Huwebes, Agosto 31, 2017

Finishing touches for iconic Battersea Power Station chimneys

Battersea Power Station is celebrating the early completion of its iconic chimney stacks, following a final lick of paint.

All four chimneys have received base and finishing coats identical to those of the original power station to ensure the historic structure appears as unchanged as possible.

For contractors, this is the culmination of many months hard labour. Each chimney has had to be painstakingly dismantled and rebuilt following a period of intense scrutiny and consultation with both Historic England and the London Borough of Wandsworth.

Reinstating the world-famous chimney stacks has long been a priority for the Malaysian shareholders behind Battersea Power Station’s ambitious redevelopment, and this latest milestone acknowledges their historical and cultural significance.

Rob Tincknell, CEO of Battersea Power Station Development Company, said: “It is wonderful to see the chimneys, which have become a permanent fixture on the London skyline, freshly painted and the finishing touches applied. This is a great opportunity to thank the BPS team, the specialist contractor and everyone else who was involved in ensuring one of the most important parts of the redevelopment project was successfully completed.”

According to Councillor Ravi Govindia, Leader of Wandsworth Council: “An exciting new skyline is developing at Battersea but it is fantastic to see our old friends, the power station chimneys, restored to their former glory: a proud landmark for Wandsworth and for London. Rebuilding the chimneys as exact replicas was a key condition of the overall planning application so it’s great the pledge has already come good, ahead of schedule.”

The Battersea Power Station redevelopment spans 42 acres and incorporates 3.5 million square feet of mixed-use commercial accommodation alongside 4,364 new homes. It is thought that the development will generate 20,000 new jobs and inject around £20Bn into the UK economy, making it a project of some significance to the City of London.

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Network Rail thank passengers amid London Bridge rebuild

Network Rail is thanking passengers along its Kent and South East London lines for their continued patience as routes change amid London Bridge station’s ongoing rebuild.

Ordinarily, Southeastern trains would run into London Bridge, Charing Cross and Waterloo East. Those same trains now pass through Cannon Street, Blackfriars, Victoria and Waterloo to a revised timetable, up to and including Saturday 2 September.

The change came into effect on Tuesday 29 August, and although Cannon Street and Victoria were undoubtedly busy there was no need for the maddening queue systems that commuters have come to know and loath.

Crucially, great strides have been made over the August bank holiday. Network Rail has installed new track and signalling along the London Bridge to Cannon Street route, allowing that line to reopen as planned.

Focus now shifts to Charing Cross, where engineers are replacing three lines approaching London Bridge and reorganising their layout. From Sunday onwards, Charing Cross trains will be free to run through the brand new Bermondsey Dive Under railway junction, making journeys more reliable for passengers.

Meanwhile, work continues at London Bridge until Sunday when Network Rail opens the new platform six, enabling more Charing Cross trains to stop at the station.

“I understand that these changes to services have been inconvenient for passengers and I would like to personally thank them for their patience while we carry out this next stage of our Railway Upgrade Plan,” said Simon Blanchflower, Thameslink Programme Director at Network Rail. “Our engineers have been working tirelessly and are on track to complete this improvement work in time to reopen the lines and the new platform six on Sunday, as planned.”

Ellie Burrows, Train Services Director at Southeastern Railway, added: “We are grateful to passengers who have changed their journeys over the past few days as vital improvement work takes place. We continue to encourage passengers to travel outside peak times, and also work from home if at all possible. This will help us to reduce the need for queues at stations and make journeys easier. An amended timetable will continue to be in place until next week and passengers should always check before they travel.”

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FMB appeals for SME inclusion in CLC

Following Leo Quinn’s resignation from the Construction Leadership Council, the Federation of Master Builders has released a comment on the future makeup of the Council.

The main point made by the Federation is that representation within the council needs to be broader, including more SMEs to better reflect the construction industry.

The CLC has been thrust into the spotlight following the resignation of Mr Quinn, the Chief Executive of Balfour Beatty. Alongside his resignation, Mr Quinn roundly criticised the CITB voicing his concerns to the Sunday Telegraph, arguing that Industry Training Boards needed the same accountability as the companies that paid their levies.

Currently, the CITB occupies a pivotal role in providing all of us in the sector with the skilled workers we need,” wrote Mr Quinn. “Bluntly, the present skills shortage shows it hasn’t been doing this for some time.”

The comments about the CITB have now been followed by his resignation as Skills Lead at the CLC, though his resignation has been clarified as “due to long term commitments”. We cannot help but wonder if the two are related.

Created in 2013, the Construction Leadership Council, was developed to help the government in identifying and delivering actions that will support UK Construction industry create greater efficiencies, skills and growth.

Brian Berry, Chief Executive of the Federation of Master Builders (FMB), said:  “Whoever replaces Leo Quinn as the Skills Lead on the CLC should come from a small or micro construction firm. Construction SMEs train two-thirds of all construction apprentices and are key to resolving the chronic skills shortage in the UK. Small construction firms are champions of quality training and will play an integral role in helping the Government to reach its ambition to deliver three million apprenticeships by 2020.”

“More generally, questions remain regarding how well the CLC reflects the structure of the construction industry. Quinn stepping down presents the Council with an opportunity to take a fresh look at its membership. Arguably it doesn’t currently represent or engage with huge swathes of the construction industry – most notably the private domestic contractor. Professionalising the domestic builder is key to improving the overall image of the construction industry and until we do that, we won’t succeed in attracting the right calibre or number of new entrants into our industry.”

 

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Miyerkules, Agosto 30, 2017

Construction teams sought London HS2 stations

Construction teams are being sought to help complete the HS2 route by delivering two new stations.

Two new stations are required, at Euston and Old Oak Common, with designers working alongside HS2 Ltd, and the Euston and Old Oak Common designers, to deliver the transport hubs. The successful bidders will act as construction partners, responsible for programme management as well as procuring, integrating and managing the complex supply chains.

Construction teams are being sought to help complete the HS2 route by delivering two new stations.

Images: © Grimshaw

Works at Euston will transform the gateway, bringing it into the 21st Century. Eleven platforms will be built over two phases, nearly tripling the capacity of the station, and improving people’s journeys. The staged approach to will ensure existing services can continue to operate, reducing both disruption for passengers and the effects on the community as a whole at any one time.

The opportunity for sustainable mixed-use development will be accommodated into the designs, which could support up to 14,000 new jobs and almost 4,000 new homes.

A brand new integrated transport hub will be created at Old Oak Common, meaning HS2 will boast some of the best transport connections anywhere on the network, including direct HS2 services to Liverpool, the North West, Glasgow and Edinburgh, while new platforms will give connections to Crossrail and services to Wales and the West of England.

A wider transformation of the former railway sidings and light industrial zone is also being carried out, led by the Mayor of London’s Old Oak and Park Royal Development Corporation. The aim is to create a thriving new community with up to 65,000 jobs and 25,500 new homes.

Transport Minister, Paul Maynard, said: “The launch of the search for construction teams to build the southern HS2stations is another major step towards making Britain’s new railway, a catalyst for growth across the country. And next year HS2 Ltd will begin the hunt for companies to build the two Birmingham stations.

“The winning bidders will need to ensure that the stations provide the best possible customer experience. But there will also be huge and exciting opportunities for development around all HS2 station sites, not just in London and the West Midlands, but also in Manchester, Leeds, Sheffield, and the East Midlands, unlocking huge opportunities for new jobs, homes and economic growth.”

