RIBA Future Trends Survey conveys positive outlook

Survey shows architectural practices are confident about future workloads and staffing levels.

The Royal Institute of British Architects (RIBA) has released its Future Trends survey and the results show that companies are experiencing higher staffing levels from the equivalent period of 2014.

Released every month, the survey was launched in January 2009 as a way to monitor employment and business trends during the economic downturn and how they would affect different architectural practices.

It is put together by using a sample that represents a cross-section of members and focuses on areas where RIBA members may face difficulties. This includes workloads, staff levels and other work in specific sectors.

Throughout the survey, balance figure is defined as the difference between those expecting more work and those expecting less.

Permanent staffing levels are measured in each quarter. In comparison with 2014, this is up by 6%.

This is backed by the Future Trends Staffing Index which is still showing positive signs, with the index up to +18. Encouragingly, just 1% of those practices who took part in the survey expect to be employing less permanent staff members by the end of the next three months than they are now.

Firms that take part in the survey are a mix of small, medium and large, and in terms of staffing, the balance figure for medium practices show they are positive about employment levels in the future, as the figure from April is +48. This figure for large and small firms stands at +25 and +4 respectively.

In terms of the Future Trends Workload Index, it remained at +35 for April. At +74 and +75, medium, and large practices are both very confident about the levels of workloads in the future, while it is encouraging to see small firms, which encompasses firms with up to ten staff members, keeping a positive outlook as well (balance figure of +29).

Although the community sector forecast declined in April 2015 and there was a slight fall in the commercial sector, the private housing sector forecast for workload remains robust thanks to an increase to +38.

The balance figure for the Future Trends Workload Index is strong in London (+47) and the south of England (+37).

Adrian Dobson, RIBA Director of Practice, says the figures suggests services in architecture are becoming “stable”.

He said: “The overall picture is still one in which confidence levels amongst architects about future workloads are high. The rising Future Trends Staffing Index indicates a strong feeling that the current market for architectural services is stable or growing for the vast majority of practices.

“However, there remains widespread reporting of intense fee competition in many sectors, along with tight profit margins. The decline in the community sector forecast is somewhat disappointing, while the fall in the public sector forecast may reflect ongoing uncertainty about future public sector capital spending.”

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NHBC report shows new home registrations up by 20%

2015 housing levels performing better than 2014 despite General Election uncertainty.

The number of new housing registrations according to the NHBC’s latest report has continued to show growth.

In a continuation of the pattern shown from the first quarter of the year, 2015 is outperforming the levels set in 2014.

The first quarter of this year showed that new home registrations were up by 18% in comparison with the previous 12 months. For the rolling quarter of February to April, the rate has gone up by 20% when set against the same time last year.

In the rolling quarter reported, there have been 41,307 new home registrations, which is favourable to 34,451 from the corresponding rolling quarter of 2014.

When looking at the month of April, the NHBC report also shows positive figures. In that month, almost 12,500 new homes were registered which is a 4% increase on April 2014.

Mike Quinton, NHBC Chief Executive, is delighted that the General Election uncertainty hasn’t caused the levels to drop and is looking forward a “strong year.”

He said: “The very positive start to the year continues, with the growth in new home registrations unaffected by uncertainty ahead of the General Election and so 2015 is likely to be another strong year.

“Now that the outcome of the General Election has been decided, we look forward to continuing our work with Government to ensure that housing remains at the top of the political agenda to help us get back to pre-recession building levels.”

In the February to April period, new housing registrations in the private sector jumped up by 24% to 31,083, easily outstripping the number of almost 25,000 at this time last year.

This was backed up by public sector housing growth by 8%, from 9,458 in the same rolling quarter of 2014, to 10,224 in 2015.

Regionally, new housing registrations increased in Scotland, Northern Ireland and Wales, while in England, the West Midlands, East Midlands, Eastern, South West and South East saw increases of over 1,000 new home registrations.

The North West and Yorkshire & the Humber also saw rises from their 2014 levels and these figures mean the industry can look forward to the rest of the year with a positive outlook.

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Phoenix Pipelines to work closely with AMP6 supply chain

UK Construction Media is pleased to announce a partnership with leading distributor, Phoenix Pipelines.

Established in 2007, Phoenix Pipelines has an enviable reputation in distributing not only the best plastic pipes in the market, but also valves and fittings throughout the industry.

It is of particular importance now with the latest asset management cycle, AMP6, underway following its official start in April.

The Company’s services will be invaluable in this five-year period, with a comprehensive stock of plastic pipes, industrial supplies and fittings that clients can choose from.

One of the water companies heavily involved in AMP6 is United Utilities. They understand the significance of working with quality companies such as Phoenix Pipelines.

The Company supplies the most reliable plastic pipes to provide drinking water and essential living which is an important service for people who use the water supplied by United Utilities.

As a result, Phoenix Pipelines is involved in this crucial AMP6 process thanks to its extensive range of pipes for water applications, all of which come with the very best quality components.

The incredible range of plastic pipes are distributed throughout the UK, with the needs of customers identified and adapted to thanks to more than 40 years of technical experience.

All members of staff at the Bury-based company are trained to the highest standards to ensure all clients are happy with the pipes and installation of these.

The comprehensive product range doesn’t end there, with ducting and drainage catered for in the form of twin wall duct for electric cables, land drain, surface water drainage and duct chambers.

Phoenix Pipelines can also provide a flexible, push-fit plastic plumbing system – known as Hep2O – that is an extensive range and can be used for hot and cold water supply such as potable water and central heating.

The Company’s staff are on hand to answer any questions, explain the product range in depth and supply to AMP6 partners and other major water companies, along with anybody in the industry who can benefit from the niche products.

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Construction line’s Meet the Buyer event in London next month

Free event gives suppliers, contractors and the supply chain the chance to network.

The UK’s leading procurement and supply chain management service is hosting its annual event at the beginning of next month that will showcase a host of employment opportunities.

Put together by Constructionline, the showcase Meet the Buyer event is expected to attract thousands of contractors, suppliers and consultants who will gain valuable information on how to become part of huge work programmes.

It is estimated that potential for contracts falls into the millions of pounds bracket and already those attending includes public sector organisations like the Cabinet Office and the NHS London Procurement Partnership.

Already upwards of 40 construction buyers, contractors including Hill, Bouygues UK, Kier Construction and VINCI Construction have confirmed their attendance.

The event will be held at the Oval Cricket Ground – home of Surrey County Cricket Club – and is free to attend.

Running from 8.30am to 2pm, it is the perfect place to engage with main contractors and buyers from all over the UK in one place.

Rebecca Sperti is the Sales Director at Constructionline and she said that this event is a ‘fantastic opportunity’ for the industry.

“Our Meet the Buyer events are designed to offer valuable introductions between contractors and some of the country’s major public and private sector organisations,” she said.

“After the success we had last year hosting our largest ever event, we wanted to again extend such a fantastic opportunity to contractors from around the UK.

“We encourage all those who are interested in attending to sign up and come along to find out how they can win work with the biggest names in the industry.”

The event, which follows on from last year’s successful edition that was held at Wembley Stadium and attracted more than 1,500 suppliers, will include a schedule of seminars during the day.

Speakers will come from SEC Group, NHS London Procurement Partnership, Constructionline, Bouygues UK, Highways England, McLaughlin & Harvey, Millstream Associates and Urbanis.

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Construction reaction to Queen’s Speech, part 2

Construction industry reacts to Enterprise Bill, Housing Bill and apprenticeship targets.

The Queen’s Speech took place yesterday and set out a number of Government legislation initiatives in what was the first all-Conservatives speech since 1996.

In the first part, UK Construction Media outlined reaction to the City and Local Government Devolution Bill as well as the High Speed Rail Bill.

In this part, the focus will be on the Housing Bill, which has emphasised starter homes targets in the next five years, and the Enterprise Bill that will be helpful to SMEs in construction.

A commitment to apprenticeships was also made in the speech, and it is something that Steve Radley, Director of Policy at the Construction Industry Training Board (CITB), is happy to see.

He said: “It’s great to see the Government setting out its ambition for three million more apprenticeships. Employers and Government now ned to get together to work out how to deliver it.

“The potential for developing skills and providing careers for the next generation is enormous but we only achieve this by setting out bold new ways to get there.

“This means finding better ways to attract new entrants, developing more desirable models for learners and employers and working with providers to help them deliver the training that industry needs.”

The Institution of Civil Engineers (ICE) Director General, Nick Baveystock believes that the creation of this level of apprenticeships in the next five years “can only help our economic wellbeing,” and the necessity of improving skills in the industry will be crucial if housing targets are to be met.

