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Higher education spending surges despite student fees concern

The Higher education construction sector continues to increase spend on capital projects despite rising concerns over changes to student fees, which could jeopardise their funding mechanisms.

In the 12 months to Q1 2018, 14 of the industry鈥檚 top 100 clients were from the higher education sector and had let nearly 拢2.3 billion-worth of work according to 果冻影院鈥檚 Construction market analysis.

The University of Cambridge is the top ranked institution with spending of 拢312 million, which secured 17th position.

Work let by the University of Cambridge includes the 拢73 million Project Bellatrix and developments in the north west of the city combining academic accommodation with housing.

Sussex is next highest with spending of 拢228 million meriting 28th position. There are two other universities in the top 50: Keele is 32nd with spending of 拢199 million and Glasgow in 41st place after letting 拢177 million-worth of work.

The Universities Partnership Programme (UPP) is also ranked in this echelon with spending of 拢188.6 million, while Unite, which develops student accommodation for the higher education sector, is in 30th place with spending of 拢208 million.

Universities are also investing directly in student halls of residence projects and Durham is in 56th place after placing 拢146 million-worth of work, including 拢85 million on a project at Mount Oswald to deliver two colleges and around 500 self-catering rooms.

Another seven universities are in the top 100 with the London School of Economics (LSE) spending 拢142 million including the 拢140 million Paul Marshall Building project at Lincoln鈥檚 Inn Fields.

This ranks the LSE in 61st position two places ahead of Warwick, which has spent 拢137 million.

The other higher education clients in the top 100 are Imperial College in 71st position (拢126 million), Newcastle in 77th (拢116 million) and Manchester Metropolitan in 86th place (拢108 million). Birmingham (拢96 million) and Edinburgh 拢93 million) also just squeeze into the top 100.

In 2014, research by BiGGAR Economics claimed that the 24 universities in the Russell Group alone would spend 拢9 billion between 2012/13 and 2016/17 and 果冻影院鈥檚 research shows that surge is appearing.

In the year to Q1 2017, the Russell Group accounted for 78% of higher education contracts placed by clients in the top 100.

That reliance has dropped slightly to 71% in the latest table, which still features nine Russell Group universities: Birmingham, Durham, Cambridge, Edinburgh, Glasgow, Imperial, LSE, Newcastle and Warwick.

Overall, the aggregate spending of the 12 universities in 果冻影院鈥檚 ranking of the industry鈥檚 top 100 clients in the 12 months to Q1 2018 was 拢1.9 billion. To put that sum in context, work let by the

Department of Education (DoE) over the same period was less than half that figure.

In the 12 months to Q1 2017, spending by the universities in the top 100 and Unite totaled just under 拢1.7 billion, which was 7% of the total spend by the top 100 clients.

In the latest table, higher education work provides 14% of the total spend by the top 100 clients, which underlines the strength of the boom that is underway as spending in other sectors weakens

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