£27M flood alleviation scheme unveiled in Anchorsholme, Blackpool

A £27M infrastructure project intended to reduce flood risk to some 4,800 properties in Anchorsholme, Blackpool has officially opened.

The flood alleviation scheme at Anchorsholme will safeguard Blackpool’s iconic seafront tramway, which is enjoyed by the thousands of visitors each year. It will also protect vital infrastructure and a major pumping station.

A kilometre of concrete sea wall has been replaced to preserve access to the beach, while a new promenade is providing residents and visitors with views over the Irish Sea. The promenade also links the seafront to nearby Anchorsholme Park, which is currently being redeveloped. The new measures will help preserve Blackpool’s tourism and recreational income for the next 100 years.

The scheme forms part of the Fylde Peninsula Coastal Programme – a partnership between the Environment Agency and Wyre, Blackpool and Fylde councils to reduce flood risk and develop historic and natural environments. Anchorsholme together with the Rossall project – due to be completed next year – form one of the largest coastal defence projects in the country.

Emma Howard Boyd, Chair of the Environment Agency, said: “Blackpool’s iconic beachfront is visited by thousands of families each year. This new coastal defence, delivered in partnership with local councils, will better protect the town’s popular tourist attractions as well as nearly 5,000 homes and businesses. It’s great news and demonstrates how our work benefits people and the environment.”

Floods Minister Thérèse Coffey said: “Anchorsholme’s new sea wall was made possible thanks not only to £20 million of government funding, but also the huge support of local government and other partners. The result is brilliant news for the community – regenerating the area and providing better protection for almost 5,000 homes and Blackpool’s iconic tram network ahead of winter.”

The Blackpool Council project has been funded by the Environment Agency through government grant aid and delivered by Balfour Beatty.

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On Shaky Ground: The Robin Rigg case

In MT Højgaard A/S v E.On Climate & Renewables UK Robin Rigg East Ltd & Anor [2017] UKSC 59 the Supreme Court recently considered the issue of contractual interpretation. This case concerned the foundation structures of two offshore wind farms in the Solway Firth, designed and installed by MT Højgaard A/S (MTH), which failed shortly after the project completed. The issue arose as to who was liable for the failure.

Emily Albou

The origins of the project stretch back more than a decade. In December 2006, MTH agreed to design, fabricate and install foundations for proposed turbines. These were completed in February 2009, but then started to fail. Remedial works were undertaken, mutually agreed at a cost of €26.25M. The question arose as to who should pay.

MTH argued that it had no liability to pay as it had exercised reasonable skill, care and complied with all contractual obligations. Conversely, E.ON contended that MTH had been negligent and was responsible for multiple breaches of contract and was liable for the failure.

The judge at first instance, Edwards-Stuart J found for E.ON – primarily on the grounds of MTH breaching the contract terms which required: the foundations to be fit for purpose, fitness for purpose was to be determined by reference to the Technical Requirements (which formed part of MTH’s tender documents), and the Technical Requirements required the foundations to be designed so that they would have a lifetime of 20 years. In addition, he held that this conclusion was further supported by other contract clauses.

MTH applied to the Court of Appeal which held that an inconsistency existed between the paragraphs relied upon by Edwards-Stuart J and other contractual provisions. In his lead judgment, Jackson LJ (with whom Patten and Underhill LJJ agreed) stated that the other contractual provisions should prevail. Jackson LJ described paragraphs covering the Technical Requirements relied upon by Edwards-Stuart J as “too slender a thread upon which to hang a finding that MTH gave a warranty of 20 years life for the foundations”.

The case went to the Supreme Court, which provided valuable guidance on the interpretation of contractual clauses. Lord Neuberger gave the lead judgment, reasserting the decision in Wood v Capita Insurance Services Ltd [2017], stating that:

“The reconciliation of the terms, and the determination of their combined effect must, of course, be decided by reference to ordinary principles of contractual interpretation (as recently discussed in Wood v Capita Insurance Services Ltd [2017]), and therefore by reference to the provisions of the particular contract and its commercial context.”

Lord Neuberger further stated that:

• First, where a contract contains terms requiring an item (i) which is to be produced in accordance with a prescribed design, and (ii) which, when provided, will comply with prescribed criteria, and literal conformity with the prescribed design will result in the product failing one or more of the prescribed criteria, it does not follow that the two terms are mutually inconsistent.
• Second, Lord Neuberger held that in many contracts, the proper analysis may be that the contractor must improve any aspects of the prescribed design that would otherwise lead to the product falling short of the prescribed criteria, and in other contracts, the correct view could be that the requirements of the prescribed criteria only apply to aspects of the design that are not prescribed.
• Third, Lord Neuberger stated that although each case turns on its own facts, decisions of the United Kingdom and Canada suggest the courts are inclined to give full effect to the requirement that the item as produced complies with the prescribed criteria on the basis that although the customer or employer has specified or approved the design, the contractor is expected to take the risk if they agreed to work to a design that would render the item incapable of meeting the agreed criteria.

In applying these principles to the contract, the Supreme Court overturned the Court of Appeal’s decision and restored the order made at first instance – thereby holding MTH liable for the failure.

Disputed wording in the contract resulted in the matter proceeding to the Supreme Court: the matter rested on conflicting contractual terms that were left open to different interpretations. Ultimately, this cost MTH €26.25M.

The Supreme Court judgment provides valuable guidance on contractual interpretation and warns contractors that contracts require extreme scrutiny at the outset. It is therefore critical that contractors employ expert legal advice when drafting them to ensure that they are not left open to conflicting interpretation later on. They must also ensure that the agreed design will meet the prescribed criteria: the risk lies with the contractor in circumstances where they have agreed to work to a design that later fails the prescribed criteria.

 

Emily Albou is a barrister at 2 Temple Gardens. Her practice focuses on commercial litigations and the closely related areas of property damage, professional negligence and insurance. She also acts for a range of clubs and individual athletes dealing with contractual and personal injury matters in sport disputes.

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North-South divide hindering transport infrastructure nationwide

The Arcadis Sustainable Cities Mobility Index has named London’s transport network the seventh most sustainable in the world, trumping Tokyo (13th) , New York (23rd) and Milan (18th). But many of the UK’s regional cities fell outside the top quartile, demonstrating the stark contrast between North and South.

The Sustainable Cities Mobility Index ranks a hundred of the world’s most renowned cities according to the three tenets of transport sustainability:

• People, quality of life for commuters and the availability of transport connections.
• Planet, environmental matters – specifically congestion, pollution and emission levels.
• Profit, the amount of public finance and economic opportunity in the pipeline.

