New Liverpool-to-HS2 rail line mooted

A new rail line may be needed to connect Liverpool to the £56bn High Speed 2 scheme, an influential report has found.

Spending review 2015: Scepticism as Osborne pledges £73bn for roads and rail

Chancellor George Osborne has set out plans to spend £73bn on roads and rail over the six years to April 2021 - but slashed the Department for Transport’s revenue budget by more than a third.

Leeds Station to become high-speed transport hub

Plans for the redevelopment of Leeds Station into an integrated high-speed transport hub have been released today.

The report, released by the chair of HS2 Ltd, David Higgins, contains his recommended option for how to remodel the station to accommodate future high-speed rail as well as boosting through rail services in a single integrated hub.

The new station will enable seamless interchange between HS2 trains, the proposed Northern Powerhouse Rail services, and local and regional trains. This will provide faster and better train journeys for the three million people that live or work in Leeds.

The recommendation replaces the original proposal of a new station for HS2, and includes detailed discussions about the station and how best to meet current and future needs. This includes seeing the station redeveloped as a single station “Yorkshire Hub” utilising a T-shape design. The existing east-west rail lines would be combined, with connecting new north-south lines to accommodate HS2 when it comes to the city.

A common concourse will be created, offering easy connections between classic rail and high-speed services under one roof and good pedestrian access to both the city centre to the north, and the regeneration area of South Bank. Its location in the South Bank should lead on to substantial economic growth and regeneration.

Sir David Higgins, Chair of HS2 Ltd, said: “Leeds Station is already the busiest station in the north of England, and also a major transport hub for the city, Yorkshire and the wider north of England as a whole.

“Given the physical constraints of the existing station, and the rising level of demand for services, coming up with a solution that meets all those needs has not been easy, but, thanks to the efforts of the council, the Leeds City Region and the Chamber of Commerce, as well as HS2 and Network Rail experts, we have reached a consensus.”

The redevelopment of Leeds Station will create 10,000 new jobs, business opportunities and regeneration. It will connect the major cities of Bradford, York, and Wakefield into the national high-speed network.

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A third of construction firms put off taking on apprentices

A new report from The Federation of Master Builders, “Defusing the skills time bomb”, has revealed that a third of construction companies are put off taking on apprenticeships due to the level of bureaucracy involved.

The construction industry is currently grappling a skill shortage with the ability of the sector to sustain growth and play a key role in the UK’s economy under threat if the shortfall is not addressed.

The government has a set a target of creating three million new apprenticeships across all business sectors over the course of this Parliament.

In his Autumn Statement, Chancellor George Osborne, outlined details of the Apprenticeship Levy that is envisaged will raise enough funding for these apprenticeships.

The cost of employing and training an apprentice was also a major concern for employers, as was the difficulty in predicting future workloads.

Employers were also concerned about the being able to retain apprentices upon completion of their training and also attracting a candidate of sufficient quality.

The FMB has made a number of recommendations to the government that include increasing the number of apprenticeships through public sector contracts that stipulate a proportionate level of apprenticeship training as part of the agreed contract and to seek evidence that this been done upon completion.

Further recommendations call for the improvement of funding available to older apprenticeships and also for funds from the Apprenticeship Levy to be channelled back to Construction Industry Training Board (CITB) and ring-fenced specifically for the training of apprentices.

Brian Berry, Chief Executive of the FMB, said: “Our research shows that 94% of small construction firms want to train apprentices but a third are being turned off by a number of serious “fear factors”. These include the cost of employing and training an apprentice and major concerns regarding the complexity of the process.

“There is strong evidence to show that small construction firms need better information and that if they were more aware of the support that’s available, a great number would train apprentices. Just under 80% of non-recruiters are not aware of one of the most important apprenticeship grants available to them and just over 75% say knowledge of financial support would make them more likely to take on apprentices.

“Given that two-thirds of all construction apprentices are trained by SMEs, it is critical that the Government does everything in its power to remove any barriers that might be stopping these companies from training. Looking ahead, the Government’s new apprenticeship voucher could be a disaster for small firms unless it is properly road tested and made as simple and easy-to-use as possible.

“We’re also calling on the Government to protect our industry training board which is at risk from the new Apprenticeship Levy. The Construction Industry Training Board (CITB) needs reform admittedly but without it the very smallest firms would be left with less financial and practical support for apprenticeship training – remove this lifeline and you risk worsening the skills crisis.”

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Industry leaders unite with ICE to fund state of the art exhibition and learning centre

The Institution of Civil Engineers (ICE) and seven leading contractors have pledged to help fund a new state-of-the-art engineering exhibition.

The centre, which will cost £850,000, will inspire and help the next generation of engineers and demonstrate the diverse career opportunities available to young people.

It will be made up of two constituent parts. The Exhibition Centre, which will be located at One Great George Street in Westminster, will be curated with a digital audience in mind, celebrating new technologies and techniques, whilst acknowledging historical icons and achievements. It is due to open its doors to the public next autumn. The Learning Centre, also located at ICE, will provide a meeting place for practical engineers, where they can develop their knowledge of new technologies in construction such as Building Information Modelling (BIM).

It forms part of ICE’s “Shaping the World” appeal, an international campaign which brings together the greatest civil engineering minds across the globe to help alleviate the effects of major future challenges. The Shaping the World appeal is funding other projects across the globe, with Her Royal Highness the Princess Royal as patron of the appeal.

The first ”Founding Partners” of the exhibition and learning centre includes AECOME, Carillion, Costain, Kier, Mace Foundation, VINCI Construction UK Limited and WSP| Parsons Brinckerhoff. Together they have pledged over £300,000, and ICE has promised to match industry donations. Any further funding will be from other companies who want to join as partners and help raise the remaining funds.

ICE Director General, Nick Baveystock, commented: “ICE is thrilled to welcome these seven giants of industry as Founding Partners of our exciting space. Our message to those yet to join is simple – exhibit with us, inspire with us. If we are to motivate young people to follow in our footsteps and become tomorrow’s innovators we must take this opportunity to pool our resources, and share our stories as a means of trumpeting our achievements.”

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Mayor and TfL launch new team to crack down on congestion

A new team of TfL Transport Enforcement Officers are to be deployed at key junctions and roads to keep traffic flowing.

The team will work alongside the Metropolitan Police Roads and Transport Police Command, which was launched by the Mayor in January 2013, and has 2,300 Officers.

Targeting ten key routes that carry half a million bus passengers and 300,000 car and taxi passengers every day, they aim to crack down on illegal or inconsiderate behaviour and any further problems that cause congestion.

The team will also help with problems such as illegal stopping or unloading of deliveries, which cause delays to drivers and bus passengers. Penalty Charge Notices will be issued to illegally parked cars and any poorly set up roadworks will be cleared.

The new team has 40 Officers, which will rise to 80 by next spring. For the first time, TfL will have its own officers who have the power to direct traffic around congestion on London’s roads. The will also have access to real time information and data and send intelligence back from the street to TfL’s control room.

Mayor of London, Boris Johnson MP, said: “This is one of a number of targeted actions we’re taking to tackle congestion and reduce delays on the roads. In January we launched the Met’s Roads and Transport Policing Command and this new team will work closely with them to help keep London moving. They will play a key role in tackling problems that lead to tailbacks and take a zero-tolerance approach towards inconsiderate or illegal behaviour that can cause unnecessary gridlock.”

Through TfL’s network of traffic cameras and help from almost 25,000 bus drivers who can contact the control room, the team will be alerted of any issues on the roads so that they can be resolved quickly, with intelligence analysing the data to prevent reoccurring problems.

They will also work with business’s who travel along the busy routes, giving advice on re-timing and helping improve the way they receive and manage deliveries.

TfL provide an open data policy, enabling app developers to access real time data feeds, so they can provide travel information apps to help road users plan their journey efficiently. With up to the minute, real-time journey information, along with an active twitter news feed as an immediate source of information about traffic across London, the public have a better opportunity to avoid busy areas.

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HS2 link between Birmingham and Crewe to open six years early

Chancellor George Osborne has said that the HS2 link between Birmingham and Crewe will be opened six years earlier than planned.

The link will now open in 2027, only a year after the first phase from London to Birmingham becomes operational.

The Chancellor has been pushing improved transport links between the north and south as a key factor in proving a balance on regional economies and vital to his vision of the Northern Powerhouse.

Once complete, journey times from Crewe to London will be reduced by 45 minutes; Manchester to London by 40 minutes and Glasgow to London will see times cut by 48 minutes.

Chancellor George Osborne said: “In my Spending Review we committed to the biggest rise in transport spending in a generation meaning that major projects like the construction of HS2, to link the Northern Powerhouse to the South, can begin.

