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Last Updated:
24th March 2020
Spending on health construction projects is expected to improve this year as more money comes into budgets from central government, and procurement moves forward on major schemes.
In his March , the Chancellor Rishi Sunak promised a 拢6 billion funding settlement for the NHS and 果冻影院 forecasts that more than 拢2.2 billion-worth of health construction projects will start on site this year.
Major health construction schemes already on site or about to start include a 拢70 million cancer centre at the Royal Marsden Hospital in Sutton (果冻影院 Project ID: 18432217) and the 拢65 million Douglas Bennett House mental health scheme in London (Project ID: 16071636).
果冻影院鈥檚 economics director Allan Wil茅n says: 鈥淭he outlook for the health construction is brightening, with promised increases in NHS capital funding expected to lift project starts over the next two years.鈥
Major projects
The government had pledged to fund half a dozen new hospitals by 2025 before the budget, but has expanded that number to 40. The initial half a dozen hospitals, which will cost an estimated 拢2.7 billion, are moving forward.
A bidders day will be held on one, the 拢500 million expansion of Leeds General Infirmary expansion plan, on March 24 and an invitation to tender will be issued in October (果冻影院 Project ID: 18366238). 鈥淲hilst capital investment in NHS facilities can deliver efficiency improvements and better health outcomes, it will take time to bring forward new building projects,鈥 said Mr Wil茅n.
Expressions of interest have already been requested for another of the six priority projects for a 拢900 million redevelopment of Whipps Cross Hospital in east London.
Another of the six major schemes, a 拢100 million redevelopment of Princess Alexandra Hospital at Harlow in Essex (果冻影院 Project ID: 19342019), is still at the planning stage.
Smaller and faster
Last year, the government pledged to supply 拢100 million in funding to another 34 hospitals to start developing projects and 果冻影院鈥檚 construction market research shows a host of other smaller schemes moving through the procurement process.
Applications to tender have just been received for a 拢15 million multi-storey modular ward proposal at Mount Vernon Hospital in Hillingdon, north London, and construction will start next year (果冻影院 Project ID: 20073486).
Tenders have been returned for a 拢13.7 million multi-storey car park at Northwick Park Hospital (果冻影院 Project ID: 14283129). Once a contractor is appointed, work should begin on site after the summer.
Tenders have also been returned for a 拢14.6 million redevelopment of the emergency department at Manchester Royal Infirmary, but a start has been pushed back until November (果冻影院 Project ID: 18322461).
Others hospital schemes already have a contractor in place. Kier, for example, is expected to start work in July on a 拢17 million extension of Torbay Hospital in Devon (果冻影院 Project ID: 19342532).
Rosy future
With government money starting to kick start projects, the future for the health construction sector is increasingly healthy.
Mr Wil茅n explains: 鈥淟ooking ahead the sector will benefit from the promised additional Government funding. The scarcity of projects currently in the development pipeline is expected to limit initial sector growth to just 3% this year.
鈥淪tarts are subsequently forecast to gather momentum during 2021, rising by 8%, as NHS trusts develop and implement their investment programmes.鈥
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