HS2 Ltd Chief Executive, Mark Thurston, said: “Launching this competition is another major milestone for HS2. Over the next decade, the successful bidders will go on to build 2 of the most challenging and high profile elements of the project; a brand new transport hub at Old Oak Common that will kick-start the regeneration of the site plus a major expansion of Euston.

“We’re looking for the best the construction industry has to offer. Companies that share our commitment to safety, efficiency, environmental protection and value for money. Together we will create 2 iconic stations, gateways to the capital and to the nation that local communities and the travelling public can be proud to call their own.”

Bidders will be invited to tender by the end of the year, with contract award expected in autumn 2018.

 

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Top tips for controlling cash flow in construction during 2017

Whether you’re working on the most expensive project in the world or a more straightforward house build, effectively managing cash flow is vital to keeping your job on plan and your business profitable.

Here are Hudson Weir’s top tips for controlling your cash flow in the construction industry in 2017:

  1. Do your research. Knowing your client before you agree to carry out any work is an important first step in any construction project. If they have any history of failing to pay on time – or worse, not at all – it may not be a risk worth taking, however enticing the final profit looks. They might be promising you a huge sum of money but you need to make sure they have the financial means to pay. Don’t be afraid to collect references from other businesses the clients have worked with in the past to be confident of this before you sign any kind of contract.
  2. Have a thorough plan of what’s coming in and going out every month. A cash flow forecast means you can estimate how much cash you will have at every stage of the project. You can then work out important steps such as ensuring you get paid by clients before you have to pay out for materials and labour. Monitoring your forecast regularly as the project is ongoing also means you can see clearly whether you are on track financially and whether there are any regular costs such as utilities that you could reduce or change.
  3. Put yourself first. If your business isn’t going to make a profit from the work, is it worth doing? Once you’ve established you’re definitely on track to make money, then work out a realistic and profitable estimate for the project. Don’t promise the potential client a low price so they will use you if you can’t deliver it with a profit – but on the other hand don’t set your costs so high that they will start looking elsewhere. Also think about asking for a deposit on large orders so you have generated enough cash to get started.
  4. Keep on top of the books. However well your business is doing, if you fall behind with the books you’ll be doomed. You might have ten profitable projects going on at once, but forget to set a schedule for the invoices or fail to collect them and you’re not going to have any money to pay your staff or buy materials. Agree clear payment terms and conditions with clients from the outset and set up a simple way for them to pay you so you know you will receive everything on time – or know immediately if you don’t. Sending invoices as soon as the work is completed will also mean you get your money as quickly as possible.
  5. Timing is key. You need to make sure you have enough cash at hand when you are due to pay money out. For example, if your customers have 30 days to pay you but your suppliers need to be paid within 14 days, you’re going to be left in the red. Working out a proper timing schedule as part of your cash flow forecast (see point two) will help you work out the most appropriate payment schedules to suit all parties.
  6. Keep channels of communication open. Make sure your clients can contact you at all times – if they have a question or issue and can’t contact you to resolve it, they may delay a payment which can then have huge knock-on problems. Give them a point of contact who they know they can speak to should any issues arise. It’s also worth having a strong relationship with your bank so you can let them know in advance about any unforeseen changes or delays.
  7. Stay on top of change. Anyone working within the construction industry will know that projects rarely stay the same as originally planned – whether it’s something as small as choosing a different door handle or moving the location of a wall. Almost any change has an impact on cost – and you need to make sure you agree a way to communicate these changes to the client. We would recommend telling the client about any changes to cost as soon as possible; but whether you provide updates on a daily, weekly or monthly basis, make sure all changes are well documented. It may sound obvious but it’s also worth checking the client has the funds to pay for the change before you make the decision to do it, however minor it seems.

Being thorough, well organised and open with clients are all key to controlling your cash flow in the construction industry, but if you follow these simple tips we’re confident your business will remain a success.

By Hasib Howlader, Director at Hudson Weir – an Insolvency Practitioners based in central London.

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Wireless lorry ‘platooning’ to be trialled

A recent announcement from the government will see new wireless technology trialled on the UK’s major roads, designed to slash fuel costs as well as congestion.

The new technology is able to synchronise accelerating, braking and steering, and will see lorries ‘platooning’, seeing three HGV’s travelling in convoy controlled by the lead vehicle. Each lorry will have a driver ready to take over if needed.

The Government is investing £8.1M in the trials, hoping to see major benefits for motorists and businesses in the UK. Benefits from ‘platooning’ include better efficiency for the lorries in the convoy, with the front vehicle pushing air out of the way and streamlining the followers. This, in turn, helps lower emissions and improve air quality.

Transport Minister Paul Maynard said: “We are investing in technology that will improve people’s lives.

“Advances such as lorry platooning could benefit businesses through cheaper fuel bills and other road users thanks to lower emissions and less congestion.

“But first we must make sure the technology is safe and works well on our roads, and that’s why we are investing in these trials.”

The Transport Research Laboratory will carry out the trial in three phases. The initial phase will assess the potential for platooning in the UK, and on which roads, with track based research helping to pinpoint details such as distance between vehicles.

Road trials are expected by the end of 2018, upon assurance that it can be done safely. Similar trials have already been successfully carried out in Europe and the United States.

Jim O’Sullivan, Highways England Chief Executive, said: “We are pleased to be supporting the government’s ambition for the UK to be a global leader for innovation.

“The trial has the potential to demonstrate how greater automation of vehicles – in this instance, HGVs – can deliver improvements in safety, better journeys for road users and reduction in vehicle emissions.

“Investing in this research shows we care about those using our roads, the economy and the environment, and safety will be integral as we take forward this work with TRL.”

Rob Wallis, Chief Executive, TRL said: “The UK has an unprecedented opportunity to lead the world in trialling connected vehicle platoons in a real-world environment.

“TRL and its consortium of leading international partners, have the practical and technical knowledge gained from previous projects to understand what is required to put a connected vehicle platoon on to UK roads safely.

“The team are now taking that expertise and uniquely applying it within live traffic operations.”

Funding for the trials has been provided by the Department for Transport and Highways England.

 

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VolkerStevin to enhance East Falkland infrastructure

VolkerStevin has kicked-off a multi-million pound contract to shore up defence infrastructure along the berths of the Mare Harbour, East Falkland.

The £19M improvement programme is due to take place over the coming decade and forms part of a larger initiative commissioned by the Defence Infrastructure Organisation to modernise local military infrastructure across the Islands.

For Mare Harbour this means the design and construction of new births to accommodate larger POINT Class vessels, along with “roll-on, roll-off” (RoRo) capability for the Falkland Islands Resupply Ship (FIRS). The FIRS ferries military supplies – hardware, provisions and infrastructure, together with a small amount of commercial freight – to the Islands throughout the year.

The relative remoteness of East Falkland provides its own unique challenges however. Earlier this year, a chartered vessel embarked on a five-week trip from Rotterdam to the Islands – bringing with it all the necessary plant, equipment and materials – while the piles, fabricated steel pile heads and fenders were shipped directly from Shanghai. Complicating matters is the Islands’ stringent biosecurity measures, which require all items to be checked thoroughly beforehand.

Piles for the main RoRo berth are being installed and grouted into drilled rock sockets at a depth of up to 20 metres. The piles themselves are 35 metres long and weigh up to 75 tonnes. To date, 14 of the 16 piles required have been installed.

Once complete, VolkerStevin will fit the pile heads, walkway bridges and fenders before dismantling the marine plant, which will be loaded onto a chartered vessel and shipped back to Europe.