“Bringing forward this part of the HS2 route by six years is a massive step in the right direction for the Northern Powerhouse where high speed rail will play a big role in connecting up the entire region with the rest of the country.”

Mr Osborne has also announced that John Cridland, the former head of the CBI, will chair Transport for the North.

The Chancellor commented: ““It’s fantastic to announce someone of the calibre of John Cridland to take on the important role of chairing Transport for the North. He will bring huge knowledge and experience to this position and I want to say thank you to Sir Richard Leese for the great job he has done in an interim capacity.

I look forward to continuing to work together to deliver our shared aim of a world class transport system for the north.”

The Transport Secretary, Patrick McLoughlin, said the move was a “significant milestone” for the project. He commented: “By accelerating the second phase between Birmingham and Crewe, we will bring the capacity, connectivity and regeneration benefits of HS2 to the North-West and Scotland years earlier than originally planned.”

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Balfour Beatty awarded £104M road scheme for Norfolk Road Network

Balfour Beatty today announced it has been awarded £104M by Norfolk County Council, to complete works on the Norwich Northern Distributer Road (NNDR).

The new road will serve Broadland, Norfolk, and improve access to North Norfolk and Norwich International Airport, with better links to Great Yarmouth and the south of the region.

Balfour Beatty was awarded the Early Contractor Involvement (ECI) phase of the NNDR scheme in 2009.

Balfour Beatty will construct the new dual carriageway, which will be 19.6km long and include nine new roundabouts, seven new bridges, an underpass and a more complex two level junction. The new dual carriageway will run from the A1067 Fakenham Road, crossing the A140 at Norwich International Airport and joining the A47 at Postwick, at the eastern end of Norwich Southern Bypass.

Roads around the north and east of Norwich will be less congested once the work is completed, improving capacity for future growth in jobs and housing.

Around 500 construction jobs will be created for the project, which will commence this winter and is due to be completed in late 2017.

Leo Quinn, Balfour Beatty Group Chief Executive, said: “The NNDR will significantly improve the Norwich and Norfolk road network, providing real benefits to local communities, businesses and the travelling public as well as supporting regional economic growth.”

Balfour Beatty has been assisting Norfolk County Council with design development, construction feasibility advice and development of the scheme’s target cost. They are also working on Norfolk County Councils £27M Postwick junction project which will join NNDR with the A47 trunk road.

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Tidal energy project to link Cumbria and Scotland planned

Plans for a multi-million pound tidal energy project that would link the south west of Scotland with Cumbria have been drawn up.

The plans are part of a larger £12Bn project that would see the creation of similar structures built across six estuaries in the north west of England, including a new road across the Solway Firth creating a “tidal gateway” that would connect Dumfries and Galloway with Workington.

North West Energy Squared (NWE2) claim that the construction of the Solway barrage would create 6,000 jobs a year over a period of eight years, with 100 permanent jobs once complete.

The Company believe that another 3,000 jobs could be safeguarded by the creation of the gateway due to improved connectivity.

It is hoped the scheme will generate enough power for around 2.5 million homes.

NWE2 Chairman Alan Torevell said: “NWE2 chairman Alan Torevell said: “I can’t stress it too much – if we get this thing going, and I increasingly think we are going to, then we will be creating the first major combination of infrastructure and tidal energy production in the world.”

NEW2 envisage that after an initial two year period to complete preliminary studies, construction of the project would take a further seven years.

If sufficient funding can be secured, tidal gateways across the Dudden Estuary and Morecombe Bay would be included in the first phase of the project.

According to Mr Torevell, the entire £12Bn project could provide enough power for five million homes for 120 years.

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Surge in builders registering for gross payment status as delays over tax rebates mount

A total of 105,000 subcontractors have registered for gross payment in 2014/2015, the highest level in four years.

According to data obtained by Nixon Williams under the Freedom of Information Act, a record breaking number of builders have registered to be paid gross as delays receiving end of year tax refunds worsen.

At the same time, the number of construction businesses has declined by 0.6%, from 253,121 to 247,105, although the number has increased slightly in the past year.

The delays at HMRC paying annual tax refunds is the reason for the increased level of builders choosing to register for gross payment status under the Construction Industry Scheme (CIS). CIS subcontractors often over pay tax, with refunds taking six months or more, for refunds worth thousands of pounds. As a result, some companies have experienced cashflow problems and bankruptcy.

Daniel Knowls, Practice Manager at Nixon Williams said: “Growing numbers of subcontractors are being advised to register for gross payment status, allowing them to better manage their cashflow and avoid lengthening delays obtaining tax refunds. It is very common for subcontractors to have paid too much tax, and the last thing they need is to have to wait months and spend time chasing HMRC to get the money back.

“Gross payment status was sometimes regarded as a mixed blessing. It allowed subcontractors to manage their own tax affairs but at the cost of a higher administrative burden and an annual review by HMRC. With delays over tax repayments mounting, growing numbers of subcontractors are realising that the extra hassle is now well worth the effort.”

HMRC has promised a 25-day turn around target for tax repayments, however this isn’t adhered to due to cuts in staff and additional security checks imposed.

 

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Severn Trent Water announce rise in profits

Severn Trent has reported a 2.6% rise in underlying pre-tax profit to £281M in the company’s half-year financial results.

The Company managed to increase profitability despite a flat group turnover, with rise coming from efficiency savings being made by cutting costs and streamlining operations.

CEO at Severn Trent, Liv Garfield, said:”We are committed to delivering continued out-performance for the benefit of our customers, colleagues and shareholders, having already delivered tangible results in the first half. Thanks to the great work of our teams we have now secured all £372 million of our targeted AMP6 efficiencies while also delivering better service to our customers.

“Through more intensive management of our network we are seeing reduced supply interruptions, lower sewer flooding incidents and faster incident response times.

“Our renewable energy programme continues its rapid roll out and we are on track to generate the equivalent of 50 per cent of our energy needs by 2020.

Ms Garfield said the Company had focussed upon creating new avenues for customers to be kept informed on any on-going work near their homes to help work around any potential disruption. She also said Severn Trent were the only water utility company to offer a round the clock service via Twitter.

Ms Garfield commented: “All of our efforts to improve our service have helped drive down the number of complaints from customers by a further 35 per cent.”

“In addition, we’ve invested £236M in the last six months, which has helped reduce the risk of sewer flooding, water supply interruptions and serious pollution incidents.”

“Alongside all of this, our eight million customers across the Midlands and mid-Wales are enjoying the lowest average combined water and sewerage bills. And it’ll stay that way right the way through to 2020.”

Severn Trent confirmed back in February that its average combined bill would remain the lowest in the industry for the next five years. They also pledged to spend £3.3Bn, the equivalent of £785 per household or business over the next five years in an effort to improve services.

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Persimmon to build 80,000 homes over next five years

Persimmon have announced that they will build over 80,000 homes and create 1,000 jobs over the next five years.

The Chancellor George Osborne was on hand to welcome the news as he visited the Persimmon housing development in South Ockenden, Essex.

The announcement came just a day after the Chancellor confirmed in his Autumn Statement the biggest affordable house building programme since the 1970s’ in a bid to help working people buy their own home and boost plans to get Britain building.

Mr Osborne said: “One of this government’s key priorities is backing families who aspire to own their own home. We made a start tackling the home ownership crisis in the last Parliament, now we will do much more to turn Generation Rent into Generation Buy.

“The action I announced will help deliver 400,000 affordable new homes by the end of the decade, the biggest building programme by any government since the 1970s. We are the builders, and we choose to build the homes that people can buy.”

The 1,000 new employees will join Persimmon’s existing 4,500-strong workforce, which in the past year has included 200 young apprentices.

The company began work on 250 new developments in 2015, including the Arisdale Place development in South Ockenden, which upon completion will be made up of 185 homes.

Jeff Fairburn, Persimmon’s group Chief Executive, said: Home ownership continues to be an aspiration for the majority of British people and these latest initiatives announced by the Chancellor should help that dream become a reality for many more people.

“Now is a great time to buy, with lenders increasing the number of mortgage products available. The new schemes announced, which include Help to Buy Shared Ownership, London Help to Buy and the Starter Home initiative will all help even more people into home ownership.

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Construction Industry Cycling Commission publishes manifesto to tackle road safety challenges

Construction Industry Cycling Commission (CICC), have published a ten point manifesto covering action for the construction industry and other road users.

CICC was set up in 2015 to improve road safety for cyclists in relation to construction heavy good vehicles (HGV’s) which are responsible for a large percentage of cycle deaths. Made up of senior figures within the industry, including constructors, developers and architects, the manifesto aims to get the industry on board, in order to reduce to number of cycle deaths in the future.