It is at the forefront of Sarah McMonagle’s thinking – Head of External Affairs at the Federation of Master Builders (FMB).

She believes that apprenticeships and housing are important but “won’t get off the ground” if the Government do not pay the necessary attention to the shortage of skills in construction.

She said: “The new Government is right to bring forward legislation on both apprenticeships and housing in its first Queen’s Speech as one cannot succeed without the other.

“The 200,000 starter homes the Government wants built over the next five years quite simply won’t get off the ground unless we tackle the construction skills crisis. Our latest research shows that 50% of small local builders are struggling to hire bricklayers and this is a stark reminder of how the Government’s ambitions to build more new homes could be scuppered by lack of skilled workers.”

The Chartered Institute of Building (CIOB) also reacted to the Housing Bill plans, which have extended Right to Buy to housing associations, and Eddie Tuttle, Senior Policy and Public Affairs Manager, said that the need for quality cannot be lost in new legislation.

“Whilst the CIOB welcomes efforts to simplify the neighbourhood planning system and increase the supply of starter homes through the Housing Bill, it is vitally important that there is an added emphasis on building design and quality,” he said.

“Although an extension of Right to Buy provides real hope to individuals wishing to secure a place on the property ladder, the issue for policy makers is the number of annual new builds. Our figures suggest that 200,000 starter homes are needed annually, in order to meet rising demand.”

The British Property Federation (BPF) is happy to see the Housing Bill announced because there is much need for supply to meet demand, but Melanie Leech, Chief Executive, questioned whether the number of starter homes set out can be delivered.

She said: “The starter homes initiative holds potential, but we have several questions around the realities of delivery and whether there will be sufficient infrastructure provision on the allocated sites.”

Turner & Townsend’s UK Managing Director, Jon White, believes that Right to Buy could “dramatically” improve the number of homeowners but again, said that construction must occur for this to happen.

He said: “How much it will do to solve the housing crisis is another matter. Its success will hang on its ability to spur the construction of new homes.

“The Government has responded to its critics by insisting that for every housing association property sold, an additional affordable home will be built.

“But with construction costs steadily rising -and with demand already outstripping capacity in many parts of the UK – the housing associations are likely to have to borrow to meet the cost of building this new stock.

“The construction industry has responded well to the surge in demand for housebuilding, but it has some lasting capacity issues.”

Moving on to the Enterprise Bill, Business Secretary Sajid Javid last week released his plans to cut red tape by at least £10Bn by 2020 and to set up the Small Business Conciliation Service, all of which will help small businesses in construction and other industries.

Sarah McMonagle at the FMB is hopeful that the provisions set out in yesterday’s Queen’s Speech will benefit the industry.

She said: “From a construction SME perspective, we’re also keen to ensure the Enterprise Bill succeeds where others have failed and finally puts a nail in the coffin of late payment.

“Poor payment practices have plagued the construction industry for too long and we’re hopeful that widening the powers for representative bodies to act on behalf of their members to challenge grossly unfair payment terms will go some way to address this.”

Melanie Leech of the BPF added that the business rates system, that is set to be improved under the Enterprise Bill by modernising the appeals system, will allow companies to ‘flourish’.

“The current business rates system is out-of-touch, badly needs reform if we are to create an environment in which businesses can flourish and are able to invest in our towns and cities.”

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Construction reaction to Queen’s Speech, part 1

Reaction to the plans for devolution and HS2.

Yesterday saw Her Majesty the Queen set out the Government’s legislation plans in her speech.

In front of the House of Lords and with the watching Members of Parliament, the Queen delivered the first all-Conservatives speech since 1996 following their overall majority in the General Election.

The Prime Minister, David Cameron, is now pressing on with pushing forward a number of different legislative changes, many of which are important to the construction industry.

Those in particular that are prominent to the industry are the Enterprise Bill, Housing Bill, Cities and Local Government Devolution Bill and the High Speed Rail Bill.

UK Construction Media has taken a look at industry reaction to all these bills and whether they are seen as beneficial to the construction industry.

The Cities and Local Government Devolution Bill will see power handed over to cities with elected metro mayors which will help to build a northern powerhouse.

This is a long-term plan of the Chancellor of the Exchequer, George Osborne, which has been agreed in Manchester but is expected to be rolled out across major cities in the country. This will allow other cities to take responsibility for issues like transport, housing, skills, health and social care.

Edward Tuttle is the Senior Policy and Public Affairs Manager at the Chartered Institute of Building (CIOB), and he is pleased to see the positive approach of devolution to cities.

He said: “The CIOB is pleased to see the Government’s commitment to devolve more powers to local authorities; helping work towards full employment.

“This is positive news for the construction industry and with over 17,000 managers needed in the sector over the next four years, a career in the industry has the potential to deliver on the Government’s aspirations.”

The British Property Federation (BPF) echoed the thoughts of CIOB, citing “enormous potential” that would encourage growth in the real estate industry, but Melanie Leech, Chief Executive of BPF, went further when saying that this chance of ‘unlocking regeneration’ should be rolled out to areas where there are no mayors.

She said: “The announcement of the Cities and Local Government Devolution Bill is a welcome step forwards, and is something that holds enormous potential for the real estate industry. The BPF has long advocated the role that devolution can play in unlocking regeneration and growth around the country, and the potential it has for the creation of jobs, homes and infrastructure.

“We would like to see the Government take this forward by appraising Government initiatives and build on those growth and city deals that are already in place such as City Deals and local Enterprise Partnerships, and to focus on devolution across the whole country, not just in relation to the northern powerhouse.

“We urge the Government to allow all areas of the UK, not just those with a Mayor, to be able to benefit from these new, devolved powers.”

Nick Baveystock, Director General of the Institution of Civil Engineers (ICE) waded into the devolution debate and firmly believes that it should bring about higher productivity but stressed that the model of handing down the power cannot be the same for each area, and indeed some needs will be different.

“I welcome the Government’s invitation to give city regions the political tools to start shaping their own futures,” he said.

“Devolution can help drive productivity in areas often overlooked by Whitehall, helping to rebalance growth throughout the UK. There is now ‘one-size fits all’ model and Government should devolve powers according to the needs, ambition and capacity of each area.

“Local Government may also need help in driving through the changes so that they make best use of powers for their own communities.”

Turner & Townsend’s Managing Director, Jon White, described the case for devolution as “compelling” but thinks that there are challenges in both expecting cities to accept the mayor-led model, and is adamant that the pressure to use the devolved powers should not lead to a ‘piecemeal’ approach.

He said: “The new Government has already invested so much political capital in the idea of English city devolution that it has to work and be seen to work.

“But its insistence that cities embrace the mayor-led model favoured by Manchester could prove an early stumbling block.

“Ultimately the debate about mayors is likely to be a short-lived sideshow. The case for devolved power – and the opportunities it will bring for regional businesses, jobs and skills – is compelling.

“But it does present big challenges too. The devolved authorities will have to build their capability quickly to deliver much bigger projects and demonstrate that they are providing value for money.

“Despite its huge potential, devolution would be disastrous if it leads to a patchwork of piecemeal approaches. The devolved authorities must never lose sight of the bigger picture, and ensure that their plans fit in seamlessly to Britain’s national infrastructure.”

It wasn’t all positive though, as Mark Oliver, Managing Director of H+H, doesn’t believe devolution will impact on housebuilding and cited the New Homes Bonus in 2010 which is no longer mentioned.

He said: “Many local authorities are inherently against development of any kind. Often, local politicians are elected on the promise to actually prevent development. On this basis, I don’t think that the Cities and Local Government Devolution Bill will have much impact on housebuilding levels over the next five years.”

The High Speed Rail Bill was also passed yesterday, with Her Majesty confirming that the Government can start building Phase I of HS2.

It ties in with helping to create a northern powerhouse, as faster links to huge cities throughout the country could encourage commuting and more businesses in these areas.

Melanie Leech of the BPF wants to see progress on the construction, encouraging “real growth” throughout the country.

“The investment and upgrade of infrastructure is crucial to unlocking growth, and significant projects such as HS2 hold enormous potential for local areas,” she said.

“It is now crucial that progress on delivering this infrastructure happens quickly and we urge Government to not delay proceedings that could make a real difference to growth outside London.”

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Queen’s Speech outlines Government’s legislation plans

Construction industry interest in a number of bills outlined.

Her Majesty the Queen has set out the Government’s plans today in her speech to the House of Lords.

