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Only 57% of specialist contractors now working on public sector construction projects, comparing to the previous figure of 67%.
The cutbacks in investment and the reduction in capital expenditure sparking fears of further downturn in the construction industry. A third of specialist contractors predict further reductions in workloads over the next year and a quarter of respondents expect to downsize their businesses during this period.
78% of building contractors surveyed have retentions withheld against them at an average of £150,000 per respondent, with 32% of all retentions overdue for release and 21% ultimately written off as bad debt.
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