Research for the manifesto was carried out by CICC with transport planning consultancy Phil Jones Associates and TMC Consultancy LTD.

The focus of the research was London, where it was found that HGV’s only account for 3.5% of traffic, yet were involved in 57% of incidents where a cyclist had been killed between 2007 and 2014. A total of 76% of collisions occurred at junctions, and 62% of fatalities involved large vehicles striking cyclists when moving off or turning turning left.

The manifesto recommends that large and small businesses adopt the Construction Logistics and Cyclist Safety (CLOCS) standard as a default requirement on all contruction schemes, which requires standards for fleet operators and clients. Its focus on cycle safety as part of the Considerate Constructors, involves all lorries on site to have requisite safety features with properly trained drivers.

There is also a push for changes and updates that need to be made to vehicles, to ensure that they are up to date and fulfil all safety requirements. Retiming of journeys to avoid early peak hours is also within the ten points.

Section 106 agreements are highlighted for the local authorities to use in order to enforce safety measures.

Peter Murray, CICC Founding Member and Chairman of New London Architecture said, “The safety of cyclists in London and throughout the UK is something that CICC members feel passionately about. Whilst we all need to play our part in ensuring safer conditions for cyclists, the construction industry has particular responsibilities which it takes very seriously. For the first time, we have all come together as an industry and are pleased to be providing real solutions to tackling the challenge.”

 

 

 

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Flint House wins Britain’s House of the year

Flint House, designed by architects Skene Catling De La Pena, has been revealed as House Of the Year in the Royal Institute of British Architects Awards.

The 2015 jury consist of Jonathan Manser, Chair, Manser Practice; Mary Duggan, Duggan Morris Architects; Chris Loyn, Loyn & Co, 2014 Manser Medal winner; James Standen, Hiscox and Tony Chapman, RIBA Head of Awards.

The announcement was made on Grand Designs: House of the Year. Commissioned by Lord Rothschild for the use of his family, the wedge shaped 6,200sq ft house in Buckinghamshire was constructed using masonry and flint cladding.

The building was selected from a seven-strong shortlist, revealed over the course of the House of the Year TV series.

The award celebrates the work of architects who persue the highest standard of design to create cutting edge homes.

RIBA President Jane Duncan said: “Although superbly original and unique, the Flint House continues a fine tradition of RIBA award-winning houses that provide exemplars for others: architects, clients and developers.”

“Whilst defined by its flint construction, the project is home to an intriguing and intelligent mixed application of rooftops, terraces and recesses that combine to deliver a stunning piece of liveable, provoking, modern architecture that marries into the earthly yet beautiful countryside,” added the RIBA.

 

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Apprenticeship Levy to fund three million apprenticeships

The new apprenticeship levy of 0.5% announced yesterday by the Chancellor George Osborne in his Autumn Statement will raise £3Bn a year and provide enough funding for three million apprenticeships.

The levy will come into force in April 2017 and will hit businesses with a payroll of £3M and over, offset by a £15,000 tax-free amount.

The Chancellor said 98% of companies would be exempt from paying the levy due to £3M payroll threshold. It is envisaged over £11Bn will be raised over the next five years.

The measures have had a mixed response with some seeing levy as “a payroll tax”.

Director General of the CBI, Carolyn Fairbairn, described the apprenticeship levy as a “sting in the tail” in the Autumn Review for employers. She commented: ““It is a significant extra payroll tax on business and by widening the net it will now catch more smaller firms. You only need to have 100 to 150 staff on minimum wage, so quite a few small firms will be caught by this.”

Robert Chote, the Office of Budget Responsibility Chairman said: The apprenticeship levy behaves like a payroll tax, so we assume that the costs are passed on into lower profits and – primarily – lower wages.

“This reduces earnings growth later in the forecast. Bear in mind that this comes on top of the higher minimum wage and auto-enrolment into pension saving, which also increase business costs.”

However, the apprenticeship levy was welcomed by others who agreed with the Chancellor’s comments of companies being able to “get out more than they put in” by employing apprentices.

Petra Wilton of the Chartered Management Institute, said: “If businesses want a skilled workforce then it’s only right that they pay for it.”

John Allan, National Chairman of the Federation of Small Businesses commented: “The FSB supports the decision to use payroll as a measure to determine which businesses pay the Apprenticeship Levy, as opposed to headcount.

“The 0.5 percent payroll levy on firms alongside a £15,000 allowance will mean that the levy will only apply to firms whose total payroll exceeds £3 million. We believe this is a fair level as it recognises that not all businesses will be able to afford to pay the charge.”

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Schools and health boost as major investment green lighted

Deputy First Minister, John Swinney, has announced an investment of some £330M with health and education facilities to be built.

Following an ONS review of proposals developed by the Scottish Futures Trust (SFT), the Deputy First Minister has instructed ten new schools and two new health projects to proceed to financial close as soon as possible – an estimated capital investment value of around £330M.

Investment in the projects was put on hold earlier this year while advice was sought from the ONS about the impact of revisions to European accounting guidance on the classification and budgeting for public infrastructure projects.

Mr Swinney told Parliament today: “The Scottish Government has always prioritised public infrastructure projects as a critical tool for growing our economic recovery.

“In light of the continuing constraint being applied to public finances – including capital budgets – we will continue to take forward programmes supporting additional investment in our economy and our asset base, creating jobs and enhancing services.

“As I have advised Parliament on a number of occasions over the last year, in response to updated EU accounting guidelines the Scottish Futures Trust submitted proposals to the ONS aimed at ensuring that the balance of public and private sector control and risk and reward in Scotland’s hub funding model reflects the updated guidance.

“While that process has been underway, twelve projects in the pipeline have been unable to progress as planned. I have today advised Parliament that these projects can now proceed to financial close as soon as possible.

“From Elgin to Kelso, these twelve projects – worth around £330M– will make an enormous difference in their communities, not just in the jobs that their construction will bring but in the health and education benefits they will provide to local people.”

 

The twelve projects affected were:

Lothian Health Centre bundle (NHS Lothian) – £25M
Inverclyde Care Home (NHS Greater Glasgow and Clyde) – £8M
Kelso High School (Borders Council) – £20M
Newbattle High School (Midlothian Council) – £35M
Baldragon Academy (Dundee City Council) – £25M
Elgin High School (Moray Council) – £25M
Dalbeattie Learning Campus (Dumfries and Galloway Council) – £25M
Barrhead High School (East Renfrewshire Council) – £25M
Our Lady & St Patrick’s High School (West Dunbartonshire Council) – £25M
Ayr Academy (South Ayrshire Council) – £25M
Campbeltown Grammar and Oban High School (Argyll and Bute Council) – £55M
East Ayrshire Learning Campus (Kilmarnock Academy) (East Ayrshire Council) – £40M

 

Parliament was also updated on the Scottish Government’s position on the Not for Profit Distribution element of its revenue-financed infrastructure programme – including a repeated reassurance that there will be no impact on the delivery of the Aberdeen Western Peripheral Route (AWPR).

Mr Swinney said: “More widely in the NPD programme, it has become clear that a rapid reversal of the ONS’s public classification of the Aberdeen Western Peripheral Route project under the revised Eurostat rules will not be possible.

“I have asked SFT to continue to review options for the potential amendment of the AWPR project and potentially other NPD projects in the light of ONS’s welcome decision on the revised hub model.

“The Scottish Government also continues to discuss with the Treasury the budgeting implications, including for our capital spending plans, and I intend to reflect the outcomes of these discussions in the Budget in December. This will have no impact on the delivery of the project itself.”

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Construction industry responds to the Autumn Statement

The Chancellor George Osborne’s Autumn Statement has seen the construction industry react positively but some figures within the sector also expressed disappointment that some measures didn’t go far enough.

The Chancellor’s announcement that the government was to make housebuilding a priority to deal with “the crisis of home ownership” with £7Bn of funding was warmly received.

The housing programme will see a £4Bn investment in the ‘Help to Buy: Shared Ownership’ scheme that will see 135,000 homes built and available to households who earn less than £80,000.

Housing developers will be paid £2.3Bn directly to help first time buyers onto the property ladder by building starter homes. Buyers will receive a 20% discount on properties worth up to £250,000 (£450,000 in London).

£200M will be used deliver 10,00 new homes available with reduced rents for tenants while they save enough money for a deposit. The house will be sold after five years with the tenant given the first option to buy the property.

£400M will go towards creating 8,000 homes built with the elderly and disabled in mind.

There was also a 3% increase in stamp duty for buy to let properties and second homes that will come into effect next year.