According to Rob Coupe, Managing Director of VolkerStevin: “The project is logistically challenging and transporting thousands of tons of materials and equipment to the other side of the world is no simple task. After several months of detailed planning, we are pleased construction is now well underway and due to complete on time.”

Overall completion for this particular contract is scheduled for December 2017.

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Martes, Agosto 29, 2017

Government’s digital spend with small businesses rises to over £1Bn

The government and other public sector organisations have spent £1.2Bn with SMEs on cloud and digital services since 2012, new figures reveal.

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Nine gold safety awards for Sellafield Ltd

Sellafield Ltd has been awarded nine gold awards by the Royal Society for the Prevention of Accidents (RoSPA).

The RoSPA Health and Safety Awards recognise safety performance at Sellafield Ltd in 2016/17

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Bright idea for motorways

Highways England has employed innovative lighting solutions to brighten the M62 motorway.

Working on the M62 J22-J25 scheme, Highways England approached specialist lighting companies in order adapt sodium lighting technology for the motorway.

This type of solution is common place for architectural ornamental lighting, such as monuments and halls, but this is the first time it is being used to light a highway.

The improvement work saw 1,618 street lights replaced with modern efficient LED lighting units on the M62 near Huddersfield and Halifax (junction 22 to 25), and the M621 near Leeds.

The new lighting is 53% more efficient, saving more than 700 tonnes of carbon a year, the equivalent energy of powering the homes of 20,000 people and 389,000 loads of washing. Further benefits comprise the need for minimal maintenance, meaning less disruption for drivers.

Works also included the upgrading of power supply equipment on both roads, while a remote monitoring system was also installed to control the new lights.

Highways England service delivery team leader for Yorkshire and Humber, Mark Ramsden, said: “This is a true example of taking innovation from another industry, modifying it for the highways sector, and improving value by locking in safety, customer, cost efficiencies and environment benefits.

“We have replaced the conventional lighting with the newly developed lighting to provide bright, effective illumination to highways and road signs – reducing maintenance and road closures for drivers.”

Image shows upgraded lighting on right hand side of carriageway in  comparison to the left.

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Biyernes, Agosto 25, 2017

Latest data reveals strong growth in housebuilding

Figures released from the Department for Communities and Local Government show that housebuilding is at its highest level since 2008.

The latest data shows that the number of new build homes that have started on site has surged to a decade high, with 164,960 new homes started in the year to June 2017. And with more than 153,000 new homes completed during the same period, housebuilding is going from strength to strength.

Housebuilding is strong across the UK, with Gloucestershire, South Derbyshire and South Norfolk amongst the strongest areas in delivering high levels of starts.

The figures show an increase of 13% from 2016, with new build homes increasing by more than three-quarters since 2009.

Housebuilding is an important part of Government Strategy, with a White Paper released earlier this year on how to tackle the housing shortage across the UK. However, while private housebuilding is strengthening, the statistics also show that the number of affordable home starting on site is not as strong. Starts by housing associations were 19% lower when compared to the last quarter and completions 17% higher, and more needs to be done to progress this sector in order to meet government targets.

An additional £1.4Bn investment was announced for in the Autumn budget for the government’s affordable housing programme, bringing the total budget to £7.1Bn. Since 2010, almost 333,000 affordable homes have been delivered, including 240,000 affordable homes for rent.

Housing and Planning Minister Alok Sharma said: “Building more homes is an absolute priority for this government. Today’s figures are proof that we are getting Britain building again, with new housing starts reaching record levels since 2009.

“It’s vital we maintain this momentum to deliver more quality homes in the places that people want to live. Our housing white paper set out an ambitious package of long-term reforms to do just that.”

The figures are based on building control inspection data, submitted to the department by local authorities, the National House Building Council and independent inspectors.

 

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Scaffolding fall results in company fine

An investigation by the HSE has led to a construction company being fined after a worker suffered life changing injuries falling from scaffolding.

R J Scaffolding (Bristol) Limited was fined after a worker fell more than six metres from scaffolding, leading to him being in an induced coma for two weeks with several serious injuries, such as five skull fractures and losing the sight in his right eye.

The HSE conducted an investigation into the incident and found the employee was untrained, the supervisor was unfamiliar with the current expected safety techniques and the appropriate equipment had not been provided to the worker to conduct this work safely.

R J Scaffolding (Bristol) Limited of Central Business Park, Hengrove, Bristol pleaded guilty to breaching Regulation 2 (1) of the Health and Safety at Work Act 1974 and has been fined £26,000, with costs of £1657.76.

Speaking after the hearing HSE inspector Ian Whittles said: “We want all workers to go home healthy and safe. Those in control of work have a responsibility to ensure safe methods of working are used and to inform, instruct and train their workers in their use.

“If industry recognised safe systems of erecting scaffold had been in place prior to the incident, the life changing injuries sustained by the employee could have been prevented.”

 

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Mace to helm Shard Place residential development

Real Estate Management (UK) Limited (REM) and Sellar have this week announced the appointment of Mace as construction manager for Shard Place – a brand new residential development on London’s Southbank.

Shard Place is the third piece of Renzo Piano’s Shard Quarter puzzle – with The Shard and The News Building the initial two – and it replaces the now demolished Fielden House.

The striking 180,000sq ft structure will accommodate 148 one-, two- and three-bedroom apartments over 26 storeys, with a spectacular rooftop garden sitauted on the 16th floor. This is the third phase of a 2.5 million square foot regeneration of the area immediately surrounding London Bridge Station.

Mace will provide a comprehensive package of construction management services for Shard Place, including the delivery of the shell and core, fit-out of the apartments, all associated MEP services, residential amenities and public realm works.

“Mace was one of our trusted partners on The Shard and we look forward to working with them to complete the third building in Renzo Piano’s vision for Shard Quarter,” said Michael Baker, CEO of REM. “Since The Shard’s inception, the area around London Bridge Station has undergone a complete transformation and is almost unrecognisable. The thriving community of employees, visitors, guests and commuters that come to Shard Quarter every day has enlivened the area and we look forward to welcoming residents to the neighbourhood when Shard Place is ready for occupation.”

Gareth Lewis, Mace’s COO for Construction, added: “Mace has worked on almost every element of Shard Quarter – from building The Shard itself to the News Building and the new station concourse. The fantastic proposals for Shard Place will complete this transformation and our appointment to deliver the final jewel in the crown following a competitive tender process feels very special. The enduring relationships that Mace builds with its clients are vital to its long-term success. After 11 years, our record at London Bridge is a real testament to our commitment to delivering on behalf of our clients.”

Shard Place is on track to complete by 2020.

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Huwebes, Agosto 24, 2017

Fifth phase of ‘Schools for the Future’ starts

Some £28M will fund the construction of four new schools across Scotland, as part of the fifth phase of the £1.8Bn ‘Schools for the Future’ programme.

In total, the programme will deliver 116 schools, benefitting over 60,000 pupils, and seeing at least one new school built in every local authority area in Scotland.

The fifth phase of funding comprises four new school projects:

  • Jedburgh Intergenerational Campus, which will replace Jedburgh Grammar School, Parkside and Howdenburn Primary Schools, in the Scottish Borders
  • Sighthill Community Campus, which will replace St Stephen’s Primary School and St Kevin’s Primary School in Glasgow
  • Underbank Primary School, South Lanarkshire will be replaced, as will
  • Walston Primary School

Funding for the programme is being provided by both the Scottish Government (some £1.13Bn) and local authorities, who will contribute the remaining funds.

