Record-breaking £1.3Bn deal for Walkie Talkie

Landsec – formerly Land Securities – has exchanged contracts for the sale of its 50% stake in 20 Fenchurch Street, otherwise known as the Walkie Talkie, to LKK Health Products Limited (LKK) for a whopping £641.3M. LKK will also acquire Canary Wharf Group’s 50% stake, meaning it will own the building outright, boosting the total headline price to a record-breaking £1.3Bn.

A joint venture development, initially conceived by Landsec and Canary Wharf Group in 2010, 20 Fenchurch Street has housed businesses large and small since its 2014 opening. The Sky Garden – by far the buildings most spectacular feature – currently sits atop the 34-storey structure, giving panoramic views of our nation’s capital.

But while the building’s distinctive shape helped make it a landmark addition to the London skyline, those same contours have scorched car bumpers and funneled strong winds towards passersby below. Since its unveiling, 20 Fenchurch Street has often courted controversy and split opinion – it was the proud recipient of the 2015 Carbuncle Cup, awarded to the year’s ugliest building – though LKK obviously sense the potential.

The family-owned business, which specializes in Chinese sauces, condiments and herbal remedies, is chaired by Hong Kong billionaire, Lee Man Tat. Landsec now expects to receive £634.5M in net proceeds, of which £475M will be divvied up between its shareholders.

Robert Noel, Chief Executive of Landsec, said: “Our decision to sell 20 Fenchurch Street at an exceptional price and return cash to shareholders reflects our disciplined approach to the use of capital. The building has been an immensely successful project for Landsec and our partners. Its development in 2010 was part of Landsec’s major speculative development programme in the capital, which has seen the completion of 3.1 million square feet of office and retail space, thousands of jobs sustained in the construction industry, and considerable improvements to public spaces. This sale crystallises the significant value we have created at 20 Fenchurch Street.

“While we will be returning cash to shareholders as a result of the sale, our gearing will remain unchanged from current levels, ensuring we retain our significant firepower. This will allow us to move quickly to capitalise on opportunities whenever they might arise.”

The deal’s completion is scheduled to take place at the end of August.

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Rural England to get £200M investment boost

The latest round of Rural Development Programme funding has been announced that will provide investment for rural businesses will help to generate thousands of jobs and provide new support to expand and improve their premises as part of a £200M grant offer.

The funding will for the first time be made available to support new rural broadband projects, and provide significant amounts of funding to on-farm businesses to invest in new infrastructure such as new buildings and machinery.

The current Rural Development Programme for England is expected to generate 6,750 new jobs. Already more than 1,400 projects have been agreed which are expected to create over 2,300 jobs.

The grants will also fund landowners to improve farm productivity and invest in rural tourism opportunities.

Rural Affairs Minister Lord Gardiner said: “One in three businesses in this country are based in the countryside, and this government is committed to providing the support they need to create a strong and prosperous rural economy.

“This funding will make sure businesses in remote locations can get online, help farmers install cutting-edge technology, create new tourist hotspots and bring high quality jobs to rural communities across the country.”

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Cenex trials low-carbon technologies

Trials are underway for Cenex, the UK’s first Centre of Excellence for low carbon technologies, which will assess the performance of low-carbon lorries and refrigerated vehicles.

The testing is part of Innovate UK’s Low Emission Freight and Logistics Trial and will be carried out by logistics provider, Kuehne + Nagel Ltd.

One of the UK’s largest fleet operators, Kuehne + Nagel Ltd will use the zero emission-capable trucks and refrigeration units to deliver a mix of ambient, chilled, and frozen produce to Whitbread hospitality brands such as Costa and Premier Inn, across its urban routes.

Four fully electric lorries, two range-extended electric vehicles (REEVs), and two liquid nitrogen-cooled refrigeration vehicles will be trialled during TRIUMPH (Temperature-controlled Range-extenders & Integrated Urban Mapping of Pollution TRIUMPH) trial.

The trial is the first of its kind to provide real-world performance data to make the business case for investment in zero emission-capable trucks and zero-emission TCT. It aims to inject low carbon technology into the UK’s logistics industry, which accounts for 17% of all road-transport emissions.

Steve Carroll, Head of Transport at Cenex, said: “Cenex is delighted to be validating the performance of zero-emission technologies in heavy-distribution and temperature-controlled transport operations. These two areas are especially challenging for operators to use low-emission technologies, so the industry needs more insight into the real-world benefits and challenges of implementing low-emissions technology in urban logistics operations.”

Andrew Blake, Kuehne + Nagel, said: “Reducing our environmental impact and improving the efficiency of our fleets is a key goal for Kuehne + Nagel, and what our customers expect of us. Lowering the overall carbon footprint of food distribution services is critical to us achieving that goal and leading the industry in sustainable, reliable logistics.”

The project is part of the Low Emission Freight and Logistics Trial, funded by the Office for Low-Emission Vehicles (OLEV) in partnership with Innovate UK. The OLEV has been funding projects throughout the year to demonstrate the new technologies, hopefully encouraging the widespread of low and zero emission vehicles. The trail is a major part of the UK’s target for all new cars and vans to be zero emission by 2040.

 

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Horizon 2020: Photovoltaics meets history

Horizon 2020 is running a competition to find innovative ideas that will help adapt historic buildings for a low-carbon future.

Horizon 2020 is the biggest EU Research and Innovation programme ever with nearly €80Bn of funding available over seven years (2014 to 2020), plus numerous opportunities for private investment on top of this. It promises more breakthroughs, discoveries and world-firsts by taking great ideas from the lab to the market.

This particular challenge is directed towards the construction sector, looking for ways in which to integrate new technologies, such as photovoltaics, into protected, historic buildings.

Throughout Europe, architects can face major technical constraints when integrating renewable energy into protected structures. However, it is essential that these buildings are brought into line with newer developments, lowering carbon emissions across the continent.

Horizon 2020 is calling for innovative and creative solutions to allow environmental technology to be applied aesthetically into historical buildings that represent the artistic and cultural heritage of a city.

The Horizon 2020 competition will reward a European protected historic urban district which can demonstrate the perfect integration of photovolatics into buildings to generate its own electricity. In this context the photovoltaic system includes all the necessary components to supply power within a district.

The competition is devised to encourage the integration of new photovoltaic systems into these districts and foster the development of the best suitable solution, combining architectural and aesthetics, optimal technical solutions, and delivering minimal impact and intrusion to the buildings.

While it is hoped the prize will mobilise and enhance private and public investment for replication of similar solutions in Europe.

The specific rules of the contest were published in 2016 by the European Commission, which will directly launch and manage the contest and award the prize based on the judgement of independent experts.

Registration closes 26 Sep 2018, 12:00

Award €750k

For more information on competition please click here.

 

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Construction sector must bridge gender pay gap

A OnePoll survey, commissioned by the Royal Institution of Chartered Surveyors (RICS), has revealed that the construction sector believe the much-publicised gender pay gap can be beaten, with 46% of respondents predicting the difference will shrink below 15% by April 2018. More must be done, however, if the industry is to truly tackle issues of gender equality and sexism, RICS has said.

Somewhat surprisingly, more than one in ten respondents thought that the gender pay gap would be eradicated by April 2018 – an unrealistic expectation, most would agree.

The national average currently sits at 18.1%. But if the construction sector can convert this positivity into actual progress, it may well become an exemplar for the rest of the UK.

The capital was far less receptive however, with Londoners in construction anticipating a gender pay gap of 21% – 3% above the national average.

Unfortunately, the usual divisions were still widespread. Almost a third (30%) of all women surveyed felt sexism had prevented them from occupying a senior construction role, while 38% of men believed they were better suited to the sector than their female counterparts.

Close to half (42%) of all respondents felt construction companies needed to prioritise the training of their female workforce. Many wished to see more businesses investing in future talent to build up diversity, with 40% acknowledging the importance of encouraging young girls to take-up a career in construction.

