Construction pay increases, but for how long?

The last 12 months has seen some interesting trends in pay and conditions within the construction industry. Paydata’s salary and benefits survey, which we have run for over 14 years, includes 22,000 full-time jobholders employed in over 25 key companies. The results tell us that construction pay is in better shape than many other sectors, but not all sectors!

Interestingly pay increases have been relatively limited in the usual annual pay review cycle, with the most common review in 2016 being 2%, within a range of 2% to 3% (median 2.5%). The latest data for 2017 indicates a similar trend and range. However, this is less than in 2014 and 2015, which saw far more 3% and 3.5% pay reviews. This probably reflects the more uncertain, post-Brexit economic environment and what some construction companies have told us is a “slowing down of forward order books” since early last year. Nevertheless, the salary survey continues to highlight the pay pressures that many construction employers experience for key skills in industry-specific roles.

The survey covers over 80 specialist Civil Engineering, Building, BIM, Environmental and PFi roles from Section Foreman through to Operations / Regional Director. An analysis of matched-movement pay increases, (which exclude starters, leavers and promotions) shows a year-on-year increase in Construction in 2016 of 3.4% within a range 2.7% to 9.6%. This is backed up by HR professionals in the sector who highlight the out-of-cycle pressures they continue to receive for key roles such as Quantity Surveyors, Estimators and Planners. Indeed, the survey shows these roles have enjoyed the greatest pay increases in the past two years. This view of role-specific pressures is further supported by our analysis of new starter salaries (i.e. those with less than 12 months’ service) which indicate that Commercial Managers, Design Managers and Project Directors attract some of the highest golden handshakes in the sector.

Geographically, the London / Rest of UK divide has only widened in the last year with our survey indicating a 14% premium in London, compared nationally, and the South East at 7%; both at the junior / base professional level. Although this is where geographic differences are most pronounced, we do see other regional differences – our survey covers six in total.

Compared to house-building, construction lags somewhat behind, with most reviews at 3% in that sector and our market data showing a year-on-year movement of 5.5%. However, other sectors such as Facilities Management and Construction Consultancy, have seen lower reviews – closer to 2% and in the range 1.5% to 2.5%. Nevertheless, the future remains rather uncertain both within the sector and for the wider economy and although rising inflation increases pay pressures, it will largely be this that determines business performance and ultimately future pay trends.

Tim Kellett from Paydata

 

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Taylor Wimpey profits boosted by Help to Buy scheme

Taylor Wimpey has reported an increase in profits to £589.3M with the Help to Buy scheme accounting for 39% of total sales last year.

The housebuilder saw completion levels rise to 13,808 up from 2015’s figure of 13,219 – an increase of 4.5%.

Of these completions, 2,663 were classed as “affordable” homes.

The average price of a Taylor Wimpey home in 2016 was £255,000.

Shareholders will see dividend payments totalling £355.9M last year and are set to increase further to around £450M in 2017, or 13.8p per share, up 26%.

The Company said trading conditions for the year ahead are “robust” with high levels of demand boosted by a competitive mortgage market and low interest rates.

The short term risks posed by last June’s EU referendum have also been ”significant reduced”.

Taylor Wimpey said they backed the government’s housing white paper and its ambitions to increase housebuilding in the UK.

Pete Redfern, Chief Executive, commented: “In 2016 we delivered an excellent performance set against an uncertain political and economic environment that stabilised in the final quarter.

“The outlook for 2017 is for ongoing stability and incremental price growth, which is a healthy backdrop for our business and our customers.”

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One in four construction workers in London are from EU

The construction industry in London would be ‘crippled’ by a hard Brexit according to a new report released by the Mayor of London.

In his ‘Housing in London’ report, Mayor of London, Sadiq Khan, spelled out the consequences for the housebuilding sector should the government fail to retain the services of workers from the EU following Brexit.

Almost 100,000 (one in four) workers, in the capital are from the European Union and their absence would significantly impact infrastructure, housing and commercial developments in London.

Mr Khan expressed his concern on what the impact of a hard Brexit would mean for the construction industry.

He said: “When I speak to businesses – both large and small – one of the biggest issues they raise with me is the skills gap. They tell me that maintaining a skilled workforce is absolutely crucial to their future and the future of the whole economy.

“London is in the grip of a serious housing crisis – and fixing it is going to be a marathon, not a sprint. While we are working to train up more Londoners to have the skills to work in construction, you can’t escape the fact that a ‘Hard Brexit’ could leave a quarter of the skilled construction workforce in the capital high and dry which would have a crippling effect on our plans to build the homes Londoners so desperately need.”

The report reveals that there are 350,000 people who work in London’s construction sector, just over half of which are from the UK, while 27% are from the EU.

It has been reported by industry experts that an extra 13,000 new workers are required each year until 2021 in order to tackle the skills gap and meet the additional demands on the construction industry.

Mark Farmer, CEO of Cast Real Estate & Construction Consultancy, said: “It’s very clear that the construction industry is far more reliant on migrant labour than anywhere else in the U.K. To safeguard against this, London will require at least short to medium term continued access to EU migrant labour and early protections given to its existing migrant workforce.

“As part of a longer term plan, the construction sector, in partnership with developers and supported by the GLA, needs to come up with a clear strategy for attracting and training more home grown talent and also developing more modern, higher productivity construction techniques which are less labour intensive, helping to future proof the industry.”

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People urged to give views on A303 Stonehenge consultation

Still opportunity for public to have their say on proposals to improve A303 past Stonehenge.

People are being urged to come forward with their views before the A303 Stonehenge consultation ends.

The proposals to improve the A303 past Stonehenge come as part of a major roads package to cut congestion in the south west.

The consultation on the proposals for the Highways England dualling scheme continues until March , with comments welcomes via the scheme consultation website.

Project director Derek Parody said: “The consultation on plans to relieve congestion on the A303 around Stonehenge is ongoing and the feedback we receive from everyone is really important in helping us to develop our proposed option.

“We are delighted with the response so far with more than 2,500 people attending our ten information events.

“The consultation website is still live and we would urge anyone who would like to comment on the proposals to do so before consultation ends on March 5.”

The proposed option is that the single carriageway, which currently runs alongside the Stonehenge monument, is moved further away from the stones and put underground in a 1.8 mile dual carriageway tunnel. The proposals will improve journey times for tens of thousands of tourists, commuters, businesses and local people, as well as removing the sight and sound of traffic from this part of the world heritage site.

The Highways England proposals also include a bypass for the village of Winterbourne Stoke and improvements to existing junctions between the A303 and the intersecting A345 and A360 north-south roads.

The upgrade will develop the A303 corridor into a high quality, high performing route linking the M3 in the south east and the M5 in the south west,

The consultation on the proposals for the Highways England dualling scheme continues until March , with comments welcomes via the scheme consultation website.

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Final building blocks in place for Institute for Apprenticeships

The main building blocks for the Institute for Apprenticeships have been put in place with the announcement of Antony Jenkins as the Chair.

Appointed as Shadow Chair in June 2016, Antony Jenkins has been an ambassador for the institute and has played a key role in designing its structure and providing strategic leadership and direction to the organisation during the critical phase of its development.

Antony Jenkins will operate alongside the eight members of the board primarily made up of employers appointed to run the institute in January.

Apprenticeships and Skills Minister Robert Halfon said: “Our reforms to apprenticeships are all about quality, quality, quality. We do not just want 3 million apprenticeships by 2020, we want 3 million quality apprenticeships.

“The Institute for Apprenticeships is a key part of this – we have put employers at the heart of apprenticeships because it is employers who know the skills, training and experience their future workforce needs to succeed. This is essential to ensuring social mobility and that people can get their foot on the ladder of opportunity.

“Antony has done a brilliant job as Shadow Chair of the institute and will continue bringing his expertise and knowledge to the role of Chair.”

Launching in April this year, the Institute for Apprenticeships will support the government’s agenda on social mobility by helping to create a ladder of opportunity based on quality apprenticeships for people across the country.

The primary responsibility of the new organisation will be to act as decision maker on approving apprenticeship standards and assessment plans to ensure they are of high quality. Its ultimate goal being to ensure employees get the skills they need to succeed from the apprenticeship system.

Mr Jenkins said: “I am delighted to be appointed on a permanent basis to this important role. I have enjoyed working with ministers and the shadow institute to get ready for our launch in April and am pleased with the progress we have made. The institute, supported by an able board, has a crucial role to play in helping develop the skills that employers need and supporting social mobility by ensuring people have the right skills to succeed.