Peter Vinden, Managing Director of The Vinden Partnership, commented: “The government has been promising to tackle the housing shortage for a number of years now. At last, it looks like the Chancellor is facing the reality that creating affordable housing must be prioritised with serious investment and policies.

“We have been here before in terms of government pledges on housebuilding but I am encouraged by the housing programme announced today and hope that we will start to see the crisis turn around in the coming months.

Andrew Carpenter, Chief Executive of the Structural Timber Association was also welcoming of the plans, describing the announcement as “positive”. He commented: “The STA is pleased with the positive announcement from the Chancellor’s Autumn Statement of the biggest house building programme in the UK since the 1970s, and a commitment to building 400,000 affordable homes by 2020.

“The STA would now encourage the Government to look at alternative construction methods, such as timber frame, to ensure not only more homes are built but better homes.”

Simon Light, Client Development Director at Arcadis, felt the housing programme whilst a step in the right direction wasn’t far reaching enough. He said: “While stamp duty rises on buy-to-let properties go some way in solving the housing crisis, this review should have gone further in order to address the serious shortfall in house building capacity and targets should have been more ambitious.”

“Today’s government targets are simply not high enough to address the growing need for homes of all types. Simply boosting spend does not solve the viability challenge and unfortunately much more needs to be done to solve this crisis.”

In terms of infrastructure, the Chancellor said the government has spent £61Bn on capital investment over the course this parliament and announced that transport would receive £46.7Bn over the next five years.

Managing Director of the Temple Group, Chris Fry, commented: “Today’s announcements reinforce the strong direction of travel for the UK’s infrastructure renaissance and also provide new impetus to housing supply.  The announcements also provide a fantastic opportunity for infrastructure and housing to be progressed hand in hand at many key locations, an example of sustainable development, which can deliver tangible social and economic benefits.

“An integrated approach has to be more cost effective in the long run and should provide communities with 21st century transport and energy solutions built in.  The trick now will be in how these infrastructure and housing projects are planned and implemented so that they add to the quality, and also the resilience, of our towns and cities”.

The Chancellor also outlined a new apprenticeship levy will come into force in April 2017 that will raise £3Bn a year and fund three million apprenticeships.

Peter Vinden commented: “If we are to see more apprenticeships created, then this can only be a good thing as we look to end the skills shortage gripping various industries across the UK.”

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Umbrella Company Expenses Ban, bad news for construction workers

Construction workers forced to operate via an umbrella company will see a reduction in their take home pay following yesterday’s Autumn Statement.

Contained within George Osborne’s 154 page document, is the decision to ban workers employed via umbrella companies from receiving tax relief of their expenses.

The document says: “As confirmed at Summer Budget 2015, the government will legislate to restrict tax relief for travel and subsistence expenses for workers engaged through an employment intermediary, such as an umbrella company or a personal service company. This change will take effect from 6 April 2016.”

From next year, those operating via an umbrella company will have to pay employer’s national insurance, employee’s national insurance and income tax on 45% of their total earnings. Under current rules, workers avoid paying tax and national insurance on part of their wage that contributes to travel and subsistence expenses.

For a worker claiming £50 of expenses a week they will see their pay fall by £22.50 a week or £1,170.00 a year. Brian Rye, Acting General Secretary of Union Of Construction Allied Trades & Technicians (UCATT), said: “This is a kick in the teeth for workers who are already losing thousands of pounds a year by being forced to work via an umbrella company.

“This is effectively a pay cut and means that construction workers will be unable to make ends meet or afford life’s extras which are often the only recompense for working long hours in a hard unforgiving environment.”

 

UCATT believes that workers are owed compensation for the traveling to temporary sites and having to work away from home, and that this should be paid on top of wages and not used to bulk out wages.

Since 2014, workers have been losing large amounts of money due to the government introducing new measures in 2014, which required workers to be payed via PAYE, after they are recruited by employment agencies. By forcing employers to be payed via an umbrella company, the agency, contractor nor the payroll company are liable for increased costs.

 

 

 

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Nabarro reveals UK as most attractive country for infrastructure investment

Research from international Law film Nabarro has revealed that the UK remains top of the Nabarro infrastructure index.

The infrastructure index highlights the most attractive hotspots for infrastructure investment, with the UK at the top of the list. High scores in sustainability and innovation were key factors in success, falling behind in tax environment. It also said devolution was creating the right conditions for infrastructure investors.

The index provides guidance for countries that are looking to create a more welcoming environment for private investment, and direction for investors about which countries can deliver on their potential.

The factors that the countries are ranked on include economic status, political stability, tax environment, ease of doing business, sustainability, innovation and private participation.

Other countries to appear in the top five were Canada, the US, Australia and UAE. The research showed UAE, Spain, Italy and the Philippines move up the rankings, with improvements in their private participation score, also seeing gains in other areas, whilst China, India and France fall in the index.

Rt Hon Lord Adonis PC, Chair of the newly created National Infrastructure Commission, comments: “It is great to see the UK doing so well in this year’s Index. It is a credit to the positive conditions for infrastructure investment created by the previous and current governments. However, it is paramount that the UK also identifies and secures a good pipeline for investors. Without it, the Nabarro Infrastructure Index shows that the US and Canada offer equally attractive conditions for infrastructure investment which could threaten the UK’s number one position”.

The gap in the UK’s lead in sustainability and innovation has narrowed significantly, and they are behind in other categories such as tax environment. Turkey was a new entrant to the Index, in tenth place after lowering its dependence of natural resources which has seen some of its construction companies emerge as global players.

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Network Rail to sell off “non-core railway assets”

Network Rail are planning to raise £1.8Bn by the sale of “non-core rail way assets” to meet the rising costs of major infrastructure projects.

A report from Sir Peter Hendy reviewed Network Rail’s five-year funding programme to 2019 and concluded that most of the programme can continue as planned with funds raised from the sale of assets that will include retail units in stations, depots, and spare capacity on the telecoms network.

Sir Peter was appointed as the new chairman of Network Rail by the Secretary of State for Transport in June and was tasked with reviewing CP5 (Control Period 5: 2014 -2019). Prior to his appointment, costs of projects had been spiralling and deadlines for projects missed.

Last year Network Rail became a public body and now relies on funding from the government rather than being able to borrow money privately but Sir Peter has said that the Department of Transport would now raise its borrowing limit by £700M.

Last month it came to light that the cost of the Great Western line between London and south Wales electrification had risen to a potential £2.8Bn. It had originally been budgeted at £640M.

In his review, Sir Peter said: “Passengers and businesses are already benefitting from the largest investment by Government in our railways since Victorian times and that will continue.

“The extra investment secures a Railway Upgrade Plan that delivers better stations, faster, more frequent and longer trains and a safer and more reliable railway for millions of passengers and businesses.”

He did however, concede that some projects would cost more and take longer to complete than originally thought. He said: “My review has clearly found that the original plan was unrealistic and undeliverable.”

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UK construction market growing steadily

Tender prices and output rise, with strong forecasts for 2016

According to the latest RICS’ Building Cost Information Service (BCIS) report, tender prices rose by 1.1% in the second quarter of 2015 compared with the previous quarter, and by 4.7% compared with the same quarter in 2014.

Predictions for the next quarter show a continued rise in annual tender prices, although at a slower rate than the last four quarters.

The report also shows that prices for materials continued to fall, with a third consecutive quarterly drop. Prices fell by 0.4% in the second quarter of 2015 compared with the previous quarter, and by 0.8% compared with the same quarter a year earlier.

With prices of European Brent crude oil having fallen by 44% annually –projects in the civil engineering sector have been affected more than in the building construction sector due to all oil related products forming a much greater proportion of civil engineering costs than building costs.

The report does show however, that the overall price for materials will rise sharply in the year to third quarter of 2016, increasing by 4.6%, driven by rising metal prices and oil derivative prices. Over the remainder of the five year forecast, materials prices will rise at a steady rate of 4% per year.

Wage costs are also increasing by an annual 3% to 4% over the next five years, total input costs are set to rise by a similar amount.

Strong growth in new work output will continue in 2015, although this may slow to between 3-4% over the next four years before returning to stronger growth in 2020 (5%).

Peter Rumble, Head of Forecasting, BCIS, commented: “The UK construction industry continues to show signs of growth, this reflected in the BCIS forecast which shows strong increases in new work output. While this growth will slow a little over the next four years, it will still maintain momentum with resurgence to a high 5% growth rate in 2020. As a result, tender prices are forecast to rise by 5.5% in the year to third quarter 2016. Moving forward, as workloads continue to increase, tender prices are expected to rise between 5% and 6% per year over the remainder of the forecast period.”

The full report, ‘BCIS Quarterly Construction Briefing November 2015’, is available online as part of a subscription to the BCIS Online, a service run by BCIS.