While there is no secret recipe for effective urban transport, high ranking cities have a healthy balance across the three P’s. Edinburgh (17th), Birmingham (38th) and London each lead Europe as locations that are able to fund their transport requirements through revenues. And yet, while London allocates a huge amount of its budget to transport, it also ranks among the least affordable – not only in the UK, but the whole of Europe.

Meanwhile, in Manchester (35th), Leeds (59th) and Birmingham there is a risk that poor transport connectivity could hinder economic growth. The Northern Powerhouse will drive significant investment towards regional connectivity and boost economic potential in Manchester and Leeds, but all three have work to do in terms of improving the accessibility of their local transport services.

“The UK needs to up its transport game,” said Peter Hogg, UK Cities Director at Arcadis. “Although there is undoubtedly a lot we’re getting right, a truly sustainable transport system isn’t just about enabling mobility; it also needs to create major economic opportunity and improve the lives of those who rely on it every day.

“London, with its well-established infrastructure, efficient tube system and low private vehicle use, ranks highly but, as with all cities, alleviating pressure at peak times remains a concern. And our regional cities urgently need to catch up. Central government, devolved administrations and city leaders all around the country are embarking on ambitious plans to upgrade our networks and redress decades of previous underinvestment, but it will take time for these cities to move up the rankings.”

Peter continued: “Regional connectivity has to be a key. But this isn’t just about links between cities. Digital connectivity is also important and, when it comes to mobility, embracing new technology will massively improve a city’s potential. From smart ticketing options to considering the potential impact of both electric and autonomous vehicles, changes in the way we design, build and operate our transport infrastructure will play a key part in improving mobility across the UK. Increasingly, the highest performing global cities will be those who can embrace and harness digital disruption in mobility. The UK has to ask itself; are our cities really ready?”

The top ten global cities as identified by the Index were as follows:

1. Hong Kong
2. Zurich
3. Paris
4. Seoul
5. Prague
6. Vienna
7. London
8. Singapore
9. Stockholm
10. Frankfurt

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How to make a successful career change within the construction industry

For years, the construction industry has been plagued by an acute skills shortage. The Federation of Master Builders’ State of Trade Survey Q4 2016 revealed a shortage of skilled workers in carpentry and bricklaying with roles in plumbing and roofing also identified as being particularly difficult to fill.

Meanwhile, figures released by the Mayor of London earlier in the year showed that one in four construction workers in London are from the EU. This makes up an enormous 95,000 workers throughout the sector – many of whom may choose to leave the country as Brexit negotiations wage on.

This means that the capital’s construction industry is set to need 13,000 new workers each year until 2021 to close this skills gap and to meet the market’s demands.

And it’s not just London where demand for skilled staff is high. The Queen’s Speech earlier this year demonstrated an ongoing commitment to infrastructure projects across the country, with plans to continue working on the HS2 rail network and promises of more new homes to be built announced in the speech in June.

Taking each of these factors into account, the construction industry offers incredibly attractive prospects at this specific moment in time. Regardless of the area of the industry you wish to work in, there are countless opportunities to progress and grow your career at a fast pace.

Redirecting your career in construction

Unfortunately, there has long been a broad lack of understanding about what jobs are available in the construction industry, with jobs in the sector often portrayed as being limited to manual labour roles based on a construction site.

You may have found yourself in a line of work that doesn’t feel right for you, or perhaps you’re simply feeling disinterested with your job after years in a role that has started to become monotonous – but are keen to stay working within the construction industry all the same.

It might be time to make a move. You can start by looking at vacancies throughout the construction industry, but with such poor education and information around what jobs are on offer this can be overwhelming, to say the least.

Instead, you should start by considering where your existing soft skills and personal attributes could be put to best use. Would you be happier managing an entire team on a construction site, for example, or working alone on tasks as a plumber or a painter?

Finding a role that’s suited to your skillset

Of course, you shouldn’t pursue a specific career path simply based on your ability to manage others, or your preference to work unassisted and manage your own workload.

You need to think carefully about how each of your soft skills can work together harmoniously to support you in finding a rewarding new role. For example, you’ll need strong communication skills in order to work as either a site manager or a bricklayer – however, the other soft skills you’ll need to succeed in each role are widely different aside from this.

If you’re finding it hard to connect each of your soft skills together, try speaking to a construction recruitment specialist to talk through all of your options at greater length. You could also use Randstad’s construction career match tool to help you narrow down your potential career paths, which works by allowing users to select their top three soft skills, and then suggests job matches based on each of these. The results will also provide a comprehensive job description, experience and requirements, typical career routes and a salary guide.

Once you’ve found a role that appeals to each of your abilities, try speaking to colleagues or reaching out to those in your wider network who have experience in that area. You can then begin building a personal career plan outlining the appropriate skills and experience you’ll need to develop in order to succeed in your chosen career path.

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Crossrail Update: Brand new Abbey Wood station building now open

Crossrail Limited has officially announced the opening of a brand new station building in Abbey Wood, South East London.

Delivered by Network Rail as part of a far wider programme of works, the opening – which extends only to the station building and concourse proper – marks a significant first-step towards reinvigorating transport in Abbey Wood. The station will continue to be served by Southeastern rail, in addition to the newly minted Elizabeth line from December 2018 onwards.

Work goes on in spite of the opening however; to fully fit-out the entire station, commission the concourse lifts and install the state-of-the-art systems required for the Elizabeth line. A temporary station at Abbey Wood, which opened in 2014 to keep rail-goers on the move over the course of the new build, must also be dismantled to reinstate the existing car park.

In the meantime, the London Borough of Bexley will continue its urban realm improvement programme to the front of the new station building. Transport for London (TfL) will take ownership of Abbey Wood station from Southeastern ahead of the launch of the Elizabeth line next year.

According to Ben Wheeldon, Crossrail Programme Director at Network Rail: “After four years of construction, we are extremely proud of this achievement and the immediate benefits the new station building will bring to the local community. The opening of the new ticket hall and concourse at Abbey Wood is a further milestone for the Crossrail project and a clear demonstration of our Railway Upgrade Plan delivering for passengers. We would like to thank passengers and local residents for their patience while we built this important new station.”

Howard Smith, TfL’s Operations Director for the Elizabeth line, echoed those sentiments, saying: “The opening of the new station building at Abbey Wood is an important milestone, bringing us one step closer to the introduction of Elizabeth line services next December. Abbey Wood will be one of ten new Elizabeth line stations, providing passengers with a direct link through central London to new destinations. We look forward to step-free access to the station being completed as soon as possible.”

From December 2019, an Elizabeth line service every five minutes, allowing passengers to catch a single train through Central London to Paddington, Heathrow or Reading in the west.

