Transforming Construction: Government and industry join forces to haul construction into the 21st century

Buildings often fail to meet our needs, says Sam Stacey, Challenge Director, Transforming Construction, UK Research & Innovation. They use more energy than they are designed to do, and indeed are designed to use more energy than the planet can sustain – the greenhouse gas emissions from the built environment represent about a third of the total. In terms of user experience, a long list of construction problems include traffic congestion from inadequate infrastructure, and the cost of treating illnesses caused by poor living conditions.

Sam Stacey

Research has developed so that building quality is now being scientifically analysed, with the findings being fed back into the design process. Over half a century ago, Sir Winston Churchill commented that ‘we shape our buildings, and then our buildings shape us’. The design of schools affects the rate at which children learn, hospitals the rate at which patients recover, offices the productivity of workers, and homes the happiness of inhabitants. Data is at the heart of the new science of user experience.

The UK government and industry are now working together to propel construction into a new era. As part of the Industrial Strategy Challenge Fund, the government is investing £170M in the ‘Transforming Construction’ programme. This will be matched by at least £250M from industry. The funding will be delivered over four years in order to establish a sustainable long-term model for the industry.

UK Research and Innovation (UKRI)’s Transforming Construction programme is focused on three strategic solutions. The first is delivering better building outcomes with less risk using digital techniques. This will draw on the skills of the digital industries, including gaming such as Minecraft. The second is to create buildings using manufacturing approaches. The new era of construction will see more work done in efficient factory environments and much less complicated work carried out on site. It will incorporate knowledge from the manufacturing industries, including aerospace and automotive. Finally, there is the focus on improving through-life performance of buildings, using a combination of sensor technology and social science.

This will require changes in the nature of construction organisations and the way they interact. The industry will need to become more vertically integrated, using standard products and processes to create all buildings, including where possible, active (energy positive) technology. This will either mean companies that span the value chain, or projects that take an enterprise approach with agreed common success factors for all participants.

The industry will also need to horizontally integrate, collecting and sharing much more information. This shared information will enable construction to mobilise the potential of machine learning (artificial intelligence) to improve decision making. Furthermore, people and organisations will need to develop new skills, drawing on expertise from sectors which have already been through this process. Lastly there will need to be more longitudinal integration, whereby strong business to business relationships are sustained over time from project to project.

We are thrilled with the progress we have made so far. UKRI has so far provided £129M of funding to industry with a further £36M upcoming for collaborative research and development projects. Funding is being used on over 100 companies of all sizes to work on solutions in collaboration with academia. Particular highlights include the SEISMIC project that has developed standard frames for schools that will meet the targets listed above. These are already being procured at scale as part of the Department for Education’s Generation 5 programme. Another highlight is the ‘Advanced Industrial Methods for the Construction of Homes’ (AIMCH) – a collaboration that will improve the delivery of over 35,000 homes per year.

What we have today is an enormous industry, with many challenges but lots of potential solutions. I have no doubt that construction will leave behind the problems of the past and become an exciting industry that people aspire to be part of. It will offer opportunities for the development of new skills, for tangible contributions to the health of people and planet, and no shortage of financial rewards.

Article submitted by Sam Stacey, Challenge Director, Transforming Construction, UK Research & Innovation

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ICE State of the Nation 2019: Connecting infrastructure with housing

The Institution of Civil Engineers (ICE) has released its latest State of the Nation report, giving its recommendations for infrastructure in the UK.

In particular, this year’s ICE report takes an in depth look at housing and infrastructure, and how the economy can be improved by better connecting the two.

ICE’s 2019 State of the Nation report sets out a series of interventions for better integrating the planning and delivery of housing and infrastructure. While we struggle to address the housing crisis, and balancing this with our green spaces, ICE looks at the scope within the current system to consider infrastructure more strategically.

The report makes ten recommendations that, taken together, can bring about a broad reform to the way infrastructure is delivered with housing, while taking advantage of the technological and climate-led opportunities to come.

These recommendations include:

• Evolving the role of subnational transport bodies in England to incorporate other economic infrastructure and their interactions with housing to create subnational infrastructure bodies. These bodies should develop regional infrastructure strategies that include housing, which are non-political, cross-sectoral and evidence-based. Across England, these strategies should feed into the National Infrastructure Strategy to ensure effective integration of infrastructure and housing planning across boundaries and at local, regional and national scales.
• The charter of the National Infrastructure Commission should include housing alongside economic infrastructure, allowing more joined-up, long-term and evidence-based strategies on housing and infrastructure requirements.
• The UK government should amend the Development Consent Order (DCO) process to enable large-scale housing developments of 5,000 or more homes to be delivered under it, ensuring greater coordination of housing delivery with nationally significant infrastructure, business and commercial projects.
• Regulators should build greater flexibility into the utilities’ regulated asset base model so that appropriate consideration can be given to providing infrastructure for permitted new housing developments outside of price control periods.
• The Housing Infrastructure Fund in England should be extended beyond 2023–24 and moved to a continuous programme of funding.
• The UK government’s commitment in 2018 to develop a Strategic Infrastructure Tariff that allows local authorities to pool resources to fund specific strategic infrastructure must be carried through by the new administration.
• The next National Infrastructure Assessment should identify options for future-proofing new housing developments and strengthening existing communities, ensuring that decisions are strongly linked to the transformation in transport, water, energy and digital infrastructure that technology will enable and climate change will demand. This should feed into developing and iterating the Future Homes Standard in England.

You can download the full report here.

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The benefits of building carbon neutrality

Carbon neutrality is an imperative global goal to halt global warming. But it can also have a significant benefit on a company’s performance.

The risks of climate change now need little introduction. We are already starting to live with the impacts of a changing climate on communities, businesses and infrastructure. Within the construction industry, it is well established that higher and more prolonged periods of heat have significant impact on worker productivity and increase the risk of thermal overheating in new build homes, not to mention the risks posed to sites by more frequent flooding.

The most recent Intergovernmental Panel on Climate Change (IPCC) report in October last year delivered the unnerving news that we have less than a 12-year window to act on climate and limit global warming to 1.5 degrees Celsius. It made plain that limiting warming to 2°C will not be enough to prevent the most serious impacts. In order to achieve this goal, we need to reach global net zero carbon emissions by 2050.

And now there is a more public face to the voice for change. Protests by Extinction Rebellion and school children around the globe have been recently dominating headlines, meaning climate change has suddenly pushed its way to the forefront of public consciousness with pressure for action on carbon neutrality rising with it.

The UK built environment contributes 40% of the UKs total carbon footprint of which the large majority occurs in downstream building, but new construction contributes 48 million  tonnes of CO₂ annually¹. With this in mind, the construction industry is not only vulnerable to growing demands and expectations to help deliver more sustainable and more climate resilient infrastructure, but to contribute to reducing emissions across their own operations..

There is also opportunity for the construction sector. As we look to decarbonise the economy, building low carbon, energy efficient infrastructure will be essential. The construction industry will be a key player in this and the opportunities for innovation and ultimately more sustainable buildings and spaces will continue to grow. Also significant is the opportunity when taking steps to reduce operational emissions. By reducing energy usage from hydrocarbon-based fuels during construction, in addition to lowering emission levels, operation costs can be reduced and project margins improved.

Going carbon neutral is, a journey, but there are steps to take to make it manageable, unlocking business benefits along the way.

Why tackle climate?

The calls for carbon neutrality might appear highly ambitious and even a little doom-mongering at times, but they also present significant opportunities for business – from meeting increasing consumer preference for low carbon products; costs saved through energy reduction programs; greater innovation to achieve competitive advantage; enhancement of brand reputation; better preparedness for future legislation and the building of more financially and climate-resilient supply chains.