With members of the House of Commons present, as is the tradition, the Queen outlined the plans in the many different bills that have been spoken about in the weeks since the General Election.

David Cameron’s victory means this is the first Queen’s Speech for an all-Conservatives Government since 1996 and Her Majesty opened by saying this Government “will legislate in the interests of everyone in our country. It will adopt a one nation approach, helping working people get on, supporting aspiration, giving new opportunities to the most disadvantaged and bringing different parts of our country together.”

Of the bills that were mentioned in the speech, a number are linked to the construction industry, with business opportunities, housing, and devolution all areas which can have an effect on the industry.

Legislation set out to achieve the target of full employment can be seen as significant to construction because, as the Queen said: “Measures will also be introduced to reduce regulation on small businesses so they can create jobs.”

Small businesses in particular will be the main beneficiaries of this, without the bureaucracy of unnecessary red tape getting in the way – set out by Sajid Javid last week.

Housing targets were alluded to yesterday and in the Queen’s Speech, it was confirmed that legislation will support home ownership and give the opportunities to tenants of housing associations to own their own homes – as expected from the Housing Bill.

The Chancellor, George Osborne’s plans in the Cities and Local Government Devolution Bill were also laid out during the speech. This is seen as a way to address the economic recovery in the country effectively.

Her Majesty added: “Legislation will be introduced to provide for the devolution of powers to cities with elected metro mayors, helping to build a northern powerhouse.”

Powers will also be given to Scotland and Wales.

The plans for high-speed rail links were reaffirmed during the speech which will be able to link different parts of the country and this is intrinsically linked to the idea of creating a northern powerhouse because having the major cities connected and quicker to get to will improve the flow of business throughout the country.

The main thrust for the construction industry are the Enterprise Bill, Cities and Local Government Devolution Bill, Housing Bill and the HS2 Bill, all of which were touched upon by Her Majesty.

It remains to be seen if these coming weeks, months and years bring about further construction benefits on the back of these bills.

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Melbury Construction Consultants: Exclusive interview, part 2

Melbury Construction Consultants specialise in giving sound advice to the construction industry to resolve a variety of contractual disputes that can arise during a project. 

Last week, Peter Heatley, the Company’s Managing Director, spoke at length about the issues surrounding non-payment and late payment.

In the second of a three-part interview, Peter goes into depth about the adjudication process and the benefits of this service. 

You have provided adjudication since 1999. What does this typically involve and how important is it to the clients you work with?

In 1998, the Government introduced what was called the Housing Grants Construction & Regeneration Act 1996 and one of its objectives was to introduce the concept of statutory adjudication for all qualifying construction contracts.

The Construction Act was amended in 2011 by the Local Democracy Economic Development & Construction Act 2009. Collectively they are referred to as the Construction Act which means that where there is a construction contract in place, there is an entitlement to adjudicate disputes. This can be written into the contract or it can be an implied term of the contract.

What this typically involves is a client contacting us – usually with payment problems –  we will look at their case and prepare an adjudication for them.

When the preparation work is complete a notice of adjudication is issued. Seven days later an adjudicator has to be appointed and 28 days from the end of this the adjudicator issues his decision which is binding in the courts. The period can be extended but not usually by very long.

That is a huge part of our business and the service we provide for clients.

Are there any specific challenges you face with this service?

Yes, there are. Although it’s a relatively common occurrence, vis-a-vis we’re dealing with it all the time, there are a lot of clients who come to us that have never experienced it before. Their knowledge and understanding is consequently limited and we have to explain the process and give them a guiding hand.

Even then as the adjudication develops, the intensity and level of detail and volume of records they need as evidence for their case can take them by surprise – so we go to great lengths to explain this process to them.

Peter Heatley, BSc, MRICS, MCIArb. Managing Director.

 

What are the benefits of this process to companies within the construction industry?

The benefits of an adjudication are best illustrated by explaining the alternatives. If, for example you have a claim for payment the alternatives are: do nothing – and you’re unlikely to get your money. The second alternative is to litigate or arbitrate, the key issues here are cost and time so if you’re going to take either of these routes for  a  relatively small dispute – £250,000 – that could take the best part of 18 months and cost quite a lot of money in that time.

It also opens you up to the liability of the other side’s costs if you lose the case. So there are formidable hurdles that would cause the party to really think about whether they wanted to go down that route.

The Construction Act was brought in to provide an alternative to those two options.  For example, the adjudication process is normally over in 28 days. You don’t get exposed to the risk of having to pay the other party’s costs and because of the quick timescale, costs are modest by comparison.

What we find is that in the vast majority of cases, once a decision has been issued, the parties treat it as a final settlement between them and don’t carry on to litigation.

The process is designed to aid cash flow.

Going back historically, in the early 1990s, a man called Sir Michael Latham was commissioned by the Government to look into cash flow problems in the construction industry and he identified the dispute resolution process as being a major problem because, before the Construction Act, typically you couldn’t start arbitration or litigation until many months after a job had finished.

This meant that if you were a subcontractor at the early stages of a job and you finished your work within the first three months of a project, you might have to wait two years for the project to be finished and another six months after that before you could actually start the process of resolving the dispute. The Construction Act was brought in as a remedy to these issues.

Do you think the work you do within adjudication sets you apart from any contemporaries?

I think the main point to make here is that we are quantity surveyors who understand the legal aspects of construction adjudication as well as the quantity surveying aspect. What we will do is look at a client’s case, carry out a risk assessment for them with regard to the likelihood of success, advise them on the result and whether they need to provide better information/records to support their case.

We then put together the legal argument that sits on top of that case. So what we provide is a fairly seamless approach to the resolution of our client’s dispute.

The alternative to that is if, for instance, you were to take your case to a lawyer. They wouldn’t necessarily understand the content of an interim application for payment or the technicalities of the construction process so, quite often, it appears to me that what they do is to take what the client says, without question, and sit an argument on top of it but if the documentation given to them by the client isn’t well prepared or supported, it won’t succeed no matter how good the legal argument is.

As construction industry specialists we try to look at it right across the board. For instance, if somebody comes to us and wants to adjudicate an interim application for payment, we will look at it and if they haven’t provided enough detail to persuade an adjudicator, we will tell them.

We provide a holistic approach to a client’s case.

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Manhattan Loft Gardens making significant progress

£250M contract awarded to create 143-metre tower.

The contract to build “Europe’s most ambitious residential tower” has been awarded by Manhattan Loft Corporation.

Work to build Manhattan Loft Gardens – the east London-based luxury apartments – was awarded to Bouygues UK, which is Bouygues Construction’s British subsidiary.

Work is already under way on this extraordinary structure that will be a landmark development and will add to the reputation of Stratford and its regeneration.

Situated between the High Speed 1 Channel Tunnel link and Stratford International Station, the 42-storey tower will comprise of 248 apartments, a 150-room hotel, spa, two restaurants and a lobby that will be of a triple height.

Manhattan Loft Gardens will provide a “new chapter in high rise” with its double-cantilevered tower and luxurious living spaces that will be complemented by three sky gardens.

A wide variety of apartment types will be available to residents upon completion, with 13 unique styles, all of which will be superbly fitted and finished.

The hotel will provide access to premium facilities that are designed to improve quality of life and further stimulate day-to-day interaction between people.

Sky gardens will give residents a view of the Queen Elizabeth Park and unbroken views of the landscape below.

They will allow those at Manhattan Loft Gardens to escape everyday life and enjoy the serenity that the skyline of London has to offer.

The £250M project is in safe hands with Bouygues UK and Harry Handelsman, CEO of Manhattan Loft Corporation, believes their work will further enhance the reputation of Stratford as a London ‘cultural hub’.

He said: “Our appointment of Bouygues, with its vast international knowledge and experience of high rise luxury developments, will add to our already top class project team.

“Manhattan Loft Gardens will continue the Olympic legacy by becoming Europe’s most exciting residential/hotel tower, thus confirming Stratford as one of the emerging prime residential, commercial and cultural hubs of London.”

Deputy CEO of Bouygues Batiment International, Mandani Sow, outlined the Company’s approach to the project that is important to the area’s regeneration, adding: “Bouygues UK teams will be fully committed to turning this innovative vision into reality. Technical prowess and architectural quality will combine to produce a building that will be greatly appreciated by its future users.”

Work on the landmark tower will be completed in 2018.

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£250M contract extension awarded by Severn Trent Water

Amey’s contract, which commenced in 2011, will now run until 2021.

Severn Trent Water has awarded a £250M extension of a waste water contract to Amey.