Phase V of the programme is going ahead due to the Scottish Futures Trust’s (SFT) good management and careful monitoring of the programme budget and contingency, enabling more schools to be built for the same Scottish Government funding.

The fifth phase was announced by Deputy First Minister John Swinney during a visit to Jedburgh Grammar School.

Under new proposals, the current school will be replaced by Jedburgh Intergenerational Campus that will include sports facilities and a community hub, alongside education provision for two to 18 year olds.

Mr Swinney said: “We originally aimed to build or refurbish 55 schools across Scotland at the outset of the programme in 2009 and have now more than doubled that commitment.

“These new buildings will provide children and young people with inspiring learning environments and some also include facilities for wider community benefit and use that will be enjoyed by generations to come.

“The projects are also a welcome boost to the local economy, creating apprenticeship opportunities for young people and construction jobs across the country.”

Gemma Boggs, education delivery director at the Scottish Futures Trust, said:  “We’re absolutely delighted that by careful management of the budget and programme, four more schools are to be built from the existing programme budget.

“This will benefit 1,000 more pupils and will take them out of poor condition schools and allow them to learn in well-designed, fit-for-purpose schools aligned to modern teaching methods.”

Councillor Carol Hamilton, Scottish Borders Council’s Executive Member for Children and Young People, said: “During extensive consultations we have carried out with the community, it was obvious that a new campus was required to provide the children and young people with the education and learning experiences that they need.

“We thank the Scottish Government for their support and look forward to delivering a facility which will prove a real asset to the Jedburgh community.”

 

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Persimmon results reflect resilient housing market

Persimmon Homes has released its half-year report to July, revealing an optimistic outlook, benefitting from a resilient housing market.

The half-yearly business report states: “The [housing] market remains confident”, which is backed by continued demand for new build properties.”

The housebuilder said that its regional offices “remain confident and consumer sentiment is resilient” and that inflation rises were being “mitigated by healthy employment levels”.

Persimmon reports that the housing market is still holding itself well amongst uncertain economic forecasts, markets, and political turmoil, which revealed with customers not experiencing problems when raising funds to buy homes.

The Company sees that mortgage lenders were approving high numbers of applications, with similar levels of loans awarded to the same period last year.

Jeff Fairburn, Group Chief Executive, said: “The successful execution of the Group’s long term strategy continues to support excellent trading results as seen again in the first half of 2017. Our focus on meeting market demand to deliver high quality sustainable growth in each of our 29 regional businesses is delivering excellent outcomes for our customers, our shareholders, and all our stakeholders.”

Laith Khalaf, senior analyst at Hargreaves Lansdown stockbrokers, said: “The latest results from Persimmon have a bit of swagger about them, and well they might, with profits rising by almost a third despite a slowdown in economic growth.”

Future plans revealed in the report see Persimmon looking to consolidate its position, while increasing build activity to “reach our optimal scale in each of our regional markets.”

The housebuilder will continue to invest in the management of build programmes and improve the availability of newly built homes.

 

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Employers concerned by lack of skilled candidates

The Recruitment & Employment Confederation (REC) has released its latest JobsOutlook survey, which shows that construction employers are more concerned about a lack of appropriate candidates than any other sector.

The report also shows that employer confidence in the economy has fallen into negative territory.

REC chief executive Kevin Green commented: “Businesses are continuing to hire to meet demand, but issues like access to labour, Brexit negotiations and political uncertainty are creating nervousness. Employers in the construction sector are especially concerned as they rely heavily on EU workers to meet the growing demand for housing and to support the government’s infrastructure plans.”

The comment references a previous report that showed that EU nationals make up eight per cent of the construction workforce, and some 33% of the construction workforce in London.

The research suggests that employer confidence in the UK economy has moved into negative territory, with the net balance falling from +six per cent last month to -three per cent in the latest report, as 31% of employers now expect the economy to worsen and just 28% expect it to improve.

The latest JobsOutlook survey of 601 employers also shows:

  • 40% of employers have no spare capacity and would need to recruit to meet additional demand
  • more employers express concerns about a lack of appropriate candidates for construction jobs (both temporary and permanent) than any other area.

REC chief executive Kevin Green says: “The jobs market continues to do well despite growing uncertainty. However, this drop in employer confidence should raise a red flag.

“Businesses are continuing to hire to meet demand, but issues like access to labour, Brexit negotiations and political uncertainty are creating nervousness. Employers in the construction sector are especially concerned as they rely heavily on EU workers to meet the growing demand for housing and to support the government’s infrastructure plans.

“The added factor of dropping consumer confidence is putting some businesses on edge. If people reduce their spending, businesses will be impacted.

“The government must do more to create an environment where businesses have clarity. That means clearly laying out what Brexit plans look like and how employers can keep recruiting the people they need from the EU. The jobs market is in a good place but employers will only continue to hire and invest if they feel assured about the future.”

 

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Miyerkules, Agosto 23, 2017

Osbourne calls for northern HS3

Writing in the Financial Times, former Chancellor George Osbourne, has called for an extension to the High Speed railway to bolster the Northern Powerhouse.

In the piece, Mr Osbourne urges the Prime Minister to consider HS3, and commit to building a further high-speed rail connection for the North, between Liverpool and Hull.

Mr Osbourne was instrumental in the launch of the Northern Powerhouse Partnership, which promised new funding and powers for northern cities, and is still its chair.

The first campaign by the Powerhouse already has 70,000 signatories calling for the transport secretary to back the rail improvements, together with giving transport authorities the same powers that they have in London. The campaign wants to see the government to commit to building high-speed rail links across the north — from Liverpool to Hull, starting with the line across the Pennines. It is hoped that the plans will be covered under the next stage of the High-Speed implementation when designs for Phase 2b of HS2 are released later this year, with remodels of the current plans to include connections for the northern proposals.

Plans for HS3 would follow on from the existing HS2 scheme – a planned line linking London and Birmingham that will split into two branches to Manchester and Leeds.

“There is no geographical reason why this cannot happen,” said Mr Osborne. “The distance between Manchester and Leeds is shorter than the length of the Central line on the London Underground.”

The former chancellor claimed that building the rail connection would transform the economy, bringing over seven million extra people and new businesses to the region’s economy.

The call has been welcomed by Greater Manchester Mayor Andy Burnham and will be a topic of conversation at a transport summit for political and business leaders, held in Leeds today.

Transportation for the region will be a hot topic of debate, with the government scrapping a planned electrification of the railway in Wales, the Midlands and the north of England, when just days later, Transport Secretary Chris Grayling backed proposals for Crossrail 2 sparking anger from political leaders outside the capital.

 

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Ordsall Chord nears completion following cascade placement

The Ordsall Chord – a brand new railway linking Manchester’s main stations – is a step closer today, following the installation of an “eye-catching” steel cascade.

Having hoisted the 40 tonne cascade into position, the final piece of the UK’s first network arch bridge is now complete. Time lapse footage of the installation has since been released by Skanska-BAM Nuttall, the joint venture organisation responsible for the Ordsall Chord.

Work to boost rail connectivity in the North continues at a feverish pace. Ballast and track will now be laid atop the 1,600 tonne bridge, while a raft of rail, signalling and overhead equipment has yet to be installed. But the laying of the last cascade signifies that the end is in sight, and brings to a close one of the projects most iconic elements.

Keith Gardner, Project Director at Skanska, explains more: “This is a significant milestone on the project that will not only transform connectivity in the North, but also across the Manchester skyline as the visually striking cascades are lifted into place. This piece of work brings us another step closer to opening a vital link that will improve rail journeys for people across the region.”