“It’s vital that we prepare people for the changes technology is having on the way we live and work. I believe businesses have an interest in and an obligation to create opportunities for people to acquire the skills needed to cope in a fast-changing working environment.”

Full details of how the Institute for Apprenticeships will operate have also been set out in an operational plan which is currently out for consultation.

Following consultation, the plan will set out how the Institute for Apprenticeships will deliver its functions to:

• improve the quality of apprenticeships
• regulate the quality of apprenticeship standards and assessment plans
• provide advice to government on the pricing of apprenticeship standards
• establish how the Institute will collaborate with partners to drive quality across the apprenticeships system
• gain more information and insight on how we will lead the reforms to technical education

The government is committed to creating three million high-quality apprenticeships by 2020 as part of its drive to help people fulfil their potential and boost business productivity.

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CEA report sales of construction machines fluctuating in 2016

UK exports and imports of construction equipment saw fluctuations in demand during 2016, according to CEA.

The Construction Equipment Association (CEA) has revealed that UK exports and imports of construction and earthmoving equipment saw fluctuations in demand during 2016.

The report shows that UK exports of construction and earthmoving equipment showed a modest increase in the fourth quarter of 2016, however the sales ended the year at 1.8% lower than 2016 in weight terms and 7.4% lower in value terms.

Exports to EU territories shows significant increases in 2016, and accounted for 48% of total weight of machines exported compared to 40% in 2015.

Imports of equipment showed reductions in the fourth quarter, and resulted in 2016 showing an 8.9% reduction on 2015 in weight terms, and a 3.3% reduction in value. This returned imports to below 2014 levels after two years of growth.

In both weight and value terms, the UK remains a net exporter of construction and earthmoving equipment. In 2016, the trade surplus increased by 5.7% on 2015 in weight terms, but declined by 11.7% in value.

UK exports of construction and earthmoving equipment showed a modest increase in the fourth quarter of 2016, ending a year of relative stability. Measured in terms of machine weight (tonnes), exports showed a 5.5% increase in Oct/Dec, and returned to similar levels as Apr/Jun. However, compared with Oct/Dec 2015, exports showed a 9.5% increase. For 2016 overall, exports were 530,000tonnes, representing a modest 1.8% reduction on 2015 levels. Since 2013, there has been a declining trend, however since the Brexit referendum in 2016, there has been no significant impact on stimulating export volumes.

UK imports of construction and earthmoving equipment showed an 8.9% reduction in 2016, at a level of 255,000tonnes. This returned imports to levels below 2014, after two years of growth. The quarterly “pattern” of imports in 2016 was similar to 2015, with a peak in Apr/Jun, and a decline to a “low” in Oct/Dec. The figures for the fourth quarter of 2016 were the same as for the fourth quarter in 2015.

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“Confident” market sees Persimmon’s profit increase

One of the UK’s biggest housebuilders, Persimmon, has seen profits rise by nearly 25% in what the company has described as a “confident market”.

Profits increased to £782.8M, up 23% on last year’s figures and saw revenue grow by 8% to £3.14Bn.

The number of new homes sold by Persimmon Homes last year was 15,171, up 599 from 2015’s 14,572.

The selling price of the homes also rose by 3.8% to £206,765, up from £199,127.

The importance of the government’s Help to Buy scheme in supporting first time buyers was highlighted for its impact on market conditions.

The group’s own offsite manufacturing capability will expand with the construction of its own factory for the production of concrete bricks that will be ready for action in April.

Space 4, Persimmon’s own off site timber frame business, will also increase production.

It is envisaged these measures will secure the supply of housebuilding key components; provide more efficiency and greater control over building costs.

Nicholas Wrigley, Group Chairman, said: “Persimmon continued to perform strongly in 2016, meeting market demand with increased output and delivering disciplined high quality growth.

“The Group has now completed the first five years of its long term strategy which remains focused on growing Persimmon into a stronger, larger business while maintaining capital discipline and robust free cash generation.  The strength of the Group’s operating model is demonstrated by our ability to grow completion volumes by more than 60% and investing c. £2.6Bn of cash in land through this period while simultaneously returning over £1.0Bn of excess capital to shareholders.

“Customer activity in the early weeks of the 2017 spring season has been encouraging. The further increase in the Capital Return Plan demonstrates the Board’s confidence in the Group’s prospects.”

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£40M Highways England South West design contract

Kier Highways Limited awarded £40M contract as part of Highways England’s new delivery arrangements in South West

As part of the government’s record £15Bn investment to improve and maintain the country’s motorways and major A roads, Kier Highways Limited has been awarded £40M in Asset Delivery contracts in the South West.

In a change of usual ways of working, Highways England will now take direct responsibility for managing both routine maintenance and the delivery of capital renewal and improvement schemes, and have greater control over the future of the network, ensuring the smooth functioning of its South West major roads.

These types of contracts will allow Highways England to directly engage with our supply chain which drives down cost and waste, whilst providing the best possible value for tax payers, and service for customers.

The contract, which runs over five years, will see Kier taking design briefs and turning them into well- defined packages of work, with duties such as preparing technical designs and undertaking supporting work for capital renewal projects and improvements. Kier will also be designing briefs to repair major roads and get them back running as normal after incidents will also form part of the work.

David Poole, Executive Director for commercial and procurement at Highways England, said: “We are delighted that Kier Highways Limited will be part of our new Asset Delivery supply chain community across the South West.

“This contract not only builds on the new way of working already taking place in the East Midlands and North of England but also demonstrates our ongoing commitment to increasing Highways England’s capability and control over the whole road network.”

Andrew Page-Dove, Regional Director for the South West, said: “Kier Highways currently operates a number of key support contracts and we are confident that this award will build upon our existing successful relationship and deliver a high quality service throughout the South West. We look forward to working with them.”

In April, a range of suppliers will been appointed to the new framework for delivering construction works and a contract will be awarded in March for the maintenance and response contract, both of which will help to deliver the designs provided by Kier Highways.

The delivery of design services will begin from July 2017.

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New tidal energy turbine installed to provide sustainable power to Scotland

First AR1500 tidal energy turbine with new technology installed to provide clean, sustainable, power for up to 175,000 homes in Scotland.

Atlantis Resources Limited has deployed the first AR1500 tidal energy turbine with new Lockheed Martin (NYSE:LMT) technology, off the coast of Scotland.

The 1.5 megawatt AR1500 turbine is fitted with two innovative subsystems, the Yaw Drive System (YDS) and the Variable Pitch System (VPS), which allow the turbine to rotate autonomously around its base, so it always faces into the tidal flow. The pitch angle of the turbine blades also adjusts to optimize the power generation in a given tidal stream.

It took less than 60 minutes to install and connect the AR1500, which was significantly less in comparison to most similar systems. The operation marks the first time a tidal turbine has been installed and connected to the shore instantaneously.

Frank Armijo, Vice President of Lockheed Martin Energy, said: “Tidal turbines must be highly reliable and resilient to withstand and operate within the tough environment of a sea floor.

“These design requirements are similar to the reliability and durability needs of many of our aerospace programs. With innovations in advanced manufacturing and materials, and experiences gained in the design and production of undersea systems, space projects and aeronautics, we’re now helping to make tidal energy more reliable and effective.”

Tidal energy is produced by the surge of ocean water during the rise and fall of tides. Submerged rotors harness the power of the ocean currents to drive generators, which in turn produce electricity.

The MeyGen project is currently the largest planned tidal energy project in the world. The site, in the Pentland Firth, just 2 kilometers from Scotland’s northeast tip, covers some of the fastest flowing waters in the United Kingdom. Atlantis has a goal to deploy nearly 270 turbines to generate about 400 MW of energy, enough to power 175,000 homes.

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Plans to tackle congestion with dual vital Somerset road

Government plan unveiled for £170M dual vital road in Somerset to tackle congestion on the A303.

New government plans to tackle congestion on the A303 means that drivers in Somerset will have quicker, safer and more reliable journeys.

The key route between Sparkford and Ilchester is being upgraded to relieve the over-congested road and create 30 miles of dual carriageway between Mere and South Petherton.

The road is originally designed for 13,000 cars, but over 26,000 vehicles use this stretch of road a day.

The section between Sparkford and Ilchester is a mix of dual and single lane carriageway, which leads to localised congestion. It also has a poor accident record.

Dualling the route will cut journey times and new junctions will enhance safety. Along with new junctions, there will also be better links for pedestrians and cyclists.

The preferred route between Sparkford and Ilchester is due to be announced in autumn this year. Work is expected to start in 2020.