Many stakeholders now want to see that companies have properly accounted for climate change. Consumers are increasingly opting for more environmentally friendly brands, with employees wanting to work for more responsible companies³ and the investor community making plain their commitment to withdrawing shareholder backing if climate is not adequately addressed.⁴ Tackling climate should now be seen as an opportunity to keep stakeholders happy, secure business and safeguard long-term investment. There is also the opportunity for contract-winning credentials. For example, government and large civil construction projects now require that contractors have PAS 2080 certification – the Carbon Management in Infrastructure standard.

With any sustainability or climate action plan, it is usually advised to carefully assess the risks and opportunities specific to your business. The major physical risks of climate change are no doubt well-understood in the construction industry with its large and complex supply chains, reliance on natural resources and vulnerability to extreme weather and changing climate.

How do you achieve carbon neutrality?

Setting science-based targets is key. Globally, 24 companies from construction-related sectors have already committed to do so. While ambitious, these targets provide a roadmap to reducing emissions in line with the trajectories needed to adequately limit warming.

So how do you get there? This can be challenging for the construction industry where the majority of emissions are in the supply chain. However, many will find that around 80% of the total supply-chain spend will be with fewer than 100 suppliers and it is by prioritising and engaging the largest of these suppliers that you can have the biggest impact. Implementing procurement criteria and collaborating with your suppliers can often improve their credentials, helping them to grow and enabling you to gain preferential procurement deals whilst reporting reduced emissions

Energy efficiency processes will play a big part and the good news is, these come with the potential for substantial financial savings. With the rise in Climate Change Levy rates from April onwards, this could also avoid growing taxation costs. Incentivised on-site and office energy reduction measures will help companies to achieve continued improvement in energy efficiency. The benefits of this will be compliance with current legislation like the Energy Savings Opportunities Scheme (ESOS) as well as encouraging engagement with your internal stakeholders who will ultimately be key to helping you reach your targets.

Renewable energy often plays an important role in a carbon neutral commitment. This also comes with more good news in that renewable energy has been reducing in cost and competing with fossil fuels. Research shows that 75% of FTSE 100 companies now use renewable energy. Generating renewable energy or purchasing renewable energy via assured renewable energy certificates, allows companies to confidently report that the energy used is zero carbon. On-site there are now an increasing number of hybrid plants available (some which have moveable solar panels to generate energy) and the increased fuel efficiency saves money with the added bonus that they create far less noise – often a point of contention with site neighbours.

Tackling remaining emissions across your value chain can be supported through offsetting with verified projects. The additional opportunity here is that you select projects which mean most to you and your stakeholders. Verified high quality credits come from a variety of social impact projects, usually in developing countries, which have a real and important effect on peoples’ lives and the environment. Such projects can focus on deforestation, health, renewable infrastructure and biodiversity. Projects like this are aligned to the United Nations’ Sustainable Development Goals and, therefore, enable an organisation to demonstrate their commitment to these global objectives which can be included in their sustainability reports.

EcoAct, a leading carbon reduction consultancy, talk further about opportunities for the building industry to go carbon neutral in a case study on Monday!

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CITB Construction review 2019

Steve Radley, Policy Director of the Construction Industry Training Board (CITB) discusses the past year for the construction industry and what might happen in 2020 once Brexit negotiations have completed.

It’s no surprise that throughout 2019 construction employers have been closely watching events in the industry and beyond. With some large construction firms under threat, demands on the housing market increasing and uncertainty around Brexit negotiations, at the beginning of the year it was unclear what 2019 had in store.

Although many would agree that the current year has provided significant challenges, there have also been plenty of opportunities for the industry, and at CITB we have been working tirelessly to ensure organisations and projects continue to flourish. Construction firms operating in the UK have also been working to understand how to prioritise methods that increase productivity levels and encourage investment.

The latest annual Construction Skills Network report from CITB was released in February and reflected the uncertainty we are experiencing across the wider economy. Throughout 2019 we have seen concerns around Brexit affecting clients and investors which has impacted contractors and the ability to plan ahead.

Yet this doesn’t mean that 2019 hasn’t been a success. Low but positive growth is expected throughout the rest of the year, with certain sectors being strengthened and an increase in opportunities for careers in construction increasing.

Looking forward and CITB’s commitment to the industry

Although times are turbulent and the outcome of Brexit negotiations is uncertain, the construction industry needs to work together to safeguard our future. We’ve set out an agreed action plan with construction federations and employers to understand what needs to be done differently in how construction recruits, retrains and invests in technology.

This includes increased investment in the domestic workforce, developing and retaining our current workforce, increasing productivity and creating pathways into construction for under-represented groups. We are also focused on giving the industry the space it needs to adapt by maintaining access to migrant workers and keeping the new system simple.

One such project which is helping to bridge the skills gap and provide opportunities to under-represented groups is the Construction Skills Fund (CSF). Funded by the Department for Education (DfE) and run by CITB, the CSF is a £22M project designed to get 13,000 new site-ready workers into construction by March 2020.

Under the CSF, 26 projects across England have received funding to support the development of on-site training hubs. Trainees coming out of each hub will contribute towards meeting current construction requirements and will be site-ready and able to work full-time in construction. The hubs offer hands on experience to candidates, delivering theoretical and practical education through training on large housing developments and infrastructure projects.

As well as benefitting the candidates, the plans and projects in place such as the CSF appear to be positively impacting the construction industry as a whole. Our latest Construction Skills Network report anticipates output growing by 1.3% a year until 2023 and the public housing sector will experience significant growth over the next five years. The new construction workers trained by the CSF and other projects are helping to contribute to this growth and hopefully see it increase even further over the next few years.

The latest forecast has revealed that over 168,000 new jobs need to be created over the next five years and with a likely post-Brexit reduction to the availability of foreign workers, 2020 is an opportunity for us to secure more funding for the industry, invest in the domestic workforce and offer increased support. More talent needs to be attracted and we need to improve our retention and upskilling rates to ensure targets are met and 2020 is a successful year.

Although it is challenging to understand what the Brexit outcome and 2020 may bring for the construction industry, we hope that the success of projects like the CSF highlights that we can lessen the effect of challenges on the industry, and work towards a highly productive and successful year.

Click here for more information about the Construction Skills Fund.

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Construction sector struggles to tackle bribery and corruption risks

Only half (51%) of business leaders in the construction sector have confidence in their bribery and corruption controls, 18% below the global average (69%), according to new research from the latest Global Fraud and Risk Report released by Kroll, a division of Duff & Phelps, the global leader in risk mitigation, investigations, compliance, cyber resilience, security and incident response solutions.

Kroll’s annual Global Fraud and Risk Report, with research conducted by Forrester Consulting, examines the current global risk landscape, understanding the biggest risks facing global companies and the steps being taken to prevent, detect and respond to daily threats.

The report revealed that 60% of construction firms have been affected by political unrest over the past 12 months, more so than any other sector. Similarly, almost 40% (38%) have also been affected by disruptions due to sanctions, tariffs and changes in trade agreements—second only to the technology sector. Leaks of internal information have also been a challenge for the sector with almost half (45%) of firms reporting an incident within the last year.

Looking forward, the construction industry is also more concerned about economic and political instability than other sectors, including concerns about military conflict (64% vs. 51% global average), a significant financial crisis (77% vs. 69% global average) and market manipulation through fake news (70% vs. 59% global average).