Allan Parker, Programme Manager for Network Rail, had this to say: “The installation of the cascades completes the final and unique steel ribbon-effect which runs along the outside of the network arch bridge. We’ve reached yet another major milestone in the project and I would like to thank all the teams who have played an integral role in making this happen. We are a step closer to providing the infrastructure for more frequent trains and better connections, not only within the city, but the North of England.”

The Ordsall Chord falls under Network Rail’s £1Bn+ Great North Rail Project, which itself forms part of the national Railway Upgrade Plan. It is due to be completed by December 2017.

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Network Rail award Great Western Mainline upgrade contract

Network Rail has awarded the contract to electrify part of The Great Western Mainline to international infrastructure group Balfour Beatty.

Following a successful collaboration during the four month Early Contractor Involvement (ECI) phase, Network Rail were delighted to continue the programme with Balfour Beatty, agreeing the level of scope, programme and cost.

Balfour Beatty will be responsible for the 40 mile remaining section of the route, due for electrification on section 6P, 8 and 9 between Cardiff and Bristol Parkway and will utilise the latest technology and innovations in design, construction and rail plant to drive efficiencies and improve safety.

Mark Bullock, Managing Director of Balfour Beatty’s UK Rail business, said: “Our selection to deliver this important upgrade to the UK rail network builds on our partnership with Network Rail and recognises Balfour Beatty’s capability and expertise.

“Balfour Beatty and Network Rail have successfully delivered the Crossrail West Outer Electrification Programme to schedule and I look forward to passengers seeing the benefits which will come when this new section of electrification is complete.”

Main works are scheduled to commence this month with completion expected towards the end of 2018. During peak construction, the project will provide employment for over 300 people.

Image: Newly installed overhead live wires on the upgraded Great Western mainline at Reading in Berkshire, UK. Soon, new super express class 800 inter city trains will replace 40 year old diesel units.

 

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Martes, Agosto 22, 2017

CITB responds to fresh criticism over skills shortage

The Construction Industry Training Board (CITB) has issued a response to fresh criticism over its effectiveness in curbing the apparent skills shortage.

Over the weekend, Leo Quinn – CEO of Balfour Beatty – voiced his concern to the Sunday Telegraph, arguing that Industry Training Boards needed the same accountability as the companies that paid their levies.

“Currently, the CITB occupies a pivotal role in providing all of us in the sector with the skilled workers we need,” wrote Mr Quinn. “Bluntly, the present skills shortage shows it hasn’t been doing this for some time.”

It’s well established that the construction industry needs to attract one million more workers by 2020. To some, that’s a conservative estimate – Brexit may whittle away our existing EU workforce and widen the skills shortage even more so. According to Leo Quinn, bridging that gap requires “every part of the system to be pulling its weight”.

CITB has long been under the microscope, particularly with regard to its expenditure. The Industry Training Board raises £200M each year via its controversial Levy. Now, in light of the organisation’s apparent lack of success, Mr Quinn is calling for greater transparency as to how that money is spent.

“The Levy paid into the CITB – let alone its other income – provides it with a budget comparable to a good-sized public company,” continued Mr Quinn. “But while Plcs are subject to rigorous corporate governance, CITB has a fundamental governance weakness: it is not closely and regularly accountable to the industry it exists to serve. “

Mr Quinn also called for more detail on CITB’s current overhaul and assurances that the recommendations of Paul Morrell would be taken into account. Yesterday afternoon, CITB offered up its own response.

“We welcome Leo Quinn’s interest in CITB’s governance and performance,” said Sarah Beale, CEO of CITB. “We agree that CITB needs to see through its reforms, and that the industry needs to be able to hold CITB more strongly to account. Reform of CITB has already started and full details of our complete reform plan will be shared in November, ensuring full alignment to the ITB review recommendations.

“Our biggest ever industry consultation held this spring suggests that a majority of firms, including the smaller employers that dominate our industry, broadly welcome CITB’s reforms. These include streamlining what we do to provide better value for levy payers, embracing the modernisation agenda to help all construction firms become more productive, and ensuring that standards, training, support for careers and our reformed grants scheme are in place to meet industry’s key skill needs.”

“We have also made it clear that we will work closely with our industry, with employers of all sizes and across Britain, to agree our objectives and to ensure that we are held to account in delivering them. We are confident that a reformed CITB, with active support and challenge from industry, will be well-placed to meet construction’s challenges ahead,” concluded Ms Beale.

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Flood committee earmarks £22M for the North East

A flood and coastal group will oversee spending of almost £22M to protect hundreds of homes across the North East as it sets out its objectives for the next year.

The Northumbria Regional Flood and Coastal Committee (NRFCC) has launched its business plan for 2017/18, which will include continued work at Greatham in Hartlepool, Killingworth in North Tyneside, Hartlepool Headland Coastal Protection Scheme, improvements to the Central Promenade at Whitley Bay and Monkton Village Flood Alleviation Study in South Tyneside.

The considerable sum will better protect around 743 properties from flood risk and another 100 from coastal erosion.

In its 2016/17 annual report the committee also announced that it had overseen 110 projects amounting to £24.5M over the past year, reducing the risk of flooding and coastal erosion to 1,291 properties.

Projects include Lustrum Beck flood alleviation scheme in partnership with Stockton Borough Council which now protects over 150 properties, and the Brunton Park scheme in partnership with Northumbrian Water and Newcastle City Council, which addressed sewer flooding issues and reduces the risk of flooding from the Ouseburn.

According to Leila Huntington, Flood and Coastal Risk Manager with the Environment Agency in the North East: “On completion of our £22M programme of work for the coming year, we will see a reduction in flood and coastal risk to around 843 homes and businesses in the region, as well as creating 30 hectares of new water dependent wildlife habitat.

“The committee is a great example of true partnership working, with all local councils, the Environment Agency and Northumbrian Water pulling together on behalf of communities in the North East. It has an essential role to play in developing and completing flood risk management projects which reflect local priorities and understand the needs of communities.

“This is the third year of our six-year programme – so far we have already better protected 2,045 properties, bringing significant benefits to communities, properties, businesses and the environment, and this work will continue.”

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Balfour Beatty named preferred bidder for Hinkley Point C package

EDF Energy has named Balfour Beatty preferred bidder for a tranche of new tunnelling and marine works as part of the hugely ambitious Hinkley Point C nuclear power station development.

The four year package entails construction of three marine tunnels – both onshore and off – totaling 9.5 kilometres in length and 7 metres in diameter. Collectively, these excavations will form part of the all-important cooling system required to service the UK’s landmark nuclear development.

For Balfour Beatty, preferred bidder status marks the second major package to be delivered at Hinkley Point C. In 2015, the infrastructure specialist was contracted to carry out £460M worth of electrical works at the power station in joint venture with NG Bailey. This package is currently ongoing.

Stephen Tarr, Managing Director of Balfour Beatty’s Major Projects business, commented: “With our nuclear heritage dating back to the 1950s, reaching preferred bidder status on our second major package of works at Hinkley Point C is testament to both our expert engineering skills and our in-depth market knowledge.

“Hinkley Point C is a project which inspires collaboration by its very nature due to its significant scale and complexity. Our expert engineers will deploy heavy civil engineering skills and extensive knowledge of tunnelling.”

Upon completion, Hinkley Point C will be the first in a new generation of nuclear power stations – the first to be built in the UK for more than two decades. More than 700 job opportunities will be generated over the course of its construction, including up to 15 apprenticeships.

