The Scotsman

Building boost as ‘hub’ programme breaks £1bn mark

● Constructi­on work generated by string of projects supporting 14,000 SME posts

- By SCOTT REID

of smaller-sized building firms are said to be benefittin­g from increased activity as the value of constructi­on work linked to a Scotland-wide programme to develop new community facilities pushes through £1 billion.

Figures published today by the Scottish Futures Trust (SFT) show the value of schools, health centres and town centre facilities being built for public sector organisati­ons has reached just over £1.1bn.

According to the report, about three-quarters of all “hub” contracts have been awarded to small and medium-sized enterprise­s (SMES), while the related constructi­on activity is supporting more than 14,000 jobs.

Projects valued at some £550 million are in developmen­t through the five hub ventures while schemes valued at £510m have already been completed, are operationa­l and “serving local communitie­s”, the SFT noted.

The findings will provide some support for a sector still struggling in the wake of the economic downturn and facing the additional headache of a skills shortage in many areas.

A recent report revealed that confidence among Scottish builders had tumbled to a three-year low in the wake of the Brexit vote amid concerns that some investment decisions could now hit the wall.

Industry bosses issued a stark warning over the nearterm prospects for the industry after the latest Scottish Constructi­on Monitor showed confidence levels among employers sliding 22 points to minus 19 – the first time since spring 2013 that the monitor has recorded a negative overall reading.

David Macdonald, hub programme director at the SFT, said: “The success of the hub programme is clear to see as the value of projects under constructi­on continues to grow.

“The programme is an innohundre­ds vative approach to develop and deliver best-value community facilities which provides public bodies with a quick and efficient way of getting their projects into constructi­on and services delivered to their communitie­s.

“The benefit of using hub as the preferred delivery partner is reflected in the huge increase in the value of projects under constructi­on. We see this momentum continuing as there’s £550m of community projects still in developmen­t.”

He added: “With 78 per cent of hub constructi­on contracts being awarded to SMES, many thousands of local jobs are being protected and sustained.”

James Mcalpine, managing director of constructi­on contractor CBC, said: “As a Glasgow-based SME, we have benefited greatly from the opportunit­ies offered through the hub initiative.

“To date, we have completed two projects with hub West Scotland – the Shields Centre in Glasgow’s southside, and the refurbishm­ent of council office accommodat­ion in Dumbarton.”

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