Sean Tompkins, RICS’ Chief Executive Officer, had this to say: “Although it’s great to see the sector expects the gender pay gap to be lower than the national average, today’s findings highlight that achieving gender equality in the construction sector requires significant commitment from organisations.

“Encouragingly, there is a collective agreement from over a third of both men and women across the industry that companies are not doing enough to attract females into the sector. The findings reveal that it is primarily the responsibility of individual organisations to invest in schemes and nurture more inclusive cultures that support women to hold more senior roles in the construction industry.”

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Building a connected tomorrow’s city

Global cities are revaluating their physical infrastructure priorities as they come to terms with the reality of rising densification, increasing usage and demand, and a new risk landscape. Looking ahead in time, 75% of the global infrastructure that will be in place in 2050 doesn’t exist at present. This shortfall has been recognised, with innovative new ideas seeking to ensure future cities are kept moving and economically efficient. However, significant legal and regulatory hurdles stand in the way of delivering for tomorrow’s city.

Today’s challenge

It is clear that the infrastructure demands of future cities are diversifying, and converging. With digital and physical becoming ever more interconnected the challenge is to develop infrastructure which provides an economic stimulus for today, and a sustainable, resilient system for the future.

To take the UK as an example, by 2030, the cost of congestion to London alone is estimated to hit more than £11bn a year, while crowding on public transport, particularly rail, is forecast to double by 2050 if new transport solutions aren’t introduced.

Meanwhile, internet access is fast becoming accepted as the ‘fourth utility’ and integrated into infrastructure planning and delivery. The UK, though, is lagging behind many of its global peers in terms of digital connectivity with only 2% of the current UK population having access to ‘full fibre’ connection. Estimates suggest that an extra £17bn could be added to UK economic output by 2024 simply as a result of increased broadband speeds.

Planning, funding and delivering

It is little wonder, then, that the Queen’s Speech following the 2017 General Election, pared back as it was, still contained a significant commitment to infrastructure. Further, at the same time as the Queen was addressing Parliament, Sadiq Khan published his new London Transport Strategy, seeking to make the capital’s transport infrastructure fit for the future.

Meanwhile, for Lord Adonis, Chair of the National Infrastructure Commission, there are twelve key priorities these plans should focus on – ranging from HS2 and 3, to Crossrail 2, to the roll out of 5G services along with a smart and sustainable approach to energy production and delivery.

The funding for these much-needed projects, though, remains a key issue and concern.

Geographically speaking, Sadiq Khan’s forward-looking approach for London is to be applauded, but there are real challenges to effective implementation at a city and regional level (including London to an extent). Firstly, for instance, while the so-called ‘Northern Powerhouse’ and ‘Midlands Engine’ have attracted plenty of headlines, in terms of actual investment current figures suggest that there still exists an 85% transport funding gap between London and the North East. Secondly, London, and the new devolved city mayors of Birmingham and Manchester, do have some powers to implement significant change but civic governance structures will likely need to adapt to keep up with the pace of change.

Whilst one city solution may not suit all, city-to-city collaboration at this level may be valuable and consideration should be given to how this can be facilitated for the future.

More broadly, the industry will doubtless welcome Chancellor Phillip Hammond’s commitment to protecting access for capital projects to funding via the European Investment Bank during the Brexit negotiations and, further, the news that the UK Guarantee scheme will be expanded. However, there is a real socio-political tension here between the requirement for new and future-proofed infrastructure, and how far we are prepared for the state to actually deliver – which will likely entail significant data-capture and processing or re-development of places and spaces. Lord Adonis, and others, has observed that with the downward pressure of Brexit having a marked effect on investment appetite, it is very much up to the public sector to drive forward the commitment to infrastructure development and facilitate new forms of investment. But there is a place for private sector investment too, though current financial, lending and tax structures will likely need a shake-up to better facilitate and encourage the patient capital investment that infrastructure demands.

There is, therefore, broad agreement that infrastructure is a priority for the UK, but questions remain over where and on what the firepower is focussed.

Connecting tomorrow’s city

Cities are becoming ever more digitally connected, with new smart urban offerings and an increased appreciation and usage of data-led solutions. Meanwhile, continuing densification will necessitate the development of innovative new transport systems – from the Thames cycle deckway to Gensler’s so-called London Underline. Globally, motorised mobility is set to double by 2050, while the impact of electric and autonomous vehicles will radically alter what is needed in terms of not only road networks and charging points, but also the laws and regulations that keep populations both mobile and secure. In terms of public transport, we have seen new solutions come to market from data-rich private companies such as City Mapper, while the rise of Uber has demonstrated how high the ceiling is in terms of shared and interconnected transportation.

As these systems become more connected through the ‘internet of things’, cyber security will become an increasingly important element to resilience planning for infrastructure and the wider built environment. However, ‘smart’ and ‘big-data’ analytics have the potential to radically streamline not only how infrastructure is managed, and how users experience it, but also how it is planned for and developed sustainably.

Put simply, many of our key infrastructure and transportation systems, including the railways and London Underground, are essentially Victorian constructs and addressing the needs of tomorrow’s city will not be about developing solutions retro-fitted to yesterday’s tech. Solutions will need to be forward looking, innovative and developed to maximise the potential of today’s technology.

Of course, laws and regulation often lag behind innovation, and the pace of change is quickening. New structures, strategies and frameworks (from investment to tax to planning legislation) will need to be developed to not only enable infrastructure delivery, but also to police the system and ensure that the future cities we are building are not only mobile, connected and integrated, but safe and secure.

Helen Garthwaite and Suzanne Gill, partners at Wedlake Bell and co-founders of Tomorrow’s City, Today’s Challenge

 

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Record M&A activity & FM in UK

International mid-market M&A and debt advisory firm, Livingstone, has released research that shows the UK building and facilities service sector is experiencing huge growth.

The figures show that the sector has grown by £15bn since 2011, with a total UK market value of £125bn in 2016. The analysis points to a resurgence in M&A activity over the past five years, with a 96% increase in overall deal activity occurring since 2012.

Some 51 contracts were signed in 2016, while over 20 deals have been made so far this year, nearly as many as were made in the whole of 2012.

Despite political and economic uncertainty, through market changes and Brexit expectations, the M&A and FM market has shown a great deal of resilience. Livingstone also point to renewed foreign interest in UK assets associated with the building and facilities services sector, a more attractive prospect with a stable economy and weak pound.

Over the past five years, hard facilities services, such as maintenance, refurbishment and mechanical services have lead the way with 59% of all activity in the sector. In particular M&E services comprise some 29% of works carried out over the period.

The last two years has seen a large spike in M&E transactions, with 43 deals being made in 2015-16 compared to just 23 for the period of 2012-14.

Jeremy Furniss, Partner at Livingstone, comments on the findings: “The M&A markets have demonstrated great resilience in the face of daunting levels of uncertainty driven by the slew of geopolitical developments, not least of which is the growing reality of the UK operating outside of the EU.

“In many ways, this should not surprise us. The UK has always enjoyed a head-start in developing innovative solutions which the rest of the world has increasingly shown interest in accessing through acquisition. However, as the pressure to address escalating employment costs and regulatory scrutiny grow, the UK’s talent for innovation and creativity will have to rise with it.

“For the time being though, the UK’s place as a facilities and services market of strategic interest to the rest of the world is likely to sustain deal activity well into the foreseeable future”

 

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Southend Victoria rail improvement programme fast-tracked

A hugely ambitious £46M improvement programme, designed to tackle issues of reliability and reduce delays along the Southend Victoria line, has been bolstered by overnight works to bring lasting benefit to passengers much quicker.

Network Rail introduced overnight working in May of this year and 109 masts have been installed in the months since. These masts, erected as part of the organisation’s ongoing Railway Upgrade Plan, will form the underlying structure that will one day carry an approximate 128km of overhead cabling.

For reference, 143 masts were installed along the 22 mile route last year – mostly during weekend closures – which gives some indication of the recent progress made. With almost half the number of masts required now erected, work looks set to continued until mid-December 2017.