To tackle these concerns head-on, it is clear that the construction sector needs to strengthen its risk management capabilities. Currently, the sector’s confidence in data analytics (66% vs. 77% global average) as a risk detection method is the lowest of all industries surveyed. Internal audit functions within the sector are also less likely than average to uncover threats (24% vs. 28% global average).

Matthew Weitz, Associate Managing Director at Kroll, a division of Duff & Phelps comments: “With increasingly tight deadlines, ever increasing pressure on profitability, a high dependency on contractors and complex global supply chains, the construction sector is particularly vulnerable to bribery and corruption risk. We are seeing more and more construction companies tackling these issues head on by implementing a combination of preventative measures, ongoing detection and monitoring, and responding to potential problems swiftly, in a robust and consistent way.”

 

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New government set to make homes more affordable

The newly appointed majority Conservative Government has made various pledges towards the provision of affordable housing, with these pledges being reiterated by Queen Elizabeth in her speech at the formal State Opening of the Houses of Parliament.

In her speech, the Queen detailed how the Government will henceforth be making further strides towards affordable housing through the abolition of no-fault evictions while also imposing a lifetime deposit scheme for renters so that their deposits can carry over between properties, saving tenants money and giving them more freedom.

Adding to this, the Queen’s speech likewise referred to the renewal of the Affordable Housing Programme while also detailing the new 30 per cent discount which will be available to first time buyers under the new government through the contributions of property developers.

In her speech at the formal State Opening of the Houses of Parliament the Queen declared: “New measures will be brought forward, to protect tenants and to improve building safety. My government will take steps to support home ownership, including by making homes available at a discount for local first-time buyers.”

The Housing Secretary, Rt Hon Robert Jenrick MP responded: “The announcements made in the Queen’s Speech today will empower both home-buyers and renters. The legislation that we will bring forward will provide a better deal for renters through our lifetime deposit scheme while also protecting them from no fault evictions.

“We will also help first-time buyers get a foot on the property market with 30 per cent discounts for local people and key workers. We are moving forward with legislation to set ground rents to zero, abolish leasehold houses and prioritise the safety of residents with the biggest change to building safety laws for 40 years.

“I look forward to getting on with this ambitious and exciting agenda.”

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Health Secretary pledges 40 new hospitals over the next decade

On Wednesday 18^th December 2019, the Secretary of State for Health and Social Care, Matt Hancock, made a speech at the Policy Exchange wherein he outlined the Conservative Government’s plan for improving the NHS.

In his speech, the Health Secretary went into detail on the new provisions being made to establish health infrastructure, with this involving the construction of a further 40 hospitals over the course of the next decade in addition to 20 hospital upgrades.

Specifically, he stated: “Over the last couple of decades, the approach to upgrading hospital infrastructure has been too piecemeal and unstrategic. I have seen some places where the infrastructure is fantastic, but in others it is crying out for an upgrade.

“Under the Health Infrastructure Plan, the NHS will come out of the 2020s completely physically transformed.

“We will deliver 40 new hospitals over the next decade, while also addressing the short-term demands, fixing the backlog of maintenance and integrating care between both primary and secondary community and mental health, and the wider life sciences and research agenda.

“The Health Infrastructure Plan will include the 20 hospital upgrades the PM announced on the steps of Downing Street, which are already underway.

“We are going to build a better NHS brick by brick: modern well-designed wards, with the right facilities to speed up recovery, ensure patients receive the right treatment, cut waiting times, improve patient safety, and make life easier for staff.

“But it is not just about the bricks and mortar. It is about integrating care better. It is going to be the biggest hospital building programme in a generation.

“And we are going to radically simplify the approvals process to make the whole approach for the use of capital investment more strategic across integrated care systems – not piecemeal trust by trust.

“But it is not just about investing in new buildings but embracing a new mindset.”

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Go Awards NI 4 weeks for submissions

The countdown is now on to the Government Opportunities (GO) Excellence in Public Procurement Awards Northern Ireland.

With just four weeks to go to the submission deadline, the race for entries to the GO Awards is hotting up.

The GO Awards Northern Ireland celebrate excellence and innovation in all aspects of procurement, and are open to public, private and third sector organisations.

Entering the GO Awards is a fantastic opportunity for your organisation to celebrate your success and to showcase your organisation’s achievements to the cream of Northern Ireland’s public procurement marketplace.

The GO Awards Northern Ireland 2020 are a unique opportunity to showcase the innovations, initiatives and advancements that make Northern Ireland a world leader in smart and effective public procurement.

This year a number of new categories have been added to the list, reflecting the diversity of procurement across Northern Ireland’s public sector. Open to public, private and third sector organisations, take this opportunity to ‘step out of the back office’ and into the spotlight by entering the GO Awards and ensuring that your procurement success story is told! Join past winners such as Trasnlink, Department for Infrastructure, Graham Farrans Joint Venture, AECOM, and Construction and Procurement Delivery (CPD).

Go Awards Northern Ireland Categories whcih may interest our community include:

Infrastructure or Capital Project of the Year

This category has been introduced to recognise the significant achievements of those within the procurement sector across the UK in delivering cutting-edge, highly successful infrastructure and capital projects.

From buildings to roads, and from transportation and communication to energy, water and sewerage, countless infrastructure projects are undertaken each year by both the public sector and the utility sector.

This award honours these high-value and high-profile procurement projects, whether public sector or utility sector, which deliver successful outcomes to the betterment of communities in and across the UK.

Entries can come from any organisation within the supply chain for the delivery of successful, cost-effective infrastructure projects in compliance with the appropriate contract regulations.

A GO Awards submission in this category must cover activity during the period April 2017 to April 2019. The contract or initiative related to the submission must have commenced during this period to be eligible.

This award is open to public or utility sector organisations and private sector contractors if their entry is supported by the appropriate contracting authority for the infrastructure project.

Other categories (Click link for more information):

GO Buy Social/Social Clauses Award

GO Excellence Award

Procurement Team of the Year

Procurement Project of the Year (above-£10m value)

Procurement Project of the Year (below-£10m value)

Best Service – Medium and Large Organisations

Best Service – Micro and Small Businesses and Third Sector Organisations

The glittering awards evening will be held 10th March at the Titanic Hotel in Belfast, with host award-winning broadcaster, Holly Hamilton. The welcome address will be provided by Des Armstrong, a Chartered Engineer; Fellow of the Institution of Civil Engineers; eminent Fellow of Royal Institution of Chartered Surveyors and Member of the Chartered Institute of Procurement & Supply. Des is responsible for developing procurement policy and best practice across the Northern Ireland public sector.

Get your entries in now!

Register to attend the upcoming webinar “Creating a winning submission” on Friday 10 January and hear first hand from one of our judges on how create a successful GO Awards entry and ask any questions you may have.

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Why reputation will be more important in 2020

2019 has been a challenging year for the construction sector, writes Robert Walton, Chief Operating Officer at Constructionline. Political and economic uncertainty has impacted investor confidence and raised questions about supply chain security. The lack of clarity is also making it difficult for businesses to prepare for the future; with multiple scenarios to prepare for, many are struggling to shape growth plans or see where future opportunities may lie. The inevitable result has been slower growth across the sector.

Robert Walton

While construction businesses of all sizes are feeling the heat, smaller companies have been hit hardest. Figures from the Federation of Master Builders show that SME workloads have fallen for the first time in six years, with almost a third reporting lower workloads, compared to 13% during the last three months of 2018^[1]. Figures from CIPS reaffirm this reduction in activity, also pointing to political upheaval and risk aversion as factors affecting momentum and reducing the tender opportunities available^[2].

