ConDig (05-May-17). The US construction market remains robust and competition for projects is intense, according to Swedish construction group Skanska, which reported a record order book in the first quarter of this year.

The Stockholm-based group said that the US market for large and complex civil construction projects remains solid, with strong market conditions also in the aviation, education, data center, life science and healthcare industries.

The public-private partnership market is underpinning demand in the infrastructure development sector, while commercial property development in the US also remains strong.

It comes as demand from tenants continues to ramp up in Washington DC, Boston and Seattle. But demand in Houston’s energy corridor is weaker in the wake of lower oil prices.

Strong market conditions were underlined after Skanska reported that order intake at its construction division, which books the majority of group sales, surged 23% in the first quarter to 38.2 billion SEK ($4.32 billion) from 30.3 billion SEK ($3.43 billion), which was a record high.

Revenue, however, edged down 5% in the first quarter to 34.2 billion SEK ($3.87 billion) from $35.2 billion SEK ($3.98 billion) in the same period last year, while income after financial items dipped to $1.85 billion SEK from $1.96 billion SEK in the year-ago period.

The fall in profit was driven by writedowns in Poland and cost overruns at certain civil projects in the US, Skanska president and ceo Johan Karlstrom said.

He added that profitability in the US this year will be burdened by extended negotiations with clients regarding design changes and high selling and general administrative costs in its civil division.

Earlier this month, Skanska USA was named on the shortlist for a design-build contract to carry out repairs to the crumbling Arlington Memorial Bridge, in Washington DC, reportedly worth upwards of $250 million.