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24th September 2015
With more than a quarter of its projects disappearing since December 2014, more needs to be done to improve the consistency and accuracy of the UK Government construction pipeline, according to analysis published by KPMG.
The report, UK Government Construction Pipeline - KPMG Analysis, indicates that number of construction and infrastructure projects has fallen by 886 (28%) since the previous pipeline analysis in December 2014. The fall in the number of projects mainly relates the Defence, Justice and Police sectors (a drop of 860 projects relates to these sectors alone).
KPMG report that the decrease in the number of projects is largely due to potential schemes being removed from the pipeline to avoid pre-empting decisions in the forthcoming Spending Review. Unfortunately their removal move that does little to provide the construction industry with the long-term certainty and stability in demand that will provide it with the confidence to invest in technology and its workforce There are also a number of projects that have been completed since the December 2014 iteration.
Commenting on the decline, Richard Threlfall, KPMG’s UK Head of Infrastructure, Building and Construction said: “It is clear that more needs to be done to improve the consistency and accuracy of the Government’s construction pipeline. A stable pipeline would give the construction industry good visibility of future demand and the ability to plan and invest for that demand. It would lead to efficiencies for the Government and hence for the taxpayer. Instead we have a pipeline whose data is so incomplete, and which fluctuates so wildly and erratically that the industry can place no detailed reliance on it.”
In addition the removal of planned projects, the overall value of the pipeline has also declined as major contracts have been completed. Most of the decrease in value attribute to projects completing in two sectors:
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