Against this backdrop of reduced investment and delayed projects, SMEs are having to work harder to differentiate themselves from the competition; a challenge made all the more difficult when the rising price of materials and labour is simultaneously forcing them to cut operational costs. Fortunately, there is some good news on this front and it comes from a possibly unexpected quarter: compliance.

Turning compliance into commercial opportunity

A good reputation has always been the most valuable tool in an SME construction business’ arsenal. With large amounts of money on the line, buyers want to know they can rely on you to deliver on time and to expected standards. Your reputation reduces their risk. In today’s hyper-competitive marketplace, SME businesses who have previously relied on word of mouth are realising the value of shouting about their track-record. They’re getting their reputation before more buyers by investing in certification programmes and marketing materials.

What some may not realise, however, is that a reputation for quality may no longer be enough. Buyers are facing their own set of pressures and high among these is the need to operate safely, ethically and sustainably across the supply chain. Faced with increased expectations from consumers and stakeholders, those at the top of the supply chain now need to ensure raised values are upheld throughout it. And it’s no passing trend: new regulations suggest that this enhanced level of supply chain responsibility is here to stay. ISO45001 is one example; setting a new standard for occupational health and safety, the regulation expands the definition of ‘workers’ to include both employees and contractors^[3].

Regulation focused on protecting workers, eradicating modern slavery and reducing carbon is likely to become much more commonplace in the future thanks to the UN’s Global Sustainable Development Goals, our nation’s net zero ambitions and mounting pressure from civil-rights action groups. During April 2019, a group of organisations including ClientEarth, Amnesty International and Unison, called for a mandatory due diligence law for all UK businesses^[4]. Meanwhile, a government-commissioned review of the 2015 Modern Slavery Act^[5] by the Business and Human Rights Resource Centre (BHRRC) has found the legislation in need of major reform. It recommends steps to ensure more businesses take meaningful action to identify and mitigate risk across supply chains. It means that in the future, SMEs can expect buyers to want proof of their commitment to ethical and sustainable practices as well as the usual reassurances of safety and quality.

With demands increasing on all sides, SMEs could be forgiven for thinking that the new Common Assessment Standard (CAS) introduced by Build UK and the Civil Engineering Contractors Association (CECA) is just another compliance obstacle to overcome on the already challenging road to success. Delivering an action from the government’s Construction Sector Deal, CAS is intended to lift standards across the industry and should already be firmly on the radar of construction businesses.  However, to those who have written it off as an additional compliance hurdle to jump, the message is this: look again. What CAS can actually provide is an important commercial opportunity.

Delivering reputational benefit through regulation

Build UK’s three strategic priorities are improving business performance, increasing productivity, and recruiting, training and retaining talent^[6]. Through these priorities, the organisation has placed sustainable growth for the sector at the heart of everything they do, and the CAS is no exception. Designed to reduce costs for businesses and streamline the prequalification process, the new system will mean that companies never have to be certified by more than one assessment body; data sharing will mean that contractors can access PQQ information from any of the three recognised assessment bodies. The CAS hails the beginning of a new era of collaboration for the industry – one that will hopefully be welcomed as it will mean less bureaucracy and less expense. It also provides businesses with an efficient way to demonstrate a commitment to ethics and sustainability – things that were once a decider in the tender process but are now often a prerequisite.

SMEs might also be surprised to learn how easy boosting their reputation through CAS can be, particularly if they are already members of a certification programme. Constructionline Gold Membership, for example, facilitates compliance with CAS for members at no extra cost, and certainly seems to provide a boost to a supplier’s reputation – verified suppliers are six times more likely to appear in buyer searches than non-verified suppliers. With reputation likely to be a key focus for 2020, the reassurance that industry stakeholders are collaborating to develop straightforward and cost-effective ways to achieve this should be welcome news indeed.

References:

^[1] https://www.fmb.org.uk/about-the-fmb/newsroom/workloads-for-small-builders-dip-for-first-time-in-six-years-warns-fmb/

^[2] https://www.markiteconomics.com/Public/Home/PressRelease/92a5c843504548d8ac454df07bdd97ee

^[3] https://www.iso.org/iso-45001-occupational-health-and-safety.html

^[4] https://corporate-responsibility.org/wp-content/uploads/2019/04/190417_UK-mHRDD-campaign-statement_FINAL-with-logos.pdf

^{[5] https://www.business-humanrights.org/sites/default/files/FTSE%20100%20Briefing%202018.pdf}

^{[6] https://builduk.org/priorities/improving-business-performance/}

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Glenigan’s forecast for the civil engineering sector

According to the Glenigan Construction Forecast for 2020 and 2021, the British civil engineering sector is set to drastically decline after a period of sustained growth from high value infrastructure projects such as HS2 and Crossrail.

Specifically, Glenigan’s figures suggest that by the end of 2019 the total value of underlying civil engineering project starts will have increased by an impressive proportion of 22 per cent, with this growth continuing to an extend over the course of 2020 to leave the increase in value at five per cent, whereas by the end of 2021 there will be no net increase or decrease.

Glenigan have attributed this trend to recent projects such as HS2, Thames Tideway, Hinkley Point, and Crossrail all beginning on site, ending the pending phase of their contracts and therefore what can also be classed as their underlying value, while the sustained growth over 2020 can be predicted as a result of increased water utilities investment from 2020 onwards.

The newly appointed majority Conservative Government has made various pledges in regard to utilities and services which will require the skills of civil engineers, with these utilities and services relating to water and broadband, and although these projects will allow the civil engineering sector to grow over the course of 2020 they will not have the same high value as HS2, for example.

It is strange, however, that the civil engineering sector would experience not net growth in 2021 when considering that Highways England’s development programme will be starting to gain momentum, with 2021 making the commencement of projects such as the Stonehenge Tunnel.

This limbo, in terms of growth, may be a product however of the anticipation of the civil engineering sector head of the third runway development project at Heathrow Airport, which is expected to commence two years later in 2023.

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Glenigan’s forecast for the housing sector

According to the Glenigan Construction Forecast for 2020 and 2021, the British housing sector is scheduled to experience a distinct difference in growth over the course of the coming two years, with the private housing sector set to soar while social housing fluctuates.

To be specific, the private housing sector, by the end of 2019, is predicted to have witnessed a decline in the underlying value of project starts that amounts to a proportion of five per cent but, by the end of 2020, this value will leap to an increase of nine per cent which will steadily continue to rise to ten per cent by the end of 2021.

Glenigan themselves have explained this upsurge as a product of home buyers having more confidence in the aftermath of the December General Election, with the result giving buyers more political clarity, if nothing else.

By this reasoning, Glenigan has identified the demand for housing to be the current inhibitor to the sector’s growth, as opposed to the supply, but now that a majority Conservative Government has been consolidated it is presumed that political stagnation will no longer take place and therefore the demand for housing will balance out with the supply by the year 2021.

In contrast to the private housing sector, social housing is expected to waver over the coming years, with the value of underlying project starts set to increase by a figure of six per cent by the end of 2019 but, by the end of 2020, this growth will falter and decline by four per cent before jumping up once again by a proportion of nine per cent.

Following in the predictions of Glenigan this dip in sector growth by the end of 2020 can be attributed an apparent decline in student accommodation contracts that have been signed by the end of this year, 2019, meaning that the number of projects that will remain underlying by the end of 2020 will be significantly less than usual and so also will be the value of the sector.

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LGA publishes its plan for 2020

According to the Local Government Authority (LGA) and their yearly plan for 2020, there will be new focus upon infrastructure spending, complying with the ‘Building a Safer Future’ report, and also the changes which will take place in the world of procurement.

