EXPECTED public sector construction spending rose by 4.9% (or £600 million) in value in the six months to January 2023, according to latest figures from Scottish Futures Trust (SFT).
There are now 1,718 projects being planned across Scotland, worth £12.2 billion. These include new builds, refurbishments and maintenance projects across a wide range of sectors including roads, health, education, housing, cultural and heritage.
SFT tracks Scotland’s expected public projects over the next five years using its Construction Pipeline Forecast Tool (CPFT), an online platform which offers construction businesses a long-term view of planned investment. The CPFT also carries updated details of some 90 individual construction-related frameworks that businesses can apply to join.
The tool allows users to easily access project data using various criteria including the chosen procurement route, the procuring authority, contract value and sector.
Peter Reekie, SFT’s chief executive, said having such an accurate register of planned public construction projects and their expected cost offers companies the very latest information on likely tender opportunities, and allows public bodies such as local councils to identify where possible partnerships could be created to deliver improved efficiencies.
“These latest figures show there is strong growth in the public sector’s building plans. Of those 1,718 ‘live’ planned projects, 55% are valued below £2 million and many are expected to be started by 2025, which emphasises the breadth of public contracts that will be on offer, particularly to small and medium-sized construction-related firms, over the next five years,” said Mr Reekie.
“More than 900 businesses and nearly 50 public bodies across Scotland have now registered to share information on the platform, showing just how many are finding the tool an extremely valuable resource. We encourage anyone involved in public sector construction procurement to register.”
Welcoming news of the new figures, Business Minister Ivan McKee said: “Scotland’s construction industry is a significant contributor to the economy and the Scottish Government is working with the sector, through the Construction Leadership Forum, to ensure it continues to transform and grow in a sustainable way.
“The Construction Pipeline Forecast Tool is providing a transparent forecast on anticipated work across the public sector. This is giving businesses the confidence to plan ahead with investment, upskilling, and if needed, increasing their workforce for any tender process.
“In line with the recently launched Construction Accord, the Pipeline Tool is further supporting greater collaboration within the supply chain and improving outcomes for the businesses and workforce which make up the construction and associated industries.’’
