Public sector demand keeps contractors in work - for now

It has been this way for the best part of two years: the top-performing firms have been propped up by public sector spending.

But every month the edge of the cliff gets a little closer. In a list of the 20 biggest bits of work won in July, only three were in the private sector but, for another month at least, the public sector yielded enough to postpone a complete wipe-out.

This month鈥檚 most thankful contractor was Morgan Sindall. The firm won 拢196m of work over July from a total of 40 contracts. The pick of the bunch was a 拢95m double deal to build an adult mental health facility at the Murray Royal hospital in Perth and another in Stracathro hospital in Angus. Both jobs are for NHS Tayside. It also picked up a 拢19m contract with Knowsley council for a community centre.

Second in this month鈥檚 league table was Balfour Beatty with 35 contracts totalling 拢139m - its biggest wins were a 拢28m Network Rail job in Paisley and 拢100m of highways works in Southampton. Laing O鈥橰ourke was placed third, with six contracts worth 拢109m.

Back in July 2009, Morgan Sindall was second in the contractors list with 拢235m of work. Laing O鈥橰ourke came top with a 拢1.2bn bonanza, after signing up to Barnsley鈥檚 好色先生TV Schools for the Future programme, which was forecast to be worth 拢1.1bn. The initial 拢360m phase of that deal survived last month鈥檚 cuts, but Barnsley council鈥檚 further plans are now a distant hope.

One interesting figure is for overall work won last month: 拢1.5bn. Last year, July鈥檚 total was also 拢1.5bn if you discount the 拢740m that went up in smoke as part of Laing O鈥橰ourke鈥檚 BSF deal. The perils of counting your chickens before they hatch 鈥

In 2008 the July total was 拢1.7bn. In 2007, just as the phrase 鈥渃redit crunch鈥 began to enter popular jargon, the total was 拢2.2bn. Although the downward trend has levelled, the pickings get thinner with every swing of the coalition axe.

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