Going into further detail on this, the yearly plan which the LGA has published, when discussing topics that relate to construction, initially refers to infrastructure and how spending will be focused upon the Highways Spend, scheduling in a meeting with the Civil Engineering Contractors Association (CECA) to discuss issues in this area and how contractors can provide more social value.

Furthermore, the LGA also placed a great deal of emphasis upon the need for meetings and consultations so that they may implement new recommendations and standards in line with what has been recommended by Dame Judith Hackitt in her report, ‘Building a Safer Future’.

The LGA is now consulting with construction professionals and local councils to decide how best to impose the aforementioned recommendations as well as how to now approach the procurement of in-scope buildings with help from the Procurement Working Group which is chaired by Duncan Brock from CIPS Global Standards.

And finally, the LGA is also going to take a view of the changing role of a procurement professional in the post-election, and possible post-Brexit, Britain at the Construction Conference at Smith Square Conference Centre in London in February.

The conference will be the seventh national construction conference and will feature panels and workshops concerning the increased contribution of the sector in shaping and delivering quality assured services as well as the increased confidence that local government provides as part of the right conversations and taking real action to capture and disseminate lessons learned to the sector.

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Brandon Yard development completed in Bristol

The private housing market in Bristol has recently received a welcome boost from the successful delivery of 58 modern apartments by a partnership between the two property development companies, Galliard Homes and the Acorn Property Group.

The apartments in Bristol were specifically delivered in tandem with the restoration of the Grade-II-listed gasworks building known as Brandon Yard, with the entire job costing a total sum of £15M and being supported by the contractor company Speller Metcalfe and the architecture firm AWW.

The Regional Managing Director at Acorn Property Group’s Bristol Office, Robin Squire stated: “The transformation of Brandon Yard has been an exciting project for Acorn Property Group and Galliard Homes and we have worked closely with heritage specialists and Speller Metcalfe to preserve the site’s unique history in balance with high-quality homes.

“This is the last jigsaw puzzle piece in the regeneration of Bristol’s Harbourside and we are proud to have unveiled the completed scheme.”

The Sales Director at Galliard Homes, David Galman commented: “Brandon Yard offers a perfect balance between homes with a rich history and stylish, contemporary design, which has proved very popular with buyers to date.

“The regenerated Bristol Harbourside area is now highly sought-after and we have seen steady interest from buyers throughout the scheme’s development. Given that the scheme is now complete, we anticipate high demand for this final collection of homes.”

The construction process lasted a total period of two years and entailed the restoration of three building including Engine House, Oculus House, and Retort House.

The Joint Managing Director at Speller Metcalfe, Andy Metcalfe added: “Brandon Yard has been a particularly interesting and challenging project, combining both new build apartments alongside the careful restoration of existing historic buildings and we are absolutely delighted to now see the stunning properties completed.

“We are very proud to have played a part in such an important and iconic development for the City of Bristol and it is fantastic to see the first residents moving in to what really are eye-catching, quality homes in a truly outstanding location.”

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The construction industry responds to the Queen’s speech

Following the Queen’s speech at the formal State Opening of the Houses of Parliament, various leading members of the construction industry have commented on what this means for the sector.

In the responses, various construction industry professionals focused upon the Government’s supposed allocation of greater powers to local authorities, allowing people to decide on how funding will be spent in their own local areas, while also drawing some attention to the skills and sustainability pledges.

The Chief Executive of the RTPI, Victoria Hills stated: “The RTPI welcomes the government’s commitment in the Queen’s speech to invest in much needed infrastructure to unlock the potential to deliver the communities that people want to live in.

“Over the past decade, local authority planning teams have seen a reduction of 42 per cent in funding, a situation which must now be urgently addressed to allow the government to deliver its promise to give communities more control over how investment is spent.

“It was also pleasing to hear that the government plans to continue work to meet its net-zero carbon targets but planners have called for stronger direction and more resources to help them deliver these targets by 2050.”

The Chief Executive of the Scape Group, Mark Robinson added, “Importantly, it [the Queen’s speech] also outlined an intention to give communities increased involvement in how this investment is allocated. Local decision-making is vital and ensures that our infrastructure decisions align with local priorities and generates real benefits for the local economy.

“Looking beyond this, the agenda is ambitious and I eagerly await further detail on the investment into the National Skills Fund, the government’s approach to immigration and the infrastructure projects that will be prioritised.”

The Chief Executive of the FMB, Brian Berry concluded: “A skilled construction workforce will be critical to delivering on the Government’s plans for infrastructure and housing set out in today’s Queen’s Speech. Over half of small builders are struggling to recruit a bricklayer or carpenter, yet it could prove very difficult to fill these roles from outside the UK under the proposed points-based immigration system.

“The Government must work with industry to ensure that the new immigration system works for construction, and that the National Skills Fund trains our domestic workforce in the trades that are needed or else the sector will struggle to deliver.”

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Queen Elizabeth reiterates Conservative pledges when opening Parliament

Today Queen Elizabeth made a speech at the formal State Opening of the Houses of Parliament, reiterating the pledges made by the Conservative Party during their General Election campaign and place substantial weight upon the importance of infrastructure.

In her speech, the Queen referred to many of the promises made by Prime Minister Boris Johnson in the run up to the December General Election, with those relating to construction including the extent of government spending on infrastructure, housing, skills, research, and sustainability.

Specifically, the speech stated: “New measures will be brought forward, to protect tenants and to improve building safety.

“My government will take steps to support home ownership, including by making homes available at a discount for local first-time buyers…

“My minister will bring forward measures to ensure that all corners of the United Kingdom can prosper.

“My government will invest in public services and infrastructure whilst keeping borrowing and under control, maintaining the sustainability of the public’s finances through a responsible fiscal strategy.

“My government will prioritise investment in infrastructure and world-leading science research and skills in order to unleash productivity and improve daily life for communities across the country. It will give communities more control over how investment is spent so that they can decide what is best for them.

“To support business, my government will increase tax credits for research and development, establish a National Skills Fund, and bring forward changes to business rates.

“New laws will accelerate the delivery of gigabit capable broadband. To ensure people can depend on the transport network, measures will be developed to provide for minimum levels of service during transport strikes.

“My Government will continue to take steps to meet the world-leading target of net zero greenhouse gas emissions by 2050. It will continue to lead the way in tackling global climate change, hosting the COP26 Summit in 2020.

“To protect and improve the environment for future generations, a bill will enshrine in law environmental principles and legally-binding targets, including for air quality.”

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A40 route confirmed in Narbeth

The Welsh Economy and Transport Minister, Ken Skates, recent confirmed the route that will be taken for the construction of an improved dual carriageway along the A40 in Wales between Penblewin Roundabout and Redstone Cross.

The new A40 road, which extends over a distance of 1.1 miles, will consist of a new two lane (plus one) configuration and will cost a total figure of £20M to building, with the most recent development in its construction being that Option 2B has been selected as the preferred route.

Adding to this, the new road will include the provision of an overbridge on the B4313, which would maintain North-to-South local connectivity, while also improving safety, and will feature a new shared cyclist and pedestrian facility to encourage active travel

This decision has followed an eight week public consultation between the months of July and September 2019, during which Option 2B received the most support, and the public will be able to discover more about the new route, including what it will mean for local residents, at an exhibition on today at Queens Hall in Narberth.

The Welsh Economy and Transport Minister, Ken Skates stated: “In making this decision we have listened carefully to local residents and believe the proposed improvements would deliver real benefits for them. The proposals would provide greater resilience, enhance journey time reliability, and improve safety.

“The preliminary design, which considers the environmental and engineering issues in more detail, continues to be developed and I would encourage interested parties to continue to be involved.”