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London must double rate of housebuilding, says Mayor Sadiq Khan

Mayor of London, Sadiq Khan, has claimed that London must build 66,000 new homes each year to meet unprecedented demand and put right year’s of “under-investment”.

The figures prompted Mayor Khan to make an impassioned plea for central government to boost the funding and powers available to London during next month’s Autumn Statement, later suggesting that government funding for affordable homes be reinstated to the previous 2009/2010 amount.

Astonishingly, the numbers – calculated by City Hall via its Strategic Housing Market Assessment – seem to imply that 65% of new build homes would have to be affordable to meet the needs of modern Londoners. The private sector cannot do this alone, and the worry now is that without government intervention the housing crisis may spiral well and truly out of control.

“Londoners know better than anyone that there has been a systematic failure for decades to build enough new homes that are genuinely affordable,” said London Mayor Sadiq Khan.

“The housing crisis is a major factor in the high cost of living in the capital, as well as putting home ownership out of the reach of many young Londoners who fear they will never get a foot on the property ladder. In the worst cases it can affect social cohesion, cause poor health and plunge residents into poverty.”

Consequently, the Mayor has drafted a ‘London Plan’ – due for publication next month – which will outline bold new measures and establish ambitious targets for every London borough. According to City Hall, meaningful change will require a profound response from the government – including the devolution of new powers to London and a sizable increase in funding for housebuilding and infrastructure.

City Hall modelling suggests that funding for affordable housing in London alone must reach £2.7Bn a year – more than five times the current spending rate.

Mr Khan concluded: “We have spent 18 months starting the marathon job of clearing up this mess – we’ve had to totally rebuild the housing system from the bottom up. I’m using every power and pound I have at my disposal to tackle this crisis head on, and I am today setting tough targets for every part of London to make its contribution. Many boroughs, housing associations, homebuilders and others in London are ready to step up – but we simply can’t do it on our own.

“This government keeps saying they understand the scale of London’s housing crisis, but these statistics prove they are just tinkering around the edges. It’s time for the Prime Minister to match her words with action and use the Budget to commit to the profound increase in investment and powers London needs to tackle this crisis once and for all.”

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Could you afford these haunted homes this Halloween?

Sinister research, concocted by Which? Mortgage Advisers, has calculated the cost of eight fictional Halloween homes and unearthed the amount needed to afford a 10% deposit.

How would you like to live in the Hawkins residence from Stranger Things, a stone’s throw from The Upside Down? Perhaps the rural charms of the Greene Family Farm, as seen in The Walking Dead, are more your style? What about Eel Marsh House, the spacious manor with one very accommodating seller – The Woman in Black?

Brains from Which? Mortgage Advisers have peered into each property to assess their worth and condition, but the findings – three of which can be found below – are not for the faint of heart:

Stranger Things, Hawkins, Roane County, Indiana, United States – £76,000

Charming three-bedroom property in suburban Indiana. Great location on the outskirts of town, within walking distance of the local school, National Laboratory, and the Harrington House. The property comes with three bedrooms, a bathroom and a very well-lit living room. At such a low price, it’s perfect for first-time buyers.

Mortgage notes: The property looks sound enough, although the living room might well need some modernising. It’s estimated that properties increase significantly if they’re near good schools. A 10% deposit would cost you £7,600.

The Walking Dead, Greene Farmhouse, Senoia, Georgia, United States – £448,000

Magnificent Georgian farmhouse located just outside of Senoia. Unlike many of the other properties nearby, the farm has its own generator and five wells providing fresh water. It also boasts spectacular views of the creek and woodland. Unfortunately, the barn is temporarily occupied until further notice.

Mortgage notes: Properties with outbuildings, such as barns, can be tricky to mortgage. The lender would want to understand whether the property is to be run as a working farm or has any agricultural ties. Buying with vacant possession would be a must. A 10% deposit would cost you £44,800.

The Woman in Black, Eel Marsh House, Crythin Gifford, Northumbria, UK – £1,440,000

Spectacular Gothic-style estate located just outside Crythin Gifford. The property comes with many intriguing features including its high ceilings, intricate stained-glass windows, impressive chandeliers and a large angular staircase.

Due to its complicated history, the legal documents are still being finalised, which could delay the buying process. Viewings can be booked through Keckwick and should be made before high tide. A 10% deposit would cost you £144,000.

Having digested the findings, David Blake – Principal Mortgage Adviser at Which? – had this to say: “Whether you’re moving home or looking to take your first step on to the property ladder, it is important not to get spooked by property transactions.

“It is vital to know how much you should be paying and what else you need to budget for. Seeking independent advice from a reputable mortgage adviser can also help you to get the best possible mortgage deal.”

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The real reasons why we aren’t building enough new homes

The Government estimates that between 225,000 and 275,000 homes need to be built per year to keep up with the rate of demand, however only 147,960 have been built for 2016/17 so far.

Many believe that this is because there is not enough money to buy the houses once they are built, as people cannot afford to get on the housing ladder due to the difficulty in saving enough deposit in order to get a mortgage, but this is not really the case as property priced at the more affordable end of the market, tends to be snapped up pretty quickly. In addition the mortgage market has improved significantly and higher loan to value mortgages are once again available, although not at 100% loan to value as they were before the credit crunch.

There has been criticism over the government’s promise of a £2Bn injection to help with funding to build social housing, as Downing Street aides have stated that this will only fund 5,000 of the 60,000 extra new houses needed to be built each year.  Funding is certainly not the major issue and we look at the main problems surrounding building more houses.

Loss of workers thanks to credit crunch and Brexit

When the credit crunch first hit in late 2007, 100% and high loan-to-value mortgages literally disappeared overnight. It happened so fast that even mortgage offers already in place were not honoured as lenders’ funds disappeared. The difficulty obtaining a mortgage made the desire of buying a house nearly impossible for a lot of people. Less people to buy houses impacted builders and property developers very quickly and left them with a lack of work. The demand for tradespeople such as carpenters, plumbers, electricians, bricklayers, etc. was decimated. It is important to realise that this was not a gradual decline over a number of years, it was a massive decline that happened over a matter of months.

The industry shrunk quickly and many people lost their jobs. As so many people skilled in the same trades lost their jobs and were unable to find more work doing the same thing, they were forced to find work outside the building industry and re-train in different sectors.

Over the last ten years, less people have entered the building industry due to lack of job prospects. Now the demand is back and prices are high again, more people will be needed in order to build more houses. Unemployment figures across the country are low so not many workers will be looking for jobs and to add to this problem, many European workers who filled lower paid roles have returned to their home countries due to the stronger Euro and concerns about Brexit. To get more workers, the roles offered will have to be more attractive which will push the cost of building the new houses up further.

