Survey of
UK Construction
Professional Services
Executive Summary
2005/06
This survey was led and project managed by:
Construction Industry Council (CIC), CIC is a partner in ConstructionSkills
And jointly undertaken by:
Davis Langdon Management Consulting and Experian BS
i
i
Survey of UK Construction Professionals 2005/06 - REPORT
Survey of UK Construction Professionals 2005/2006 - Executive Summary
Survey of UK Construction Professionals 2005/06 - REPORT
1
1
1.1
1.1
Executive Summary
Executive Summary
Headline findings
Headline findings
This is the third comprehensive survey of the Construction Professional Services (CPS)
thethird
UK.comprehensive
Its aim out
hasby
been
toConstruction
assess
theConstruction
size
of the Council
UK
market
forServices
construction
This isinthe
survey
of the
Professional
(CPS)
sector
UK
carried
the
Industry
(CIC).
The
project
follows
professional
Theconducted
results
beenthe
based
on
information
of feethe
income
sector
in
the services.
UK.
Itswere
aim
has
beenhave
toinassess
size
ofdetailed
theaim
UKhas
market
earlier
surveys
that
1996
and
2002.
Its
beenfor
to construction
assess
size and
thethe
services
provided
by
professional
services
in the
financial
year
professional
services.
Theconstruction
results have
been based
on
detailed
information
of fee
income
of
UK market
for construction
professional
services.
Thefirms
results
have
been
based
on and
2005/06.
They
represent
theincome
responses
of
representative
sample
of the
over
800 professional
construction
the
services
provided
byfee
construction
services
firms
in
financial
year
detailed
information
of
andprofessional
thea services
provided
by construction
professional
firms
offinancial
all types
and sizes.
2005/06.
They
represent
the responses
of a representative
of over 800
services
firms
in
the
year
2005/06.
They representsample
the responses
of a construction
representative
professional
firms
all types and
sizes.
sample
of over
800ofconstruction
professional
firms of all types and sizes.
Size of market 2005/06
Size
of professional
market 2005/06
 UK
services firms earned a total of £13.9 billion on projects in the UK


There
were approximately
27,950
professional
the UK.
UK
professional
services firms
earned
a total offirms
£13.9inbillion
on projects in the UK
There were approximately 27,950 professional firms in the UK.
UK Market shares (% of UK fee income)
UK
Market shares
(% ofaccounted
UK fee income)
 Engineering
services
for 28% of all work, £3.9 billion




Architecture services
services accounted
accounted for
for 28%
24% of
of all
all work,
work, £3.9
£3.3 billion
billion
Engineering
Surveying services
accounted
forfor
17%
of of
allall
work,
£2.3
billion
Architecture
services
accounted
24%
work,
£3.3
billion
Management
accounted
for 12%
all work,
£1.7 billion.
Surveying
services
accounted
forof
17%
of all work,
£2.3 billion
Management accounted for 12% of all work, £1.7 billion.
Income by type of firm
Income
by type
firm for professionals increased steadily by size of firm and mean per

Per capita
fee of
income

capita
fee income
for the
firmsincreased
(<£200k fee
income
Per
capita
fee income
for smallest
professionals
steadily
by pa)
sizeisof£65K
firm per
and annum.
mean per
capita fee income for the smallest firms (<£200k fee income pa) is £65K per annum.
Income by size of firm
Income
by number
size of firm
 A small
of large firms (2%) generated almost 80% of UK fee income.

A small number of large firms (2%) generated almost 80% of UK fee income.

£2.5
billion
of fee income is earned on
by projects
UK firmsinon
overseas.
A
third
of UK
thework
South
East and Greater London
£2.5 billion of fee income is earned by UK firms on work overseas.
Regional and Overseas Markets
Regional
Overseas
Markets

A thirdand
of UK
fee income
is earned on projects in the South East and Greater London

Employment
Employment
 Approximately 270,000 people were employed by construction professional firms
77% of this total270,000
were male.
Approximately
people were employed by construction professional firms
77% of this total were male.
Structure and earnings
Structure and earnings
Approximately 27,950 professional services firms earn a total of £13.9 billion on UK
construction projects.
size of theservices
overseas
market
UK CPS
firmsbillion
is estimated
Approximately
27,950The
professional
firms
earnfor
a total
of £13.9
on UK to be
approximately
£2.5 billion
– 15%
of total
fee income.
construction
projects.
The size
of the
overseas
market for UK CPS firms is estimated to be
approximately £2.5 billion – 15% of total fee income.
79% of all CPS firms operate from a single office and 84% employ less than 10 people 28% of all CPS
firmsfirms
are single
person
2% ofand
firms
earn
over £10
annum
79%
operate
frompractices.
a single office
84%
employ
lessmillion
than 10per
people
and employ
moreare
than
50 people
yet this small
group
firms
are£10
responsible
for annum
28%
of all firms
single
person–practices.
2% of
firmsofearn
over
million per
generating
all UK
fee income.
and
employ78%
moreofthan
50 people
– yet this small group of firms are responsible for
generating 78% of all UK fee income.


1.2
1.2
Davis Langdon Management Consulting
July 2007
Davis Langdon Management Consulting
July 2007
CIC-ConstructionSkills
ii
Survey of UK Construction Professionals 2005/06 - REPORT
Firms that describe themselves as being multidisciplinary earn almost 50% of all UK fee
income and 50% of all CPS output is generated in the provision of architecture and
engineering services.
1.3
Key changes since previous surveys
Output of CPS firms has risen by approximately 4% (in real terms) in the four years since the
last survey, which is slightly below contractors output for the same period.
There has been very little change in the proportion of core services that are provided by the
sector but there have been significant changes in the type and profile of firms that deliver
these services – with growth in the proportion of outputs from multidisciplinary firms.
Residential projects have experienced the largest rise as a proportion of all work since
2001/02, accounting for 42% of all fee income – an increase of 26% in the overall proportion
since the last survey.
Per capita fee income per professional has decreased since the time of the last survey, with a
fall of 13% in real terms. This is likely to be the result of increasing staff levels. The
proportion of male to female staff within each type of CPS firm has not improved
significantly, 77% of all employment in the sector is male.
1.4
Profile and type of work
Almost two-thirds of fee income is earned on new work (62%) with 32% being earned on
refurbishment projects and the balance – 6% being earned on repair and maintenance work.
Fees earned on building projects (in particular offices) account for the largest proportion
(43%) of fee income closely followed by fees earned on residential projects (42%). The
proportion of fees earned on infrastructure projects is considerably smaller (15%).
In terms of clients, 75% of fee income was generated from private sector clients (including
PFI/PPP projects) with the remaining 25% coming from public sector clients.
1.5
Regional and overseas profile
A third of all fee income was generated on projects in the South East of England and Greater
London. Other regions with relatively large CPS inputs are the South West and Scotland.
Approximately £2.5 billion of fee income was received by practices in the UK for
professional services provided on overseas projects.
1.6
Employment
The CPS sector employs approximately 270,000 permanent employees. On average, 77% of
all employment in the sector is male.
When fee income and employment are compared, engineering firms employ 17% of all staff
and are responsible for 15% of all income. Architects employ 14% of the total workforce and
generate 11% of fee income. Surveying practices employ 16% of staff and are responsible
for 15% of all fee income.
Davis Langdon Management Consulting
July 2007
For more information contact:
Mark Way,
Director of Skills,
CIC,
26 Store Street,
London
WC1E 7BT
e: [email protected]
t: 020 7399 7400
This research was funded by ConstructionSkills, the Sector Skills Council for Construction,
and carried out by the Construction Industry Council (CIC) as lead partner.