Initially awarded in 2011, the contract is part of Severn Trent Water’s wide-reaching Sewerage Commercial Model (SCM) contract which has previously also been awarded to the likes of May Gurney and Kier Group

Amey, a renowned public and regulated services provider boasting more than 21,000 employees, has, in the past four years, provided Severn Trent Water with a range of clean and waste services along with metering and developing services.

This is ideal for Severn Trent Water, which was formed in 1974 as a regional, state-owned water authority situated in Birmingham.

It is responsible for water management and supply, and waste water treatment and disposal in the catchment areas of two of Britain’s largest rivers; the Severn and the Trent.

Severn Trent Water’s plan is to ensure its household customers have the lowest average water and sewerage bills combined in England and Wales. Amey’s work will be invaluable in this process.

Amey has provided its range of clean and waste services since 2011 in an area that, when combined with two others, stretches across much of the heartland of the country, starting in mid-Wales towards Rutland and from the Bristol Channel all the way up to the Humber.

An Amey spokesperson told UK Construction Media about the scope of work carried out on the previous contract for Severn Trent Water, saying: “Our teams carry out clean water mains renewal and maintenance, as well as delivering sewer upgrades, flood alleviation projects and installing new or refurbishing existing pumping stations.

“We are also the sole provider for metering and developer services across Severn Trent Water’s network.”

Starting at the beginning of June, Amey’s new contract means that repair and maintenance will be taken care of over the whole Severn Trent region.

The spokesperson at Amey added: “Our teams install, repair and maintain water meters at commercial and domestic properties across Severn Trent Water’s entire network. The scope of our work includes the provision of new water meter installations, maintenance of small and large meter installations, battery replacement, proactive meter replacement, field visits and selective compulsory metering.”

Pete Collins, who is Wholesale Operations Leader at Severn Trent Water, spoke of his excitement about this contract.

He said: “We are really excited with this new contract. It will provide us with a great platform to deliver an outstanding customer experience across the Severn Trent region.”

This new £250M contract extension will allow Amey to continue to deliver the services provided on the SCM contract since 2011.

Amey’s CEO, Mel Ewell, added: “Amey has been working with Severn Trent Water since 1997 and this contract extension is a testament to the quality of service we have been providing.

“Delivering an excellent customer experience is at the heart of the work we do, an ethos we share with Severn Trent, and through this larger contract we will be able to deliver an even better value service to their customers.”

The new contract will run up until March 2021.

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Ten Ways to Win More Bids, Part 5: Matching and mirroring

Neil Southwell, Strategic Bid Director at Vision, has given UK Construction Media readers an exclusive insight into the best ways for companies to win more bids. 

After last week’s piece on using plain English, Neil is now halfway through his ten points. Today, he discusses how matching a client’s language can be crucial and show that you understand them. 

Sometimes it’s hard to connect with your client’s procurement team that you’ve probably never met when your only means is through what you write. I’ve heard many people talk about using the same technical words in their bids that their clients use so that they are considered to be in the know – and to some extent they are right. But you have to go that bit further if you want to really stand out.

Great communication is all about connection and engagement with others and winning is about delivering your message in the way that your client wants to hear. So, how do you find this out? If you’ve read my previous articles then you’ll already have heard about the 3Ps Process^TM that we use to take our clients on a journey of discovery so they really understand the benefits of using you. (Check it out at http://ift.tt/1JvULgG)

The best place to turn to is the bid document – after all, your client has taken the time to consider how best to communicate with you by thinking about the way they present their problem to you. The language, wording and order in which they have described the problem makes sense to them and they hope it will make sense to you so they get responses that are easy for them to understand.

It is crucial that your client feels that you understand them and their issues so match your language, wording and response to the bid documents and the order of importance your client has placed on the issues that they’ve explained to you. And, if you change the meaning of words or the order to suit yourself, you risk confusing them and showing that you’re not aligned to their way of thinking.

Here’s a good example:

In a recent bid, Kimberley Homes was asked to describe how they would engage with the local partnerships to deliver the Council’s regeneration aspirations through the new housing framework. When the technical writer responded, he changed ‘partnerships’ into ‘partners’ and included Kimberley Homes’ suppliers and subcontractors. Now, whilst they may well be part of the process in achieving the objectives, they are not the appointed partnerships that the Council was referring to.

These partnerships were local agencies backed by Government and with an approved budget to meet specific aspects of improving local communities. It was crucial that these agencies were fully engaged so that their work could continue through the new framework and meet their delivery obligations. But the technical writer missed this completely!

So, it’s important to remember that if you change the format or order or style of your bid response to a different one then you risk alienating your client and they may fail to understand your messages.

You can avoid this by matching and mirroring what they’ve said and how they’ve said it. By taking this approach and using the language and style and order that your client uses you can turn your bid from a credibility killer to being a real winner.

It’s also important to think about your audience and their personalities and how they might speak and what they might want to hear and how they might want to hear those things said. This is where you can introduce your personality so your client gets to hear the real you and not an automaton that is trying to hard at selling.

There are many myths about the style you should use in a bid document, proposal or even a presentation. But in my experience they only serve to hamstring the individual when writing or presenting and force them into using a style that they are not comfortable with.

So, if you find this is happening to you then now is the time to STOP.

I’ve found that the most successful people in business (and in life) are those who have the greatest flexibility in the way they communicate and who have the ability to adapt to suit those listening to them.

When you use a style that feels uncomfortable to you, you’re likely to lose your natural rhythm and it will be so much harder to tell your story in a way that is comfortable for your audience with the risk that you’ll not be heard properly – or even at all! Worse still, you can come cross as lacking in confidence and this will be conveyed subconsciously in the way that you write and can result in you appearing to be untrustworthy or lacking credibility.

Next time you decide to respond to a bid, be sure to understand the language that your client has used, the order of importance they’ve placed on their problems and the technical language they’re used to using. Then have some fun and use a style that also suits you to tell your story in a way that engages and excites them so that they are left with no decision but to choose you.

Top Tip

Check out your last bid and see if you mirrored your client’s language, style and importantly the order in which they asked their questions. I suggest you use a highlighter pen to identify any divergences so you can get a feel for how successful your style and communication was.

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St William mixed-use Battersea project approved

First project from St William joint venture to see approval resolved.

A new mixed-use project by St William has seen its planning permission resolved.

Based in Battersea, the project will regenerate an industrial site by providing 839 new homes.

This “exciting step” is a significant one for St William, which is a new and exciting joint venture comprising of The Berkeley Group and the National Grid.

Set up towards the end of last year, this resolution makes the Battersea project the first St William development to secure such planning permission.

Creating a “fantastic new place” in the London Borough of Wandsworth, the five-acre development will include even more than the 839 homes. Educational floor space, a nursery, food retail unit, cafe and public realm improvements will also be on this former gasworks site.

In addition, the project will see almost a quarter of homes set aside for affordable living and it will provide a huge boost to employment in the area, with 370 jobs available throughout construction and once that is completed, the mixed-use nature of this Battersea site means that more than 100 permanent employment opportunities will be available.

Crucially, the scheme will see a massive £367M of investment benefit the site – and this is something the joint venture of St William is striving to do throughout eight boroughs across Greater London over a 14-year period.

With the potential to provide more than 7,000 homes in these areas, St William will combine the best of both worlds, by harnessing the vast experience of Berkeley with the National Grid’s portfolio of redundant brownfield sites, using these as locations to build great new places for residential dwellings.

Overall, there will be 12 buildings on the site that will range in size from two- to 26-storeys, complemented by a new public square.

The project, located between Battersea Power Station and Battersea Park, is well on schedule to become the first development to start on site – some time next year – in the drive to remediate 83 acres of land which will then become key parts of their own communities.

Alison Dowsett is the Managing Director of St William, and she explained how this planning resolution will provide a positive impact.

She said: “We are delighted to secure a resolution to grant for the first St William site. This will open a former industrial site up for the first time in over 150 years and create a fantastic new place for the borough.”

The first home will be occupied in 2019 and Phil Edwards, Director of St William, added: “This consent is another exciting step forward in the regeneration of Nine Elms on the South Bank and we look forward to starting work to deliver the first St William development.”

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Government set to unveil groundbreaking Housing Bill

Construction industry will benefit from plans to increase housebuilding. 

The Government is set to unveil plans for its Housing Bill which will be included in the first Queen’s Speech tomorrow. 

It will set out many of the legislative plans that the Government plans to drive in the next Parliament. 