Transport Secretary Chris Grayling said: “Almost 4 million trips are made on the A303 every year and we are investing more than £2Bn to improve these motorists’ journeys, making them quicker and safer.

“Tackling congestion on this vital road will also help boost the economy in the south-west, unlock thousands of jobs and homes and promote tourism.”

Highways England Chief Executive Jim O’Sullivan said: “This scheme will be really good news for people travelling to and from the south-west, particularly during the busy summer months.

“Our consultation and public exhibitions will provide an excellent opportunity to explain further our plans and to hear feedback from people on our proposals to deliver the scheme.”

Highways England Chief Executive Jim O’Sullivan said: “This scheme will be really good news for people travelling to and from the south-west, particularly during the busy summer months.

“Our consultation and public exhibitions will provide an excellent opportunity to explain further our plans and to hear feedback from people on our proposals to deliver the scheme.”

The works come as part of the government’s £15Bn investment in motorways and major A roads between 2015 and 2020.

The road investment is the biggest made in a generation.

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New builds at highest level since 2007

The number of new builds for housing has hit a 9-year high, continuing to rise.

New figures show that the number of new build homes that have begun construction continued to rise last year to the highest level since 2007.

The data shows that 153,370 new homes were started in the year to December, up 5% on the previous year.

In the year to December 2016, more than 140,500 homes were completed.

According to figures from the Council of Mortgage Lenders first-time buyer lending was up 8% on last year, totalling 338,900 loans in 2016, up 8% last year.

Housing and Planning Minister Gavin Barwell said: “We’ve got the country building again with the highest number of housing starts for 9 years. However, we know there’s more to be done to build more homes in the places that people want to live.

“Our housing white paper sets out an ambitious set of proposals to deliver more land, speed up build out, diversify the housing market, and support people who need help now.”

Islington and Manchester experienced high levels of starts in the year to December 2016, with an annual increase of 296% and 323% respectively. Figures show a strong growth across the country.

The government’s recently published housing white paper revealed ambitious new plans to tackle the housing crisis and build more homes across England.

The government plan to invest £25Bn in housing over the Spending Review, making building homes the main priority.

Affordable Housing has received £1.4Bn of funding, and restrictions on funding have been relaxed so providers can build a range of homes including for Affordable Rent and Rent to Buy which help people save for a deposit before they buy.

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£229M for construction of new research and development centres

Business Secretary announces £229M funding for industrial strategy investment in science, research and innovation.

Business and Energy Secretary, Greg Clark, has announced that two new world-class centres will be built, following £229M of funding for UK research and development.

Included in the investment is £126M in grants for the Sir Henry Royce Institute for Advanced Materials, supporting the creation of a world-leading research centre at the University of Manchester, with satellite centres at the Universities of Sheffield, Leeds, Liverpool, Cambridge, Oxford and Imperial College.

The Royce Institute’s proposed areas will be grouped into four themes- energy, engineering, functional and soft materials.

Greg Clark has also announced £103M Government investment in a new national centre of excellence for life and physical sciences, at the Rosalind Franklin Institute (RFI), located at Harwell Science and Innovation Campus, Oxford.

Business and Energy Secretary Greg Clark said: “Research and development has a proven track record of making our economy more competitive and creating new products, services and better ways of doing business. For these reasons, we’ve placed the UK’s strengths in science, research and innovation at the core of our modern Industrial Strategy.

“Government investment in these two centres for advanced materials and life and physical sciences will support growth across a range of sectors, provide the skills and training to grow our expertise in these cutting-edge fields, and facilitate positive collaboration between industry, academia and Government.”

Chief Executive Officer of AstraZeneca Pascal Soriot said: “As a long-standing investor in UK science and partnerships with academia, we believe the creation of vibrant geographic areas of excellence would truly catalyse discovery and innovation. Supported by transport and housing infrastructure that facilitate collaboration and attract the best talent, these clusters would boost the knowledge economy and anchor industrial activity throughout the UK.”

Ministers from the Department for Business, Energy and Industrial Strategy will be visiting businesses and universities across the East of England and Midlands to hear and discuss the views of businesses, workers and academics on the Government’s vision for an Industrial Strategy.

The Business Secretary and Ministers will then be hosting an evening reception with business leaders, start-ups and local leaders in Birmingham at the Innovation Birmingham Campus; home to 170 businesses that employ approximately 1,100 staff in total.

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HS2 Bill gains Royal Assent

Construction on the HS2 link between London and Birmingham can now begin as the project cleared its final hurdle after successfully going through over three years of Parliamentary scrutiny to receive Royal Assent.

Work can now start as planned in the spring, with the project creating around 25,000 jobs during construction as well as 2,000 apprenticeships.

HS2 construction headquarters has already opened in Birmingham, employing around 1,300 people.

Transport Secretary Chris Grayling said: “Getting the go-ahead to start building HS2 is a massive boost to the UK’s future economic prosperity and a further clear signal that Britain is open for business.

“HS2 will be the world’s most advanced passenger railway and the backbone of our rail network. Royal Assent is a major step towards significantly increasing capacity on our congested railways for both passengers and freight; improving connections between the biggest cities and regions; generating jobs, skills and economic growth and helping build an economy that works for all.

“By investing in infrastructure the government is seizing the opportunity provided by leaving the EU to build a more global Britain. We will now press ahead with constructing the railway while continuing to ensure affected communities get appropriate support and are treated with fairness, compassion and respect.”

The second phase of HS2 will connect Birmingham with the North West and Yorkshire via the East Midlands, and is due for completion in 2033.

David Higgins, Chairman of HS2 described the parliamentary milestone as a “monumental step” in revolutionising rail travel in Britain.

He said: “We have a long journey ahead of us to build the railway and secure permission for Phase Two to make sure that the full benefits of HS2 are realised.”

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Balfour Beatty hosts BIM4 Highways inaugural meeting

The BIM4 Highways Group launches to showcase the advantages of using building information modelling (BIM) in construction of the road network.

Over 70 industry specialists gathered at Balfour Beatty’s head office in Canary Wharf, London, to discuss the ambitions of the group, what activities have been undertaken so far and its ambitions for the year ahead and beyond.

The launch also looked at ways in which contractors can collaborate effectively with their supply chain to tackle potential barriers and share good practice.

Balfour Beatty is pushing the use of BIM and is actively supporting its roads and highways partners to drive the use of BIM across the industry.

Harry Parnell, Head of Digital Project Delivery for Balfour Beatty’s major projects business, said: “It was an honour to host the inaugural meeting of the BIM4 Highways Group. We have been using BIM and promoting its awareness since 2010 and we see that there is a real opportunity to change the culture of project teams using the processes readily available to achieve better information management.

“We need to work together as an industry to share our experiences so that we can all capitalise on the benefits and that’s why the BIM4 Highways Group is so important.”

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One new construction worker needed every 77 seconds

Arcadis report reveals 400,000 new employees are needed per year to tackle skills shortage and housing crisis.

A new report by consultancy first Arcadis, has said that in order to solve the housing crisis, the British construction sector needs to bring in 400,000 new employees per year, the equivalent of 77 new construction workers every second.

The report, subtitled “The real extent of Britain’s construction labour crisis”, highlights that the problems with the industry are “planning restrictions; the infrastructure sector citing indecision as stalling progress; and Brexit triggering a deluge of talk about material costs and currency effects.”

The report states that previous to Britain’s vote to exit the European Union, the number of people in the UK properly equipped to deliver the nations plans to modernise the housing industry and solve the crisis, was far below the necessary levels.

James Bryce, Director of workforce planning at Arcadis, said: “What we have is not a skills gap; it is a skills gulf. Systemic under-investment in the nation’s workforce has contributed to a reduction in UK productivity.

“Construction employment is already down 15% on 2008 and, quite simply, if we don’t have the right people to build the homes and infrastructure we need, the UK is going to struggle to maintain its competitive position in the global economy.”

Carpenters and joiners are most needed, followed by plumbers, electricians, and bricklayers.

The government’s “Fixing Britain’s Broken Housing Market” White Paper said: “The housing shortage isn’t a looming crisis, a distant threat that will become a problem if we fail to act. We’re already living in it. Our population could stop growing and net migration could fall to zero, but people would still be living in overcrowded, unaffordable accommodation. Infrastructure would still be overstretched. This problem is not going to go away by itself.”

The failure is partly because the construction industry is yet to recover from the 2008 financial crash and a lack of skilled tradesmen in the UK, causing a drastic rise in house prices, especially in London and the south east.

