THE boss of Kier Group’s construction division in Scotland has signalled there is an expectation across the industry that activity will slow down in the coming months as a result of Brexit uncertainty.

But Brian McQuade, managing director of Kier’s construction division in Scotland and the north of England, insisted that its business has so far been untroubled by the political upheaval as he unveiled a raft of new contract wins north of the Border.

Mr McQuade was speaking in Kier’s site office at Glasgow School of Art, where the company is currently working on a £25 million restoration project at the fire-hit Charles Rennie Mackintosh buiding.

It is one of a growing number of projects in “heritage” buildings the division is currently engaged in.

Asked if the Brexit vote was having an effect on the construction sector, Mr McQuade said: “It’s okay at the moment. We are all a bit uncertain about what the next year will bring with Brexit looming.

“The industry indications are that things will slow down, but that’s not Kier – that’s the industry in general.”

He added: “It’s just the uncertainty over whether to invest or not.”

Despite the continuing lack of clarity over what Brexit will entail for UK business, Kier is upbeat about over its order book in Scotland and the level of funded projects it is capable of tendering for in the coming months.

Gordon Reid, Kier’s business development manager in Scotland, estimates that at least £750 million of funded infrastructure projects are coming up for tender in the next six months.

“While there is uncertainty there is still a need to build schools and hospitals,” Mr Reid said.

Kier’s work on the Mackintosh library, where it is working alongside Glasgow architect Page\ Park, is taking place over two overlapping phases.

The company said phase one is largely focused on structural work, including the installation of the two stone peers or pillars and new floors in the library. The second stage, due to commence in the summer, will centre on the more detailed aspects of the restoration. Kier is scheduled to complete its work in January 2019.

Mr McQuade underlined the exacting demands from Art School bosses to restore the building to its original state as far as possible by revealing that the search for wood for the floor beams took the firm to Boston, Massachusetts, for Yellow Pine lumber. The stone for the peers was sourced from Stancliffe Stones in Northumberland.

Mr McQuade said: “It’s a signature building. It’s important to the city and one we wanted to be involved in from the start.”

Alongside its work at the Art School in Glasgow, Kier is carrying out refurbishment and modernisation work at the Aberdeen Music Hall and Edinburgh School of Art.

These heritage projects form a small but increasing part of what is currently a busy order book for Kier’s Scottish arm, which earns the bulk of his revenue from public sector building projects in health and education.

The company, which employs around 200 staff in Scotland and Newcastle, was recently appointed to the University of Strathclyde’s minor works framework for projects up to £750,000 in value and Glasgow Airport’s building work services framework. It has started work on a £3m industrial unit at the Clyde Gateway East business park in Glasgow, and is poised to commerce a second phase of work at Marr College in Troon.

Mulling the outlook for the industry, Mr McQuade added: “The spend will continue [on public projects post-Brexit]. It might just be at at a lower level.”

The update from the Scottish division, which turns over around £150m, came as parent company Kier Group reported pre-tax profits up 12 per cent to £46.3m in the six months ended December 31. Revenue at the infrastructure to housing group narrowed one per cent to just over £2 billion.

Chief executive Haydn Mursell said: “The Group’s breadth provides some resilience against economic uncertainty and we continue to shape Kier to focus on our core competencies. We are encouraged by the pipeline in the property and residential businesses and our healthy order books of approximately £9bn in the construction and services businesses.”

Shares in Kier closed up more than three per cent at 1,503p.