The wide-ranging speech has already been touched upon in the past few weeks, and a number of topics close to the heart of the construction industry have already been touched upon or outlined. 

Recent weeks have seen plans unveiled about the Enterprise Bill and City Devolution Bill, both of which will be important drivers in the construction industry throughout the country. 

Housing falls into this bracket and it was a topic of much discussion in the run-up to the General Election, featuring prominently in the campaigns of all the major political parties. 

The focus of the Housing Bill is expected to centre on an extension of Right to Buy and reaffirming the promise to increase housebuilding. 

According to official figures, Government-backed schemes have helped more than 200,000 households buy a home since 2010, but there is a commitment to further action. 

The Housing Bill will expand on plans to increase national housing supply and create new affordable homes. 

The Conservatives’ Election manifesto announced plans to deliver 200,000 more starter homes by 2020, available at a discounted rate of 20% to first-time buyers. 

What the Housing Bill will do is see that this process is quicker, while it is hoped that the Government’s plans to provide a new register of brownfield land will make construction of new homes a much faster process on sites that are near existing communities. 

A commitment to this level of homes should, in theory, give the construction industry much more work in the way of housebuilding. 

Communities Secretary, Greg Clark, explained the advantages of the Housing Bill. 

“Our Housing Bill will offer over a million people a helping hand onto the housing ladder,” he said.

“That is what a government for working people is about – making sure people have the security they need to build a brighter future for them and their families.”

Brandon Lewis, Housing Minister, added to this by reiterating the commitment to building new homes. 

He said: “With housing starts at their highest since 2007, we’ll take steps that will get workers on sites and keep the country building.”

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Swansea Bay Tidal Lagoon announce preferred bidder

Laing O’Rourke will construct turbine house and sluice structure block.

Swansea Bay Tidal Lagoon has taken a ‘major step forward’ by announcing a preferred contractor for part of the development. 

The entire project, which will be a huge boost to the construction industry, is worth a total of £1Bn. 

This harbour-type structure will close off the tidal sea area and incorporate hydro turbines that the sea moves through to generate electricity. 

This week’s announcement is significant in this process, as Laing O’Rourke will be tasked with constructing the turbine house and sluice structure block. 

Costing approximately £200M, this will provide a 410-metre turbine house and it will swell employment in the area, because it is expected that during peak construction, 500 people will be needed to undertake the project. 

The upshot of this is the boost it will provide not just to employment, but specifically, to local employment. Those who work on the site will come from the south Wales area, and any materials for the build will be provided locally. 

Once completed, the project will harness low carbon electricity that is sustainable for generations. 

The lagoon – the first man-made of its kind – will be able to generate renewable power for more than 155,000 homes for 120 years. 

Other power stations will be closed down in the next few years but this large-scale tidal power at the lagoon will be connected to the National Grid by 2018, and as well as providing coastal flood protection, the development is important in the fight to become more energy efficient. Indeed, the plan is to save upwards of 236,000 tonnes of CO2 each year. 

Jonathan Adams is the Project Lead at Laing O’Rourke and is “thrilled” to be part of such a significant development. 

He said: “From London 2012 to St Pancras International Station to Heathrow Terminal 5, we’ve been involved in the delivery of some of the UK’s most celebrated infrastructure projects. 

“Today,  the Swansea Bay Tidal Lagoon is the talk of the international construction industry and we are thrilled to be playing a part in its delivery.”

Tidal Lagoon Power Ltd is playing a prominent role in developing infrastructure as a way to harness natural power from the rise and fall of tides. 

Swansea Bay Tidal Lagoon is its first project and is seen as the blueprint for future tidal lagoons in the UK. 

As well as meeting electricity demands, Swansea Bay Tidal Lagoon can play an important part in showing the way forward in the future with the various social, environmental and economic advantages it can display. 

Moving forward, a contract for the main build should be signed towards the end of the year, while tenders are being run for the marine works and public realm ancillary works. 

The summer will see tenders announced for the lagoon’s public realm and buildings work. 

Andrew McNaughton, Director of Engineering & Construction at Tidal Lagoon Power, added: “Announcing that Laing O’Rourke is joining the team is a major step forward for the project. 

“As preferred bidder, their contribution over the next few months alongside General Electric and Andritz Hydro will be invaluable in preparing for delivery on site in 2016.”

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BIM Show Live Review, Part 2

BIM Show Live ran on the 8th and 9th April and was a huge success in its fifth year. The two days are filled with more than 60 speakers, exhibitors showcasing different technologies and provide an environment for the best discussions on BIM and guidance to achieving targets. 

In part one, we discussed the opening addresses and the general setup of the event. Today, UK Construction Media concludes its review by discussing some of the highlights of those two days. 

Following Josh Valman’s keynote speech was a panel discussion focusing on the overall strapline of proving it and getting a return on investment. Chaired by David Philp, it involved a Q&A with James Pellatt of Great Portland Estates who himself gave a presentation beforehand.

From there is where the day became really tricky. As mentioned in the first part of our review, tough decisions have to be made and this observer chose to attend a session about BIM for SMEs that included a panel of numerous speakers, all who came down to the floor, splitting the audience into groups of five before initiating discussions that would result in interesting questions for the panel.

It resulted in, amongst many things, conversations about providing better dialogue with clients, and how important it is for companies to take BIM processes on board to ensure that work is not lost and that the full lifecycle of a contract can be managed.

NBS presented their new BIM toolkit and digital plan of work on the first afternoon with the launch of the beta version – described as a “key day” by David Philp. This user accessible toolkit stores project information in one place, increasing efficiency and all information can be exported to the likes of Excel and PDFs.

Other highlights included a presentation from Populous that talked about the Manchester City stadium expansion and how BIM tools are able to maximise the efficiency in producing the stadium seating bowl.

When discussing highlights, it must be said that these are just those that we managed to see. Undoubtedly, there were a host of engaging presentations that physically could not be attended because of the range of those available to see at any given time.

As well as the four different stages, BIM Show Live hosted a Tech Stage in the largest room which housed the exhibitors. This was a place for short, sharp presentations of 15-20 minutes, where in many cases, exhibitors could showcase their products and the innovative ways in which they use BIM.

The hive of activity doesn’t end with the presentations though. At the end of the first day, the exhibition had half an hour of networking and exhibition time and after that, there was the BIM Show Party –  a two-hours where people get to know each other, their businesses, differing ideas and hopes for their own BIM journeys.

Looking from the outside looking in, this may seem like as just a time to unwind with the selection of free food and drink, added to with air hockey and table tennis to keep the hundreds of people entertained.

But, as reported on the pages of UK Construction Media previously, the success that the BIM Show Party enjoyed last year made it an integral part of this year’s event.

The feedback from last year described it as a highlight through the networking opportunities with peers and colleagues, attended by almost every delegate.

To see the room and how easy it was to mingle and integrate with others showed the value of those two hours. Undoubtedly, people will have left that first day richer for the experience of that time and the extra ideas and debates that would have been generated through speaking to others.

The two-day itinerary was rounded off with the Bimmy Awards which saw the first award for best classroom session presented to Leon van Berlo for a talk about collaborative design and engineering with IFC in the Netherlands.

Numerous exhibitors filled up the space on the main floor at the venue and all voted for which stand they thought was the best. Steljes Business won this particular accolade. Meanwhile, Bentley Systems won an award for their presentation on the Tech Stage, which covered using Smart 3D Capture to help with advancing reality modelling.

The most innovative BIM solution Bimmy Award went to NBS for their new BIM toolkit which was launched in a session on the first day.

From a personal perspective, it was great to see how many new and innovative ideas could be found, altering a person’s thinking and perspective with each and every session.

The ease with which contacts could be made was clear to see, something which happened in our personal experience in those two days. If that is the case for a media outlet, just imagine how many contacts would be made by the numerous like-minded delegates.

It is integration like this that ensures BIM Show Live was as big a success as it was, and undoubtedly, it will have benefited the BIM journey of each and every person and organisation who attended.

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£5.5Bn of contracts awarded in April according to Barbour ABI

This is more than April 2014 and the industry outlook is positive.

Barbour ABI has released figures that show the value of projects awarded in the construction industry last month was £5.5Bn. 

These figures are from Barbour ABI’s Economic & Construction Market Review which is put together to provide an insight into the construction industry throughout the UK. 

Data is compiled by by using records that Barbour ABI have of every planning application in the UK, while information on new construction orders from the Office for National Statistics is also used. 

The £5.5Bn in awarded contracts in April is the biggest figure found from the research, though this is a drop of almost 10% from those awarded last month. 