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Balfour Beatty breaks Guinness World Record

Balfour Beatty created a new Guinness World Records title for most people wearing high-visibility vests.

The recording breaking achievement, which was in partnership with Abbeyfield Secondary School, was held to help raise the profile of this year’s national Road Safety Week which focused on alerting people to the risks faced by road workers and how to minimise risks when driving.

A total of 1543 people wore the vests, beating the previous record by 68 people.

The national Road Safety Week, coordinated by Brake, a road safety charity, encourages all-around action regarding road safety, raising awareness on how individuals can play a part in the prevention of road collisions.

Students from Abbeyfield School, Belfour Beatty employees and supply chain colleagues from A-Plant and Greenhams, members of Northamptonshire Police and students from the local primary school, Queen Eleanor, all took part in breaking the record.

The idea for the Guinness World Record was inspired by the memory of 13 year old Sophie Bywaters, a student of Abbeyfield School, who was tragically killed crossing the road in 2009.

Balfour Beatty also gave presentations on the importance of road safety, and held a road safety signage competition for students, with the winning signs being displayed on Balfour Beatty sites.

Dean Banks, Balfour Beatty Managing Director UK Construction, said: “The safety of the public and our workforce is always Balfour Beatty’s primary concern and through our zero harm initiative we strive to ensure everyone goes home safe every day. We use Road Safety Week as a platform to highlight to our employees and the local communities in which we operate, the importance of road safety and awareness.”

 

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Chancellor delivers Autumn Statement

The Chancellor George Osborne today delivered his Autumn Statement to a packed Houses of Commons.

Mr Osborne spoke of creating “economic and national security” for the UK as he set out £4Tn of spending allocated by the government over the next five years.

Earlier the Chancellor had set out the government’s intention to make housebuilding its priority to deal with the “crisis of home ownership”.

In an effort to tackle the “crisis of home ownership”, Mr Osborne pledged £7Bn of funding. The housing programme will see a £4Bn investment in the ‘Help to Buy: Shared Ownership’ scheme that will see 135,000 homes built and available to households who earn less than £80,000.

Housing developers will be paid £2.3Bn directly to help first time buyers onto the property ladder by building starter homes. Buyers will receive a 20% discount on properties worth up to £250,000 (£450,000 in London).

£200M will be used deliver 10,00 new homes available with reduced rents for tenants while they save enough money for a deposit. The house will be sold after five years with the tenant given the first option to buy the property.

£400M will go towards creating 8,000 homes built with the elderly and disabled in mind.

A 3% increase in stamp duty for buy to let properties and second homes was also announced that will come into effect next year.

£2.3Bn will be spent on over 1,500 flood defence schemes that will see 300,000 homes better protected from flooding by 2021. Schemes will include improved sea defences at Rossal in Lancashire and funding to protect property in Leeds city centre.

It was announced at the Summer Budget that three million new apprenticeships will be created by 2020 and will funded by a levy on larger employers.

The levy will come into force in April 2017 at a rate of 0.5% of an employer’s wage bill. Less than 2% of UK employers will pay the levy with a £15,000 allowance for employers will mean that the levy will only be paid on employers’ wage bills over £3M.

The Northern Powerhouse will see an investment fund of £400m created to help small businesses. There will be also £13Bn investment in transport in the north of England over the course of this Parliament.

Scotland, Wales and Northern Ireland will all receive more money to be spent on infrastructure projects, with each government to decide where this will be used. This will be an increase of around 14% for Scotland, 16% for Wales and 12% for Northern Ireland.

The government said its plans to have a budget surplus f£10.1Bn is on schedule to be delivered by 2019-2020.

The Chancellor’s full Autumn Statement can be read via the Government website.

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Steady quarter for new homes boosted by October figures

According to the latest National House Building Council (NHBC) figures, new home registrations remain at a similar level to the same period one year ago.

In total, 37,582 new homes (30,046 private sector; 7,536 public sector) were registered between August and October compared to 37,707 (29,784 private sector; 7,923 public sector) in 2014.

In total 36,219 new homes were registered in the third quarter compared to 36,955 a year ago. The private sector is static at -1% (28,527; 28,906 in 2014), with the public sector down by 4% (7,692; 8,049 in 2014).

In October 16,434 new homes (12,965 private sector; 3,469 public sector) were registered, an increase of 17% on the same month last year (13,997 – 11,188 private sector; 2,809 public sector).  The substantial volumes seeing during October is due to builders registering new homes in time to take advantage of the lower rate of Insurance Premium Tax which increased by 3.5% on 1^st November.

Commenting on the new registration statistics, NHBC Chief Executive Mike Quinton said: “The last three months have seen new home registrations in line with the corresponding period a year ago. However we expect to be reporting growth for 2015 as a whole, as the first 10 months of 2015 show a 10% increase in registrations compared to the same period last year.”

NHBC supports the industry in maintaining and improving the build quality of new homes for buyers, whilst providing the benefit of its ten year Buildmark warranty protection.

The Buildmark warranty covers around 80% of new homes built in the UK, currently protecting around 1.6M homes.

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Knauf Insulation Index scores Local Authorities on energy efficiency

In an effort to improve energy efficiency, a new pilot tool has been launched which has assessed and scored 25 Local Authorities in England.

The LAEI was researched and authored by EnergyPro and developed in partnership with Knauf Insulation with support from GE Lighting and the Green Investment Bank, as a way of measuring Local Authorities response to the energy agenda.

It allows Councillors and other interested parties to measure their work on energy efficiency, helping them overcome barriers they may be facing. The authorities have been scored on a number of indicators, including energy management in their own estate, energy in housing, community and energy infrastructure.

The 25 Local Authorities cover a range of Metropolitan, London and Unitary authorities, as well as a range of geographies and diverse socio-economic conditions. The top performing Local Authorities were Southampton, Kingston-Upon-Hull, Peterborough, Leeds and Coventry.

The selected authorities count for 14.9% of the population and 14.62% of energy used in England.

Chris Witte, Marketing Director at Knauf Insulation Northern Europe, said: “The Local Authority Energy Index looks at these successes and also seeks to better understand the barriers that have prevented some councils from doing more. By assessing successful solutions, we hope that the health benefits of warmer homes, and the local economic benefits of improving houses and other buildings, can be felt across the country.

It is designed to be a learning tool, rather than to criticize local authorities.

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Chancellor to unveil new housing plan

Chancellor George Osborne will set out the government’s spending over the next five yeas in his Autumn Statement today and will announce new funding to build more than 400,000 new affordable homes in England.

The government will make housebuilding a priority in answer to the “crisis of home ownership” by pledging £7Bn of funding.

In his Autumn Statement to the Commons, Mr Osborne is expected to say: “In the end, spending reviews like this come down to choices about what your priorities are. And I am clear: in this spending review, we choose housing. Above all, we choose homes that people can buy.

The housing programme will see £4Bn will go towards the ‘Help to Buy: Shared Ownership’ scheme that will see 135,000 homes built and available to households who earn less than £80,000. It will enable people to buy a share in their home and increase their level of ownsership as and when their budget allows.

Developers will be paid £2.3Bn directly to help first time buyers onto the property ladder by building starter homes. Buyers will receive a 20% discount on properties worth up to £250,000 and £450,000 in London.

£200M will be used deliver 10,00 new homes available with reduced rents for tenants while they save enough money for a deposit. The house will be sold after five years with the tenant given the first option to buy the property.

£400M will go towards creating 8,000 homes built with the elderly and disabled in mind.

Housing Minister Brandon Lewis had previously announced the government had set a target of building 1 million new homes by 2020.

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New Legislation For Workplace Pensions Is Here. Are You ready?

Are you aware of new laws that require all UK employers from all sectors, including those in construction to automatically enrol all their eligible employees into a workplace pension scheme? This is called “auto enrolment”, and failure to comply could result in hefty fines and possibly even imprisonment. Smart Pension is the UK’s fastest one-stop solution for auto enrolment, allowing companies to get compliant in minutes with no set up or ongoing fees. Below we explain why auto enrolment was introduced, and how our fast, secure and free platform can get you compliant in one quick sitting.

Auto enrolment is the government’s solution to the “pensions time bomb” that’s been making headlines for years, due to ageing populations and under saving by UK workers.  The last Labour government introduced the Pensions Act in 2008, requiring employers to put all eligible employees into a workplace pension scheme by a certain deadline. This deadline, which is called a staging date, differs for each employer, depending on the size of the company. Companies with more employees will have an earlier staging date than those with fewer. The first, largest companies began auto enrolling in 2012, and now the process has reached employers with fewer than 50 employees.