According to Network Rail, much of the current cabling dates back to the 1950s. In fact, the structures currently in place represent some of the oldest examples of their kind in operation today. This aged infrastructure is being replaced with taut 21st century cabling that won’t sag in hot weather, avoiding the need for frustrating speed restrictions.

“This work is critical to making journeys more reliable between Southend Victoria and London as part of our Railway Upgrade Plan and we’ve made considerable progress in just two months,” said Meliha Duymaz, Network Rail’s Route Managing Director. “Getting started earlier in the evening has given us time to complete more work so passengers will benefit from a more reliable railway sooner. Work is ongoing and I urge those travelling in the late evening to check how their journey will be affected and thank passengers for their patience.”

Jamie Burles, Greater Anglia Managing Director, added: “While Network Rail engineers carry out this work, we have arranged a replacement bus service to make sure customers can complete their journeys. Together with Network Rail, we are modernising the railway in Essex. This work will improve the infrastructure and we are bringing in brand new trains with air conditioning, free fast wifi and plug and USB sockets. I know it’s inconvenient for customers while the work is carried out, but I hope they will agree it will be worth it in the long run.”

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Project to investigate the future of transport

The Government has announced the launch of a new project that will investigate the implications arising from the future transport system in the UK.

The Foresight project will look at how technological developments and disruptive business models will change the way people and goods will move around the UK in the future and examine the impact this will have. The Government Office for Science’s new Foresight project will investigate how these issues will affect the transport of people and goods up to 2040.

Commenting on the project, Sir Mark Walport, Government Chief Scientific Adviser, said: “Understanding what the future of transport could hold is important for society and government.

“Policy makers need to think about the longer term future of transport in order to make informed decisions today to shape the way people and goods move in the future.

“The Foresight Future of Mobility project will help policy makers to think about the future of transport by providing the latest scientific evidence and tools.”

The project is developing evidence in the following areas:

• the interaction between people, technology and data
• new transport business models
• alternate transport futures

These areas will develop over the course of the project.

 

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Affordable housing scheme announced for Fort William

More than 200 affordable homes are to be built in Fort William, following the Scottish Government’s award of a £1.2M grant to Lochaber Housing Association (LHA).

LHA plans to develop a wide variety of mixed tenure homes for private and rental use on a tranche of newly acquired land at Upper Achintore.

During a recent site visit, Scottish Housing Minister Kevin Stewart stated: “We recognise the challenges of developing affordable housing in rural areas, so I’m delighted that our investment will help to make affordable housing a reality at this site.

“This grant will support the delivery of at least 200 new homes in Fort William and is a great example of how partnership working can deliver a range of homes to suit the needs of the local community. Increasing the supply of affordable homes across Scotland is a key commitment and vital to our ambition of tackling poverty and inequality in our society.”

Blair Allan, Director of Lochaber Housing Association, added: “The association has already built around 50 much needed homes for social rent at Upper Achintore in the last few years. However, this Scottish Government grant takes our potential investment in affordable housing here to a new level. Everyone knows that housing need in Fort William is intense. The opportunity here is that we can, in partnership with the Scottish Government, the Highland Council and others, go a significant way towards satisfying this need in the short to medium term. We are grateful to the Scottish Government for this support and for the confidence that it has shown in our ability to deliver.”

Awarded via the Affordable Housing Supply Programme, this considerable sum supports the Scottish Government’s ambition of delivering 50,000 affordable homes – including 35,000 for social rent – by 2021.

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Building Blocks for VR in Construction

2016 was the year of Virtual Reality (VR). Adoption levels started to reflect the buzz created around the technology, with CCS Insight estimating that 11 million virtual and augmented reality devices were sold in 2016, and businesses began to appreciate its value outside of gaming and consumer applications. Research firm Tractica estimates a compound annual growth rate of 60% for enterprise spending on VR hardware and content from 2016 to 2021, up from $592.3M to $9.2Bn. This is around 35% higher than the firms estimate for consumer spending over the same period.

When we look at enterprise adoption, the construction industry is often referenced as an industry that can see value in integrating VR technology as an enterprise tool. This is primarily down to the widespread adoption of Building Information Modelling (BIM) which requires architects to model proposed building projects in 3D, prior to construction work commencing.

Although more traditional forms of 3D modelling are adequate for this purpose, VR can bring 2D drawings and renderings to life in a way that other methods cannot. Those involved in the development of a building are now able to interact with the design and are in a much better position to spot inaccuracies or introduce amendments than before.

We see a number of areas where VR could be used to deliver high ROI for the construction industry.

Efficiency

Creating a physical 3D model can be time consuming and can quickly become obsolete when dimensions of the plan change during the modelling process. A VR representation can be created in a fraction of the time, and when the groundwork is complete, the model can continuously be modified to reflect how the building changes. Given that during the construction phase decisions affecting the overall outcome of the building are made every day, this is a crucial benefit.

Another major benefit is the accuracy of the exterior and interior mapping that can be achieved. As VR apps can ingest and visualise complex datasets, the resulting map is geospatially accurate – down to a millimetre. This level of accuracy is almost impossible with physical models. A driving force behind BIM regulation was to provide building information for contractors, estate agents and eventually renters or buyers, so that informed decisions could be made in relation to renovations, selling the property and maintenance of faults.

A VR representation – or digital twin – of the building could house data related to every element within the finished property so that along the supply chain, information on dimensions, location and materials used could be viewed in an instant and within the context of the building.

The 2016 BIM report highlights that although 70% of respondents are using 3D models for their construction projects only 37% use the models from the start of a project to the very end, meaning for most BIM is restricted to the design stages. 30% produce a model that is software dependent and just 16% pass on a model to those responsible for the management of a building. Creating the model in a VR application could change this, as it can be updated in real time to reflect the day to day changes on a project and make it more accessible to other stakeholders.

Decision making

It’s very rare that a construction project reaches completion without a hitch along the way. Almost from the outset there are differences of opinion, from various stakeholders, that can result in costly delays. VR could be a helping hand in these situations, particularly when the issues raised come from lobbying bodies. Experiencing the proposed building project as a finished article, via a VR headset, could provide peace of mind, as well as providing an opportunity to give valuable feedback that could have a positive impact on the project, at a stage in the building process when feedback could be taken on board and implemented.

Try before you buy

The area of the construction industry that could most obviously experience the positive impact of VR is the residential market. For developers selling houses off plan, VR is a tool that could help them bring homes to life and enable them to offer potential buyers a differentiated customer experience. Unfortunately, when it comes to buying a house, ‘try before you buy’ is almost impossible, particularly when you may be purchasing the property before construction work has even begun. VR could bridge the gap between a 2D plan or mock images and the finished product.

Putting the customer first

In many instances VR technology can alter how the construction process progresses. Creating a digital twin of a physical environment, particularly large commercial buildings that will have a large footfall such as shopping centres, airports and stadiums, architects can simulate the customer journey and assess how the building will work in practical terms – are there enough toilets within walking distance?; will the layout of the space be intuitive to navigate?; and so forth. This could have a huge impact on the end customer experience and enable architects to anticipate issues before it’s too late to rectify them.

So what’s next?

We’re likely to see VR technology trickle into businesses, including those operating in the construction industry, in the same way that we witnessed consumer adoption steadily increase. As the technology continues to improve and the main players in the VR headset space (Oculus, HTC Vive, Sony PlayStation and OSVR) continue to innovate, VR will become more accessible and we’ll see software developers focus their efforts on building industry-specific tools.

By Faizaan Ghauri, CEO of WRLD

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Government to ban new petrol and diesel vehicles from 2040

A ban on new petrol and diesel vehicles is set to come into effect from 2040 under bold new proposals to combat the so-called ‘toxic air crisis’.

The controversial measures form part of the Government’s £3Bn Clean Air Strategy, which prioritises electric and hybrid vehicles over their more polluting counterparts and looks to curtail emissions wherever possible.

It’s an extraordinary turn of events. Previously, the Government had been heavily criticised over its lukewarm response to air pollution. However, a High Court ruling compelled Conservative ministers to draft new proposals in a concerted effort to reduce illegal levels of nitrogen dioxide. This latest announcement is the Government’s response.