In addition, commercial and retail construction projects awarded were down by 12.9% while health and education projects contributed to the fall. 

Despite these figures though, there is much cause for optimism. For a start, the figure of £5.5Bn figure is much higher than this time last year, with an 11% rise. 

Secondly, private housing has continued to perform and accounts for 67% of new contracts awarded. 

While the health and education projects have not helped the figures, the industry can be safe in the knowledge that projects will be awarded in these areas and will provide potentially huge growths because of the National Infrastructure Plan which has committed to investment in these areas. 

Significantly the monthly decrease in April coincides with a period of uncertainty caused by the fact that it is the end of the financial year, and because it was so close to the General Election, which was expected to be one of the most closely contested elections for generations.

Michael Dall, lead economist at Barbour ABI, said these are reasons for the decrease but he also believes that the industry and look forward to “sunny days on the horizon.”

He said: “The decline observed in April this year is arguably symptomatic of the perfect storm that pre-election uncertainty, financial year end and typical monthly volatility have created. 

“Despite this apparent cloud over construction, demand within housing coupled with scheduled works across the public sector suggest there are in fact many sunny days on the horizon. 

“Improved confidence and accurate forecast spend as a result of the newly formed Government and pending July Budget should help reinvigorate the construction sector for a stronger performance later in the year provided these pending peaks are prepared for and harnessed.”

Breaking down the contracts awarded, the majority were in London (21%), with the south east and Scotland the next best performing areas. 

There is a lot to be encouraged about when the size of some projects awarded are taken into account. These include a phase of a residential development in Wandsworth in the Riverside quarter, costing £69M, while the Isle of Sheppey Distribution Centre for Aldi is a £90M project. 

Marischal Square in Aberdeen accounts for £107M of contracts awarded, while the Hawley Wharf project in Camden costs £115M. 

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Bridge completed on Mersey Gateway Crossing

The Mersey Gateway Crossing development has reached a significant milestone with the completion of a bridge over the River Mersey. 

It is the first bridge over the River Mersey for 54 years and will allow the Merseylink construction consortium – who is putting the new structure together for Halton Borough Council – to work from the temporary structure when working on the Mersey Gateway crossing. 

This “important milestone” is another step in the development of a project that will bring much needed traffic relief on the Silver Jubilee Bridge, which is wholly necessary because the bridge is used by more than 80,000 vehicles each day – ten times over the capacity it was designed for. 

The Silver Jubilee Bridge was the last bridge built when it was opened in 1961, and the Mersey Gateway Crossing will alleviate the added traffic pressures that are putting severe pressure on the existing bridge. 

The Mersey Gateway project is one of the largest infrastructure initiatives seen in the UK in recent years and will see a number of features including a 1,000m-long cable stay bridge, six lanes of traffic added – three in either direction – and a curved approach at each end of the bridge to maximise the visual impact and emphasise just how unique this design is. 

Construction of the temporary bridge was finalised yesterday after a period of ten months that connects both sides. This trestle bridge is not available to the public because of its role as being something that can be used for heavy construction vehicles and will provide access so that construction can continue on the crossing. 

Merseylink Project Director Richard Walker, outlined the significance of the development.

He said: “Completion of the trestle bridge marks another important milestone for the Mersey Gateway project. It will provide us with full access to the river, enabling work to start on the central cofferdam. 

“This is a great achievement for the project and I’d like to thank everyone involved for their hard work.”

The structure in place will be added to by the installation of a lifting section and once the Mersey Gateway Bridge is in place, the trestle bridge will be removed. 

This exciting scheme will open in 2017 providing important transport, social and economic benefits to the area in the form of almost 500 permanent full-time equivalent jobs throughout construction, more than 4,500 direct and indirect jobs, and the bridge is estimated to provide nearly £62M in Gross Value Added from new jobs by 2030. 

Leader of Halton Borough Council and Chair of the Mersey Gateway Crossing Board, Councillor Rob Polhill, added: “This is fantastic news and a sure sign that the project is moving forward well. It is very exciting to see all the work taking place in the river and I’m sure that many people, including me, are now looking forward to seeing the main bridge take shape.”

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FTA Logistics Report prioritises investment in roads

Government should prioritise road improvements according to report.

The Freight Transport Association (FTA) has released its Logistics Report 2015 which highlights the importance in road improvement investment. 

One of the UK’s largest trade associations, FTA represents more than 14,000 members who provide or rely on transportation both nationally and internationally, to and from the UK. 

The Logistics Report, which mixes ideas, news and views that have been responsible for the transport industry in the last year, gathers its information from a wide variety of sources. 

Evidence has been attained from the FTA Logistics Industry Survey 2014/15 – a poll of members’ experiences of the freight market and trading environment – the FTA Quarterly Transport Activity Survey (QTAS), FTA Manager’s Guide to Distribution Costs, FTA Transport Manager Survey 2014, York Aviation, Implications for the Air Freight Sector of Different Airport Capacity Options 2015, FTA Logistics Carbon Review Incorporating the Fifth Annual Report of the Logistics Carbon Reduction Scheme 2015 and RepGraph: Solving the Driver Crisis 2015.

Added to this plethora of information are references to other official statistical publications throughout the report, so there is a huge spread of information within the Logistics Report. 

The report contains what many believe are the priorities for the Government and of all the reasons that were given, the one that was seen as most important is one that is interlinked with the construction industry. 

While a cut in fuel duty, promoting a positive image of logistics to young people and recognising the essential role of logistics to the economy were all seen as important priorities for the Government, the report suggests that the biggest concern is to ensure investment is given to make necessary road improvements. 

The responses reflect many of the concerns expressed a year ago to the FTA Logistics Industry Survey 2013/14. 

Many who were included in the report feel that the urban road network is deteriorating and this trend must be reversed. 

For its part, the Government announced intentions to invest £15Bn in road improvements back in December, which will deliver a network of smart motorways and expressways to support the Northern Powerhouse. 

The report was launched by David Wells, FTA Chief Executive, who believes that the Government needs to be decisive in order to safeguard the role of logistics in the country’s economy. Making sure that roads are invested in properly will only improve this. 

He said: “The new Government will have to make significant decisions – and quickly – over our infrastructure and transport policies. FTA’s message to Government is: ignore the needs of logistics at your peril. 

“From the factory floor to the kitchen table, it is logistics that will deliver sustainable growth. 

“At such a crossroads for our national finances and society, the FTA Logistics Report provides a timely and essential analysis of the short and long-term health of a major enabler of our economy and lifestyle – logistics.”

The FTA’s report has highlighted the significance in investing in roads, but encouragingly, this is something that is certainly in the minds of those in the Government. Last night, George Osborne spoke about his business plans and in that speech, mentioned investment in the road network. 

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Housebuilding starts on the rise in the March quarter

New starts are at their highest levels since 2007.

New housebuilding statistics have been released today that show building starts in England increased by 31% in the March quarter. 

Building starts for the latest quarter have been estimated at 40,300 which is almost a third better than the previous quarter and is 11% up on this time last year. 

The figures recorded in 2015 up to March show a 5% rise in new starts in comparison to the previous year, with 140,500 new homes having commenced construction. 

In terms of completions in the March quarter, that figure also makes for good reading because the estimate of 34,040 is 10% better than the previous quarter and this figure is more than a fifth higher than the same time last year. 

Annually, housing completions in the 12 months to March totalled 125,110 – an increase of 11% from the 12 months to March 2014. 

The housing starts are at a level not seen in this country since 2007 and completions have not been this high since 2009. 

Housing Minister Brandon Lewis is delighted with the housebuilding figures and believes that it is ‘vital’ that the momentum that has now been built is maintained. 

He said: “Housebuilding is at the heart of our plan to ensure the recovery reaches all parts of our country. We’re turning around an industry that was devastated and getting the country building again.

“Today’s figures show these efforts are reaping results, with housebuilding starts having more than doubled since 2009, and completions at their highest for nearly six years.

“It is vital we maintain this momentum, getting workers back on sites and homes built – giving more people the chance to own their own home.”

Seasonally adjusted, the housing starts in the private sector and housing associations both increased at levels of 30% and 36% respectively. 

The pattern of increase continued in terms of completions with the level up by 7% from the previous quarter. 

Completions by housing associations fared even better, with a 24% increase from the December quarter. 

Annually, private enterprise starts increased by 8%, which is the same level as completions in that time. 

The interest in housebuilding is going to be high on the Government’s agenda given the targets put in place to get the country building again. 

Affordable homes is high on the agenda, with plans to increase construction of affordable housing to a level that makes it the fastest in 20 years by 2020. 