Is there longevity in the building industry with the uncertainty of Brexit looming?

When demand for new houses disappeared and jobs were lost, the production of building materials slowed, and for some manufactures, ceased altogether. To build more houses we will need more materials – but the factories have not been waiting on standby for all of this time. To increase the supply of materials, manufactures will have to commit to more production, meaning costs of finding new premises and employing workers.

As specialist bridging loan brokers, many of our customers are business owners and property developers. They tell us that they are reluctant to commit to any new ventures that could be risky at the moment due to the uncertainty for the future, mainly caused by Brexit. Until the country faces a more stable future, many individuals responsible for making decisions needed in order for us to move forwards and build more houses will be remaining cautious and unlikely to spend huge sums of money opening factories or training new workers as they just do not know if it will be profitable, or indeed if it could actually prove very costly.

First appeared on KeepingitSimple.

Image:  1000 Words / Shutterstock.com

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Gatwick Airport wins big at the London Construction Awards

Gatwick Airport is celebrating success at the London Construction Awards this week in recognition of its North Terminal redevelopment, which drew to a close in February of last year.

Gatwick Airport won the ‘Process Innovation of the Year’ award following a comprehensive reconfiguration of the North Terminal, relocating Arrivals, Check-In and Security. The prestigious award ceremony took place at the Royal Garden Hotel in London on Wednesday evening.

Currently, the airport is midway through a £2.7Bn capital investment programme which aims to improve the passenger experience at every touch-point, encouraging passenger growth in the process. The redevelopment of the North Terminal, which was substantially extended in 2012, forms is fundamental to this transformation.

The complex undertaking was made all the more challenging by the 24/7 nature of a contemporary airport operation. Each and every landside area was reconfigured to improve Gatwick Airport’s processing capabilities.

The redesign created the world’s largest self-service bag drop zone, new e-gate technology on arrivals and a completely new security area with ten lanes of screening technology, intended to markedly reduce the amount of time passengers spend on essential processing parts of their journey.

“I’m incredibly proud of what we have achieved with this project, and the award recognises the tremendous commitment from everyone involved who worked tirelessly to deliver a truly fantastic facility for our passengers,” said Raymond Melee, Construction Director at Gatwick Airport.

“Investing in the transformation of the airport is a critical part of our growth strategy as it enables speed and efficiency for the 45 million passengers who choose to fly from Gatwick.”

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DIO award contract as part of Navy Oil Fuel Depot upgrade programme

The Defence Infrastructure Organisation (DIO) has contracted VolkerStevin to construct a brand new jetty at Thanckes Oil Fuel Depot in Plymouth worth an estimated £43M.

This major infrastructure project will provide a modern jetty with fuel loading and firefighting capabilities. Fire prevention within the depot itself, which provides fuel to the Royal Navy at nearby Devonport Naval Base – the largest facility of its kind in Western Europe – will also be revamped.

The new jetty will be built within the confines of a ‘Special Area of Conservation’ along the River Tamar. As such, the project will be required to comply with stringent environmental regulations.

According to Bill Hughes, Project Manager at DIO: “This is a key milestone in the Navy Oil Fuel Depot upgrade programme. There have been considerable environmental challenges and constraints that have been successfully navigated through the excellent efforts of the Project Team and we look forward to working in collaboration with VolkerStevin to ensure the successful delivery of this operationally critical project.”

Terry O’Connor, DIO Account Director for VolkerStevin, added: “We are delighted to have been awarded the design and construction of the new jetty at Thanckes Oil Fuel Depot. It continues our long association with the DIO and Royal Navy in providing key critical infrastructure solutions and we look forward to working closely with the project team and key stakeholders to deliver this strategically important scheme.”

The Thanckes Jetty is the first in a raft of projects intended to modernise oil fuel depots in Devonport and Portsmouth which serve the fuelling of naval fleet in both ports.

Dredging and clearance works are set to commence in January 2018, while piling has been scheduled for September 2018 – after the annual fish migration season. Once operational in November 2019, the depot will serve all Royal Navy fuelling requirements at Devonport.

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Government outlines next steps for delivering airport expansion

Launch of consultation on the revised draft Airports National Policy Statement and government response to the airspace consultation.

Transport Secretary Chris Grayling has today (24 October 2017) set out the next stage of delivering a third runway at Heathrow Airport.

The government is on track to publish final proposals for expansion at Heathrow in the first half of 2018 for a vote in Parliament.

Now the public have until 19 December to consider and respond to new evidence in the revised draft Airports National Policy Statement, including long term aviation forecasts and the new government National air quality plan.

Have your say on the revised draft Airports National Policy Statement

Once MPs approve the final document, it will set the planning policy framework which the airport needs in order to bring forward a planning application for the new north-west runway.

An expanded Heathrow Airport would be more accessible to the rest of the country thanks to HS2, Crossrail and at least 6 more domestic flight routes.

Key benefits of a new Heathrow runway are expected to be:

• a £74 billion benefit to passengers and the wider UK economy over 60 years
• tens of thousands of additional local jobs by 2030
• an additional 260,000 flights a year, with an extra 16 million long haul seats for passengers travelling from UK airports in 2040
• reduced fares, fewer delays and more daily destinations for passengers

Transport Secretary Chris Grayling said: “Airport expansion is one of the most important type of infrastructure project for the UK – both in boosting our economy and jobs and promoting us on the world stage.

“Leaving the EU is a new chapter for Britain and provides us with a great opportunity to forge a new role in the world. We are determined to seize that opportunity and having the right infrastructure in place will allow us to build a more global Britain.

“The case for expanding Heathrow is as strong as ever and we want to hear your views on it. This is an important consultation and I encourage everybody to get involved across the UK.”

On 25 October 2016, the Transport Secretary confirmed that the government’s preferred scheme for adding new runway capacity in the south-east was through a new north-west runway at Heathrow Airport.

This preference was reached in the interests of the whole of the UK and would make sure Britain has the connections it needs to thrive in the global market, sending a clear signal that Britain is open for business.

Heathrow is already the UK’s biggest freight port by value and a new runway would provide a post-Brexit boost for exports. Heathrow’s expansion would open up new links between the UK and markets around the world. It would connect UK goods and services to global customers and make the UK a more attractive location for inward investment.

Expansion at Heathrow is also an opportunity to strengthen the frequency of existing domestic routes and develop new domestic connections from regional airports to London and new global markets.

A third runway will double freight capacity at the airport and allow businesses across the country the opportunity to boost their exports.