Speaking to the Today programme, Environment Secretary Michael Gove also confirmed that the Government would make available more than £200M of spending for local authority use. “What we’re saying to local authorities is come up with an imaginative solution to these proposals,” he said.

These ‘imaginative solutions’ might include a greener public transport system, alterations to existing road layouts and the reprogramming of traffic lights to lessen congestion.

Furthermore, when probed about the possibility of charges for certain vehicles, the Minister answered: “I don’t believe that it is necessary to bring in charging, but we will work with local authorities in order to determine what the best approach is.”

Clean air campaigners were quick to offer their support. Many have long petitioned the Government for Clean Air Zones and appropriate charges, and they are now clamoring for more details.

Industry leaders have been much less effusive however. In a measured response, Mike Hawes – Chief Executive of the Society of Motor Manufacturers and Traders – told the BBC: “Demand for alternatively fuelled vehicles is growing but still at a very low level. The industry instead wants a positive approach which gives consumers incentives to purchase these cars. We could undermine the UK’s successful automotive sector if we don’t allow enough time for the industry to adjust.”

It’s a sea change for the fleet sector but there are valid concerns that drivers of diesel vehicles, many of whom bought them at the behest of the last Labour government, will be unduly “punished”.

According to the Mayor of London, Sadiq Khan: “The commitment to phase out sales of new diesel cars is welcome, but Londoners suffering right now simply can’t afford to wait until 2040. We need a fully-funded diesel scrappage fund now to get polluting vehicles off our streets immediately, as well as new powers so that cities across the UK can take the action needed to clean up our air.

“Without extra financial support for those who bought polluting vehicles in good faith then any pledge to clean up our air rings hollow.”

For now, much is up in the air and the British public awaits the Government’s response in full.

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Major flood defence scheme for Mytholmroyd

The Calderdale Flood Partnership Board has confirmed funding for a major new flood defence scheme at Mytholmroyd.

The Board announced the £30M scheme, which is designed to provide additional protection to homes and businesses in the area, following investigation work by the Environment Agency. When complete, the scheme will provide the highest possible standard of flood protection for the village.

The Environment Agency will now apply for planning permission and construction is expected to commence in the autumn.

The latest round of defence schemes were prompted by flooding in December 2015. Six schemes recently completed, which are designed to protect some 500 homes across Calderdale from flood risk, at a cost of £9M.

While in Mytholmroyd, significant works to clear the channel, repair damaged walls and make safe damaged buildings have already been carried out.

The million pound scheme for Mytholmroyd has been developed in partnership with Calderdale Council, the local community, and partners. Current options for the scheme include:

• New, raised flood and improved walls
• The relocation of Caldene Bridge
• Widening of the river channel at key locations
• Strengthening and waterproofing of buildings next to the river.

Plans are for the scheme to be completed in phases and widening the river at Greenhill Industrial Estate will continue to be explored.

Adrian Gill, flood risk manager for the Environment Agency, said: “This is an important next step in building the right flood scheme for the village.

“We have already completed a £9M recovery programme across Calderdale to restore protection to communities following the flooding of December 2015 and have been working hard to ensure we provide the highest standard of protection. We will continue to listen to the local community and keep them informed as the project progresses.”

Cllr Tim Swift, Calderdale Council’s leader, said: “I am very pleased that the board has agreed to allocate the funding required to enable this scheme to go ahead, which is really good news for Mytholmroyd residents and businesses. Of course, this is just one part of an ongoing programme of works to reduce the risk of flooding across Calderdale, and I would encourage people to regularly visit http://ift.tt/1iFbOok to keep updated on all of the works.”

 

Image: Credit Shutterstock. Heavy and persistent rainfall from storm Eva creates flooding and structural damage at the river Calder: December 31, 2015 in Mytholmroyd, UK.

 

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Fit for a Queen, Elizabeth line fit out progresses

Crossrail has released new images to highlight the progress on the Elizabeth line stations.

The new images show the ongoing architectural fit out of the stations as it progresses into central London.

A range of common features have been used throughout stations, creating a recognisable look and feel to railway, such as the platform-level glass-fibre reinforced concrete panels, which create large and bright spaces with curved, sweeping corners.

Lying beside these details, bespoke elements have been commissioned in each station to reflect the local community. At Paddington, bespoke brick panels, architectural light fittings and columns are inspired by the adjacent Grade II listed national railway station.

While at Tottenham Court Road there are theatre-like acoustic ceiling drums, inspired by the West End, and underground glazing decal based on the street map of Soho. The deep-coffered ceiling of Farringdon’s eastern ticket hall inspired by the neighbouring Barbican and the bespoke brickwork and full-width beams at Woolwich create a large, welcoming space.

Passing through 40 stations from Reading and Heathrow in the west, through new twin-bore 21 km tunnels to Shenfield and Abbey Wood in the east, the Elizabeth line is due to open in December 2018.

Julian Robinson, Crossrail Head of Architecture, said: “Crossrail is working with the best architects and engineers in the world to create a railway that builds upon the unrivalled heritage of London and its iconic transport network. As the project passes 85% complete, these new images highlight the progress being made to install the architectural elements that will soon become familiar to the hundreds of thousands of passengers who will use the Elizabeth line every day when it opens in December 2018.”

London Transport Museum is currently running an exhibition of the design and architecture of the new railway, featuring images, films and models of the stations, a bespoke wall panel from Tottenham Court Road, and a prototype station clock.

Image: Tottenham Court Road station glass panels with Soho street map decal

 

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Housebuilder appointed for first new homes at Mindenhurst

Skanska, the construction and development partner responsible for the redevelopment of the Princess Royal Barracks in Deepcut, Surrey, has announced which housebuilder will take ownership of the first phase of residential works at its Mindenhurst site.

CALA Homes is the successful bidder for the first tranche of land and is poised to deliver 215 new properties on-site in the near future. The housing provider must first submit an in-depth planning application to Surrey Heath Borough Council however. Subject to planning approval, construction could begin as early as 2018.

According to Skanska, the first phase of homes at Mindenhurst will offer two- to five-bedroom households, ideal for first-time buyers, growing families and those looking to downsize.

For the uninitiated, Mindenhurst is a brand new neighbourhood for the village of Deepcut, to be situated on the site of the former Princess Royal Barracks. An approximate 1,200 homes are planned in addition to local amenities such as a new primary school.

Skanska will deliver Mindenhurst on behalf of the Defence Infrastructure Organisation (DIO), with each phase of new homes allocated to an individual housebuilder. Further phases will be up for grabs as the scheme progresses.

“The selection of the housebuilder partner to deliver the first new homes is a key milestone for this project,” said Tony Pantling, Development Director at Skanska. “This first phase is particularly significant as it sets the tone for the emerging community here at Mindenhurst and we are very much looking forward to seeing our vision, as laid out in the masterplan, come to fruition.”

DIO Deputy Head of Estates, Wendy Ivess-Mash, added: “This is a momentous phase in the redevelopment of the site, following many years of MOD ownership. We welcome the involvement of CALA in delivering the first phase of new homes, which will support the formation of a vibrant new community.”

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Transport Secretary gives his backing to Crossrail 2

The Transport Secretary Chris Grayling and Mayor of London Sadiq Khan have come to an agreement on the next to be taken to progress the £31Bn Crossrail 2 project.

The two issued a joint statement following their meeting that said there was ‘no doubt’ that the Capital required new infrastructure to ensure its growth and economic success.

However, the statement also said London would need to find £15Bn to go towards half the cost of constructing the project.

A public consultation process will now be launched to gain the views on the best way forward with regards to funding and settling issues over the route and locations of the station.

Secretary of State for Transport, Chris Grayling said: “I am a supporter of Crossrail 2 but given its price tag we have to ensure that we get this right. The Mayor and I have agreed to work together on it over the coming months to develop plans that are as strong as possible, so that the public gets an affordable scheme that is fair to the UK taxpayer.