Housebuilding starts has increased regionally in the March quarter, with Leicestershire, Derbyshire and Essex reporting large increases. 

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Chancellor outlines business plans in keynote speech

Northern Powerhouse, devolution and investment in roads and rail all mentioned in last night’s speech.

The Chancellor of the Exchequer, George Osborne, delivered a keynote speech last night at the Confederation of British Industry’s (CBI) annual dinner. 

As the UK’s premier business lobbying organisation that provides a voice for employers at both national and international level, CBI give a voice for businesspeople and their businesses all over the world. 

A confederation of 190,000 members who employ seven million people, CBI speaks for companies of every size, from those on the FTSE 100 to SMEs, micro businesses, private and family-owned businesses, start-ups and trade associations. 

During the speech, the Chancellor outlined his plans to get Britain working better, saying: “I want to work in partnership with you, the businesses of Britain – large and small – to deliver it.”

He touched upon the creation of two million jobs in the last Parliament as well as the way training was provided to two million more apprentices. 

Mr Osborne stressed that the investment and improvement in business isn’t something achieved just by the Government, adding: “And it was you who told us we needed to invest in infrastructure and new high speed lines – now we’re delivering the biggest investment in our rail network since Victorian times.”

Echoing an address last week in Manchester, the Chancellor made it clear that a major part of the economic plan is the ‘big challenge’ of creating a Northern Powerhouse that will help to rebalance the economy. 

He said: “If the north of England grew as fast as the forecast for the rest of the UK, the prize is huge. We could add £37Bn to the economy by the end of the next decade. 

“We achieve that by bringing the great cities and counties of the north together, so the whole is greater than the parts.”

He continued by saying this ‘solid economic theory’ has exceeded expectations of progress since it was first announced 11 months ago. 

But the Chancellor stressed that “we must go further and faster”, touching upon the City Devolution Bill that will be introduced to create a “new model of city government.”

He said: “Any major city that wants to will be able to take greater control and responsibility over the key things that make a city work, from transport to housing to skills, and key public services like health and social care. 

“And in return cities will elect a mayor – someone accountable to local people. Someone who takes the decisions and carries the can.”

This is a plan that will be rolled out across the country, with all areas having the option to make their own decisions. This, the Chancellor believes, will help businesses grow which can only be good for the construction industry. 

If the different regions of England are handed power, this would be following the trend set by Scotland, Northern Ireland and Wales where ‘power is being handed back to the people’.

Other ambitions underlined for the next five years in the speech last night will be music to the ears of many in construction, as it will surely provide more work. 

Investment in roads will be increased, work on high speed rail links will also commence, affordable homes will be constructed and there is a real willingness to start work on a new runway in the south east. 

The Chancellor also referenced the new Enterprise Bill that Sajid Javid unveiled earlier this week as a way to “reduce burden on firms, especially smaller ones’.

His final point is again of importance to construction – improving productivity. This is something that the industry will benefit from. 

He concluded: “Improving the productivity of our country is the route to raising standards of living for everyone in this country.”

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Melbury Construction Consultants: Exclusive interview

Making a difference to companies all over the country, Melbury Construction Consultants specialise in providing advice on a whole host of contractual disputes that can be encountered in the industry. 

Peter Heatley, Managing Director, spoke to UK Construction Media about the Company’s services and in the first of a three-part interview, he focuses on issues arising from late payment.

Some of the services that you offer deal with issues of non-payment and late payment. How common an occurrence is this in the construction industry?

It is a common occurrence throughout the construction industry and it happens at all levels from the employers to main contractors, and from the main contractors to the subcontractors. 

There are two elements to it; it can happen during the course of a contract. So if you’ve got a contract due to run for a year and are supposed to have monthly payments, each of those payments can be late or delayed, and when you get to the final account stage, sometimes that can be late or delayed. 

This can cause significant cash flow problems for the people being denied the payments and we’ve seen recently that there are high percentages of late payments so it is quite a considerable problem. 

Are there any examples of what you encounter with this?

The most obvious problem is where the company themselves have got cash flow problems so if they haven’t got the money coming in, they’re going to have difficulty paying money out. This has a knock-on effect throughout the supply chain which can, eventually, lead another organisation towards insolvency. 

Our clients do experience the effects of that but I think also, there are contractors who are aggressive in their management of cash flow. So they will hold onto money if they think we can get away with it. 

In terms of solutions, sometimes a letter from Melbury can cause contractors to make payments when they have not responded to our clients have for quite a while. A letter from us can resolve the problem because the other side realises the person who hasn’t been paid is taking it very seriously. 

So your company has the type of influence in this industry that by sending out a letter, issues can be resolved. What typically do these letters entail?

It depends upon the individual case but, for example, the Construction Act requires Payment and Pay Less Notices to be issued and sometimes we’ll hear from a contractor who’s hasn’t been paid and has not been given any Payment or Pay Less Notices but they’ve submitted an application for payment. In that case, a typical letter from us might say: “Our client made an application to you on such a date. There has been no Payment or Pay Less Notices issued. The final date for payment has passed and you have no defence to payment of our client’s account. Please can you do so otherwise it will go to adjudication.”

Providing that it arrives on the right desk and that it is understood the other side recognise they’ve got something significant with regard to continued non-payment that can often cause the payment to be made.

Where it’s not as clear cut as that, with claims and counter-claims, we would write a letter and articulate our client’s case as to why they’re entitled to what they’re saying.

Again, on many occasions, the people on the other side recognise what we do and the contractor or subcontractor we’re representing have now got advice and are prepared to make an investment in our services to get their entitlements. 

In those cases, money can flow through in relatively short order. 

By working with companies in the industry, how do you ensure that late payment and non-payment are no longer issues on contracts?

There’s no one silver bullet. Our approach is to put a strategy in place with our client that works towards minimising the risk to them of late or non-payment. Part of that process will be to look at the contract terms they’re signing up to and make sure the payment provisions are clearly defined so they know when they’ve got to make applications and when they should  expect payments. 

We find a lot of contracts are written in such a way that they describe in great detail what has to be issued in an application for payment, they might say for example that it’s got to include five ingredients and if it doesn’t it’s not a bona fide application for payment and will be dealt with in the next monthly cycle. 

So a client can put in an application but if they don’t comply with the letter of the contract, they could risk losing entitlement to an interim payment. They would see that as late or non-payment, though contractually it probably isn’t. We would make sure that our client understands what the payment application programme is and complies with it, and that clients are addressing it in a timely way. 

For example, we had one client, about 18 months ago – they came to us around February and had been working away on a job but hadn’t been paid since the previous August. They were out of pocket by about £450,000, surprisingly they had maintained an optimism that things were going to be OK. 

They asked us to get involved and we started an adjudication for them but as soon as we did this, the other side became insolvent so our client lost all the money. 

In an ideal world, they would have contacted us when the first payment was missed and we would then have provided advice for them from that point in time, putting pressure on the other side to make the payments due then before it became a £450,000 problem. 

Is that something that you as a company encourage, others to get in touch after the first non-payment?

Absolutely, because the point to remember is if you’re a contractor or an employer that is seeking to limit the amount of cash going out of your business, you’ll first pay the businesses putting you under the most pressure. It could be people you need on the site or those threatening to suspend work under the contract so what you have to do is make sure you’re at the top of their thought process and they realise they won’t get away with non-payment to you. 

Part of that process is Melbury getting involved so the other side realise the problem is not going to go away. 

What are the wider-reaching benefits of this service? Could it be the difference between a company’s future or not?

Very much so, and this is an issue which we have encountered. If somebody loses a lot of money on a big contract it can cause them to become insolvent and this is something which can happen throughout the supply chain – one of the big contractors which went into administration about six years ago was a company called Connaught   none of the supply chain expected it, and it did cause two other contractors, to my knowledge, to become insolvent. 

One of our clients experienced that and it was partly because they had big outstanding debts that were never recovered so getting the cash in is critical to the health of the business. 

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NHBC release sustainable technologies report

The use of sustainable technologies by housing associations has been released.

A new report from the NHBC Foundation has shown that photovoltaics (PV) is the most popular sustainable technology for housing associations. 

Results from ‘sustainable technologies – the experience of housing associations’, show that approximately 75% of housing associations say they would use PV again. 

The report is extremely useful at identifying which technologies work and which ones cause problems, as well as saying what those problems are. 

Sustainable technology is crucial to the housing sector. This was stimulated back in 2006 with the introduction of the Code for Sustainable Homes and the ten-year target of producing zero carbon new homes. 

