere, other stand-out deals during the month included Skanska’s £100m central London office scheme for LaSalle, while North Midland took over from Kier / Interserve on a £100m Birmingham water project for Severn Trent.

In addition to Morgan Sindall’s high-volume total, Willmott Dixon scored 22 wins, Interserve 21 and Kier 18, helping the top 50 to record 290 contracts in total for June. This was the highest number of deals struck by the monthly top 50 since July 2015, and was up from 229 in May – despite their combined value being 33 per cent lower.

June’s average contract value was £10.4m, down from £19.6m in May and but still higher than the £8m recorded in June 2016.

 Top 10 contractors, year to June 2017 
  Click here for the full top 50  
  Contractor No Total (£m)
1 Morgan Sindall 342 2,648.5
2 Laing O’Rourke 29 2,433.4
3 Sir Robert McAlpine 35 2,375.9
4 Kier 285 2,283.3
5 Galliford Try 124 1,877.9
6 Royal Bam 86 1,515.9
7 Willmott Dixon  182 1,436.7
8 Lendlease 17 1,381.2
9 Wates 120 1,226.4
10 Balfour Beatty 64 1,155.8
  League tables are subject to revision 

Yet another strong monthly outing meant Morgan Sindall remained well on top of the 12-month contractor table, increasing the gap to second-placed Laing O’Rourke to £215m.

Indeed, the top six for the year to June all unchanged from the year to May, though Kier extended the gap to Galliford Try, whose success in June was tempered by major deals falling outside the period covered.

Carillion dropped a notable eight places to 18th in the annual table, with Balfour Beatty climbing three spots to 10th. Multiplex fell from ninth to 15th – swapping places with Wates, curiously enough. Interserve also recovered to 14th, having dropped to 19th last time out.

The combined value of the annual contractor league dipped slightly after strong recent growth, down 1.1 per cent to £38.4bn.

 Top 10 engineering consultants, Jun 2017 
  Click here for the full top 20  
  Engineering consultant No Total (£m)
1 Arup 5 204.7
2 Hoare Lea  12 172.2
3 Curtins  2 132.0
4 Heyne Tillett Steel 2 117.5
5 WSP 7 109.0
6 MWH 1 100.0
7 Mott MacDonald 4 77.1
8 Waterman 4 66.9
9 Ramboll  2 65.0
10 Buro Happold 1 60.0
  League tables are subject to revision 

Arup’s run of form shows no sign of abating, its win in June marking a seventh podium in the past 12 months. Hoare Lea scored second place for the second time this year, while Curtins is also on a roll, having been fifth in May and top in April.

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