“Following a successful outcome being reached I am keen to launch a fresh public consultation to help gather views to improve the scheme and clarify the position around the safeguarded route.”

Mayor of London, Sadiq Khan, said the project was “essential” for the future prosperity of London and the south-east.

He said: “I’m pleased that the Transport Secretary and I have reached an agreement to take this vital project forward. We will continue to work together to ensure the project is value for money and provides the maximum benefits for jobs and growth in the region over the coming decades. I look forward to moving to the next stage of consultation.”

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New rules to see drones registered and users take safety tests

Drones will have to be registered and users will have to sit safety awareness tests under new rules to better regulate their growing use, the government announced.

The technology is playing an increasing role within the construction industry as they are used to survey projects, collect information and accurately track a site’s progress.

Owners of unmanned aerial vehicles (UAVs) weighing 250 grams and over will in future have to register details of their drones to improve accountability and encourage owners to act responsibly.

Users may be able to register online or through apps, under plans being explored by the government. The move follows safety research that concluded drones could damage the windscreens of helicopters.

In addition, a new safety awareness test means owners will have to prove that they understand UK safety, security and privacy regulations.

The government also plans to bring forward and expand the use of ‘geo-fencing’ in the UK that acts like an invisible shield around buildings or sensitive areas. The technology, which works on GPS coordinates, is built into the drone and stops it from entering zones such as prison or airport space.

Aviation Minister Lord Callanan said: “The UK is at the forefront of an exciting and fast growing drones market and it is important we make the most of this emerging global sector.

“Our measures prioritise protecting the public while maximising the full potential of drones. Increasingly, drones are proving vital for inspecting transport infrastructure for repair or aiding police and fire services in search and rescue operations, even helping to save lives.

“But like all technology, drones too can be misused. By registering drones, introducing safety awareness tests to educate users we can reduce the inadvertent breaching of airspace restrictions to protect the public.”

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Scottish builders’ confidence takes a hit

The confidence of employers in the Scottish construction industry has taken a hit as fears over future work prospects grow according to the latest survey of the membership of the Scottish Building Federation.

Employers responding to the survey are asked to rate how confident they feel about the prospects for their business over the next 12 months compared to the past year. Following three consecutive quarters during which the industry’s confidence was rated marginally positive at +2, confidence has slipped into negative territory this quarter, down seven points to -5.

Industry employers point to growing fears over the future pipeline of new work as a potential explanation for the fall in confidence. Latest official statistics show strong output across many sectors of the industry over the year to March 2017 but with major infrastructure projects still making an outsized contribution to overall output at just under £3Bn or more than 20% of the total. By comparison, the infrastructure sector of the industry contributed less than £1 billion of industry output during the 12 months to March 2007 – equivalent to 8% of total industry output.

Meanwhile, the housing sector of the industry contributed 19% of total industry output during the year to March 2017 whereas its contribution to total industry output in 2006/07 was more than 25%. Output from the private commercial sector of the industry has dropped from 25% in 2006/07 to 18% in 2016/17.

Building employers are concerned that, as major projects such as the Queensferry Crossing and the Aberdeen Western Peripheral Route draw to a close, the industry is likely to suffer a major contraction due to an apparent shortage of other work to fill the gap.

Scottish Building Federation President and Managing Director of Orkney Builders Stephen Kemp said: “Many building employers are increasingly nervous about the future prospects for our industry. There is a feeling that the underlying fundamentals of the industry are not nearly as strong as record output figures might suggest. We know that a period of record output from major infrastructure projects such as the AWPR and the Queensferry Crossing is about to come to an end. Strip away those numbers and the performance of other key sectors of the industry such as housing and private commercial don’t look that strong.

“As that infrastructure work dries up over the next year or so, we could see the industry suffer a real shock. Levels of industry employment, which have been very slowly recovering, could slip into reverse. I think that is what SBF members are now worried about – hence the reason why industry confidence has declined.”

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Wallasea Island sees record number of birds visiting

Two years on from the completion of Jubilee Marsh on Wallasea Island, the RSPB is celebrating record numbers of birds using the Essex nature reserve.

The creation of Jubilee Marsh was made possible thanks to a unique partnership with Crossrail, Europe’s biggest construction project and the UK’s largest conservation charity, the RSPB.

Crossrail donated over three million tonnes of material excavated during construction of the new railway deep below the capital to re-create a previously lost wetland twice the size the City of London on Wallasea Island in Essex.

And now, only two years after the work was completed and the sea wall breached to create the new wetland, the wildlife making its home on the Island is reaching record numbers.

Rachel Fancy, Wallasea Island Warden, commented: “Wallasea Island is an incredibly special place, but the numbers that we are seeing on the reserve from last winter and into this season are set to break all records! The highest count of wintering birds ever recorded has now reached 12,000, meaning that the reserve is becoming a haven for wintering birds.  The mud is holding increasing amounts of food for them to feed on.”

Birds using the newly created nature reserve include, lapwing, golden plover, teal, wigeon with a further mix of redshank, curlew, grey plover, ringed plover, Brent geese, shelduck. In addition to this, plants such as samphire, sea lavender and sea aster are expected to thrive.

“We had 100 pairs avocets breeding on Wallasea last year and it looks to be similar numbers this year. For a bird which was once threatened with extinction across the country, this is a remarkable success story. We have also seen increased numbers of other birds that didn’t breed here before such as terns which have been diving into the new lagoons for fish.”

The range of species in the marshland on Wallasea has the potential to rival the diversity of rainforests due to the nutrients being deposited during daily tidal surges. Mud and plants also bring the added environmental benefit of absorbing pesticides, other pollutants and carbon dioxide.

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FMB: Growth continues for construction SMEs despite uncertainty

The SME construction sector grew in the second quarter of 2017, albeit at a slower rate than the first three months of the year, according to the Federation of Master Builders (FMB).

Key results from the FMB’s State of Trade Survey for Q2 2017, which is the only quarterly assessment of the UK-wide SME construction sector, include:

• Q2 2017 was the 17th consecutive quarter of positive growth which means that the construction SME sector has been growing for more than four years (ie since Q2 2013);
• Almost one in two construction SMEs predict rising workloads in the coming three months, with just 9% predicting a decrease in activity;
• 83% of builders believe that material prices will rise in the next six months;
• 60% of construction SMEs are struggling to hire bricklayers; 57% are struggling to hire carpenters and joiners; and 47% are struggling to hire plumbers;
• Almost two-thirds (62%) of construction SMEs expect salaries and wages to increase in the next six months.

Brian Berry, Chief Executive of the FMB, said: “Rising material prices and salaries could be starting to dampen growth among construction SMEs. However, it is encouraging to see that the sector has continued to grow despite the recent snap General Election and the resulting hung Parliament. The construction SME sector is particularly vulnerable to any dips in consumer confidence that might come from periods of political uncertainty. It may be that a number of home owners decided to delay any big spending decisions on new extensions or loft conversions while the election campaign was underway – this would account for the slow-down in growth seen in the second quarter of 2017.”

Berry concluded: “Looking ahead, almost two-thirds of construction firms expect wages and salaries to increase over the next six months and this is in contrast to stagnant wages elsewhere in the economy. Rising salaries are undoubtedly the result of the escalating construction skills shortage – construction workers know their worth and are demanding higher wages from their employers. The majority of construction SMEs are struggling to recruit key tradespeople such as bricklayers and carpenters and we’re seeing shortages in other trades, such as plumbers and plasterers, starting to creep up. With Brexit on the horizon and worrying talk of the so-called ‘Tier 2’ immigration system replacing the free movement of people, the construction industry urges Ministers to bear in mind their strategic house building and infrastructure targets before pulling up the drawbridge on EU migrant workers.”

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Steady growth predicted in UK construction chemicals market

The UK construction chemicals market is estimated to have grown by around 4% in 2016, with a further 3% increase forecast for 2017 according to a report recently published on the sector by AMA Research.