Heathrow Airport will be more accessible to the Midlands and the North of England thanks to HS2 via the interchange at Old Oak Common from 2026.

The revised draft Airports National Policy Statement sets the planning policy framework which an applicant would have to comply with in order to get development consent for building a new north-west runway, including:

• delivering at least 6 more domestic routes across the UK by 2030
• providing a world-class package of support for communities affected, including noise insulation for homes and schools
• setting legally binding noise targets, periods of predictable respite and a ban of 6 and a half hours on scheduled night flights
• paying home owners 25% above market value rate plus costs for the compulsory purchase of their homes if needed to make way for the new runway

We are also building on Heathrow’s pledges on compensation to put forward a world-class package worth up to £2.6 billion. This will include fully noise insulating homes, schools and community building most affected by noise and a Community Compensation Fund which could raise up to £50 million per year.

Planning consent will only be granted if the new runway can be delivered in accordance with our air quality and climate change obligations.

The Transport Secretary has also made airport noise for communities a top priority and will now have the power to review any changes to flight paths where they are of national significance.

He also launched the Independent Commission for Civil Aviation Noise (ICCAN) to give communities confidence that any proposed airspace changes appropriately consider the impact of aviation noise.

The measures will also enable greater use of new technology to manage airspace more effectively – helping tackle delays, cut emissions and reduce the need for stacking above our busiest airports.

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Using contract hire for company cars and vans

Company cars continue to be an essential employee recruitment and retention tool, and in many cases, along with light commercial vehicles, are critical to efficient business operations.

However, many businesses may be wasting money because they are not using the most efficient vehicle funding route, and thereby failing to maximise their hard-earned cash.

That’s why an ever-increasing number of companies are turning to contract hire to fund their company cars and vans.

Contract hire is the UK’s most popular fleet funding mechanism. Industry estimates suggest that at least 60% of businesses fund their vehicles via contract hire (exact numbers are not available) with possibly no more than a third – the vast majority being small organisations – opting for outright purchase and the remainder choosing to finance lease, contract purchase, lease purchase, hire purchase or utilise overdraft facilities and loans.

The commercial benefits of contract hire are underpinned by it being acknowledged as a straightforward, smooth and efficient way to run a fleet of company cars or vans, according to Days Fleet Managing Director Aled Williams.

Days Fleet, which manages more than 9,000 company cars and vans, is one of the UK’s leading independent vehicle leasing and fleet management businesses, offering a highly adaptable and flexible approach on fleet funding, servicing, maintenance and repair as well as a wide range of fleet management-related services.

Value for money and not price should be a prime criterion in contract hire supplier selection, alongside the supplier’s ability to deliver, their culture and their fit with the customer’s fleet.

While there is no “one size fits all” approach when selecting a vehicle funding route, contract hire is the most popular for ‘normal’ businesses with mainstream corporate tax and VAT positions. Additionally, those companies are typically cashflow conscious, averse to risk and, in many cases, have limited in-house fleet management expertise.

The key benefits of contract hire include:

• Benefiting from the purchasing power of a third party such as Days Fleet
• Companies being able to select their preferred lease period, typically three years / 60,000 miles or four years / 80,000 miles
• Fixed cost budgeted monthly vehicle costs
• No cash tied up in a depreciating asset as residual value risk is carried by the lessor
• Reduced vehicle and fleet administration as that is taken on by the providing partner
• VAT-registered companies being able to make a full reclaim on the finance element of the rental cost if the vehicle is used exclusively for business purposes – 50% on the finance element of the rental cost if a vehicle has dual business and private use; and 100% on maintenance costs irrespective of usage

Mr Williams said: “The success of contract hire is its simplicity. Companies pay a monthly fee over an agreed period of time and mileage and then return the vehicle at the end of its lease.”

What’s more, many companies choose to bolt on a maintenance package to the contract hire of the vehicle. That further aids fleet budgeting as it takes account of all routine maintenance and servicing bills.

Additionally, many businesses choose to rely on their selected vehicle leasing partner to deliver a range of other added value services.

In addition to maintenance management that might include a fully outsourced fleet management solution with companies benefiting from the in-depth knowledge and expertise of their funding partner in relation to, for example, accident management, short-term rental solutions and work-related road safety management.

Mr Williams concluded: “We look to work in partnership with clients to provide a bespoke solution for their individual needs from our extensive range of products and services with contract hire at the heart of the business relationship.”

 

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MOD announce £90M investment in world leading helicopter simulation centre

The Ministry of Defence has announced an over £90M investment in a world-leading helicopter simulation centre to help train the Royal Air Force and Royal Navy helicopter pilots of the future.

The simulators put pilots through their paces, replicating extreme real-life scenarios, from flying in blizzards or under enemy fire to dealing with power failures and electronic warfare.

The deal will sustain 70 jobs at the Medium Support Helicopter Aircrew Training Facility based at RAF Benson in South Oxfordshire.

Defence, Equipment and Support, the MOD’s procurement organisation, signed a contract amendment with simulator specialist CAE Aircrew Training Services to deliver training for Chinook, Puma and Merlin aircrews at a purpose-built facility, extending the use of CAE’s current contract for another 8 years.

The equipment provides a realistic representation of the operating environments the crews will fly in, including emergency situations like the effects of icing and rotor blade damage, the impact of gun or missile fire and electronic warfare, total electrics failure and fuel management issues.

The contract will deliver training for Chinook and Puma aircrews until the Puma planned out-of-service date. Training for the Merlin Mk3 will continue at the facility for at least two more years as the Royal Navy transitions from the Mk3 to the Mk4 helicopter.

The centre is equipped with six CAE-built dynamic mission simulators (three Chinook, two Merlin and one Puma), four computer-based ground school training classrooms and a Tactical Control Centre that allows for operational mission training.

Adrian Baguley, Director Air Support at the MOD’s Defence Equipment and Support, said: “The importance of effective synthetic training cannot be underestimated and continues to play an increasingly important role in our overall training curriculum.

“The Medium Support Helicopter Aircrew Training Facility has consistently delivered a high standard of quality training to the operators of our front line helicopter capabilities. This agreement continues to maintain the world-leading ground school and simulator training facility for our helicopter aircrews.”

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High Speed Rail (Preparation) Act 2013, Annual Expenditure Report for 2016-17

The High Speed Rail (Preparation) Act annual expenditure report has been published under Section 2 of the High Speed Rail (Preparation) Act 2013. The report covers the period from 1 April 2016 to 31 March 2017.