The route was pulled in for revision following reports of driver frustration at the lack of opportunities on the road to overtake as well as the use of the route by convoys of heavy goods vehicles from the ferry ports, and slow moving agricultural vehicles, which only serves to worsen traffic and safety of the road.

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Citizen appoints Seddon for social homes project

The British social housing provider company Citizen has recently commissioned the construction and property development company Seddon to convert unused space in existing buildings into social housing across the West Midlands, in cities such as Coventry, Birmingham, and Worcester.

Specifically, Citizen has commissioned the delivery of some 36 new social homes at a cost of 2.1M, with the new homes themselves currently presiding within premises which Citizen already owns, including a residential tower block, assisted living homes, and even within office buildings.

As the appointed main contractor, Seddon has commenced works on the first wave of homes with the completion of the entire project scheduled to be achieved with the Spring of 2020.

The Director of Development at Citizen, Richard Whittaker stated: “Here at Citizen we are committed to building new homes in communities across the West Midlands so that we can give more people a foundation for life.

“It is great news our latest development with Seddon has started across Coventry, Birmingham and Worcester. Creating new social housing out of unused spaces in our existing buildings shows our commitment to making our properties work the hardest they possibly can to fulfil the needs for social housing across the West Midlands.

“This innovative approach also enables us to bring these vital homes to market much quicker and more cost-effectively than building from the ground up. I look forward to seeing the completed properties in spring next year.”

The Business Unit Director at Seddon, Rob Moore added: “It is no secret that social housing numbers are dwindling, with very few of these types of homes being built in the West Midlands and across the UK. The innovative approach to creating new social housing out of unused spaces in existing buildings demonstrates Citizen’s forward-thinking attitude to addressing this issue head-on while accelerating the new home agenda.

“We are able to bring these vital homes to market much quicker and more cost-effectively than building from the ground up. This project will ensure people in Coventry and Birmingham who need an affordable, high-quality place to live can have better access to social housing in their local area.”

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Galliard Homes TCRW development sells for ‘study-pads’

According to the property development company Galliard Homes the Tottenham Court Road West (TCRW) development in Soho, London, has accumulated a grand total of £50M worth of off-plan sales, with the majority of buyers acquiring the properties to use as student accommodation.

Furthermore, Galliard Homes state that an event, where 81 of the 92 apartments were up for sale, was attended by more than 500 people and saw to the rapid sale of 31 of the apartments which are now set to be used as ‘study-pads’.

The TCRW development is worth £140M and is located above the Tottenham Court Road Crossrail Interchange, on the corner of Oxford Street and Dean Street, and is comprised of two buildings, one of which consists of an art-deco design while the other takes its inspiration from Georgian architecture.

The development has been designed by the Hawkins\Brown architectural practice and the interior design has been handled by Argent Design, with completion of the development scheduled for 2022 following the completion of the Crossrail in 2021.

The Sales Director at Galliard Homes, David Galman stated: “Over the next five to ten years Soho and Oxford Street will become one of Prime Central London’s most sought after residential addresses.

“Our TCRW project, alongside other new luxury developments, is transforming the top of Dean Street into a residential destination alongside new retail outlets designed as entertainment venues and brand ambassadors rather than traditional retail sales spaces.

“Pedestrianisation, Crossrail, and electric vehicles are the three major ‘game changers’ for Oxford Street, making the West End a cleaner, much less congested and quieter place to live.

“The strong off plan sales at TCRW show that discerning people understand what Oxford Street is set to become and are buying into a location that is benefiting from massive regeneration and transformation into a residential address.”

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Caddick Group refurbishes studio space in Leeds

The construction and property development company the Caddick Group have recently acquired a six acre plot of land in central Leeds which has been refurbished and converted into a creative media hub which will support the arrival of Channel 4 at the nearby Majestic.

The Caddick Group have worked in partnership with fellow contractor company CBM Construction to demolish Petty House, which formerly occupied the site, as well as remove any abandoned machinery and asbestos which remained in the building.

Following on from this Caddick and CBM delivered a vest expanse of studio space which has been reserved for occupation by Opera North and Leeds Studios.

The Director at Caddick Group, Johnny Caddick stated: “There is huge demand for studio space across the UK and in Leeds particularly thanks to the arrival of Channel 4. The broadcaster’s move will prove a massive boost to the city’s economy and Caddick Group is proud to be part of that growth story by transforming a derelict site into a world-class film and TV complex.”

Opera North intend to utilise the new site for storage and rehearsals whereas Leeds Studios are currently undertaking internal fit-outs on their space within the development, with the intention being to open their section for full operational use by May 2020.

A representative from CBM Construction, Tony Bashforth commented: “The refurbishment of the former Polestar Petty works has received a lot of interest locally, due to the connections many in Leeds have to the site.

“Our works have helped transform the old warehouses into a modern workspace for the 21st century, including new electric car charging points and upgraded services to power the studios. It is great to have been involved in this project bringing the space back into employment use.”

A representative of the Caddick Group, Dawn Carlisle added: “We have a long-standing relationship with Caddick Group and, as two Leeds-based organisations, it has been a pleasure to have played a role in this significant cultural project, Channel 4 in Leeds, which will help to bring wider economic benefits to the region in 2020 and beyond.”

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Sir William Henry Bragg building tops-out in Leeds

The construction and property development company BAM Construction has recently celebrated the topping out of the Sir William Henry Bragg building at the University of Leeds, with the ceremony being attended by university representatives, contractor representatives, and members of architecture firms.

The new Sir William Henry Bragg building will include a first-class laboratory and specialised teaching spaces as a new integrated campus for engineering and physical sciences which is scheduled to achieve completion by 2021.

The Director of Estates and Facilities, Steve Gilley stated: “I would like to thank all of our partners who have contributed to this flagship project to date. It is important to mark key milestones and recognise the importance of the expertise from extended project teams, to ensure the successful construction of this new facility.”

BAM Construction is serving as the main contractor on this scheme whereas the companies ADP and Arcadis served as architects alongside BAM Design, Gardiner and Theobald, ARUP, and Silcock Leedham.

The Regional Director of BAM Construction, John Phillips commented: “Topping out is a centuries old tradition, and this year BAM is 150 years old, while the University’s origins date back to a similar time, to 1874. Today we are both known for being leaders in modern technology. The University is looking to the future, and BAM are delighted to be helping them to create facilities for the next generations of students and academics.”

The Director of ADP, Joe Morgan added: “This project was conceived in 2015 as a critical component of the strategic masterplan, to create a collaborative hub for computing and physical sciences. The building champions the need to address tomorrow’s challenges whilst minimising its impact on the environment, so it is appropriate that one of the components designed to make this building so highly energy efficient should be lowered into place as part of the ‘topping out’ celebration.”

The Director of Arcadis, Ian Aldous concluded: “The scale of this project, from the stakeholder engagement through to the design solution and delivery, has been immense and everyone involved has been on a real journey. As such, to see the critical milestone being reached is hugely satisfying for all involved, and a testimony to the dedication of all parties to the future vision.”

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ADR Clauses – Respect them, or else

Following my last article touching on the court’s power to compel parties to take part in an Early Neutral Evaluation (ENE) hearing, there have been further developments in relation to Dispute Resolution Clauses that are becoming more common in all kinds of commercial contracts.

These types of clauses compel parties to use different types of Alternative Dispute Resolution (ADR) before issuing court proceedings. An ENE hearing (as a form of ADR) could be provided for in such a clause, so this article will delve a little deeper into ADR contractually and its commercial importance.