In London, it now takes an average of nearly 26 years for a couple living there with one child to save for a home deposit. Although house prices have been rising steadily across the UK for decades, the dramatic increased in the capital means that now the average first-time home costs £402,692, according to research by Halifax Bank.

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Why build offsite?

The simple answer to this question is, because the UK can’t achieve its construction volumes without using alternative methods of building.

Currently around 90%* of new homes in England and Wales are built using traditional masonry materials – brick and block. Much of the remaining 10% is timber frame with offsite manufacturing (OSM) having only a small slither of the pie. The story is a little different in the commercial sector where OSM is becoming standard practice for some large players and significant investments are being made into these processes.

So what have these developers realised which the rest of the industry is yet to discover?

Well firstly, OSM has some clear benefits over traditional methods of building – for example:

• Safer working conditions – factories provide far more predictable environments and with less workers on building sites, health and safety issues are greatly reduced
• Improved quality and standard of build – by building in a controlled factory environment, quality of workmanship can be more closely monitored and standards maintained
• Shorter and predictable build times – OSM is not impacted by the weather or by the availability of other trades, so timelines can be agreed and adhered to
• Fewer materials and deliveries to site – delivering modular units and panels to site requires far fewer journeys than traditional methods, meaning a reduction in noise, waste and general disruption.

Negative perceptions

Even when all of these benefits are considered, some people and organisations still have negative perceptions of the OSM processes – quite probably because they haven’t been given accurate information. One of the biggest problems is the terminology used: prefabricated units. This is what the Government and consumer media keep quoting when talking about tackling the UK’s housing shortage. Images which come to mind are of post-war accommodation, which had been built to last for only 10 years – this is simply not the case for 21^st century modern methods of construction.

It’s perhaps worth explaining here that there are two types of OSM – volumetric (modular) and panelised (or smart modular). Volumetric refers to entire units being built in factories and craned into place on site, whilst panelised refers to individual walls and floors being built at offsite facilities and then erected on site. Thanks to the development of BIM, both can be highly tailored in design and both are built to last – in the case of light gauge steel, in excess of 200 years.

Skills shortages

OSM also scores highly in addressing the issue of UK skills shortages – something which is getting steadily worse. The Federation of Master Builders’ State of Trade Survey Q4 2016 stated that of the 15 of the key trades it monitors, 40% showed skills shortages at their highest levels since 2013. The Government’s recent Housing White Paper acknowledged this and explained how provision for training was a priority. But while this investment is desperately needed, it’s not going solve the crisis in the immediate term, nor is it capable of taking complete responsibility for turning the sector around. More options are needed.

OSM doesn’t require the same level of availability of on-site skilled trades that building using traditional methods does. Only a handful of contractors are needed on site to erect the frames and while some specialist trades are still present, thanks to the considered design of panelised structures, that requirement is kept to a minimum.

In practice

The benefits of OSM can be realised across every type of construction project – student accommodation, residential, education, healthcare. For example, a light gauge steel system was used at The University of Derby’s new Cathedral Road student accommodation where a 350-bed, £14m seven storey structure was required for September 2016 intake. The contractor was originally heading down a traditional build route but time constraints simply didn’t allow. Using OSM, a 20-week build plan could slot in neatly and the development was completed two months ahead of schedule.

And at The Old Oak in Ealing, North London, seven storey and nine storey apartment buildings were built using OSM and positioned next to each other on a transfer platform. Weatherproofing was applied to specific floors of the structure to maximise the speed of build and enable other trades to maintain a good pace on site. The building was complete within 21 weeks and is believed to be the single largest steel structure of its kind in the UK.

The construction industry needs to change – Mark Farmer made that very clear in his review: ‘Modernise or Die’. Interest in OSM is growing amongst developers of all sizes and over the next 12 to 24 months I think we’ll see modern methods of construction becoming more and more commonplace on construction sites UK-wide.

 

Mike Fairey, Director, Fusion Building Systems

 
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EU countries not ready for smart buildings revolution

European Union member states are unprepared to fully embrace the benefits of the smart building revolution according to a study published by the Buildings Performance Institute Europe (BPIE).

The report ‘Is Europe ready for the smart building revolution?’ says the move towards smart buildings is imperative if the international agreement on climate change to limit global warming to below 2º is to be met.

The analysis considered a number of features such as dynamic operability, energy-system responsiveness, renewable energy uptake as well as dynamic and self-learning control systems to gauge how well prepared Europe for the rising numbers of smart buildings.

The study found that there was insufficient “smart infrastructure” in place across the EU, with only three countries, Sweden, Finland and Italy completing their rollout of smart meters.

Around five million smart meters have been installed in the UK to date, with the full national roll out expected to get underway this September.

BPIE suggest more could be done through more effective EU legislation to give the electricity market more flexibility in terms of pricing, empowering customers and increasing renewable energy production, self-consumption and storage.

The study argues that current EU policy doesn’t go far enough to overcome the barriers holding back the advancement of smart buildings.

Once these issues are resolved, smart buildings will be able to play key role in reducing energy consumption, providing benefits to both the environment and the consumer.

Oliver Rapf, Executive Director of BPIE, said: “As consumers are at the centre of the EU’s legislation for a low-carbon, healthier and more comfortable building stock, they should be empowered to take control over their energy consumption and production.

“Smart and efficient buildings can deliver direct benefits for citizens in terms of lower energy bills and more comfortable homes, and wider benefits for the European economy triggering innovation and creating new job opportunities.”

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New apps created by £4M tech funding for motorists

£4M of government funding to help motorists by giving notice of congestion and showing free parking.

Nineteen councils across England will receive a share of the £4M Smart Traffic Management Scheme, to deliver cutting edge technology such as apps and sensors which can be used to cut congestion, improve parking in city centres and alert drivers when electric car charging points become available.

Councils will receive between £50,000 and £300,000 of government funding each, for their ideas to improve journeys through digital innovation.

Successful bidders include Blackpool, who will receive £234,000 to use Bluetooth to cut traffic congestion, and Warrington, who will receive £300,000 to provide real-time information to businesses and the public through on-street information displays, social media and phone apps.

A total of £150,000 is being provided for Coventry, for a real-time bay availability system across 450 pay and display parking spots. Westminster, Hounslow, Hammersmith and Fulham will receive £204,000, to roll out a new generation of electric vehicle charge points, which will provide real-time data to motorists when they are available

Peterborough will receive £50,000, to use digital technology to provide real time journey information directly to visually impaired people.

Roads Minister Andrew Jones, said: “I congratulate today’s winners for coming up with cutting-edge, innovative ideas that will transform journeys for passengers and motorists across the country. Technology is rapidly evolving and this important work shows that if we get it right, it can cut congestion, speed up journeys, clean up the environment, and improve accessibility.”

This work further demonstrates this government’s commitment to working alongside industry to promote technology and innovation, and to maintain the UK’s position at the forefront of the digital revolution.

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Barratt build fewer homes as profits increase

Britain’s biggest house builder, Barratt, has announced an increase in half-year profits despite building fewer homes.

Pre-tax profits in the six months to December 31 rose by 8.8% to £321M as total completions fell from 7,626 to 7,180.

The company said that completions outside of the capital were at their highest level for nine years – news that will do little to solve the housing shortage crisis in London.

The drop in the number of homes being built will come as a blow to the government as they look to shake up the housebuilding sector following the publication of their housing white paper.

Barratt were keen to emphasise the quality of the homes being built following the news this week that Bovis were setting aside £7M to compensate customers who were sold properties that weren’t finished and riddled with plumbing and electrical faults.

David Thomas, Chief Executive of Barratt Developments PLC said: “As we reported in the January trading update, we have delivered another very strong first half performance, pre-tax profits were up nearly 9% and completions outside of London at their highest level in nine years.

Whilst we have increased volumes across the UK by 55% in the last five financial years, we have maintained our commitment to build quality and customer service and we are the only major housebuilder with the HBF 5 Star Customer Satisfaction Award.

“With a record forward order book, strong consumer demand and a positive lending backdrop, we remain confident in our outlook for the full year. Our confidence in the business going forward is reflected in the improved and extended Capital Return Plan.”

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Why construction should copy football and focus on youth

Don’t worry, this isn’t going to resemble a Buzzfeed article where we make a tenuous link between two seemingly unconnected entities. Ok, but hear us out at least.