The High Speed Rail (Preparation) Act 2013 allows for expenditure to be incurred in preparation for a high speed railway transport network. The Act ensures that the development of the proposed railway may proceed without any delay, which is critical to HS2 Limited (HS2 Ltd) and the Department for Transport (DfT) delivering High Speed 2 on time and on budget.

This financial report has been prepared in accordance with section 2 of the High Speed Rail (Preparation) Act. It covers the period from 1 April 2016 to 31 March 2017, and sets out the expenditure incurred on pre-construction activity and the related cost categories which this expenditure is attributable to. HS2 Ltd and DfT achieved a major milestone on 23 February 2017 when, after three years of intense parliamentary scrutiny, the High Speed Rail (London – West Midlands) Bill (Phase One hybrid Bill) was awarded Royal Assent.

Significant progress has been made in developing the civil engineering and railway systems design specifications, carrying out surveys and ground investigations, and proceeding with the acquisition of critical path properties while providing compensation for property that is likely to be affected. All these preparatory works are crucial to fulfilling the Government’s commitment to have the necessary infrastructure in place to enable economic growth for this country in the future and transport is key to achieving this.

The preparations for Phase 2a (West Midlands to Crewe) continue to progress with the hybrid Bill deposited with Parliament in July 2017. On 15 November 2016, the government announced the preferred route for the majority of the remainder of the Phase Two route, known as Phase 2b. Following this announcement, HS2 Ltd undertook a consultation on a number of elements of this route – holding 30 events and meeting with over 20,000 members of the public along the length of the Phase 2b route. The results of these consultation events informed Government’s decision on the Phase 2b route in summer 2017.

A copy of the full report can be found here.

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Smart energy, smart savings

We speak to Claire Maugham, Director of Policy and Communications at Smart Energy GB about why getting a smart meter is the first step to transforming energy use for your construction business.

All across the country, the way we buy and manage energy is changing. As we build a modern energy infrastructure that’s fit for Britain’s smarter, greener future, there has never been a better time for small businesses in the construction industry to get involved.

According to government’s Potential of Smart Technologies in SMEs report, microbusinesses and small businesses could save £358M and almost £4Bn respectively per year by installing energy efficiency measures. Now is the time to take control of energy use in your construction business.

You may already know that smart meters are available for every household in Britain, but did you know that many small businesses can also upgrade to the new, digital meters? You can get a smart meter for your business from your energy supplier.

For electrical, plumbing, contractor and small trades businesses, energy efficiency can be a lot easier to understand and implement with a smart meter. Adopting small changes in the workplace can open up new benefits that add up over time, from lower bills to more energy efficient tools and equipment.

Sometimes the hardest part about tackling your energy bills and taking measures to begin saving energy, is knowing where to start. The first step to saving on energy costs and improving your business policy on sustainability is understanding your energy use. That’s where smart meters come in.

How smart meters can help your business

With a smart meter, you will get accurate bills – no more estimates. Smart meters send automatic meter readings to your energy supplier and show you exactly how much energy you’re using, and what it’s costing you in pounds and pence, in near real time.

Smart meters allow you to keep track of your energy costs, helping you to budget, manage cash flow and make a real difference to the bottom line.

With construction making up around 18 per cent of all small to medium enterprises in the UK[1], smart meters, if adopted by all, could save the sector £10M a year on energy usage.

Another way in which you can prompt energy saving in the workplace, is by encouraging your employees to also get a smart meter installed. In August, Smart Energy GB published the employers’ guide to smart meters and energy efficiency at home and at work. This details the benefits of employee awareness of energy consumption in the home, and how this can consequently translate towards controlled energy use in the workplace.

Smart Energy GB has worked with the Carbon Trust on some energy saving tips specifically for small businesses in the construction industry, detailed below. By making use of available guidance and upgrading to a smart meter, you’ll be able to track your progress as you go along, helping you to improve your business outgoings.

Smart meter installations normally take around two hours and your energy supplier will work with you to try to find a time that’s convenient for both parties. Many businesses can get their smart meter at no additional cost; others may need to pay a small charge for the installation or access to data. Your supplier will tell you about any charges up front.

If your business has fewer than ten employees – or their full-time equivalent – you may be eligible to upgrade to a smart meter. Contact your energy supplier today about arranging your installation.

Dr Paul Swift from the Carbon Trust gives his tips on how construction firms can get smart about energy.

 

• Make smart plans: Be ready to advise clients on how to reduce their future energy bills, through options such as LED lighting or choice of building materials. Get smart meters installed in new builds.
• Look after your tools: Use tools according to guidelines and only run them when needed. Badly maintained equipment uses more energy and is more likely to fail, so get them regularly PAT-tested and clean filters and air intakes.
• Energy management: Install controls that allow you to turn off site areas not in use. Ensure any damaged cables or unused connections are removed. If you need a generator, size correctly to prevent wasting money on fuel.
• Understand your energy consumption: Getting a smart meter installed on your business premises helps track energy costs and budget spend. Use your smart meter to identify patterns, find unexpected spikes and encourage energy saving both on and off site.
• Scheduling: Plan to use equipment in one run, rather than a series of bursts. Avoid using electricity or gas to dry concrete, plaster and mortar by completing the work early and allowing to dry naturally. Get a temporary connection to the electricity grid as soon as possible!
• Drive smart: We think of electricity and gas, but construction firms can also reduce energy wasted by vehicle fuel consumption. Service them regularly, only load essential equipment, test tire pressure and avoid idling, sudden acceleration and braking.

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Manchester Airport installation upgrade awarded to SPIE UK

SPIE UK has been contracted to carry out installation of a comprehensive LED lighting upgrade within the A538 Manchester Airport Tunnels serving runways one and two.

Worth upwards of £2.6M, the contract forms part of a wider refurbishment programme undertaken by Galliford Try, the construction and regeneration specialist.

The A538 is a priority link which enables road access to Manchester Airport. As such, a key challenge has been keeping traffic disruption to an absolute minimum. Here, SPIE has come up with a bespoke solution, conducting work in 24 hour shift patterns in sync with a planned programme of road closures.

SPIE has also re-teamed with established manufacturer Philips Lighting to install the state-of-the-art LED technology. An energy efficient, low maintenance, controllable tunnel lighting system will significantly reduce energy consumption and running costs in comparison to the existing installation, whilst complying with the very latest standards.

Philip Kinsella is Operations Director of SPIE UK’s Industrial Services division. He had this to say: “It is a testament to our highly-skilled workforce that our knowledge and expertise has enabled us to develop our relationship further with the customer.

“Though the issue of road closures meant that the work was always going to be a challenge, our flexible and quality solutions help ensure minimum disruption, whilst still completing the work to the highest standard, which has been demonstrated in our previous works.”

