Contractors turning to public sector as Constructionline reports record growth

Constructionline, the government-endorsed register of pre-qualified suppliers, says over 600 contractors signed up to its service during the first three months of 2009, the highest number ever recorded in its 11-year history.

The figure – which represents a year-on-year increase of 65 per cent – is taken from its latest quarterly usage report, which also shows 70 new clients adopted the scheme as its preferred procurement tool. New organisations included the University of Southampton, Luton Borough Council and New Forest Council.

Buyer usage – which records the number of tender lists created by construction clients – also increased 20 per cent.

The report coincides with new construction industry output statistics released by the ONS today (5 June), which underline the continued growth in demand from public sector clients – Constructionline’s main market. They show the volume of orders for publicly funded non-residential projects grew at seven per cent over the same period.

Constructionline, which re-launched last month following a £1 million investment, says an increasing number of small and medium sized contractors are looking to shield themselves from the continued downturn in privately funded work, using the service to help secure more stable Government-funded projects.

Philip Prince, sales and marketing director of Constructionline, said: “With demand for privately-funded construction continuing to decline, SMEs have found it harder to win work in their traditional markets.

“Contractors – particularly SMEs who make up over 50 per cent of our database - are continuing to shift their focus towards the public sector to better insulate their order books.”