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Cyber security in short supply for Britain’s biggest businesses

The UK government is urging British businesses to shore up their cyber security in response to a string high profile online attacks.

New research, conducted by the Department for Digital, Culture, Media and Sport, has revealed that one in ten FTSE 350 companies operate without an appropriate response to cyber threats, with less than a third of directors briefed on the potential risks to their business.

Minister for Digital Matt Hancock had this to say: “We have world leading businesses and a thriving charity sector but recent cyber attacks have shown the devastating effects of not getting our approach to cyber security right.

“These new reports show we have a long way to go until all our organisations are adopting best practice and I urge all senior executives to work with the National Cyber Security Centre and take up the Government’s advice and training.”

It’s not all bad news however. According to the government’s yearly ‘Cyber Health Check’, 53% of businesses are in the process of upping their online security measures (up from 33% in 2016), while 57% have a clearer understanding of the threats posed (up from 49%).

Cyber security is under intense scrutiny at the moment, thanks in part to the much publicised WannaCry ransomware attack in May. For those concerned, the government is offering free advice and online guidance to all organisations through its five year National Cyber Security Strategy.

Alex Dewdney, Director for Engagement at the National Cyber Security Centre (NCSC), added: “The NCSC is committed to making the UK the safest place in the world to live and do business online.

“We know that we can’t do this alone – everyone has a part to play. That’s why we’re committed to providing organisations with expert advice through our website and direct engagement. We also urge organisations to follow the guidance in the Government’s Cyber Essentials scheme.”

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Lunes, Agosto 21, 2017

“It’s a digital life – we need a digital built environment.”

Building Information Modelling (BIM) specialist John Eynon speaks exclusively to UK Construction Online about the BIM proposition and the prospect of a digital built environment.

John Eynon

Could you provide our readers with a bit of an introduction? What is your professional background and how did you come to work with the UK BIM Alliance?

I am a Chartered Architect and Construction Manager with about 35 years’ experience in the industry. Over that time I’ve worked in public and private architectural practice and for a while on my own. Since the late 1990s I’ve worked mostly for main contractors in design management and work winning. Job values over my lifetime vary from several thousand to over £50M across a range of building types.

My involvement in BIM probably started around 2010/11 with the formation of the Task Group and the declaration of “The Mandate”. I became the South East BIM Champ of the Regional Hubs network as we were at that time. Later on I became Joint Chair of the national network, and we rebranded as BIM Regions UK. We have been instrumental in the formation of the UK BIM Alliance and I am a founding member of the executive team leading on engagement. Personally I’ve been involved in BIM management, consultancy, and training. Over the last few years I’ve published books on design management and BIM for construction managers.

The UK BIM Alliance has been formed by the BIM Regions, communities and aligned organisations to provide industry leadership to achieve BIM Level 2 business as usual by 2020.

Historically, the construction industry has been slow to embrace new technology. Is this still the case? Why do you think this is?

This is a mixed picture. And probably has always been. There are leading lights, early adopters and innovators who are prepared to go first and maybe take a hit sometimes but learn through the process – innovation isn’t a straight line! Due to the competitive nature of our industry with low margins, risk is always a big factor, and cash is tight.

There are a number of factors at work here that give many the excuse to hang back and see how others are doing first. The big issue for some here is that BIM and digital transformation can directly influence competitive advantage. More business means you get to stay in business. You need a longer view beyond the short-term.

Also there is this underlying attitude against sharing best practice, learning and experience. Other industries have crossed this barrier, and we need to do the same.

How do you go about changing attitudes to innovation in construction? Where do you begin?

To be honest, I think the mandate has done its job. It worked for a while, but public sector spending has shrunk, and so has the influence. The big stick doesn’t work so much. And there is no Level 2 policeman coming round to check up on you.

We need a different conversation. Value. Efficiency. Quality. Safety. Client Expectations. Risk reduction. Profit.

BIM and digital ways of working can improve all these aspects of a project and much more. I think as companies see the value their competitors create and the work they win, that will start to change and win hearts and minds. This is Darwin in action. Once the evolutionary drive to survive kicks in, the tide will become irresistible. The strange thing is, it already is for many reasons, but most haven’t caught on to that yet.

Are any sectors more behind than others?

Again, this is a mixed picture. Designers and most major contractors are making progress. There are some notable supply chain stories. But the main work lies with clients and SMEs.

Clients are critical as they will drive the need for adoption and working digitally but even now few have grasped the value working in this way can provide for them over the asset life-cycle.

Whilst central Government are working to Level 2, other public sector bodies such as local authorities present a very mixed picture. There are leading lights and others struggling to get started.

SMEs are also a key ingredient as the main players on any project may well be using BIM but lower down the supply chain the picture is very different.

Has last year’s BIM Level 2 mandate been successful in driving uptake? In your experience, are organisations aware of the benefit and amenable to change?

I think the mandate has kept BIM on the agenda over the last few years. With the industry trying to climb out of recession, it would have been easy for BIM to be kicked into the long grass. The mandate has helped prevent that but we need to start talking both about the benefits and the reasons why a change to digital working is so important and beneficial for the industry.

Few organisations, businesses or individuals really embrace change. However, the recent Farmer Report – “Modernise or Die” – paints a disturbing picture of our industry and the imperative for change at all kinds of levels. The writing is on the wall, and in a way change now is a way of life for us all. You just need to look at advances in technology over the last decade, or, as a ‘boomer’, over my lifetime.

Understandably, there is a lot of uncertainty surrounding Brexit and the UK economy. Going forward, what role might new technology play in alleviating these pressures?

The Level 2 framework is being adopted around the globe as well as in the UK. We are exporting BIM, both in terms of standards and process but also the expertise and training to support that. The intellectual framework that we now have is the envy of many around the world, and has put us among the leaders in the global digital economy.

BIM and digital ways of working can give us a trading and competitive edge – globally. We’re moving towards a data-driven global society and built environment industry and I think UK PLC is well-placed to play a leading part in that.

What advice would you have for sceptics or those oblivious to the benefits of BIM and the Internet of Things?

There isn’t a one size fits all solution. It depends upon your role in the project process. The impact for say designers could be great whilst for some supply chain minimal. And likewise regarding training and investment costs.

Dare I say it, look at your peers and competitors. Talk to the people you work with and your clients. Look for exemplars, see what the leaders in your field are doing, and the value they’re getting out of working this way. Go to a conference; join your local BIM Regions group, or specialist BIM 4 group. There’s plenty of information out there now, mostly free, and low cost meetings as well.

Check out http://ift.tt/2dFeCo4 and www.bimregions.co.uk for more information. Other online resources include www.theb1m.com and www.bim-level2.org.

The biggest mistake would be to do nothing and watch your peers move ahead of you. These are business and career-defining moments. Few seem to grasp that. The transformation to digital is inevitable, we are already a data-driven society. We need now to be a data-driven industry.

The age of connection and data is here. The Fourth Industrial Revolution. We see this day by day on our phones and tablets. Mobile. Connected. More data. More apps. The Internet of Things and Internet of Everything are already a reality and growing exponentially.

It’s a digital life – we need a digital built environment.

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Green Investment Bank sale completed

New owner Macquarie has committed to the GIB’s target of leading £3Bn of investment in green energy projects over next 3 years.

The Climate Change and Industry Minister, Claire Perry, confirmed that the sale of the Green Investment Bank (GIB) to Macquarie Group Limited has now been completed.

The £2.3Bn deal ensures that all the taxpayer funding invested in GIB since its creation, including set-up costs, has been returned with a gain of approximately £186M.