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Boeing’s new hangar at Gatwick gets the green light providing jobs and service capacity boost

Boeing’s proposed plan with Gatwick Airport to build a new aircraft hangar has been granted permission to go ahead by Crawley Borough Council, with full works scheduled to commence later this year.

The facility will be fully operational in early 2019 and will add on-site engineering and maintenance capability for operators of Boeing aircraft at Gatwick, including short haul 737 aircraft and Gatwick’s growing long haul fleet of 747, 777, and 787 Dreamliner aircraft.

Gatwick’s route network is growing fast, and the airport is in the Premier League of European Airports that serve more than 60 long-haul destinations. With new services on Boeing aircraft to Denver, Seattle, Austin, Chicago, and Singapore recently commenced or announced, this new hangar will play an important role in supporting Gatwick’s long-haul network as it continues to grow.

The new hangar facility will support the Gatwick airline community’s immediate operational needs which, in turn, will help the airport to continue its record growth in both short and long haul services. It will also support Boeing’s Global Fleet Care customers. Utilised by more than 60 airline customers around the world, Global Fleet Care is a flexible set of fleet engineering, materials and maintenance services tailored for airlines.

Gatwick’s Chief Commercial Officer, Guy Stephenson, said: “Gatwick’s partnership with Boeing will deliver a boost to jobs on the airport as well as providing close service support to Gatwick’s growing long and short haul Boeing fleet. This will help ensure that Gatwick’s record growth can continue and our global network can continue to expand.

“The hangar facility will provide a new level of on-site engineering capability which supports our airlines here in the UK. Initiatives like this are ever more vital as we strive for continued operational efficiency as we respond to the demand from airlines and passengers for more services at Gatwick.”

The new multi-million pound hangar facility, which will be located in the North West zone of the airport, is expected to support more than 200 jobs at Boeing and its suppliers in the region surrounding the airport.

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£15Bn road upgrade plan updated to minimise congestion

Highways England has updated its £15Bn road improvement programme to reduce the impact of roadworks on motorists and minimise congestion while improvements take place.

Plans for 26 road upgrades have been revised to reduce roadworks taking place in the same area of the network or on popular journey routes at the same time. This will mean less congestion for motorists as Highways England embarks on the biggest road upgrade plan for a generation.

The Supplementary Delivery Plan will see Highways England rescheduling its programme for the schemes between three and 24 months – meaning a number of schemes will be completed earlier than planned. All are still set for delivery as part of the Government’s first road investment strategy.

Jim O’Sullivan, Highways England Chief Executive said: “Our update today is a sensible and responsible way to deliver major national investment in road infrastructure. It will keep our roads moving, deliver a lasting legacy for the country and ensure best value for money for the taxpayer.

“Now, more than two years into delivery of a £15Bn Government investment in motorways and major A roads, Highways England has already completed 18 major schemes, adding more than 190 lane miles of much-needed capacity to the nation’s roads.”

The 10 schemes being brought forward are:

• A19 Testos
• A19 Downhill Lane
• M56 junctions 6-8 smart motorway
• M6 junctions 21a – 26 smart motorway
• M6 junction 22 upgrade
• A500 Etruria
• M6 junction 10
• M4 Heathrow Slips
• A47 Acle Straight -small scale improvement
• A47 and A12 junction enhancement

The 16 schemes being re-scheduled to smooth the timing and frequency of roadworks are:

• A5 Dodwells to Longshoot widening
• M3 junction 9 improvement
• A31 Ringwood
• M27 junctions 4-11
• A47 North Tuddenham to Easton
• A47 Blofield to North Burlingham dualling
• M25 junction 25 improvement
• M25 junction 28 improvement
• A1 Birtley to Coal House
• M60 junctions 24-27 and junction 1-4 smart motorway
• A47/A11 Thickthorn
• A47 Wansford to Sutton
• A47 Guyhirn Junction
• A12 Chelmsford to A120 widening
• M25 junction 10/A3 Wisley interchange
• M25 junctions 10-16

Highways England is obliged to ensure that investment in the road network delivers good value for money. Following a full review the Road Investment Strategy (RIS) programme some schemes require further development to achieve an acceptable return on investment. As a result, in addition to the 26 schemes above, 6 schemes have been paused for further review and consideration as part of future RIS planning process.

These schemes are:

• A1 & A19 Technology enhancements
• M11 junctions 8 to 14 technology upgrade
• A12 whole-route technology upgrade
• M53 junctions 5-11 smart motorway
• A14 Junction 10a
• M62/ M606 Chain Bar

Two further schemes required rework to achieve value for money; however, changes in local development plans mean that these schemes can be progressed, albeit in the early stages of Road Period 2. These are:

• M5 Bridgwater junction improvements
• A50 Uttoxeter Project B growth corridor project

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Construction workers think Brexit will hit government infrastructure plans

More than 80%t of construction workers believe Brexit will damage the UK’s industry and prevent high-profile government infrastructure projects from being delivered, a new study suggests.

 Researchers at Birmingham City University have been examining the views of people working in the sector to see how they believe jobs, projects and industry will be impacted by Britain’s withdrawal from the European Union.

The results revealed that 88 per cent of workers believed the UK relied upon EU skilled labour and that 82 per cent thought exiting the EU would lead to the collapse of many government infrastructure projects.

The findings also showed that 86 per cent of workers expected to see a rise in demand for skilled workers following Brexit, while 92 per cent thought freedom of movement was beneficial to the UK’s construction industry.

More than 50 businesses gave feedback for the research project with one respondent saying: “I believe that this (Brexit) will lead to an intensification of the current skills crisis and could well lead to increases in labour and project costs.”

The study was led by Marwan Mohamed a recent Built Environment graduate from Birmingham City University alongside Erika Pärn, Lecturer in Architectural Technology at Birmingham City University.

The research entitled: Brexit: measuring the impact upon skilled labour in the UK construction industry was produced as part of the final year Honours Research Project (Dissertation).

It has since been published in the leading scientific peer-reviewed research journal, International Journal of Building Pathology and Adaptation.

Marwan Mohamed said: “This research deals with a topical, historic and unprecedented matter that is currently shrouding the UK construction sector.

“It concludes that the UK construction sector relies upon EU skilled labour, that there is widespread industry opposition to Brexit, and that many within the sector believe Brexit will reduce the supply of skilled labour from the EU rather than increase or enhance it.

 “The paper therefore provides pragmatic recommendations to policy makers and higher education institutes to prevent the risk of Brexit further exacerbating skilled labour shortages within the industry.”

The research also showed that 90 per cent thought that other EU countries would be more attractive for migrant workers following Brexit and that 88% felt a labour shortage would affect the UK’s construction industry.

