Major contract awards provide further evidence of upturn in healthcare construction

Published: 15-Dec-2020

Construction giant, Interserve, wins six new health contracts totalling £148m in a single month

Last month saw further evidence that the healthcare construction market is picking up, with Interserve securing six new contracts in the healthcare space in a single month.

The company has been awarded contracts at Walsall Manor Hospital for upgrades relating to winter pressures; Liverpool Heart and Chest Hospital for the construction of new specialist units; and a major contract to refurbish the Prince Charles Hospital in Merthyr Tydfil.

Totalling £148m; the contract wins follow Interserve’s work, earlier this year, on a major refurbishment and extension at Liverpool Women’s Neonatal Unit - creating the largest unit of its kind in the UK.

The company also delivered the NHS Nightingale Hospital at Birmingham NEC, completing the first phase in just 13 days.

Commenting on the announcement, Paul Gandy, managing director of Interserve Construction, said: “We are pleased to have recently secured a further £148m worth of new business in healthcare, one of our key strategic markets.

“The construction business has a strong order book and has already secured over 90% of work for next year, which is well ahead of the industry average.

“It has been a very-challenging year for UK businesses, but we are well positioned to make the most of opportunities in our key markets going forward.”

Last month, BBH reported that the healthcare construction market is expected to buck a sector-wide trend that has seen opportunities dwindle, spurred on by the creation of COVID-19 field hospitals and the announcement of a 14% rise in capital funding for the NHS in England.

A new report by construction market analyst, Glenigan, forecasts an 11% rise in healthcare project starts next year, and a 12% increase in 2022 as NHS trusts develop and implement their investment programmes as part of the Government’s Healthcare Infrastructure Plan (HIP).

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