For the football fans among you who listen to any sort of phone-in, watch Gary Neville on a Monday night or read the sports press, you’ll know that the sport is constantly harping on about the importance of youth and why they should be invested in and trusted. Some would say that’s a fair argument, after all, as Sir Alex Ferguson found out investing in youngsters can make all the difference. And while we’re not suggesting that focusing on youth could help you to develop a workforce akin to the ‘Class of ‘92’, it could actually help to tackle one of the most critical issues currently facing the industry – skills shortages.

The dearth of talent in the construction industry has been well publicised, but perhaps not as well as it should have been. A lack of professionals, both skilled and unskilled, could potentially have a critical impact on the industry and could ultimately affect productivity and even make projects grind to a halt in the not so distant future.

So what is being done to tackle them? As many of you will be aware, there’s been a big push to bolster the number of apprentices in the industry and we have launched our campaign, ‘One Way Into Construction’ to encourage more youngsters to enter the field. There are also a whole host of smaller initiatives aimed at the end of the workforce who either left during the recession, have recently retired or have moved away from the field for their own reasons.

However, what we haven’t seen is a proper push to promote opportunities to youngsters at an age where they might actually be influenced to want to pursue a career in construction. Currently, the vast majority of employers engage with people doing their GCSEs, or who are at college, most of whom have already decided what they want to do or, crucially, what they don’t want to do.

Part of the issue is certainly down to the external image of the industry. To most, it’s seen as digging ditches in the dirt and while we all know there is undoubtedly an unglamorous side to working in construction, not enough is being done to promote the good aspects, of which there are many, and the potential a career can hold. People joining the industry have the chance to work on projects that can change lives, skyscrapers that can shape city skylines and use technology like drones and driverless vehicles that professionals in other fields could only dream about. And let’s not forget that many of these people are earning considerably more than many of those working in more ‘professional’ industries. It may not seem like an ideal job when you’re 500ft up in the rain, but trust me, there are thousands of people who would love the chance to get away from their desk and join you if they had the chance.

The fact more people don’t enter the industry is largely down to the fact that we don’t actually engage with youngsters to the extent that other industries do, so most people don’t actually have an idea that this sort of potential is on offer. The likes of technology and financial services employers engage with children at a young age and promote the exciting opportunities they have, so why doesn’t construction?

Unfortunately, we’ve now gone past the stage where everyone could have sat down and debated the detail of a major initiative targeting youngsters. Skills shortages are here, they’re real and they could have a critical impact before you even realise it, particularly if freedom of movement laws change and we lose a chunk of the existing workforce. Construction accounts for around 8% of overall GDP and few other major industries would allow themselves to get in such a concerning state. So why not take a lesson from football, invest in youth and see if kids can help construction get back on its feet.

Paul Payne, Managing Director of One Way

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Gender pay gap could last a generation

The government’s failure to act on recommendations will mean the continuation of the gender pay gap for more than a generation, according to a group of MPs.

The Women and Equalities Committee criticised the government’s “deeply disappointing” response to the proposals put forward in its report last March that aimed to eradicate the gender pay gap.

The report made 17 recommendations to help solve the issue that included key areas such as tackling underpaid part-time work and greater flexible working; shared parental leave; supporting women back in to the workplace and addressing low wages in traditionally female dominated professions.

The Committee said that while the government had highlighted the need to close the gender pay gap, by overlooking the evidence in the report it was ensuring continuation of the problem.

The government said that the existing policies on shared parental leave, flexible working, and supporting women back into work are already adequate.

Committee Chair Maria Miller said: “The Government says there is no place for a gender pay gap in modern Britain and has restated its pledge to end the pay gap within a generation. But without effectively tackling the key issues of flexible working, sharing unpaid caring responsibilities, and supporting women aged over 40 back into the workforce, the gender pay gap will not be eliminated.

“We made practical, evidence-based recommendations to address these issues. They were widely supported by a range of stakeholders including businesses, academics, and unions. It is deeply disappointing that our recommendations have not been taken on board by Government.

“My Committee will continue to pursue urgent action to reduce the gender pay gap – starting by questioning the Secretary of State for Women and Equalities on this inadequate response to our recommendations.”

Last week, a survey by insurance company AXA revealed that the number of women in the construction industry remains incredibly low – only 5.2% of the total workforce.

One of the reasons put forward for the lack of female representation was a lack of flexibility for those looking to juggle family life and work commitments.

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TfL to work directly with more subcontractors

TfL continue shift towards subcontractors in bid to reduce construction costs.

Transport for London (TfL) will be hiring a group of ten design consultants in a bid to reduce construction costs in station upgrades. They will be working directly with more subcontractors, in a significant shift away from the traditional design and build model.

Usually, the main contractor works up designs produced by TfL.

TfL are now ready to set up design experts on its Value Enhancement Specialist Framework Agreement.

TfL said: “London Underground is adopting a procurement strategy that moves away from contracting with a main contractor for design and build to a strategy of procuring smaller packages of work with integration between packages the responsibility of London Underground.

“It is believed that, in addition to other benefits, this will facilitate and enable greater opportunity for value engineering throughout the project.”

TfL is targeting the increased use of offsite construction as alternatives to traditional blockwork, render and tile for station walls and reducing concrete pours by using more precast.

It added: “LUL wishes to explore with key suppliers how a change in the approach to design can be utilised to ease construction or otherwise improve value outcomes for improved efficiency of scheme delivery.

“Accordingly, it welcomes proposals as to opportunities to achieve this that can be incorporated into the next stages of design development, with the objective of either reducing the cost of construction of the scheme or enhancing value outcomes.”

 

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South Glasgow to benefit from potential £34M housing funding package

Govanhill in south Glasgow set to benefit from funding package for housing from Scottish Government and Glasgow City Council.

The Scottish Government and Glasgow City Council have unveiled a funding package, which will improve housing with new builds, repairs and better property management in the area.

The Scottish Government has pledged £20M towards a four-year programme that aims to acquire up to 350 homes in the area, and bring them into the social and rented sector to allow for repairs and improvements.

A decision is soon to be made by Glasgow Council’s Executive Committee, which will see the council investing an additional £14M in the programme. The Govanhill Housing Association will assume ownership of the homes in an effort to improve prope4rty management in the area.

The South-West Govanhill Property Acquisition and Repair Programme, a pilot scheme which targets four blocks in which many of the flats had fallen into disrepair, will benefit from the investment. With an original target of 80, a total of 124 flats have been brought into housing association ownership so that vital repairs can be carried out.

Kevin Stuart, Minister for Local Government and Housing scheme, said: “It’s clear that more work needs to be done in this area, and that is why I’m delighted that we’re able to invest £20M to support a wider programme of improvements across the Govanhill area. By working together with Glasgow City Council and Govanhill Housing Association we can continue to make real improvements to the lives of the people who live here.”

Councillor Frank McAveety, Leader of Glasgow City Council, said: “This is a huge investment package and demonstrates the council’s long term commitment to Govanhill. The council has been working extremely hard alongside our partners to deliver lasting change to Govanhill.

“In our view transforming how the area’s housing is managed is the foundation for a long-term improvement in Govanhill. The impact of council-inspired initiatives such as the Acquisition Programme and the Enhanced Enforcement Area is now being felt and we are seeing real signs of progress in Govanhill.”

The four-year funding commitment works with local people, involving them in the programme to ensure it achieves its aims which are better living conditions in the area, reduced overcrowding and more effective property management and maintenance.

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Balfour Beatty to sell its Middle East Joint Ventures

Balfour Beatty has announced that it has reached an agreement with its joint venture partner to sell the Group’s entire share in Dutco Balfour Beatty and BK Gulf.

Subject to regulatory approval, the agreement will see local partner, Dubai Transport Company (Dutco), purchase Dutco Balfour Beatty and BK Gulf for £11M.

According to the 2015 annual report, shows the two Dutco JVs created £372m revenue but made a pre-tax loss of £65m.

Balfour Beatty had a 49% stake in each company.

The Company began the process of exiting the Middle East, Indonesia and Australia in 2015 in an effort to concentrate on its core markets of the UK, US and the Far East.

Leo Quinn, Group Chief Executive, said: “We continue to simplify the Group and strengthen the balance sheet through our Build to Last programme. As a result, Balfour Beatty enters Phase Two of its transformation with a solid foundation for long term profitable growth.”

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FTA hit back at Local Government Association’s pothole claims

The Freight Transport Association (FTA) has hit back at claims from the Local Government Association (LGA) that potholes on the UK’s road network will continue to get worse due to an increase in the use of heavier lorries.

The LGA claimed that the amount of goods lorries are transporting each year has increase by five per cent to almost 1.7 billion tonnes from the previous year.