Initially employers must to contribute 1.0% of the employee’s salary, the employee will contribute 0.8%, and the Government will add 0.2% through tax relief. So in total 2.0% of the employee’s annual salary will be contributed to a pension scheme. By late 2018 the employer’s contribution will be 3.0%, the employee’s 4.0%, and the government’s 1.0%, meaning a total of 8.0% of the employee’s salary being paid into a pension scheme. Whilst it’s automatic for employers, employees can opt out (but companies cannot force employees to do so).

To enforce compliance, The Pensions Regulator can issue hefty fines for non-compliance including fixed fines of £400 and daily escalating penalties whose level depends on the number of employees (eg if your company has 5 – 49 employees, The Pensions Regulator can fine your company £500 per day for every day that you are late meeting your deadline (staging date). You can learn more about penalties here.

That’s why it’s important that you’re compliant by your staging date. Typically the sign up process isn’t straightforward, and when you are signed up, high staff turnover and a lot of casual workers in the construction industry can make the ongoing assessment of staff and calculation of pension contributions a logistical and administrative nightmare, costing you time and money. But it doesn’t have to be like that…

 

We created our unique platform and tools to fix these problems. Smart Pension is the fastest, most secure auto enrolment platform in the UK, available at zero cost to your business. Built by our expert team with years of experience, we made sure it’s simple and easy to use, saving you time and money. You could be compliant in less than 1 hour, and you could save thousands by using our free platform vs other paid for platforms. We can give you the peace of mind to get on with running your business, knowing that everything is in hand, you are complying with your legal duties and your employees are being well looked after with an outstanding and secure underlying pension. Visit our website at AutoEnrolment.co.uk to get compliant today, or to speak to our expert team to see how we can help you.

“Smart Pension is a fantastic company which helps small businesses with their employee pensions. The Smart Pension team has done a brilliant job in building a successful platform which makes other businesses’ lives easier.”

Matthew Hancock, Minister of State for Business, Energy and Enterprise, 2015

“Small businesses need an auto enrolment solution that is fast, nimble and reliable. Smart Pension enters the market with that solution and a track record of success. For small businesses complying with the new laws, you make a smart choice with Smart Pension.”

Emma Jones, Founder, Enterprise Nation

                                                                                                                                       

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UK energy policy described as “inconsistent, incoherent and ineffectual”

Scotland’s Energy Minister has told a major energy conference that the UK energy policy “fails objectives” and must change.

Fergus Ewing accused the UK government of failing to meet its objectives and jeopardising energy security at the International Tidal Energy Summit in London.

Mr Ewing described the policy as: “Inconsistent, as the approach is to build new capacity at the lowest cost and let the market decide which technologies prevail, but skews incentives towards more gas and nuclear power.

“Incoherent, as it rules out support for proven, cheap technologies like onshore wind and solar.

“And it will be ineffectual – we urgently need to tackle the parlous state of affairs that has allowed the capacity margin to dwindle to one per cent, yet there are still delays to bringing on new capacity, including the development of renewables in Scotland

Scotland’s largest power station, Longannet, is due to close next year due to transmission charges. Scotland plans to use natural resources such as wave and tidal.

The largest planned tidal development in the world, Meygan in the Pentland Firth, will power 175,000 homes when completed. Orkney developer, Scotrenewables has almost completed the construction of two Megawatt floating tidal turbine, whilst Edinburgh-based Nova innovation is in the process of installing five turbines as part of the Shetland Tidal Array.

Marine energy has made huge advances in the last two decades, with its development in need of support.

Mr Ewing suggested that the UK government must change its course to provide more certainty for investment in new technology and ensuring the next capacity market auction does more to bring new, clean power generation forward.

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City Building encourages businesses to apply for £280M of opportunities

City Building is encouraging businesses to apply for construction opportunities in Glasgow and the surrounding areas.

The company have advertised 78 lots, including groundwork’s, structural steelworks, fire protection and many more, worth up to £280M across its construction and manufacturing operations. With more than 2,200 employees and 2,000 people that they support through their supply chain, they contribute significantly to construction output in the City.

Executive Director of City Building, Graham Paterson, said: “At £280M, this framework represents a substantial piece of business and a great opportunity for businesses across the country to play their part in the continued success of our business.

“We are particularly interested in hearing from those who feel that they can contribute to our long standing commitment to maximising the social, economic and environmental benefits of our work.”

City Building follows social ethos of “building a sustainable future”, creating training and employment opportunities for a diverse range of people, including minority and other under-represented groups. They commit to delivering a range of community benefit opportunities and encourage contractors to commit to paying at least the Glasgow Living Wage.

The company have constructed a dedicated micro-renewables centre, showcasing sustainable technology solutions, with a focus on driving down fuel poverty. Since 2007, the company has reduced its carbon footprint by 25% and has achieved ISO14001 accreditation across all areas of the business.

 

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MP makes onsite visit to meet construction apprentices

The MP for Plymouth, Sutton and Devonport, Oliver Colvile, met with apprentices in Plymouth to find out more about their career futures.

Mr Colvile met staff from S & S Decorators at a site visit organised by the Construction Industry Training Board (CITB) and was given a tour of the new 193- bedroom student accommodation by Company Directors, Nick Williams and Andrew Bevel.

The site visit follows Mr Colvile, who is Chairman of the Built Environment parliamentary group, hosting the business at Parliament as part of the CITB’s I’m Backing Apprenticeships event in September.

Mr Colvile said: “I was delighted to welcome S & S Decorators to Parliament in September and I’m thrilled to visit the site today.

“It is wonderful to hear that businesses in Plymouth like S & S Decorators are busy, and using their position to train up the next generation of skilled workers. There are so many high-quality, skilled jobs in this sector and apprenticeships can provide a perfect pathway for employers and employees alike.

“Increasing the number of construction apprentices in our region is incredibly important to the industry and I will continue working with the CITB in backing apprenticeships.”

Gillian Cain, Regional Delivery Manager for CITB in the South West, said that she hoped Mr Colvile’s visit to the site would “encourage” other employers to lend their support to apprenticeships to develop the construction industry’s workers of the future.

She commented: “Construction apprenticeships are on the rise, providing a wide range of exciting opportunities for young people in the region.

“We forecast that the construction sector will grow in the South West by 3.6% over the next four years, meaning an extra 6,300 jobs each year in our region.”

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New build medical centres could lead to fewer deaths, report reveals

A new report has revealed that encouraging private investment in healthcare real estate, could prevent almost 3,000 deaths and 3,800 falls per year.

Quality Buildings, Quality Care, launched by the British Property Federation and researched by Bolt Partners, suggests private investment in healthcare could help the NHS see a dramatic improvement in patient outcomes. It could also help make significant savings, and lead to a reduction in patient harms and falls.

The report found that Acute Trusts with newly-built facilities are more likely to have low mortality rates, with three out of the 19 (16%) Trusts in the UK that are new-builds incurring “significantly below average” deaths, compared to 13 out of 118 Trusts (11%) with older buildings. There was also a 1% reduction in mortality rates.

Another key finding was that new-build facilities had 30% lower fall rates and 10% lower overall patient harm, providing a safer environment for patients. In addition, services provided from the types of new healthcare premises have been three to four times more likely to be rated “outstanding” by the Care Quality Commission than services provided by older premises. There was also a higher percentage of staff satisfaction in regards to the care they could provide to patients and the quality of work they were able to deliver.

The BFP is calling for the Government and NHS bodies to see opportunities presented by working closely and flexibly with the development sector in delivering healthcare real estate.

Melanie Leech, Chief Executive of the British Property Federation, said: “There is a clear correlation between new buildings and the quality of patient care that is provided within them. Healthcare real estate is a vital part of the UK’s infrastructure, and as we face an increasingly ageing population and the NHS becomes more strained, now more than ever we want to make clear to Government the role that the real estate industry can play in ensuring the future health of the NHS.”

They have also called for the local authorities to include healthcare facilities in their local plans, locating them in town centres, transport hubs and existing medical  infrastructure to facilitate integrated care.

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75% of construction companies affected by fraud in the past year

According to a recent report, three quarters of construction, engineering and infrastructure companies have been victim of fraud in the past year.

The results from the 2015 Kroll Global Fraud Report showed that the most common form of fraud in the industry was theft of physical assets or stock, with 36% of construction companies reporting experience of this. This was followed by vendor, supplier or procurement fraud with 24% of respondents claiming to have experienced this.

The construction industry was second only to the retail sector in terms of incidence rates and was the highest in any sector in terms regulatory or compliance breach fraud with 18%.

In the past year, construction companies reported that their exposure to fraud had increased – 92% of respondents felt that this was the case, the highest in any sector.

