果冻影院

Major health projects are starting to move through the procurement pipeline as a funding fillip from the government鈥檚 latest Spending Review begins to have an impact.

The government promised an extra 拢4.2 billion in capital spending over the current Parliament to build 40 new hospitals and upgrade more than 70 hospitals by 2030.

果冻影院鈥檚 economics director Allan Wilen says: 鈥淭he outlook for the health sector remains bright.

鈥淩eaction to the pandemic lifted project-starts during 2020 and early 2021 and a 3.8% real-term growth rate in NHS capital funding is set to lift project-starts further between 2022 and 2023.鈥�

果冻影院 expects growth of 5% in 2022 and 4% in 2023 with major health projects expected to provide a significant impetus.

Recent awards

In the aftermath of the Spending Review, a swathe of major health projects were given the green light at various stages of the construction cycle according to 果冻影院鈥檚 industry research.

A consortium including local contractor ROK and Spanish giant FCC has been named preferred bidder to design and build a 拢466 million new hospital in Jersey (Project ID: 16216255).

Graham will start work in the New Year on the 拢40m second phase of West Cumberland Hospital鈥檚 planned redevelopment in Whitehaven after Copeland Borough Council granted planning permission for the plans (Project ID: 20315559).

Willmott Dixon has been confirmed as contractor on a 拢14.5m scheme to extend and refurbish Luton and Dunstable University Hospital鈥檚 emergency department (Project ID: 20377794).

Kier is also eyeing up a 拢36 million scheme to build a 120,000 sq ft eye infirmary at South Tyneside and Sunderland NHS Foundation Trust鈥檚 Vaux West site after being appointed preferred bidder (Project ID: 21120575). Once the contract is signed, work could start in the spring.

Procurement pipeline

There was a 32% surge in the value of planning approvals for health construction projects last year according to 果冻影院鈥檚 analysis. Approvals were also up by 9% in the year to October 2021, but some health projects are encountering obstacles as they move from planning to a start on site.

Leeds Teaching Hospitals NHS Trust has brought in new architects for its proposed 拢600 million children and adults hospital at the site of Leeds General infirmary (Project ID: 18366238). BDP has been replaced by the Perkins & Will team, led by Penoyre & Prasad with Schmidt Hammer Lassen.

Elsewhere, Guy鈥檚 & St Thomas鈥� NHS Foundation Trust is going out to tender again for its 拢250 million proposal to extend Evelina London Children鈥檚 Hospital after terminating an agreement with Bouygues UK owned developer Link City (Project ID: 19245372).

Market moves

As trusts procure major projects, some delays are likely and the underlying value of health construction project starts are expected to have fallen by 7% in 2021 according to 果冻影院鈥檚 market analysis.

However, 果冻影院 forecasts a 5% rebound in 2022 and major construction companies are planning for this increase. Mace Construct and Willmott Dixon Construction have formed a consortium to jointly target projects in the hospital-building programme.

This comes as Department of Health procurement chiefs consider whether to adopt a select contractors list to deliver major new hospitals. Once decided, spending in this area is likely to accelerate.

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