Despite the Brexit vote, there have been steadily growing levels of home improvement and housebuilding output, leading to greater usage of sealants and adhesives, with bright prospects also in the infrastructure sector.

The report focuses on liquid, spray, foam, mastic and powdered chemical products used by tradesmen, sub-contractors and homeowners, but also includes concrete and mortar additives that are used in both factory and on-site production of concrete products and mortars.

Adhesives constitute the largest product group and in recent years, growth in this sector has been underpinned by the recovery in the housing new build, home improvement, commercial new build and infrastructure applications. Since 2012, growth has also been good in the fillers product category, which includes powder and ready-mix products, wood fillers and expanding foam. Annual growth rates in the sealants, caulks and putties sector are typically steady due to the very broad range of applications targeted. The supply chain is highly fragmented, with merchant and distributor own label products being significant.

The supply of concrete, mortars & cement admixtures has improved steadily in recent years, driven by demand for use on major infrastructure projects and recovery in the housebuilding and commercial new build sectors. The strongest demand has been for water reducing admixtures i.e. plasticisers and superplasticisers, underpinned by the continuing need to reduce water usage, in particular by the concrete manufacturing sector.

Demand for protective coatings – fire retardancy, waterproofing & damp-proofing – has been maintained by the need for regular / remedial re-coating of buildings and infrastructure. A more recent new driver has been the growth in new basements and basement conversions in London homes within the more affluent boroughs, as these applications need protecting from below ground water ingress.

Demand for resin flooring systems appears to have remained steady, having diversified away from the core industrial/ warehousing market into education, food production and retail. However, a resumption in demand for warehousing, manufacturing and R & D facilities – particularly in the pharmaceutical, biotechnology & electronics sectors – will again boost this sector.

Key factors which are likely to influence the overall market over the next two years include a continued steady increase in housebuilding output partly stimulated by Government programmes, further infrastructure development in areas such as water treatment, drainage, ‘smart motorways’, energy-from-waste plants and transport, leading to greater use of admixtures, sealants and protective coatings.

Keith Taylor, Director of AMA Research: “Medium term growth prospects for the overall construction chemicals market appear steady but modest, particularly for products mostly supplied to the home improvement and trade sectors for use in residential RMI and refurbishment, such as adhesives, sealants and protective chemicals.

“There is likely to be a period of significant uncertainty over the next two-three years as the formal EU departure looms closer and the UK has to renegotiate trade deals. Risks also include changes to legislation affecting the construction chemicals market.”

Growth in the construction chemicals market is forecast at 2-3% per annum in the short to medium term.

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The risks of asbestos in a fire

Most people are aware of asbestos. It’s a nasty material, which can get into the circulatory system of anyone who comes into contact with it, and it will sit undetected for years before eventually causing a range of problems inside the circulatory system. However, it may not be known to some people that there are massive risks with regards to asbestos coming into contact with fire. But what are these risks?

Asbestos and fire – what do you need to know?

The biggest and most prominent risk that is to do with fire and asbestos is the structural integrity, which is at risk in older buildings. For those who were not aware, asbestos was once used a building material due to being very durable and heat resistant, making it suitable for support beams and the main framework of a building. This makes it a risk when the fire inside a building reaches a sufficient temperature, as the asbestos will start to crumble and fail, which could lead to the collapse of the building when the structural integrity fails.

 However, this is only one of the major risks which asbestos creates when it is expressed to fire. The fibres from the material are toxic to humans and can sit undetected inside a circulatory system for decades before becoming an issue, which is very difficult to try and fix. What you’re dealing with during a fire is, in essence, the toxicity from the smoke of the fire coupled with the fibres of asbestos, with the risk of extreme damage to the lungs being a very real possibility. The fibres themselves are released when the fire dries up the asbestos, making it brittle and causing the material to break apart and drift into the air that you’re breathing in.

 The biggest concern will be for those who are trapped in the blaze for an extended period, but also those who venture inside the building to try and fight the fire itself. Firemen are at a very pronounced risk of inhaling the fibres from asbestos, as they’ll often need to go inside the burning building to either put out the fires or rescue someone who is trapped, meaning they’re at risk time and again from asbestos. This is also further complicated by the extended period it takes for the asbestos itself to show signs of being present, with some people dying up to 15 years later from the fibres.

 In conclusion, there are many risks, which are associated with fires and asbestos. The structural failings of an asbestos-infused building are cause enough for concern, and the danger is then magnified by the fact that there are extremely high chances that you’ll inhale the fibres in with the smoke while you’re inside the building while it is on fire. The biggest risk is to the firemen, who do have protective gear on, but there’s still a high chance that they can be infected with the spores and ultimately develop problems during later stages of their lives.

Acorn Analytical Services

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Fire Protection Post-Grenfell: An interview with Stephen Adams, Chief Executive of BAFE

In conversation with UK Construction Online, Stephen Adams discusses attitudes to fire protection four weeks post-Grenfell and the implications for building regulations going forward.

Stephen is the Chief Executive of BAFE, an independent registration body for third party certified fire protection companies across the country.

Do you feel the current building regulations are rigorous enough in terms of fire safety?

There has been a move for many years, especially post-Lakenal House and Rosepark in Scotland, to completely review the building regulations regarding fire protection. But there is also the issue of the devolved governments, each of which has its own responsibilities and fire acts.

One of the issues that we are most keen to encourage is the question of ensuring that the original and updated fire risk assessment, from which all else stems, is carried out by a competent provider, with appropriate third party certification. However, even the best cannot test materials etc. so the requirements for all materials and construction methods also needs a serious review.

We’ve seen similar incidents in the past – Lakanal House, for instance. In your opinion, has enough been done to improve fire safety in the intervening years?

No. It’s been a piecemeal response at best. We do however understand the current strain the UK’s fire and rescue service are under and more help is required to enable them to perform fire safety inspections and to prosecute those who are not following legislation. This will send a stronger message that legislation must be upheld to protect people from the potential risk of fire.

Many people forget or ignore the fact that it is the building’s owner/occupier responsibility to source competent providers and ensure their building is safe from fire, and that begins with a quality fire risk assessment with any actions implemented.

Much has been made of Grenfell Tower’s apparent lack of active/passive fire protection systems. Do you see this as being true of high-rise social housing in general?

I am not an expert in the protection of houses in multiple occupation and high-rise buildings, but key issues include fire stopping, the appropriate use and installation of fire doors, and how best to use alarms. Bearing in mind that these are individual households, should all alarms go off if someone burns the toast? This may seem trite, but it’s true. The other key requirement is for all fire protection to be properly maintained to ensure that it works correctly and that it continues to be properly sited.

The sprinkler issue is not clear-cut either. It wouldn’t have stopped the cladding burning externally, but could it have stopped the original fire before reaching the cladding? We will have to wait for the results of the inquiry and information from London Fire Brigade to avoid any speculation.

What kind of active/passive fire protection systems would you expect to see in a high-rise building?

I cannot comment on a broad basis but this should be part of the review of the regulations. It must come back to the fire risk assessment for making recommendations for each building as appropriate.

Grenfell has exposed lax attitudes to fire prevention. In your experience, is the matter taken as seriously as it should be?

No. Over recent years there has been a steady reduction in fire deaths due to better materials, detection and procedures. That trend will continue despite, of course, this horrific case.

There are so many facets to ensuring fire protection is up to standard – building control, the role of the Fire and Rescue Service, the competence of providers, the material testing regime, competent maintenance and communication with property users. All of which is easy to criticise but much more difficult to implement and keep up-to-date.

Fire protection is a long-term issue and can easily fall out of the public and commercial conscience until the worst happens. Unless it is regularly reviewed that is, with systems maintained and procedures refreshed. And yet, how do you check inter-floor fire stopping once the building is finished, the ceilings are up and the interior decorated? The Fire Sector Federation (FSF), of which BAFE is a member, is campaigning for a review of Approved Document B to the Building Regulations which will address the current issues of fire safety during the building process. More information regarding this can be found on the FSF website: http://ift.tt/2uG0nHt

In light of this tragedy, what would you like to see happen next?

