£7 billion of projects on hold

Source: Exec Digital UK

Date :04/12/2008 12:20:05

Over 7 billion pounds of construction projects have been shelved due to the economic climate, according to a survey.

978 million pounds’ worth of projects at the tender stage were shelved last week alone, according to survey carried out by Glenigan. In the past year 889 building schemes have been pulled, worth a total of 7.1 billion pounds.

On many of the projects pulled, contractors have already invested many days’ work, either on pre-qualification questionnaires or quotes for projects which estimators put together. It is unlikely that contractors will now receive compensation for such work.

The delayed or cancelled projects include housing projects and public works, small schemes for ten houses to a 30 million pound London Baker Street project.

The Greater London region has suffered the worst losses, with 1.4 billion of projects mothballed, while the North West region came second with one billion pounds’ worth. When the results are broken down into sectors, the industrial sector has suffered the worst, with 134 projects on hold, while the office and commercial sectors have done second-worst.