As well as fully meeting the government’s objectives, the deal secures the future of the GIB with an ambitious new owner committed to growing the business. The Edinburgh office will be home to a new revenue-generating business as well as providing services to the green energy portfolios of both Macquarie and GIB in the UK.

The government decided that moving it into the private sector now would free it from the constraints of public sector ownership allowing it to increase investment in green infrastructure as we transition to a green economy. GIB’s independent Board supported the government’s decision to sell the business to Macquarie.

In order to build on the company’s success within the private sector, Macquarie and GIB have announced that the company will now be known as the Green Investment Group (GIG) so that it will be able to make overseas investments.

Climate Change and Industry Minister Claire Perry said: “We led the world in setting up the Green Investment Bank and it is now being copied by others. Now that it’s in the private sector, it will be able to operate on an international level to tackle the global challenge of climate change. It is also perfectly placed to help us finance green initiatives for our Clean Growth Plan and realise the commitments set out in the Paris Agreement.”

The green ‘special share’ held by the Green Purposes Company Limited also comes into force now. Five independent trustees have the power to approve or reject any proposed changes to GIG’s green purposes in the future.

The government will continue to hold an interest in a portfolio of a small number of GIB’s existing green infrastructure investments. These assets will continue to be managed by GIB until they can be sold on in a way which returns best value for taxpayers’ money.

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FMB urge ministers to implement Housing White Paper

The Federation of Master Builders (FMB) has urged ministers to act now and implement the measures outlined in the Government’s Housing White Paper – especially those removing barriers for small housebuilders.

In light of a newly published report – courtesy of the Local Government Association (LGA) – assessing the overall quality of housebuilding in the UK, FMB Chief Executive Brian Berry said: “The LGA is right to highlight the slow rate of house building in England as we are currently still building significantly fewer new homes than we need to be to meet demand. Not only are we not building enough homes right now, but we’ve been under-building in this country for decades. In order to address this problem, it is vital that the Government acts on key proposals in the March 2017 Housing White Paper. The White Paper quite rightly emphasis the need to diversify the house building sector so it is less reliant on a small number of large house building companies to build our homes. The concern is that almost six months after the White Paper was published, we’ve seen limited movement on a range of policies that if implemented, could start making a difference today.”

Mr Berry continued: “The LGA report also raises concerns regarding the quality of new homes and points to one in ten home buyers being dissatisfied with the end result. To put this another way, that means 90% of consumers are satisfied with the quality of their new home, which is a high customer satisfaction rate. Furthermore, this satisfaction rate is likely to be higher still among customers of SME house builders like the ones represented by the FMB. Our members market themselves on building high quality bespoke homes for their clients and this is their unique selling point.

“The LGA report also suggests that total investment in new homes should be greater than total investment in the refurbishment of our existing homes. Given that the UK’s housing stock is among the oldest in Europe, with a high proportion of heritage properties and listed buildings, it is equally important that these homes are properly looked after and maintained. In other words, it’s not an either or situation. If we are to solve the housing crisis then we must increase the delivery of new housing but also maximise the lifetimes of our existing buildings. The Government could help encourage greater investment in our existing housing stock by reducing VAT from 20% to 5% to encourage more people to properly maintain their properties,” concluded Mr Berry.

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Biyernes, Agosto 18, 2017

Building Information Modelling: Friend or foe?

Building Information Modelling (BIM) level 2 became mandatory for use on all public sector works in 2016. Over the next year we will see further implementation of BIM – and evidence suggests it is becoming more common place in the private sector.

What is BIM?

BIM is regarded by some as a necessary evil – however by others, it is an exciting new way of procuring and delivering construction projects.

It brings together all of the information about every component of a building in one place, making it possible for anyone to access that information for any purpose, for example to integrate different aspects of a building design more effectively. In this way, the risk of mistakes or discrepancies is reduced, and abortive costs minimised.

As hardware, software and cloud applications herald greater capability to handle increasing amounts of raw data and information, use of BIM will become even more pronounced than it is in current projects.

Ultimately, BIM envisages a collaborative multi-disciplinary approach for any project, from conception to hand over and project use throughout the whole life-cycle of the building.

The focus of BIM is to design a project with the end purpose in mind. At its peak, it is the natural progression of 3D CAD design whereby all parties with design input, as well as the employer and construction parties, contribute and subsequently work from the same single design. That is not to say that BIM is limited to new projects, as, if used correctly, BIM can also be used for retrofit works to existing buildings, bringing existing property stock at least partially into the 21st century.

Level-best?

The government has recognised that the process of moving the construction industry to ‘full’ collaborative working will be progressive, with distinct and recognisable milestones being defined within that process, in the form of ‘levels’. These have been defined within a range from 0 to 3, and, whilst there is some debate about the exact meaning of each level, the broad concept is as follows:

  • BIM Level 0 – in its simplest form, level 0 effectively means no collaboration between design team or other parties with the drawings being produced as 2D CAD. These are then subsequently distributed via paper or non-amendable electronic prints to the rest of the team. Generally, this has now largely been surpassed in practice by the industry.BIM Level 1 – this level involves limited collaboration between the design team parties. It consists of some use of 3D CAD for concepts works but the use of 2D drafting for statutory approval documentation. This is generally the level to which the industry is working at present.
  • BIM Level 2 – this level is distinguished by collaborative working between parties using 3D CAD models. However, each party works from individual models so that external data from other parties combined is with the individual model to create a “federated” BIM model. Most UK practitioners who have begun to adapt to BIM are operating at around this level.
  • BIM Level 3 – considered the “Gold Standard” of BIM. This level has been used internationally on a few large scale projects, but is generally still some way off for the vast majority of UK construction practices. BIM level 3 requires all parties to be working from the same 3D CAD model which is stored on a cloud server and is therefore accessible by any party anywhere in the world.

After the design phase, this model continues to be accessible by the construction team, who would be able to amend this to create an “as-built” model. This is then provided to the end user of the building, meaning that they are able to monitor information relating to the performance of the building (e.g. energy, maintenance and other performance costs). Ultimately, at the end of the life-cycle of the building, the end-user will have detailed information to hand to safely, quickly and cost effectively demolish or otherwise regenerate the building.

Benefits of BIM

There is no doubt that BIM has the opportunity to completely revolutionise the way that building projects are designed, constructed and utilised. The concept of having the entire design team working in collaboration from the outset, with the client able to respond and suggest any amendments before even a peg is put in the ground is a clear positive in terms of overall project delivery.

Savings as a result of the use of BIM on several large international projects have already been seen. It is estimated that as a direct result of BIM, 199 days and £65k worth of time was saved on the development Abu Dhabi Airport as well as a reduction of 30% in construction time of Shanghai Tower.

Despite the clear benefits, there is equally little doubt that the implementation of BIM is a significant sea change for the construction industry and one which does not come with an insignificant expense. This expense is not just limited to the acquisition of new technology programmes, data storage and information security costs, but also training and engagement costs for staff.

Whatever your point of view, BIM represents the future of construction and there is no doubt that for the industry, it is here to stay.

Article submitted by Chris Hoar, Partner, Michelmores LLP

 

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Mayor of London’s new planning measures to boost affordable housing

Mayor of London, Sadiq Khan, has unveiled brand new measures intended to boost affordable housing across the capital.

Through his Supplementary Planning Guidance (SPG) scheme, Mr Khan is promising developers safe passage through the planning process, providing their developments meet a minimum requirement of affordable housing provision – 35% on private land and 50% on public. Those developments that make the grade will be fast-tracked through London’s planning quagmire.