The reasons cited for this increase in exposure were high staff turnover (49%) and entry to new, riskier markets (21%).

When it came to responsibility, a senior executive or middle manager was involved in a fraud against the company at 32% of all construction businesses polled.

Despite the difficulties caused by high staff turnover, only 30% of construction companies said they would invest in background screening in the coming year, with only 25% planning to spend on management controls – less than the survey average.

Tommy Helsby, Chairman, Kroll, commented: “Much media attention is focused on external threats to companies, highlighted by high profile cyber attacks, but the evidence revealed in our report and our day to day experience tells a different story.

The respondents in this survey indicate the greatest single cause of fraud in their companies is their own employees. It is not enough for companies to protect themselves from outside threats – both external and internal vulnerabilities need to be addressed.

“What our report and our day-to-day experience tell us is that despite companies making greater and more sophisticated efforts to combat fraud, it remains a serious business threat that cannot be completely eliminated.

Furthermore, the adverse impacts of such incidents cannot be underestimated. Fraud is not going away and continues to be on the rise, but the well prepared business can do much to stay one step ahead and be positioned to eliminate or mitigate it.”

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New construction guidance to stop deaths from occupational disease

The construction industry has launched new guidance to make the industry aware of occupational disease and encourage better management.

Health and Safety Executives are urging the industry to put an end to the hundreds of construction workers that die every month due to occupational diseases, after inspectors issued more than 200 health related enforcement notices during a recent HSE construction inspection initiative.

The new guide was written by the Construction Industry Advisory Committee Health Risks Working Group and formatted with the assistance of the Institution of Occupational Safety and Health. It raises awareness of the occupational health issues in construction and how best to manage them, providing information as to where firms can get help and assistance. The guide is aimed primarily at employers, although directors, health and safety professionals and occupational health service providers can use it to identify their roles in the management of occupational health risks in construction.

Ian Strudley, Chair of the ConIAC Health Risks Working Group and HSE Principal Specialist Inspector said: “The misunderstanding of occupational health within the construction sector means that whilst the industry focus on managing the more familiar safety issues, serious health risks get ignored. We cannot let this continue.

“When figures show that construction workers are at least 100 times more likely to die from a disease caused or made worse by their work as they are from a fatal accident, the industry must take action.”

It is hoped that the guidance could help lower incidence rates of occupational ill-health and change the perception of working in the construction industry.

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Funding package complete for extension of Metropolitan line

London Underground have today confirmed that plans are in place to start construction on the extension of the Metropolitan line next year.

The funding packing between the Department for Transport, Hertfordshire County Council and Transport for London has been agreed, with the work being delivered by London Underground. The total cost of the project amounts to £284.4M, with TfL providing £49.23M, DfT funding £109.92M and local funding providing the remaining £125.35M. Hertfordshire Local Enterprise has committed £87.85M to the new project, 40% of its total Growth Deal Funding from the Government.

Two new stations will be built at Cassiobridge and Watford Vicarage Road, which will create over 6,500 permanent jobs and a £2Bn boost to the local economy. New walkthrough air-conditioned trains will run every ten minutes to and from Central London during the peak hours, supporting growth in and around Watford by making journeys to London easier.

The Underground will be connected to the West Coast Mainline via the station at Watford Junction, and the two new stations will also provide new connections to Watford General Hospital and new Health Campus, Croxley Business Park and Cardiff Road Industrial Estate.

Nick Brown, Managing Director of LU, said: “For 100 years, the Tube has been enabling growth in ‘Metro-land’ and this new part of the Underground network will support further rapid development in the area. By 2020 we will have built a 400m viaduct, two completely new stations and numerous new and reconstructed bridges along the route, transforming transport links in Watford. With the funding package complete we’re now turning all our attention to appointing contractors, finalising designs and beginning construction in 2016.”

The research into the economic benefits was undertaken by Hertfordshire County Council and Watford Borough Council.

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What makes a young person pursue a career in construction?

In the first in a series of articles, UK Construction Online examines this question and looks at how young people can be encouraged to become the construction workers of the future.

Whether it is the struggle to build enough houses to meet the government target of one million new homes by 2020 or completing large-scale infrastructure projects such as HS2 and Crossrail, the skills shortage seems dominate the construction industry.

The mismatch between the skills available in the UK labour force and those required to meet the ambitions of the government and private companies within the construction sector remains a huge problem and raises the key question – what can be done about it?

UK Construction Online recently covered a story on a record breaking Meccano bridge that was constructed by Queen’s University civil Engineering students across Clarendon Dock in Belfast.

Civil Engineering contractor McLaughlin & Harvey Ltd provided technical advisory services on the project, which provided an opportunity for students to gain on-site experience and to test their skills away from a classroom environment.

Local primary school children also got to learn more about the opportunities in construction and STEM careers in an effort to encourage them to consider taking up a career in these sectors.

Although not a solution in the short-term, the need to encourage children and young people to consider taking up a career in construction is obvious if the long term future of the UK Construction industry is to be safeguarded.

We spoke to John McCarey, Chief Engineer at McLaughlin & Harvey, who worked with the students throughout the project, to discuss the most effective ways of educating the next generation of workers and also encouraging children to consider pursuing careers in construction.

 

What was your involvement in terms of training for the Meccano bridge project?

I was engaged with the students earlier on in the year to go through how we were going to lift and install the bridge. We actually did a trial erection in our warehouse back in July, just as they were completing their final exams.

We went through all the different aspects of how the load was being distributed throughout the bridge to give ourselves a good appreciation of the sensitivity of the structure because it is quite a light structure.

We developed risk assessments, method statements, and a walkthrough with them on the various aspects of health and safety that perhaps don’t get covered in a classroom lecture theatre environment. This demonstrated to the students the practicalities that need to be considered and worked around when you bring something from a piece of paper through to build size and then through to the actual onsite erection of the structure itself.

It must be extremely satisfying being able to pass on your knowledge?

Absolutely. I actually graduated from the Queens University in 2005 so I was in those students’ shoes ten years ago.

You gain so much practical knowledge from being out onsite and its great to be able to share some of that with students. That’s the one thing students sometimes don’t get enough of in an academic course.

The industry really needs to provide more support and assist the universities because ultimately the construction sector want better qualified staff and we all have to engage.

The Meccano bridge is a fantastic way of capturing people’s imagination in terms of engineering. How important are these kind of projects to inspire people and help students along the way?

It’s a really good insight into civil engineering. We face challenges everyday and we continually overcome them. Civil engineering is probably one of the unsung sectors because a lot of the stuff we do is buried beneath the ground and is out of sight. It only comes to people’s attention when something actually goes wrong, whereas a bridge is above the ground and is a showpiece of what we can really achieve.

From bringing a simple toy like Meccano into such a large-scale structure that can be physically used as a bridge shows what you can dream about and then how you can create it, install it and use it, which is a great aspect as well.

 The school children participated in the project as part of the university’s outreach programme. What was their role?

The school children were involved in the actual build process screwing the nuts and bolts, putting the Meccano pieces together.

What inspired you to take up engineering?

Everyday is a different challenge. You go into work and know there are always challenges ahead in every project and sometimes the smaller challenges you get more pride out of overcoming them. The bigger challenges – everybody knows they need attention and there’s lots of resources thrown into them.

With engineering you get to the freedom to overcome small challenges that actually feed in to a global part of a project. It’s about being part of a team as well your own individual achievement on solving problems.

Essentially, it is all problem solving when it comes down to it. Whether it be designing something, making sure it’s structurally sound and how you get it installed and then operational.

In terms of your childhood, did you play with Meccano or Lego, or anything along those lines that you could say influenced your career choice?

I was a big Lego child. I had some Meccano bits and pieces over years but Lego was definitely an influence. I suppose I am still a big kid, I still tend to play with Lego every now and again!

What kind of impact can toys like Meccano, Lego, and Minecraft have on children. Do you think they have a positive influence and can inspire youngsters to consider a career in construction?

I definitely do. Anything that helps people bring out their creative side and provide a technical challenge, whether it be following a simple plan, devising your own plans, or simply building from your own imagination. The great thing about those toys is you get to see the fruit of your labour and dreams.

It’s great because that’s essentially what happened with the bridge; we really scaled up something form somebody’s imagination into real life project and that’s what happened everyday with civil engineering.

Is Minecraft almost an entry level BIM for children?

You know it definitely is. Because essentially that’s what BIM is, you start off with your first blocks and you build up to different layers as you put in your different components into the structure whatever it may be, whether its blocks on the screen or blocks on the ground followed by fixtures and fittings.