Whilst the recent decision in the Ohpen Operations UK Ltd v Invesco Fund Managers is not a construction case, its findings are applicable to all those contracting in the construction sector. This is especially the case where the parties wish to settle any potential disputes by mediation or arbitration in their contracts, in order to avoid court proceedings.

Background

The dispute was between a software company (Ohpen) and an investment manager (Invesco). Invesco instructed Ohpen to develop and implement an online platform where retail customers could buy and sell investments. The platform was due to go live on 1 March 2017 but had still not been finished by the time the Invesco issued a notice of termination on 11 October 2018.

A without prejudice meeting was attended by both parties at the end of January 2019 to attempt to resolve the issues. Ohpen issued proceedings on 23 April 2019 for wrongful termination. Invesco then made an application, on 24 May 2019, specifically in relation to the Dispute Resolution clause in the contract and asked to stop the proceedings until the clause was complied with.

The Dispute Resolution clauses of the contract provided a clear process of escalation to resolve disputes. This started with reasonable negotiations between the parties themselves; moving up to contract managers; then to an executive committee; then a more formal mediation under the Model Mediation Procedure of the Centre of Dispute Resolution. It was only after the exhaustion of this process, that either party could or should issue court proceedings.

Invesco was asserting that the process was not optional and that Ohpen should not have issued proceedings until this process had been exhausted.

Decision

The court outlined a number of case specific principles that were integral to the decision:

• The contract must create an enforceable obligation requiring the parties to engage in ADR
• This obligation must actually state that it needs to be followed before a party can issue proceedings – it should be a condition precedent to court proceedings
• The process needs to be sufficiently clear to follow with reference to objective criteria, such as the appointment of a third party, it does not need not be a recognised formal process
• The court’s power is discretionary to stop proceedings and will take into account:
  • Public policy in upholding the parties’ commercial agreement; and
  • Furthering the overriding objective of the courts in assisting the parties to resolve disputes

Applying these principles, the court ruled that there was a mandatory requirement for the parties to follow the processes set out in the contract before either of them should issue formal proceedings.

The parties could only commence court proceedings once and only if the mediation process was unsuccessful. Despite high level negotiations taking place, the court agreed that these failing did not allow either of the parties to refuse to take part in mediation. The proceedings were, therefore, stopped to allow mediation to take place.

This is consistent with the court’s general position that alternative dispute resolution should always be properly considered and attempted by contracting parties and that formal court proceedings should be a last resort.

Urgent & Emergency Applications

Whilst the Dispute Resolution provisions should generally be followed, that would not prevent emergency applications to the court that would be rendered useless if you had to wait until the provisions had been complied with. For example, where there is a significant risk that materials or stock will be moved or irreparably damaged; or where it is almost certain that key evidence will be destroyed, certain types of application will be essential. In these limited situations, the court will allow you to apply to the court ahead of completing the Dispute Resolution provisions.

Normally, the court will consider these type of applications and either permit or reject them. If they permit them they would allow the execution of the application, but order that once that has been done that the parties then comply with the contractual provisions. This is because granting an application for an urgent order will not circumvent the requirement for the parties to attempt to find a resolution to the underlying dispute. Therefore, although things like freezing orders, injunctions and search orders will be available to those in need of them, they will only be granted in the most appropriate circumstances. Such orders are unlikely to allow a party to side-step a contractual resolution method.

Should my contracts contain a Dispute Resolution procedure?

In all contractual relationships, and particularly in construction contracts, things do and can go wrong from time to time. A robust and carefully drafted Dispute Resolution clause can be a very useful mechanism to encourage negotiated compromises and allow the performance of a contract, rather than having to go through the time consuming and expensive delays of court processes.

In particular, those contracting in the construction sector will be aware of how disputes can be resolved swiftly and decisively through adjudication. A well drafted Dispute Resolution clause will ensure parties go through this process before formal court proceedings, with the intention of achieving a quick result, so that both parties can move on in their respective works.

Conclusion

For those in the construction sector, by far the most useful clauses will be those referred to as “tiered” Dispute Resolution clauses. These types of clauses will allow for negotiations between those in dispute first in an informal setting, rising to a more formal dispute resolution process such as mediation and then possibly forcing the parties to adjudicate, before formal court proceedings.

The main benefit of these clauses is that they can be drafted to suit the particular needs of the parties and can predict the best way to solve the likely issues that they may come up against.

The case above illustrates that courts are willing to uphold these clauses and compel those unwilling to submit to the procedure in the contract to do so.  The corollary is that whilst these clauses should be included, you would be bound to follow them if there is a dispute. They are incredibly flexible and a very useful tool at the drafting stage and should be carefully considered as they can save both cost and time in construction contracts.

Article by Mark James, partner in the Real Estate sector group at law firm Coffin Mew

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Vital Energi appointed to Mersey Heat network

Peel Energy has appointed renewable energy company Vital Energi to deliver its Mersey Heat network which will provide heat for up to 9,000 homes and four million square feet of commercial space at Liverpool Waters.

The district heat network has been designed to evolve alongside Peel L&P’s £5.5Bn Liverpool Waters development and will begin with a temporary energy centre to serve the initial phases. As the energy demand increases, this will be replaced with a permanent energy centre which will deliver low carbon heat and hot water to the growing community.

The network will see approximately 1,700m of underground district heating pipe and this will be extended to connect future blocks as they come online.

Mersey Heat, the Energy Services Company (ESCo), will own the heat network which will contribute towards the UK Government’s CO₂ targets and help to make Liverpool a greener place to live, work and visit.

The first phase of the network will deliver around 11 gigawatt hours of heat energy to people centred on the Liverpool waterfront around Princes Dock, Central Docks and Collingwood Dock to the north, funded by Mersey Catalyst Fund. The project has been developed by Peel Energy in association with district energy consultants Ener-Vate.

Muir Miller, Managing Director of Peel Energy, part of Peel L&P, said: “Our Mersey Heat network is part of Liverpool City Region’s innovative approach to addressing low-carbon energy generation and we’re glad to have Vital Energi on board in helping us to deliver this project.

“It’s the first phase of a ten-year development project which we hope will eventually supply around 9,000 homes and numerous businesses along Liverpool’s waterfront and we’re pleased to be able to provide a cost-effective low carbon offer that will benefit businesses, residents and the environment.”

Vital Energi’s Regional Director, Mike Cooke explains: “We were originally appointed to help develop the energy infrastructure and this new contract will see us design, build, operate and maintain what we believe will be one of the UK’s major heat networks.

“We know Liverpool City Council has put a strong focus on reducing carbon emissions and the developers, Peel L&P have a firm commitment to creating sustainable communities and by working collaboratively together we are now able to begin work on a significant addition to Liverpool’s low-carbon ambitions.”

Works have already begun on site, and with some 50% of the initial district heating network installed successfully, works on the temporary energy centre are due to begin shortly with the “heat on” milestone scheduled for spring 2020.

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Hethersett Primary School appoints Kier for extension project

The construction and property development company Kier has been contracted, yet again, to deliver a primary school project in Norfolk, after being successfully appointed through the Norfolk County Council Framework to extend the Hethersett Primary School.

The Hethersett Primary School extension scheme will entail the construction of an eight classroom teaching block complete with a new student library, a studio hall, and group rooms with outdoor facilities including a hard and soft play area in addition to a new car park.

The project has cost the school a total sum of £3.4M and will increase the capacity of the school from 240 to 420 students, with completion scheduled to be achieved by autumn 2020 after works commenced only just recently.

The delivery of the new teaching block will also involve external drainage and external service upgrades to provide slight upgrades to the school as a whole.