There’s a caveat however. All developments must be underway within two years of initial planning approval. Any developer that fails to do so risks intense scrutiny from City Hall, with particular focus on the financial modelling that underpins their proposals.

Likewise, should a developer shirk its commitment to affordable housing, City Hall will publish online their financials – an act of public shaming, if you like. A portion of any “unexpected profits” will also be reinvested into other affordable housing schemes.

Quite wisely, the Mayor of London is wary of exploitation. In June, developers put forward plans to cut affordable housing at Battersea Power Station by 40% – a sizable reduction on the approved planning application. Who’s to say these developers won’t do the same?

Mayor of London, Sadiq Khan, had this to say: “The housing crisis is the biggest challenge facing Londoners today with too many people – particularly the younger generation – being priced out of our city, unable to afford a home.

“I’ve been honest with Londoners from the start – we can’t turn things round overnight. But we’re working hard to tackle the issue every day and we’ve already agreed to put £1.7Bn of the investment that I secured from Government into 50,000 new and genuinely affordable homes to rent and buy. This investment will work hand-in-hand with the new approach for developers that I’m introducing today, which will allow them to benefit from a fast track through the planning system if they offer more affordable housing and get building quickly.

“I’m determined to ensure we don’t have a repeat of what happened at Battersea Power Station, with developers unacceptably reducing the number of affordable homes on site after planning permission was granted. That’s why I’ve written to all councils offering City Hall’s expertise in robustly scrutinising applications to ensure we see the new and genuinely affordable homes built that Londoners desperately need.”

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Huwebes, Agosto 17, 2017

When taking risks on people becomes risky

The talent shortages presenting a significant risk to many UK organisations are well documented. In the construction sector, output is anticipated to grow at an average of 1.7% over the next four years, outpacing average construction employment which lags at just 0.6% over the same period.[1] What’s more, RICS figures suggest that the UK construction industry could lose almost 200,000 EU workers – 8% of its workforce – post-Brexit should Britain lose access to the single market.[2] However, when it comes to effective talent management, an unwillingness to take calculated risks on people can present a problem in itself.

Zara Whysall is Head of Research at Kiddy. She has over a decade of experience in conducting and applying research to help organisations enhance their performance. Zara is a Chartered Psychologist and Associate Fellow of the British Psychological Society, with experience in consultancy, research, and training roles in private and public sector organisations. Prior to joining Kiddy, Zara was Head of Research at Lane4 Management Group.

Dr Zara Whysall

Stepping out of a risk averse mind-set
To develop and grow, people need to be given opportunities to stretch themselves beyond their current capability, with the appropriate support mechanisms in place as a safety net. However, industries reliant upon STEM skills, where the flow of talent is already in short supply, tend to be understandably risk averse.

Perhaps due to the safety critical nature of the work, or expectations of clients, or as a symptom of an already stretched system, when resourcing projects there’s a tendency to go to the safest pair of hands. ‘Tried and tested’ employees who’ve delivered that type of project before. Whilst this approach is a safe short-term solution, it neglects the longer-term need to develop people, and, importantly, bring them through.

The result? Thin talent pipelines, with insufficient volumes moving through to keep them healthy. Poor talent attraction and retention too, since newly qualified individuals tend to have expectations of rapid career progression and a constant flow of development opportunities.   The combination of inadequate supply and deficient succession planning has led to many firms operating with critical holes or ‘pinch points’ in their pipeline, whilst also losing talent due to an inability to fulfil expectations of accelerated career development.

According to construction executives, risks relating to ‘workforce management and talent optimisation’ are the second biggest threat facing their business over the next 10 years.[3]

Short-term approach to talent
Kiddy & Partners has conducted a series of interviews with HR Directors and Heads of Talent in industries facing talent shortages, including construction. This revealed that a short-term approach to talent management, whereby current performance is prioritised over longer-term considerations, acts a key limitation affecting the health of prospective talent pipelines in many of these safety critical industries. In the words of one interviewee:

Getting people to think beyond the next deadline, beyond the next quarter, to think more strategically, and risk assure the business in that length of time…we can be particularly short sighted, focused on the next quarter to the detriment of other things.”

So what can be done to reduce the risks associated with talent and skill shortages? To help business leaders make key decisions around talent, HR have a responsibility to provide accurate data about who they’ve got, where, and how this capability meets current and future business needs. Without the right information and insight, firms can’t make effective decisions on human capital management.

Thinking about talent management differently
Employers can no longer afford to wait for others to find a solution to talent shortage, but must take a lead in exploring new approaches to closing the skills gap, such as applying principles of supply chain management to the talent pipeline. By identifying the core capabilities needed to achieve the business strategy, and comparing this against current capability, a talent supply chain approach allows organisations to make informed “make and buy” decisions to determine what can be “made” in-house through development and what must be “bought” through recruitment.

Making perfect predictions in a rapidly changing environment is hard. So, a combination of approaches is inevitable. Internal talent development activities such as training, mentoring, and other on-the-job programmes should be designed to meet predicable needs as far as possible. Supplementing these with external hiring for meeting unpredicted demands, and optimising the gig economy for resourcing non-strategic roles, is essential.

In addition, partnerships with other firms in the supply chain may enable employers to provide new recruits with a more rounded experience than otherwise possible, through inter-organisational talent mobility.

The supply chain approach
Within a supply chain approach, talent development can be optimised by removing any unnecessary elements that may increase training costs without adding value. Subsequently, the efficiency of development is enhanced by targeting development activities based on an accurate assessment of development needs.

The reality, however, is that much development occurs without a robust analysis of the need. This is not just current, but future needs, and in line with the business’ strategy. This results in development becoming less efficient and a diminished return on investment. The absence of a proper needs analysis up front is often compounded by a lack of training evaluation, so the inefficient investment in development goes unchecked.

In reality, wasted development spend is only the tip of the iceberg. A lack of rigour in development increases the risk that employees don’t have the capability to perform well. A skills drift develops, turning into a very imminent risk for the business, which in this industry, can mean missed project deadlines, overspent budgets, or worse, poor quality or unsafe construction.

A new approach to talent management

So how can construction organisations move towards a more proactive approach to talent management?

  • Be proactive. Ensure that talent development is closely aligned not only to current, but also future, business needs
  • Identify appropriately stretching opportunities to help employees develop their capability
  • Ensure that sufficient scaffolding is in place to support employees, following a ‘fail safe’ philosophy by having regular monitoring and review points in place to provide an appropriate safety net

Taking these steps mean that construction businesses can gain more visibility over their talent needs, close gaps and move their people forward confidently, strategically. This breaks the skills cycle facing the sector; not taking a risk on people is a risk in itself.

The full white paper is available here.
Article submitted by Dr Zara Whysall Head of Research at Kiddy. She has over a decade of experience in conducting and applying research to help organisations enhance their performance. Zara is a Chartered Psychologist and Associate Fellow of the British Psychological Society, with experience in consultancy, research, and training roles in private and public sector organisations. Prior to joining Kiddy, Zara was Head of Research at Lane4 Management Group.

 

[1] CITB (2017). Industry Insights: Construction Skills Network Forecasts 2017–2021 http://ift.tt/2kMSOtI

[2] RICS (2017). Press Release: UK construction industry could lose 8% of workforce post-Brexit, 15 March 2017 http://ift.tt/2uKUb1R

[3] Willis Towers Watson (2017). Deconstructing risk: Construction Risk Index 2017 http://ift.tt/2v3RKCF

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