It’s getting people in that mind set of where you start – from your initial concept and where you want to end up and all the bits and pieces you have to fit in together. It’s also about the challenges that come when things don’t fit together and how you have to work around things that are non-standard that you to then design, implement, and interpret what you need and invent to make it fit and become operational. It’s an excellent stepping stone.

Network rail recently released a study suggesting that by the age of 11, girls could be put off a career in engineering. Do you think there is a cut off point in terms of age to be attracted to a career in STEM industries?

I’m sure there is a certain point in time if they are not accustomed to playing with a certain toy, it would almost become socially unacceptable to then start picking it up at a later age. I think there should more availability for those toys for both sexes and be more targeted at female and particular ages.

The industry needs a good mix people as well.

Do you think more needs to be done to encourage women to take up careers in the industry?

There definitely needs to be a bigger drive. The sector itself is struggling at the moment with the number of people entering it and if you can entice more females into the industry then all the better.

I suppose it could be a number of years before we see the fruits of the labour as we set out to try and get the individuals to take up.

Lego are now starting to target girls more with their toys and different things like that, even the Meccano bridge – these things will inspire a certain age group so it maybe a number of years before we see the benefit. The younger generation is where it really needs to be targeted.

 Is enough being done by the government to deal with this?

This is definitely one of my own gripes at the moment with the industry in that we probably don’t do enough. There are so many other different types of jobs and skill requirements within the construction sector, that sometimes it is targeted more towards engineering. People who just want to work on the ground who are maybe unskilled right through to skilled labourers whether it be piling hands, carpenters, concrete workers, steel erectors, there are so many opportunities for other skills and the best way to learn those skills is through apprenticeships.

The construction industry really needs to jump in and try and make a big recruitment drive and get people into that and without the industry offering that training – industry itself needs to push it because no one else is going to train up their future employees for them.

Royal Academy of Engineering said in June the UK need more than a million new engineers and technicians in the next five years. Given what we’ve discussed this doesn’t seem likely. It will take time.

No doubt it will take time. We are definitely seeing a skills shortage at the moment. We take on quite a lot placement students each year; we also try to take them back on the following year for their summer holidays.

We had a student who was instrumental in the Meccano bridge project from its conception right through to build stages. He was one of the team tasked with the project back in January. He worked with us as a placement student back in 2014 and came back and worked with us this summer. He got a real feel for the environment we’re in and we were able to provide him a bit of time onsite, in the office and he was back in with in this summer.

He was good for McLaughlin & Harvey in assisting us internally with the bridge and we were then able to design and look at all the different requirements we needed for the structure itself.

We feel that this process works well; we engage with the student early on in their career, bring them in and it’s also a good way of picking up the better students as well by engaging them through those means.

Do you think there’s an opportunity to get younger children involved within the industry?

We do a lot of projects on the Constructionline scheme and Considerate Constructors. Ivor Goodbody is a cartoon-style character that will visit schools and give out construction toys. He will visit primary schools and give them an overview of a project we are completing in their neighbourhood. Sometimes, where possible, we will bring the children on a site visit. Obviously some sites are more suited for children than others.

You need to plant a seed in those people’s heads. At that young age, probably under the age of 10, people really get a vision of what they want to achieve later in life.

Do Children’s TV programmes have a part to play in this?

I think they do. Bob the Builder is the most recent one I remember. Of course, the great thing about any type of construction is that you really get to see the fruits of your labour at the end of the day. Sometimes when you’re in an office environment, you’re working on a project for months on end before you actually see any reward, whereas in a construction environment, at the end of every day you can step back and see the changes as it evolves.

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Scottish Enterprise £1M grant saves and creates jobs

Ferguson Marine Engineering Limited has received a Regional Selective Assistance grant from Scottish Enterprise.

A total of 100 shipbuilding jobs at the last commercial shipyard on the Clyde are to be created and 125 jobs safeguarded thanks to the £1M grant. Scottish Enterprise’s Regional Selective Scheme provides investments to projects that will result in the safeguarding or creation of Jobs in Scotland.

It will enable the company, which was brought by Clyde Blowers Capital in 2014, to further invest in the site on the Clyde, which will help ensure the shipbuilding industry has a sustainable future.

The funding will go towards the refurbishment of its premises, along with new state of the art equipment. The project has a total projected cost of £12M.

The company have recently secured business worth £110M, which includes a £97M order for Caledonian Maritime Assets Limited to build two duel fuel ferries, the largest commercial vessels to be built on the Clyde since 2001.

Deputy First Minister John Swinney will visit the sight today. He said: ““Since Clyde Blowers took over the company, they have done a fantastic job of turning the company around, and I am delighted to visit their premises today to see just how much progress has been made.”

Paul Lewis, Managing Director of Scottish Development international and Scottish Enterprise International Operations said: “Since last September we’ve been working with Ferguson Marine Engineering Limited to help drive forward its plans of developing a successful, growing business with international ambition. Today’s announcement marks a significant milestone for the company and we will continue to work with them as they realise their full growth potential.”

 

 

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Cricket ground to be redeveloped after 140 years

The famous Park Avenue cricket ground in Bradford will be redeveloped, says Yorkshire County Cricket Club.

The £5.5M redevelopment project will involve the England and Wales Cricket Board, YCCC and Bradford Council working in partnership through five stages of development planned between now and 2019.

It will turn the ground into a state-of-the-art facility with the prospect of it being used to hold elite women’s matches, disability cricket and some Yorkshire first team games.

The first stage, costing £570,000, will include the building of an inclusive changing pavilion, complete with car parking, security fencing and CCTV.

The second phase, costing £140,000, involves upgrading the surface to first-class level, as well as renovating the existing scoreboard and the groundsman’s store.

The final stage, costing £2.5M will see a new community pavilion with first-class changing rooms, a 250-capacity restaurant and more than 4,000 new seats for spectators.

Mark Arthur, Chief Executive of YCCC said: “The aim is to create a first-class ground, but it will be a ground primarily for the community.

“It’s a unique concept, and would give Bradford national and international recognition for using cricket as a positive vehicle for social inclusion.

“The plans are exciting for cricket in Bradford, and once the first phase is complete, we are hoping to get 2,000 people a week using the practice facility over the summer months.”

Cricket was first played on the Park Avenue site in 1873 and between 1880 and 1996 it was used for first class cricket by YCCC.

The club hope to play there in 2019 to ease pressure on Headingley in a busy summer of international cricket.

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Interior designers share vision of new apartments on Wembley Park

Alto’s Interior Designers, FLINT, have designed luxury one, two and three bedroom homes for Londoners at mid-market prices.

The recent launch of Alto Apartments marked a milestone in the transformation of Wembley Park. Developer Quintain has introduced fashionable retail outlets, top restaurants, bars and street food stalls to the area which is earning a reputation as one of London’s most desirable places to live.

The apartments which are in a well-connected part of the capital, are available from £375,000. With an open plan layout which focuses on the flow of space, orientation, light and a palette of high quality materials. The entrance has a long monolithic reception desk in dark stone, with a sculptural spiral staircase which lead up to a galleried mezzanine area.

FLINT have also created a double-height super lobby which opens up to the view of landscaped gardens, creating the feeling of a modern boutique hotel.

Buyers have the option to personalise their space, with a range of interchangeable colour tones selected by FLINT, available in materials and finishes.

Vesna Aksentijevic, of Interior Designers FLINT, comments: “The apartments are designed from the inside out, with spatial and functional needs influencing the external form of the building. Clean, rational apartment layouts were developed together with the façade to create high quality interior space, maximising on daylight via large and expansive balconies that offer stunning views across London.”

The location and architecture of the building was a source of inspiration for the interior design team, who focused on a contemporary design.

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FTA engineering apprentices begin work

The Freight Transport Association have announced the first FTA Gist engineer apprentices have now begun their apprenticeship programme.

The three successful applicants will see their training encompass every aspect of engineering whilst working at Gist depots throughout the country. They will also work onsite with the FTA engineering team during their four year course.

The programme will also allow the apprentices to work with FTA’s Vehicle Inspection Service (VIS) engineers in an effort to develop the skills and knowledge required to be FTA engineers of the future.

The FTA Gist apprentice programme provides would-be engineers of the future with the opportunities and experience they require to begin their careers in logistics without the need for a university education. The apprentices will be fully supported by a buddy and mentor and given responsibility in their role.

FTA Director of Operations, June Powell, said: “We are delighted to welcome the very first FTA Gist engineer apprentices.  Their four years of learning offers them the combined opportunity of working with Gist in their depots in a professional environment and learning from our own team of engineers enabling them to develop the knowledge and skills to become FTA engineers of the future.

“Through this fantastic apprenticeship scheme, FTA is able to ‘give something back’ to the industry, and believes that this scheme will help encourage other young people to enter a career in logistics.”

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