The Managing Director at Kier Regional Building Eastern, Mark Dady stated, “We are very happy to have been selected to deliver the extension at Hethersett Primary School to provide much-needed improvements and space for additional pupils. We have a strong knowledge of the region through various works we have delivered in the area and we look forward to working closely with Norwich County Council.”

The Head Teacher at Hethersett Primary School, Matthew Parslow-Williams added, “This is an exciting time in the school’s history, and we are delighted to be working with Kier on our primary transition journey. Our well-resourced school with a wide range of facilities is going to be enriched with a brand new eight classroom block – fantastic for the children of Hethersett.”

Kier has provided several similar projects to the county of Norfolk recently including the White House Farm Primary School project in Sprowston, entailing the construction of a two-storey teaching block, and the St Clements Hill Primary Academy scheme.

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Midland Metropolitan Hospital appoints Balfour Beatty

The construction and property development company Balfour Beatty have been contracted by the Sandwell and West Birmingham Hospitals NHS Trust to construct the new Midland Metropolitan Hospital under a £267M contract.

Balfour Beatty was initially contracted to carry out the early works for the Midland Metropolitan Hospital in Smethwick, Staffordshire, but has now been appointed as the main contractor on the scheme, with the associated electrical and plumbing works to be undertaken by a joint venture of Balfour Beatty and Kilpatrick.

The Chief Executive Officer of Balfour Beatty’s UK Construction Services business, Dean Banks stated: “This is a key project for the Midlands and a long-awaited moment for healthcare services in the local community. Following the successful completion of the Early Works phase, we are pleased that we have been entrusted to deliver the final elements of the scheme.

“Our wealth of experience and expertise will ensure that the Midland Metropolitan Hospital will service future generations for years to come.”

The 670-bed hospital, which covers a total area of 80,000sq m, will feature maternity facilities, children’s and inpatient adult facilities, and will be completed using Building Information Modelling (BIM) techniques to achieve a completion date somewhere in 2022.

The Chairman of Sandwell and West Birmingham NHS Trust, Richard Samuda commented: “The people of Sandwell and West Birmingham have been waiting for this hospital for too long, as have our staff who are doing an incredible job delivering health care services from some buildings that are no longer best suited for modern healthcare services.

“This news cannot come soon enough for those colleagues. Reaching this milestone is testament to the determination of Trust colleagues and leaders in partner organisations, who, with the support of cross party political leaders, have enabled us to agree this contract to complete the hospital.”

The Chief Executive of Sandwell and West Birmingham NHS Trust, Toby Lewis added: “Today is about moving on and looking to the future, as we shortly welcome the return of all works and trades to the site to complete this vital facility. The Commonwealth Games comes to Birmingham in 2022, and we would like to be in our new home by then, bringing our clinical teams together to deliver the best acute services for our patients and their families.”

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Winvic appoint to logistics park project

The contractor company Winvic Construction Ltd has been contracted by the company Games Workshop to construct a fifth industrial unit at a flagship, 700 acre logistics hub in the East Midlands, allowing the company to possess a warehouse on plot six of the site.

The warehouse and logistics facility will cover an area of 177,500sq ft with the addition of a 12,00sq ft office space as well, all of which is scheduled to reach completion in the July of 2020, allowing the company to join Amazon, XPO Logistics, Kuehne & Nagel, and ShopDirect at SEGRO Logistics Park East Midlands Gateway (SLPEMG).

Winvic was contracted by the company SEGRO who own and maintain the industrial estate whereas the unit itself will be occupied by Games Workshop once it is completed in July.

The Winvic Construction Director, Rob Bull stated: “Our relationship with SEGRO has gone from strength to strength since we began one of the largest earth-moving, multi-agency developments in Europe three years ago at the SLPEMG site, and now we are looking forward to starting further industrial construction on Plot 6 for Games Workshop.

“The warehouse and distribution space will total 6Msq ft when complete and the SRFI covers 50 acres; few projects are as large or broad as SLPEMG or have huge challenges like an adjacent airport. The full Winvic team, which includes our trusted suppliers and consultants, are very proud to be delivering such a significant scheme for SEGRO and the UK’s logistics sector.”

The SEGRO Business Unit Director of National Logistics, Andrew Pilsworth added: “This leasing represents another significant milestone for SLPEMG, representing further evidence of demand for space, and the pace at which we are able to deliver it. We have now contracted almost 3Msq ft of space across the site, with the relocation of Games Workshop exemplifying the range of occupiers attracted to the park.”

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Oxford Uni launches 21st century conservation plan

Nature is moving to the top of the international agenda. The loss of biodiversity is increasingly recognised as a crisis, linked to climate change, which needs urgent action. But without a framework that translates actions at the local level into international commitments, it is difficult to know how to structure and report on the contributions being made by people and organisations around the planet towards this global effort.

Researchers at the University of Oxford and their collaborators have launched a new approach called the “Conservation Hierarchy” to support governments, businesses, individuals, communities and local authorities in their efforts to tackle the loss of nature in a coordinated way.

Oxford University will be using its own operations as a case study for how large, complex organisations can reduce their biodiversity impact using the Conservation Hierarchy. The new hub, named the Oxford Partnership for Operationalising the Conservation Hierarchy (OxPOCH), will be the first to use the framework in practice, with a focus on two key areas – reducing the environmental impact of our food, and ensuring that new developments have ‘Biodiversity Net Gain’ (leaving nature in a better state than it would have been if the development hadn’t been implemented).

The Conservation Hierarchy – also known as 4Steps4TheEarth – requires organisations to go through four planning stages with respect to an overarching goal (such as restoring nature):

1. Refrain – refrain from actions that harm nature
2. Reduce – reduce harmful actions as far as possible
3. Restore – restore nature that has been harmed
4. Renew – renew nature through new actions that make a real difference

OxPOCH is focussing one part of its work on food sustainability, in response to recent research led by Oxford, which has shown the need for wide-ranging dietary changes in the future.

The second theme the researchers will tackle is supporting the University and its colleges to manage its estates with biodiversity in mind, through demonstration projects and new guidance.

Henry Grub, OxPOCH’s coordinator and lead researcher, said: “The whole estate associated with Oxford goes far beyond the city walls. We want to investigate how biodiversity can be preserved and enhanced across this space, while maximising the estate’s practical usage.”

OxPOCH comes at a time when Oxford University has made a commitment to improving its environmental sustainability, both with respect to climate change and biodiversity loss.

OxPOCH’s Principal Investigator, Professor E.J. Milner-Gulland (Department of Zoology and Parks College), said: “It’s wonderful to have the opportunity to translate our academic research that is informing global policy into real, concrete actions within our own institution. We’re going to learn a lot about how to make the Conservation Hierarchy work for big organisations, while also helping the University and its staff and students to meet their own aspirations to improve their environmental sustainability.”

The OxPOCH partnership has team members from across the University and the colleges, representatives from every academic division, the Oxford University Museum, the University’s Estates Services and the Oxford Student’s Union. The partnership is also bringing in expertise from outside, including conservation organisations the Berkshire, Buckinghamshire and Oxfordshire Wildlife Trust and Synchronicity Earth, as well as partners from business including consultants Biodiversify Ltd. The team is also reaching out across Oxford city and working with researchers and conservation organisations across the UK and internationally, as part of the broader Conservation Hierarchy project.

Oxford’s Head of Environmental Sustainability, Harriet Waters, said: “This is a great example of Oxford deploying its globally-significant research to support its own staff and students to improve the sustainability of our operations, while also contributing to high-level international policy processes. I’m really excited to be part of the OxPOCH team and to help the University to learn from the work OxPOCH is doing, as we as an institution develop an ambitious new sustainability strategy.”

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