I’d like to see some quick actions regarding competence of providers and an expert review of requirements. But this would be at a cost to both the public and the private sector.

It is important to use competent providers, certified in the specific service that you require. BAFE provide a free search tool available online to find these third party certified competent providers near you to help fulfil your fire safety obligations. For more information please visit www.bafe.org.uk

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Balfour Beatty Living Places develops local workforce

Balfour Beatty Living Places, working in partnership with West Sussex County Council, has enabled four young people from West Sussex to develop their skills and secure employment as part of its local work experience programme.

Developed for young people aged 16 – 25 who are not in education, employment or training (NEET), the six week programme covered a variety of capabilities and skills including leadership, First Aid, construction site set up, and the opportunity to gain a Construction Skills Certification Scheme (CSCS) card which provides official proof that the individual has the required construction training and qualifications for the type of work they are undertaking.

Steve Phillips, Contract Director for Balfour Beatty Living Places, said, “We are pleased to be working with West Sussex County Council’s Children’s and Young People’s Services on an initiative which has successfully equipped local young people with the skills required to place them in long term employment.

“Together with our commitment to the on-going training of our workforce through Balfour Beatty’s membership of The 5% Club, an employer-led movement which champions investment in the next generation through workplace training, we will continue to enable our workforce to provide West Sussex’s local community with a pleasant environment to live and work.”

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RICS: Brexit uncertainty sees slowdown in growth

Workloads have slowed across all sectors of the construction industry as Brexit delays investment, according to the Q2 2017 UK RICS Construction and Infrastructure Market Survey.

Respondents reported that Brexit uncertainty is impacting on investment decisions, alongside the political upheaval stemming from last month’s general election.

Following a positive beginning in Q1 of 2017, with an increase in workloads accelerating at its strongest pace since the referendum, there has been a modest slowing in Q2 2017 with private commercial and industrial sectors seeing the most significant softening in activity.

There was, however, a strong showing in private housing activity, with 29% of contributors reporting a rise in activity.

Although growth in total workloads has slowed in the sector, it is still rising, with 21% more respondents reporting an increase.

Expectations for the next 12 months also remain relatively positive, although respondents appear noticeably less optimistic on their profit margins.

Infrastructure workloads remain broadly unchanged, with roads, rail and energy expected to see the strongest growth in output over the coming 12 months.

Economic uncertainty has led to a less optimistic outlook for the sector over the year ahead; even so, 44% more contributors expect activity to rise rather than fall. This is down from 53% the previous quarter. Likewise, only 29% more contributors now expect to see employment rise rather than a fall, compared with an average of 32% over the four previous quarters.

Financial constraints are reported to be by far the most significant impediment to building activity, and with a net balance of 79% (from 70% in Q1) is the highest reading in four years.

Despite the slowdown in growth, skills shortages persist with 55% of contributors reporting them as a constraint on growth. After having eased in 2016, the intensification of labour shortages appears to be biting once more. The lack of quantity surveyors and bricklayers appears to be particularly acute, but the shortfall extends to other construction professionals as well.

Tender price expectations over the next twelve months remain unchanged in Q2, with respondents envisaging greater price pressures. The expected increase in tender prices may signal rising costs and shrinking profit margins for businesses.

Jeffrey Matsu, Senior Economist, commented: “Economic and political uncertainty appear to be weighing on sentiment, but all things considered, current conditions and year-ahead workload expectations are holding up rather well relative to the longer-term trend. Given the ongoing nature of Brexit negotiations, it remains to be seen what impact this will have on financial conditions or the availability of skilled labour to the industry.”

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Temporary workers filling gaps as skills shortage grips

Companies could be forced to turn to employing temporary staff as they struggle to find suitable permanent candidates amid the skills shortage, according to the latest JobsOutlook by the Recruitment & Employment Confederation (REC).

Organisations across all sectors want to recruit for permanent roles, with almost one in five employers (19%) actively looking to increase their headcount in the next three months.

With 45% of employers expecting to face a shortage of suitable candidates over the next year, the report suggests that businesses may be turning to temporary workers to meet demand as permanent hiring becomes more difficult.

The latest survey of 607 employers shows:

• 34% have no spare capacity and would need to recruit to meet additional demand
• 87% intend to increase or maintain their use of temporary workers in the next three months
• 24% transfer at least half of their temporary workers to permanent positions each year.

The report suggests that temporary workers are becoming increasingly important as businesses react to the shortage of candidates for permanent roles.

Since the beginning of 2017, an average of 55% of employers who recruit temporary workers do so to ‘respond to growth’. This compares to an average of 48% of employers who made the same claim in the second half of 2016.

The findings of the survey mean that the government is likely to come under increased pressure to rethink its plans on reducing migration as it grapples with the implications of Brexit.

REC chief executive Kevin Green said: “The pool of people without a job is shrinking, and the number of people deciding to switch jobs isn’t rising as much as we’d expect. Employers are improving starting salaries to attract candidates, but even with this incentive people are unsure about taking new jobs at a time of economic uncertainty.

“In many cases businesses are bringing in temps with the intention of converting them to permanent staff once they’re in the business. This is an example of how employers are seeking solutions to the skills shortage.

“Brexit is making the situation more challenging. In London for example, a third of people working in construction are from the EU and it’s difficult to see how firms will manage if their workforce aren’t encouraged to stay in the UK and continue to contribute to our economy.”

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Government issues response to Farmer Review

The government has issued its response to Mark Farmer’s Modernise or Die: The Farmer review of the UK construction labour model but has stopped short of introducing its controversial recommendation to implement a client charge for those firms who fail to invest in skills and innovation.

In February 2016, Cast CEO, Mark Farmer, was commissioned by the Construction Leadership Council, at the request of the ministers for Housing & Planning & Skills, to undertake an independent review of the UK’s construction labour model. It looked in particular at the skills pressures and other constraints that limit housebuilding and infrastructure development in the UK.

The resulting report called for radical steps to be taken to address the sector’s longstanding problems.

In its response, the Department for Business, Energy, & Industrial Strategy (BEIS) has backed most of Mr Farmer’s  ten recommendations but was reluctant to support the call to charge those companies  who fail to voluntarily adopt the changes required.

Construction firms would be able to avoid paying the 0.5% charge of construction costs by ‘demonstrating how they are contributing to industry capacity building and modernisation by directly or indirectly supporting skills development, pre-manufacturing facilities, or other forms of innovation and R&D.’

BEIS said it supported the Report’s call to reform the CITB after admitting there were concerns from within the construction industry about its “effectiveness, efficiency and responsiveness”.

Last week  Apprenticeship and Skills Minister Anne Milton wrote to CITB Chairman, James Wates, to inform him of the government’s decision to allow the organisation to continue hold levy-raising powers.

In its response to this proposal, the government stated: “the introduction of a client charge to encourage and fund modernisation could risk damaging developer confidence and increasing costs, at least in the short term.”

It said its focus would instead be on implementing other measures and supporting steps the industry could introduce following the Farmer Review.

Mr Farmer indicarted he was happy the government was supportive of his findings. He commented: “I recognise that driving industry change is a long haul, but with a supportive government, both acting as an intelligent public client and in terms of setting wider policy, this can only help realise my vision of a modern and fit-for-purpose construction industry.

“ I also feel that industry itself is becoming increasingly aware of the unprecedented challenges it now faces and I believe this ‘burning platform’ is starting to accelerate its own thinking in how it embraces modernisation, albeit this also needs to be supported by the clients that the industry serves.”

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Finalists named for Brake’s Fleet Safety Awards 2017

Safety-conscious organisations have been from across the globe have made it through to the final stage of Brake’s Fleet Safety Awards 2017.

The road safety charity received a record number of first-time entries this year and now more than 70 organisations are in with a chance of winning one of 15 prestigious awards.

The annual event recognises the achievements of fleet operators and suppliers who are working hard to reduce road crashes involving at-work drivers.

Finalists this year include such household names as FedEX, Royal Mail Group, and British Gas, as well as a host of smaller firms.