This could see the cost of repairing roads rise to £14Bn within two years – three times what councils’ spent on highways and transport in 2016.

In response, the FTA has called on central government to reverse the downturn in spending on local infrastructure, which it says has caused a 14-year repairs backlog across the national road network.

Christopher Snelling, Head of Policy at FTA said: “Freight levels on our roads are still not back to the pre-recession totals of 2006 so the LGA’s assertion that HGVs are solely responsible for the increased number of potholes on Britain’s roads is incorrect.

He said the FTA’s comments lacked a real understanding on the impact of freight vehicles:

“Larger lorries do not cause increased damage to the road surface – in fact, they have more axles, which spread payloads more evenly.  When combined with road-friendly twin tyres and road-friendly suspension, this reduces the impact of road usage by lorries. Moving to a greater number of smaller vehicles would not ease the problem, but would simply compound the impact on an already weakened infrastructure.”

Mr Snelling said that the real issue is a shortfall in funding from central government to fix the pothole problem that’s affecting the roads across the country.

He said: “Local authorities are facing large bills – one off costs of approximately £69M per council – to bring their roads up to a reasonable condition.  If local authorities are not able to spend enough to do this now, then FTA wants to work with LGA in securing more support from national government to address the problem.

“The transportation of essential goods on our roads is crucial to the continued health of the economy, and to claim that lorries are the cause of the potholes across the country is simply not true.  We call on government to make a significant investment to ensure that British business can keep moving smoothly, without potholes.”

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New £25M BAE Apprentice Training Facility announced

BAE Systems has announced the construction of a new training facility to provide a bespoke learning environment for apprentices currently in training.

Around 1,000 craft and technical apprentices currently will benefit from the new £25M Apprentice Training Facility at Barrow-in-Furness.

The facility is expected to open in 2018 and will include a teaching block, classrooms, offices, craft workshops and welfare facilities.

It will also include to-scale ‘submarine mock-up sections’ which will allow apprentices to gain hands-on experience in a controlled environment and help them develop skills working to the tolerances required to build submarines.

The Defence Secretary, Sir Michael Fallon, marked the announcement by visiting apprentices working in a range of areas and taking a look around the Devonshire Dock Hall where Audacious, Anson and Agamemnon, the fourth, fifth and sixth of seven Astute class nuclear-powered submarines, are being built.

Defence Secretary Sir Michael Fallon said: “This investment demonstrates the benefits that our growing defence budget brings for highly skilled jobs in the North West and across the country.

“It will ensure we have people with the skills necessary to deliver one of the most complex programmes in the world that will help modernise our fleet of nuclear submarines.”

The apprentices at BAE already currently work on the Astute Submarines, as well the Dreadnought Programme, the new fleet of four Dreadnought Ballistic Missile submarines that will carry the UK’s nuclear deterrent.

Tony Johns, Managing Director of BAE Systems Submarines, said: “The design and build of a nuclear-powered submarine is one of the world’s most complex and technically demanding engineering challenges.

“It’s vital we have right people with the right skills to deliver these programmes and this investment underlines our commitment to the future. The new facility will provide a modern learning environment to supplement the training our apprentices already receive.”

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Survey reveals longer-term rentals increase in popularity

Four in ten tenants expect to rent a property for up to ten years according to the results of a new survey.

The results of the report from property and construction consultants, McBains Cooper, follow the announcement of the government’s housing white paper, which outlined measures to boost the Build to Rent sector.

As for the cost of renting property, one in four people said their rent accounted for more than 40% of their income. One in ten claimed that over half their income was spent on rent.

The survey, which took in the views of over 200 people, also revealed that when it came to selecting a home to rent, renters focused on ‘traditional’ aspects such as affordability, room size and outdoor space rather than shared amenities such as sports facilities or communal spaces.

Unsurprisingly, given the cost of property in the capital, almost one in three people in London believed they would continue to rent for the next five to ten years.

34% of London renters spend more than 40% of their income on rent; for more than half (56%) it accounts for more than 30 per cent of their income, while for 17% spend on rent is more than 50% of their income.

Michael Thirkettle, Chief Executive of McBains Cooper, said: “Our survey shows that renting for the longer term is becoming more common.  For some it might be because they are priced out of the housing market, for others, it may also reflect a more Continental attitude where people are content to rent rather than buy.  Either way, the potential for PRS and build-to-rent is clear.

“The findings will be of particular interest to investors and developers in the PRS and build-to-rent sector.  Interestingly, a high proportion of the older generation are now long-term renters.  This might reflect the more ‘traditional’ characteristics in terms of the most important factors people look for when choosing rented accommodation – such as room size and a garden or outdoor space, as opposed to amenities like sports facilities or a cinema and internal communal spaces.”

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University of Glasgow £1Bn expansion project gets go ahead

Planning permission has been granted for the University of Glasgow’s £1Bn expansion project.

The project, described as one of the largest educational expansions in the country, will see the former Western Infirmary demolished and the campus extended in its place.

Around £430M will be spent on the first phase of the development over the course of the next five years.

The plans for the initial phase include an Institute of Health and Wellbeing; the Adam Smith Business School; a learning and teaching hub; and an upgrade to the chemistry building, plus a base for the College of Arts with new performance spaces.

The second phase is due to get underway in 2023 and is set to include a new teaching and research space for engineering; a Social Justice Hub and an Innovation Quarter.

The project will see the creation of up to 3,000 jobs.

The University of Glasgow hopes to increase student numbers, particularly post-graduate students.

Principal and Vice-Chancellor Professor Anton Muscatelli, said: “We are delighted that Glasgow City Council has endorsed our ambitious plan which we believe will be a major economic driver for the city and for Scotland as well as underpin this university’s world-leading position.

“The decision to approve the masterplan is pivotal to allowing us to start this development. An initial financial envelope of around £430m will be spent over the next five years on the first phase of the project. It is part of a wider £1bn investment which includes significant spend on refurbishing and improving the existing estate. This will be one of the biggest educational infrastructure projects in Scotland’s history and is certainly the biggest development undertaken by this University since it moved to Gilmorehill 150 years ago.

“We are very aware that whilst we undertake this scale of construction that we must minimise disruption to both the University community and the West End and the University will work closely with community groups to ensure we respect those living and working in the area.”

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Take a virtual reality tour of new London Waterloo station

This week commuters at London Waterloo were given the opportunity to take a virtual tour of how the station will look in December 2018 following its multi-million pound redevelopment.

Passengers were given access to virtual reality headsets, which gave them an immersive, 360-degree view of the future of the station.

The redevelopment will see the former Waterloo International Terminal rebuilt, bringing five platforms into regular commuter use.

The new area of Waterloo London will be connected to the main station via a brand new bridge and concourse area, currently under construction.

The work is part of the £800M investment to boost capacity at Waterloo by 30% by December 2018.

Becky Lumlock, Route Managing Director at Network Rail, said: “At the moment we’re working really hard to make sure passengers plan ahead for the changes to services this August, and bringing the five former international platforms back into use is a really exciting prospect and a huge step towards providing a better railway for the growing number of passengers at Waterloo.

“This is why we want to show passengers just what to expect, and the improvements that our Railway Upgrade Plan is delivering.”

The virtual reality sets will be seen at a number of events to make sure passengers, as well as stakeholders across the network, are aware of the changes to services from this August.

Christian Roth, managing director for South West Trains, added: “When fully operational, these platforms will provide 18 trains per hour during the busiest times of the day, providing thousands of extra seats and helping to increase overall capacity by 30%. We hope passengers enjoy the experience and get a clearer understanding of the work being carried out to improve their journeys.”

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How to use workplace charging grants to future-proof electric vehicle investments

That moment when your mum gave you a tenner to go and buy your dad’s supper and said you can keep the change. Sorry Dad, it’s Spam again tonight. That moment when the Government made the nation’s electrical contractors custodians of £1000 grants (later reduced to £750) for installing electric vehicle charging points in people’s homes. Kids in a sweet shop!

To be fair, the decision enabled a certain degree of control, as installers have to demonstrate that installations and equipment meet conditions laid down by OLEV (office of Low Emission Vehicles) in order to reclaim the grant. However it encourages many to keep too much of the change by installing low cost, or ‘free’ chargers.

Now ‘free’ always comes at a cost. And there is not an installer in the land who does not have a story to tell about having to return to a broken, or worse burnt out unit, cursing the day he fitted it. But real market forces will prevail and there will always be somebody else to do the job.