That deadline is next year and in the nine previous years, housing associations have taken this responsibility very seriously by adopting sustainable homes so that homes are built at a much higher level and standard. 

The report from NHBC Foundation showed that more than two thirds of the housing associations contacted have used, and have experience of one technology, with PV being the most used energy-related sustainable technology. 

In each Homes and Communities Agency (HCA) funding round, the percentage of PV is growing and is now up to 61%. 

The housing associations questioned for the report indicated planning and funding requirements as well as meeting the Code for Sustainable Homes requirements were the main drivers to installing technologies. 

The upfront capital cost was the main reason two thirds of the housing associations chose specific technologies, with maintenance being the main reason for 38% of those who participated. 

Ease of use of a specific technology was important to more than 50%, with only 19% seeing the payback of the technology as a huge influence. 

Other results from the research showed 75,000 new homes have been fitted with low-flush toilets and more than 66,000 have benefited from low-flow taps and showers – now regarded as standard specification items. 

Almost two thirds of those who took part in the survey said that installation was a problem because of lack of skilled or experienced trades, while 23% agreed that installers who understand the product can make a huge difference to its success. 

A main driver for 43% of housing associations was helping to benefit residents by installing sustainable technologies that reduced fuel poverty. Following this, approximately a quarter said that tenants had benefited from better quality of air, while 81% said their tenants had seen a reduction in energy bills. 

The results of the report show that more work can be done to ensure all technologies are fully researched and an understanding of the options is known, while also making sure the building fabric is right before use of technologies is considered. 

All departments should be involved when technologies are under consideration and it is important to use installers who understand each product. 

Neil Smith is Head of Research and Innovation at NHBC, and he spoke of the progress made in the housing sector. 

He said:  “Much progress has been made by the house-building industry to address environmental issues, particularly in relation to improving energy and water efficiency.

“The social housing sector has led the way in the use of sustainable technologies.  Because of their ownership and management of significant portfolios of high-Code-level sustainable homes, housing associations have been in a position to gain experience of the installation, performance and resident satisfaction with the various technologies.

“This research is aimed at helping the wider house-building industry and others to make better-informed choices.  This report identifies technologies that have worked well, those that have given rise to concerns and the nature of those concerns.”

Established in 2006, the NHBC Foundation provides quality research and practical guidance to support the house building industry as it addresses the numerous challenges of delivering new homes. 

Information was collated by holding a number of focus groups and conducting in-depth telephone interviews. 

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Industry pleased with plans to tackle late payment

Industry reaction to Sajid Javid’s plans to help small businesses.

Business Secretary Sajid Javid returned to his home town of Bristol yesterday to deliver a speech in which he set out the Government’s priorities in helping small businesses. 

He explained how his family came to England in 1964 “with dreams of a better life” and how the family business which included clothing stalls and then a family shop in Bristol, which instilled in him “an unwavering belief in enterprise, opportunity and reward for hard work.”

During the speech, the introduction of the Enterprise Bill was confirmed which will serve the interests of small to medium enterprises (SMEs). There will be a further £10Bn of cuts in red tape during the time and the Bill will help to create the additional two million jobs set out. 

The cuts in red tape will help small business by making audits simpler, will cut down on unnecessary health & safety regulations and Javid said: “Over the next five years, we’ll build on the success of ‘One in, two out’ to put the brake on new regs.” 

This will continue the Government’s drive to cut the number of regulations in place to speed up business processes. 

A key part of the plans is the creation of a Small Business Conciliation Service that will tackle matters such as late payment and will give small businesses the chance to settle disputes with larger organisations much easier. 

Late payment is a huge problem and is expected to cost businesses more than £40Bn this year. It is hoped that next year, when legislation comes in place that will see large companies having to report their payment practices, this problem will be alleviated. 

The Prompt Payment Code has been strengthened as well, and UK Construction Media got the thoughts of Tracy Ewen, Managing Director of IGF Invoice Finance, who believes that the support available for suppliers and subcontractors in the construction industry “should be welcomed with caution.”

She did though welcome the introduction of the Small Business Conciliation Service, adding: “The current payment terms that many suppliers in the UK are subjected to mean that goods and services delivered today wouldn’t need to be paid for until long after summer is over; a practice that isn’t sustainable, but it is a reality that, until now, SMEs have had very little power to change.

“The implementation of a Small Business Conciliation Service should protect suppliers against larger and more powerful entities, and should reduce the number of suppliers that fold due to intense cashflow problems.”

Tracy is cautious because it is an issue that businesses have waited a long time to see tackled by the Government. She says that financial advice is available for the time when a job ends but payment has not been received. 

“In the meantime, there are options available that cover the gap between work completed and money in the bank. It’s therefore important for firms to thoroughly review their options and make use of any free financial advice that their own financial partners and suppliers can offer before pressure from large customers impacts their growth or operations.”

Brian Berry, Chief Executive of the Federation of Master Builders (FMB), is “pleased” with the plans put in place but believes there is more to do to ensure that small businesses are paid quicker for work. 

He said: “Late payment has plagued the construction industry for far too long and I am therefore pleased that the new Business Secretary will be bringing forward legislation to tackle the problem in next week’s Queen’s Speech. 

“Late payment by larger firms is a major barrier to small and micro firms forming part of the supply chain for public sector contracts – if we can solve the problem of late payment, we will also open up public sector construction to thousands of construction SMEs. 

“As two-thirds of all construction apprentices are trained by micro-firms, this will have untold benefits for local jobs and growth.”

“However, let me be clear – there is much more to do. At the end of last year the FMB and NSCC published research which showed that more than 90% of small construction firms agree contractual payment terms with their clients of 45 days or fewer but only 57% of members actually receive payment within those terms.”

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£98M in funding awarded to nine projects by HLF

Projects will maintain scientific, cultural and industrial heritage throughout England and Scotland.

The Heritage Lottery Fund (HLF) has awarded funding to nine sites in Great Britain to benefit heritage for generations. 

Funding to the tune of £98M will benefit scientific and cultural heritage at a number of projects across England and Scotland. 

Those to receive funding are Jodrell Bank in Cheshire, Derby Silk Mill, Great Central Railway between Loughborough and Leicester, the British Library’s Save our Sounds Collection, Dorset County Museum, Lincoln Cathedral, the Science Museum, East London’s Geffrye Museum and Glasgow’s Burrell Collection. 

The latter project is the one that has received the most funding (£15M) to refurbish the award-winning collection which has helped to play a huge role in Glasgow’s cultural renaissance. 

This level of funding means Glasgow City Council can progress with major refurbishment and increase the number of objects being displayed to 90%, while making the museum energy efficient. 

Culture Secretary John Whittingdale OBE and Chair of HLF Sir Peter Luff will visit one of the nine victorious projects today when they go to the Save our Sounds Collection at the British Library which will receive more than £9.5M, comprising of £216,000 of development funding. 

Whittingdale praised the “lasting difference” of the projects that will provide scientific, cultural and industrial advantages for years to come. 

He said: “National Lottery money continues to make an absolutely vital contribution to our culture and heritage in the UK. 

“I’m thrilled that nine exciting projects across England and Scotland will benefit from this significant £98M investment. 

“Whether it’s a new railway museum in Leicester, the Lovell Telescope at Cheshire’s Jodrell Bank or saving the UK’s most vulnerable sound recordings at the British Library – these grants will not only make a lasting difference to local areas and the UK’s wider heritage but will also use culture to inspire young people to learn more about science and technology for generations to come.”

More than £12M is being allocated to Jodrell Bank, which is the world’s only remaining site that showcases the entire story of the development of radio astronomy. 

The First Light project will see a new exhibition pavilion created where the vital role Jodrell Bank has played in scientific development throughout the world will be explained. 

In addition to this, Jodrell Bank – home to the Grade I listed Lovell Telescope – will have a new volunteer and skills programme along with a heritage gallery-based schools programme that will benefit an extra 6,000 school visitors every year. 

Sir Peter Luff i delighted with where these contracts have been awarded and thinks such projects are important to ‘inspire’ future generations. 

“I hope National Lottery players will be delighted to see their money being used to tell the spell-binding story of the UK’s scientific and industrial excellence,” he said. 

“Many of the projects we are supporting today celebrate this tradition. I am particularly pleased that the Lotter can help inspire young people to take a greater interest in science and technology. 

“From the awe-inspiring Lovell Telescope to the Lombe brothers’ first fully mechanised factory, these sites will enhance local tourist economies as well as educate and entertain.”

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