 

The award categories include:

Company Driver Safety Award
For the organisation that has implemented initiatives that do most to promote and achieve safer driving among employees.

Eco Fleet Award
For the organisation that has done the most to improve safety and the environment by introducing green initiatives, such as innovative travel plans, scheduling, greener fuel and vehicles, and fuel-efficient driving.

Fleet Safety Analysis and Action
For the organisation that has implemented the most effective procedures for carrying out risk assessments, crash data analysis, and using the data to introduce tailored interventions.

Fleet Safety Innovation Award
For the fleet service provider or fleet operator that has developed a pioneering approach to fleet safety in 2016 with the greatest success.

Fleet Safety Partnership Award 
For the partnership of a fleet service provider or operator with another organisation that has delivered the most outstanding results to improve fleet safety.

Fleet Safety Product Award
For the product that does the most to improve fleet safety through innovation.

Road Safety in the Community Award 
For the organisation that has worked hardest with its local community to improve road safety for all road users. This organisation will have road safety at the heart of its corporate social responsibility ethos.

Global Road Safety Award
For the organisation that has worked hardest to improve road safety for all road users in the communities it works in around the world. This organisation will have road safety at the heart of its corporate social responsibility ethos.

Safe Vehicles Award 
For the organisation that has done the most to improve the safety of its vehicles, for instance through comprehensive and effective checking and maintenance procedures, vehicle specification and modification and use of technology.

Road Risk Manager of the Year Award 
For the risk or fleet manager who has implemented exemplary road risk management policies with proven results.

Kevin Storey Award for Outstanding Commitment to Road Safety 
For the individual that has gone above and beyond the call of duty in their its commitment to road safety, not just within the company but also the wider community. Organisations cannot enter this Award themselves but can nominate someone else within the industry.

 

Katie Shephard, Development Director at Brake, said: “Congratulations to all organisations who have been shortlisted this year. The standard was exceptionally high this year and we’re looking forward to working with our external judges to select some well deserving winners. I’d encourage companies across the industry to attend our Awards ceremony in September and help us celebrate best practice.”

The winners will be announced at a ceremony at the Hilton Birmingham Metropole on Thursday 28 September 2017.

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IPA publishes its annual report on major projects

The Infrastructure and Projects Authority (IPA) has published its fifth annual report on the Government Major Projects Portfolio (GMPP) revealing 43 major projects on the Government’s Major Projects Portfolio (GMPP), worth £455.5Bn and spread across 17 government departments.

The report is in support of the IPA’s ongoing purpose to improve the way infrastructure and major projects are delivered and the government’s commitment to transparency and delivering public services effectively and efficiently.

It provides an overall picture of how well these projects are progressing as of September last year.

The data shows a steady improvement in the way that government is delivering major projects:

• Over 60% of projects by whole life cost are likely to be successfully delivered
• Since last year’s report, the number of at risk projects has reduced from 44 to 38, which continues to be an improvement from 48 the previous year
• Transformation projects continue to make up the largest category of the GMPP with 40 projects
• The infrastructure and construction sector is the largest area of growth on the GMPP, reaching a record value of £222.5Bn

John Manzoni, Chief Executive of the Civil Service, said: “This year’s report continues to reflect a broad and ambitious government agenda with transformation and infrastructure and construction remaining key priorities.

“The data shows signs of steady improvement in the way government is delivering major projects. All government projects are designed to improve the lives of our citizens. As we continue to deliver, the benefits of these projects will be felt by the public.”

Tony Meggs, Chief Executive of the IPA, said: “We know that success or failure of a project is often determined in its earliest phases. That is why the IPA is focussing its efforts on engaging and supporting specific projects in the early stages of their development.

“We will continue to work with departments and industry as early as possible on their projects, so we can help ensure they are set up for success.”

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Planning permission granted for 116 new homes on Seaham

Planning permission has been granted for the construction of 116 new homes in the Parkside area of Seaham.

The development, in Heathway, is being delivered by the Durham Villages Regeneration Company (DVRC), working in partnership with County Durham Housing Group. DVRC is a joint venture initiative between Durham County Council and Keepmoat Homes, which has a successful 15-year track record of building new homes for sale and rent on council owned land.

To date it has invested more than £150M to create over 1,300 homes – around a quarter of which are for shared ownership or affordable rent. A unique profit sharing agreement has also raised many millions for local authority initiatives and services.

The Heathway initiative will be constructed on a formerly underused site owned by Durham County Council and a small parcel of land owned by County Durham Housing Group. It will provide 105 two, three and four bedroomed homes for market value sale with three more discounted by 30% for qualifying local buyers.

A further eight homes will be available for affordable rent with County Durham Housing Group, which will complement the group’s plans for 48 further homes on an adjoining site.

The Heathway initiative represents an investment by DVRC of around £16M and it is hoped that all the legal transfers can be completed in time to allow construction to begin on site this autumn.

Cllr Carl Marshall, Chair of DVRC, said: “This is the partnership’s first development in Seaham and it demonstrates our commitment to delivering a range of housing schemes with a focus on regenerating local communities. The 116 homes at Heathway extends the partnership between the County Council and Keepmoat and will provide further investment and jobs throughout the construction period.”

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Transport Secretary confirms HS2 routes

The Transport Secretary has confirmed the HS2 rail lines between Birmingham, Manchester, Liverpool, Leeds, Sheffield and the East Midlands.

The decision will mean new connections between Birmingham, Manchester, Liverpool, Leeds, Sheffield and the East Midlands – with all of them being linked to London by the line.

The new route is expected to free up thousands of extra seats and additional services on local lines.

Transport Secretary Chris Grayling said HS2 would provide a major economic boost to areas of the country outside of London and the south-east.

Mr Grayling commented: “As well as creating skilled jobs, apprenticeships and business opportunities, it will also mean real day-to-day improvements for people across the country.

“By building a whole new railway line for high-speed intercity connections, we will free up local services, meaning more comfort, more seats and more trains for passengers across the north and the midlands.

“We will now press ahead with building the line, while continuing to ensure affected communities get appropriate support and are treated with fairness, compassion and respect.”

The new routes will, however, mean that newly built homes in Yorkshire must be demolished to make way for the new line.

The Shimmer housing estate in Mexborough will see 16 out of the 216 homes forced to make way – a number that is being disputed by the residents affected.

The government has said that it will work with local residents to enable residents to be compensated to a level where they would be able to purchase a comparable home locally.

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Highways England begin £1.1M Two Mills junction project

The Highways England has commenced work on a £1.1M project at Two Mills, where the A550 meets the A540.

A new 320 metre cycle path will be created through the junction, with traffic lights and toucan crossings making it easier to cross the A550.

The right turn lanes onto the A540 from the A550 will also be improved and a new high-friction road surface will be laid to reduce the risk of collisions at the junction.

The A540, which runs between Chester and Hoylake, is popular with cyclists and group rides set off from a cyclists’ café near the Two Mills junction during most weekends throughout the year.

The cycling project at the Two Mills junction is one of 200 cycling schemes taking place across England up until 2021 paid for by a £100M government fund for cycling. The schemes are designed to make it easier for cyclists to cross motorway junctions and use major A roads.

Phil Tyrrell, Project Manager at Highways England, said: “We’re committed to significantly improving safety across our road network, and the new cycle path as well as the wider and longer right turn lanes will make it much easier and safer for drivers, cyclists and pedestrians to cross the junction.

“We will do everything we can to keep disruption to a minimum while the work is taking place, and look forward to seeing the new cycle path open in time for the spring.”

The new cycle path, which will be shared by cyclists and pedestrians, will run along the southbound A540. The route will cross two new islands on the A550 at the Two Mills junction before continuing along the A540.

Two crossings will also be created at either end of the cycle path for people travelling in the opposite direction. The bus stop on the A540 will be moved to the opposite side of the junction to allow space for the new cycle path.

Most of the work will be undertaken overnight between 8pm and 5am, with some work also taking place at weekends.

The scheme is due to be completed by spring 2018.

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