It’s unlikely that the commercial sector will be quite as short sighted now that the Government has extended its grant scheme to workplace locations. However there is a longer term, hidden problem with trying to build a sector from the bargain basement up. The value chain evaporates before new technology can deliver its promise.

And electric vehicle charging technology advancement in the commercial sector is where the largest clean air return on investment can be made, simply through bigger numbers of vehicles in fleets and higher road usage. Over half of passenger vehicles in the UK are bought by companies, and ultra low emission van and truck sales are growing fast.

The technology that makes a difference to charging in commercial locations, that equipment specifiers should now count on as a given, manages access control and provides usage data. Electric Village is close to Government discussions already about widening the employee benefit-in-kind net to cover aspects of workplace charging that will require employers to account for usage by staff.

Not much further along the technology road map – still a need to have – is the capacity for managing and sharing energy flows around the car park, and returning energy to the grid.

Smart energy charging systems allow system scalability with less digging and investment in power supply infrastructure, which always dwarfs equipment costs.

Nice to have technology today is cable-less induction charging, and powerline data that will connect directly with renewable energy sources.

A little over 18 months ago, there was a collective cheer as plug-in vehicles broke through the one per cent of UK sales mark. The latest figures provided by the SMMT (Society of Motor Manufacturers and Traders) for January 2017 show that percentage is now over 4%. Sector growth is in hockey stick territory and there is no reason to suspect that battery power will not overtake the internal combustion engine.

The Workplace Charging Scheme is a voucher-based scheme that provides up £6,000 support towards the up-front costs of the purchase and installation of electric vehicle charge points.

Stewart McKee, Managing Director, electric-village.com

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Medway leading way with ambitious housing efforts to tackle shortage

Housing and Planning Minister Gavin Barwell visits 3 sites in Kent and Essex to acknowledge strong efforts to fix housing market.

Medway is “leading the way” to fix the housing market, with a visit from Housing and Planning Minister Gavin Barwell following the publication of the housing white paper.

The Minister visited three sites across Kent and Essex, which demonstrate the diversity of the measures set out, and the potential to deliver a housing market that works for everyone.

The four measures recognised in the White Paper, which were planning more homes in the right places, building homes we need, diversifying the market and helping people now, were all reflected well in Kent and Essex.

The minister opened a new affordable homes development in Gillingham, built on the former site of Gillingham Community College, comprised of 32 one to two bedroom bungalows for social rent. The £8.5M development is one of the largest council-built, energy efficient bungalow sites in the UK.

The bungalows have been specifically designed to suit the needs of older tenants and those with mobility problems in mind, those looking to downsize and people who struggle in their current living accommodation.

The minister also saw a new housing development at Kitchener Barracks, one of the largest new developments of carbon-zero homes in the country, awarded £14.4M by the Homes and Communities Agency through the Home Building Fund to boost construction on the site.

Latis, an SME housebuilder is building 300 new homes as part of a flagship gated eco-community on public sector land, formally owned by the Ministry of Defence, thanks to funding from the government.

The development will include 94 new build homes and 101 new build apartments, as well as 72 conversion flats in the historic barracks building at the centre of the site.

Housing and Planning Minister, Gavin Barwell said: “It has been a great opportunity to visit 3 exciting developments across the South East of England today, showcasing the range and diversity of our housing ambitions as set out in our housing white paper.

“From seeing a better choice of accommodation for older people in Gillingham, to the re-development of public sector land in Chatham by an ambitious SME housebuilder, and witnessing the expansion of infrastructure in Tilbury. All of these sites reflect the key priorities for this government and these developers are leading the way in efforts to fix our broken housing market and ensure this is a country that works for everyone.”

Homes and Communities Agency (HCA) General Manager for the South East, Paul Kitson said: “I am delighted that the HCA has been able to support Latis in developing this landmark site, just 40 minutes from central London by train. This will provide much-needed homes that otherwise might not have happened, and is part of the HCA’s ongoing commitment to the Medway area.

Medway Council Deputy Leader and Portfolio Holder for Housing, Councillor Howard Doe said: “We are very proud of Centenary Gardens and we were very pleased to welcome the minister to officially open the new-build development, which is one of the largest council-built energy efficient bungalow sites in the UK.

“This new development of 32 affordable homes caters especially for those who are less-mobile and some have been specially designed for wheelchair users. These council homes follow on from the success of phase one of this multi-million pound project which saw the creation of 26 homes on former garage sites.

“The aim of this housing project was to offer people the chance to rent good quality, energy-efficient homes that they can afford, and it’s safe to say we have achieved this.”

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Outline planning consent given for £175M Sheffield development

Outline planning consent granted for Sheffield’s £175M mixed-use West Bar development

Permission has been granted by Sheffield City Council for a £175M mixed-use development, marking another important milestone for the regeneration scheme, which will create up to 5,000 new jobs.

The master plan includes up to 1.4m sq ft of prominent city centre space with frontage to Sheffield’s inner relief road. The much-needed floor space is expected to attract further major private and public employers to Sheffield City centre. Local developers, Urbo Regeneration, are continuing to progress negotiations with potential occupiers and investors.

The site is set to include offices, high quality PRS apartment blocks, a four-star hotel, restaurants, and retail units.

Last year, it was announced that Peveril Securities, the development arm of Bowmer & Kirkland Group, had been secured as the delivery partner for West Bar Square. The joint venture saw the creation of the new company, Urbo (West Bar) Ltd, formalising the partnership to deliver the project as a whole.

The West Bar Square scheme has been designed by 5plus architects and master planners Urbed, and was developed working in conjunction with officers at Sheffield City Council to ensure the completed scheme will form a distinctive new extension of Sheffield City Centre. How Planning Consultants advised upon and co-ordinated th

Peter Swallow, Managing Director of Urbo Regeneration said: “The granting of outline planning consent represents another key milestone for the West Bar Square project and brings this ambitious scheme closer to delivery. Working in partnership with our delivery partner, Peveril Securities, I am confident we will be able to secure occupiers and investors and move forward with detailed planning applications for individual buildings in 2017.”

Ralph Jones, Managing Director of Peveril Securities Limited and Main Board Director of Bowmer & Kirkland added: “The receipt of planning consent is excellent news, and now allows us to progress through the development process and continue our Group’s involvement with Sheffield on this exciting scheme.”

Councillor Leigh Bramall, deputy leader of Sheffield City Council and cabinet member for business and economy, said: “This comprehensive proposed development continues the excellent regeneration in the Riverside area of the city. West Bar Square is a long-standing large office project, started by the Council, that will grow the economy of the city centre. New housing opportunities and a high-quality public realm will connect the core of the city centre to Kelham Island and complement the award-winning Grey to Green landscaping project.”

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World’s deadliest school run made safer by mountain top steel staircase

The remote Atuler village in China’s Sichuan province has had a steel staircase installed to help change the lives of the people who live in the isolated mountain region.

The small village made the headlines last year as its school run was dubbed ‘the world’s scariest’, with children carrying backpacks forced to scale the 800 metre rock face over bare rocks to attend class.

The astonishing video from CCTV below shows the perilous three hour ascent that schoolchildren and other villagers had to make using the rickety bamboo ladder.

Such was the toll of making the trip that the children had been forced to board, being only able to visit their mountaintop homes twice a month.

Construction of the steel staircase began in August last year following the raising of 1 million yuan funding after photos of the plight of the school children made international headlines.

The installation of the steel staircase means that the arduous trip is now much safer and only takes 30 minutes, with enough width for two people to pass at the same time.

It is hoped that the village’s fame and breathtaking landscape could see it become a top tourist destination.

Local media have reported a tourist company in provincial capital Chengdu, is to partner with the Chinese government who are to invest 300 million yuan (£34M) to develop the area and help alleviate poverty amongst its people.

As the village has no road network to connect the upland village and the low-lying towns, its people depend on subsistence farming of potatoes, walnuts and chilli peppers. Efforts to integrate the community into modern China have previously been made but relocation has been a major stumbling block.

A resident of the village told CCTV news:  “Before, it was dangerous. Now we have the stairs, so we are all relieved, the old and the young. The journey is safer and we are confident in shaking off poverty.”
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Britain supports government backing for maintaining churches

Recent poll highlights importance of churches as Brits encourage government backing to maintain UK’s heritage.

According to a recent ComRes poll commissioned by the National Churches Trust, 57% of Britons believe that the government should keep providing financial support for churches in order to preserve them, with 83% believing churches and other places of worship are an important part of the UK’s heritage.

Nearly half (49%) said that the places of worship should also be used as community centres as well as places for religious observance.

Only 9% of Britons didn’t think churches had any important benefits to the UK at all.

The Department of Culture, Media and Sport recently released the English Churches and Cathedrals Sustainability Review, which looks at the best way to finance historic churches and cathedrals, and also assesses how they can be opened up for community use.

Luke March DL, Chairman of the National Churches Trust said: “The UK’s 42,000 church buildings represent a tremendous national asset much loved by the public… However, the costs of keeping historic churches in good repair and installing modern facilities is simply beyond the reach of most congregations.”

“With 57% of British adults backing government financial support for church buildings, I hope that government funding will continue to be made available to protect the heritage and history of churches.”

“In good repair and with the right facilities to allow greater community use, church buildings, chapels and meeting houses can continue to play a vital role in the life and well-being of the nation for many, many years to come.”

Last year, the National Churches Trust received £90,100 from the Heritage Lottery Fund (HLF) for the Yorkshire Maintenance Project.

The funding is helping churches and chapels in Yorkshire to be kept in good condition and prevent them from needing serious repairs, thanks to £90,100 from the Heritage Lottery Fund (HFL) for the Yorkshire Maintenance project.

The National Churches Trust, the UK’s church repair and support charity, has lead the Yorkshire Maintenance Project. Partners in the project include SPAB, Museum of London Archaeology (MOLA), and the Dioceses of Sheffield and York to pilot systems for the maintenance scheme in Yorkshire. The project will also work with the Roman Catholic Church and the Methodist Church in Yorkshire.

The use of drone surveys of churches and training workshops to help volunteers has been useful in helping maintain church buildings. The ‘Maintenance Booker’, a website launched in November 2016, allows churches of all denominations to book gutter clearances and other urgent maintenance tasks identified, and a also a key part of the project.

In Yorkshire, there are 1,095 listed places of worship, including 346 Grade I churches, buildings of the highest heritage significance. The cost of keeping historic churches in good repair and installing more modern facilities is often beyond the reach of many congregations, putting their future at risk with more significant repairs later down the line which are unaffordable.

Michael Murray, Director of Church Support at the National Churches Trust said. “Regular maintenance is essential for churches. Something as simple as keeping drains and gutters clear so that water is taken away from the building efficiently is the most important thing a church can do to stop small problems developing into unnecessary crises. An overflowing gutter soon soaks the wall beneath, rots the roof timbers behind it and makes the whole building vulnerable. As well as keeping a church building in good repair, preventative maintenance saves money as it has been estimated that every £1 spent on keeping a church in good condition saves £30 in repair costs within five years.”

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Richmond school undergoes £4.2M transformation

A school in the London Borough of Richmond which was considered to be in poor condition has undergone a £4.2M transformation.

The Queen’s Church of England Primary School’s previous building was demolished as it was considered no longer fit for purpose with poor lighting and insulation plus escalating ongoing maintenance and repair costs.

It was  prioritised for a brand new school as part of the Government’s £4.4Bn Priority School Building Programme which was set up to rebuild or refurbish those schools in the very worst condition across the country.

There are two phases of the Priority School Building Programme, covering a total of 537 schools.

Under the first phase of the programme, PSBP1, the first school opened in April 2014, five months ahead of schedule. Over  160 schools have opened through the initiative and the majority of the 260 schools in the first phase of the programme will open new or refurbished buildings by the end of 2017, two years earlier than originally planned. Under the second phase of the programme, PSBP2, the Education Funding Agency plans to have all schools open in their new/refurbished buildings by the end of 2021.

The new building has been designed to cut heat loss through improved thermal properties throughout the construction of the building.

Water efficient installations will help to cut hot and cold water consumption, while natural lighting is to be exploited with the use of “daylight dimming” which reduces the need for artificial light.

Paul Rothera, Director at Pick Everard who provided design and construction consultancy services to the project, said: “The new school provides a solution where not only do the children and staff benefit from a greatly improved teaching and learning environment, considerable savings have also been made to reduce the ongoing costs of running the school.”

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MPs call on government to back Swansea Bay tidal lagoon

A letter signed by 107 MPs has called on the government to give its backing to the Swansea Bay tidal lagoon.

The letter addressed to Business and Energy Secretary Greg Clark has been signed by MPs from across all parties and presses the government to make a quick decision on the future of the £1.3Bn tidal lagoon project.

In February 2016, the government commissioned former Conservative energy minister Charles Hendry to undertake a review, in which he called for the Swansea lagoon should be built “as soon as reasonably practicable” as a pathfinder project.

In the ‘Hendry Review’ released last month, the former energy minister said that that tidal lagoons had the potential to provide a more affordable  energy security for the UK, offering a “significant economic opportunity for Wales and the UK more generally.”

Amongst the MPs adding their signature to the letter was Green Party MP Caroline Lucas, former Shadow Energy and Climate Change Secretary Lisa Nandy and former Deputy Prime Minister Nick Clegg.

Gloucester MP Richard Graham, chair of the All Party Group for Marine Energy & Tidal Lagoons, who wrote the letter, said: “Former energy minister Charles Hendry started his review as a sceptic and ended as an enthusiast. He was very clear in urging the government to give the green light for a pathfinder in Swansea – the world’s first ever tidal lagoon – and then see whether the experience justified going ahead with much larger future lagoons.”

Mr Graham said the project had a large number of supporters within Parliament that believe tidal lagoons meet the targets of the government’s new industrial strategy.

He said: “Clearly the business secretary and the chancellor will want to be sure the pathfinder is affordable in the context of delivering secure, domestic, low carbon and diversified sources of energy. Our letter is to urge the government not to delay in responding positively to the recommendations and getting the financial talks for the pathfinder under way.”

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Sheffield United unveil plans to develop Boundary Corner

Plans to develop land surrounding Sheffield United’s stadium, with planning application submitted to develop Boundary Corner.

Sheffield United Football , known as the Blades, have announced plans to develop the Cherry Street / Shoreham Street Corner and have submitted a planning application that will see the development Boundary Corner, a four storey residential building which will feature an impressive ground flood new Club retail outlet.

The new Blades superstore will be double the size of the current one at the South Stand, and feature a fan zone. The existing Club shop may be used as a conference or event facility.

The site currently hosts some car parking for Sheffield United, and planners have welcomed the principle of a development in the location with a design of a strong, contemporary architectural proposal which considers nearby properties.

Sheffield United’s retained architects WCEC drew up the scheme, which features in long term business plans from the owners focusing on improving stadium facilities, contributing to the future business performance of the Club.

Scarborough International Properties is project managing the development at Cherry Street / Shoreham Street Corner.

Sheffield United Director, Simon McCabe, said: “The corner site we are developing could fulfil a dream for some of our supporters – a chance to live at the home of football! It will also enable the Club to expand the Superstore”

Fellow director Scott McCabe said: “Significantly it is part of a route we are taking whereby we have identified several opportunities to further develop and improve the ground and the immediate surrounding area as we seek to build a broader commercial, leisure and entertainment offer, developing additional revenue streams to support the aim of supporting United’s return to the upper levels of the English game.

“Further development of the stadium area is a positive move to enhance income streams, ultimately supporting our plans for the key football side of the business.”

“We are working on several exciting projects to bring new activities and events to Bramall Lane soon.” said Simon McCabe.

WCEC’s Chief Executive Ashley Turner said:” We are delighted to be working as architects for Sheffield United. Following on from now completed projects such as the Westfield Corner Stand and Copthorne Hotel, we will take great pride in further enhancing what is a already superb venue starting with the Cherry Street and Shoreham Street developments.”

Other proposals under consideration include a new residential and commercial space alongside a refurbished Chancer Yard development, situated within the John Street Conservation Area.

WCEC is appraising the viability for an eightstorey residential development in two blocks on the Bramall Lane / Cherry Street corner adjacent to the Copthorne Hotel.

Planning permission has been retained for a 3,200-seat extension at the back of the existing Kop, which will include a new roof and over trusses to allow the four existing roof support columns to be removed and the introduction of a new concourse with improved facilities. A new Business Enterprise Centre on stilts in the Kop/South Stand corner, has also been granted as part of the scheme,allowing entry/exit routes to/from the Kop and South Stand to remain.

Planning permission has been retained and obtained for a three and four storey residential development consisting of 52 apartments on the corner of John Street / Shoreham Street.

Proposals are being assessed to create additional executive boxes at high level at the back of the corner on John Street Corner Stand.

The South Stand will be cleaned and improved, in order to create a matching look with the hotel and a clearer identity to the component parts of the stands.

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