Another respondent said: “I definitely agree that Brexit will impact upon skilled labour coming to this country to work.” 

The paper outlines possible solutions to both a potential reduction in skilled labour moving to the UK following Brexit and the limited numbers of young people entering the construction industry.

 Recommendations include:

• Retaining free movement by remaining in the European Economic Area
• Retaining current workers through increasing wages, providing guaranteed overtime and reducing physical exertion by expanding the use of technology
• Creating more apprenticeship opportunities
• Improving the image of a career in construction to appeal more to young people.

 Erika Pärn, Lecturer in Architectural Technology, said: “The publication of this work has not only grabbed the attention and interest of academic audience but also seeks to engage the industry awareness and generate debate on this pressing matter affecting a plethora of the built environment professionals.

“Marwan Mohamed, a recent graduate from Birmingham City University has captured in his work the important factors affecting skilled labour during a historic and unprecedented moment in the UK construction industry.

“This work provides pragmatic recommendations to policy makers and Higher Education Institutions to prevent the risk of Brexit further exacerbating skilled labour shortages within the industry.

“Moreover, Marwan has achieved exceptional success by publishing into an established international scientific peer review journal, having recently graduated from his undergraduate studies.

“This is noteworthy success for the School of the Built Environment and for our growing number of outstanding alumni.”

If you would like to read more articles like this then please click here. 

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Estimating Building Costs?

FACT: Accurately estimating building costs doesn’t have to be difficult, time consuming or tricky.

There are some very straight forward ways that will enable you to get this often tiresome job done, dusted and off your desk. Better still both of the methods outlined below are accurate fast and can assist you when it comes to winning that job.

Option 1: Estimating Software – Easy Price Pro have a complete range of estimating programs that quickly and accurately calculate all the plant material, labour and hours for all types of building work and trade specific tasks. Can your current estimating system accurately price a complete extension with a full set of reports including a written quotation in about an hour? Easy Price Pro’s New Houses & Extensions Plus program can.

Easy Price Pro programs are designed by a builder, making them practical, logical and realistic. The pricing sheet is laid out in the order of a build, so the learning curve is short.

Their intuitive nature means nothing is forgotten, giving you peace of mind, but you are always in control; you can see how the program is working things out and fine tune it to your preferences if required. At the click of a button you can generate a complete set of job winning reports including payment & work schedules, summaries, material lists and a written quote. Clients can’t help but be impressed and you will have a set of job management reports to smoothly run the build.

Contact Easy Price Pro today for more info or a free live demo. Call 03333 321502, email info@easypricepro.com or visit www.easypricepro.com

Option 2: Estimating Services – If you don’t want to do the estimating yourself or if you just want a back-up Pro Estimating Services can help. All types of work can be priced including new builds, extensions, refurbishment, alterations and conversions.

This accurate affordable service provides a complete job cost and full set of reports for you and your client. With quick turnarounds and next day delivery options available just send in your plans and Pro Estimating Services will take care of the rest.

Call Pro Estimating Services now on 03333 321518, email info@pes.ltd or visit www.pes.ltd

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£350M investment for local roads

The government has announced a £345.3M funding package to improve local roads and public transport across the country.

Transport Secretary Chris Grayling confirmed that some 76 projects from across the country have been awarded funding totalling £244M, with some £101.3M granted for two new major roads in Middlewich and Worcester.

The investment will see key benefits for local road users, with access to public transport sites improved, more roads made cyclist-friendly, key local traffic ‘pinch points’ addressed and supporting the development of new housing.

Transport Secretary Chris Grayling said: “This government is taking the big decisions for Britain’s future and investing a record £23Bn on our roads to increase capacity and improve journeys.

“These schemes will provide much needed upgrades to essential local roads up and down the country, cutting congestion, improving safety and shortening journey times for drivers.

“They will also help boost regional economic growth by unlocking jobs and supporting vital new housing development.”

A huge range of projects will benefit from the investment, ranging from contactless payment options across Nottingham’s bus and tram network, a new bus link in Plymouth with direct access to Derriford hospital and improvements to the A66 in Darlington which will help unlock 2,600 houses and 4,300 jobs by improving travel connections.

The major road scheme in Worcester sees a range of upgrades to the Worcester Southern Relief Road, with £54.5M in funding bringing a new carriageway alongside the existing Carrington Bridge. This will provide much needed congestion relief for local Worcester residents and commuters.

In Middlewich, some £46.5M will pay for the Eastern Bypass scheme, designed to cut congestion for residents and open up more land for employment.

The National Productivity Investment Fund and the Large Local Majors fund, will provide the investment funds as part of the government’s record investment in road to help keep Britain moving and the economy growing.

The government announced its ambitious Road Investment Strategy (RIS) in December 2014. The strategy is designed to increase much needed road capacity, boost economic development and improve road safety.

Highways England has completed 18 road schemes and started work on 15 more.

 

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The future of construction: Hand-built by robots?

Technological convergence and disruption is driving innovation, and raising new challenges, for industries across the economy. We speak to Suzanne Gill and Helen Garthwaite, partners at Wedlake Bell and co-founders of Tomorrow’s City, Today’s Challenge about the ever developing technological landscape. 

According to the World Economic Forum, however, construction and engineering have to date been hesitant to ‘fully embrace the latest technological opportunities’. This has, in many cases, led to productivity stagnation, with McKinsey estimating that if global construction sector productivity achieved its potential it would boost the sector by $1.6trn – adding 2% to the global economy.

Technologies that previously existed only in the realms of science fiction – drones, augmented reality, autonomous equipment, 3D printing, to name but a few – are now mainstream and are beginning to be adopted by construction operators to enhance output and productivity. Perhaps the biggest success story to date in this setting is Building Information Modelling (BIM), with the UK government and Digital Built Britain putting BIM at the forefront of achieving the goals set out in the Construction 2025 strategy: including 33% reduction in the upfront and lifetime costs of built assets, as well as lowering built environment emissions by 50%.

Alongside this, technology is also disrupting the construction method itself. Offsite and modular techniques are promoted as an enabler with construction able to learn the production-line lessons from the manufacturing space. Many in the industry argue that this change is long overdue and indeed essential. Other industries such as automotive have long been at the forefront of production-line manufacturing, while, looking further afield, the maritime and aerospace industries have demonstrated how far remote and robotic construction methods can be pushed.

Meanwhile, a number of international businesses are turning to blockchain technology to track and manage payments and commercial contracts. In an industry with so many moving parts, this technology brings with it the opportunity to increase the efficiency of developments whilst also near eliminating costs associated with procurement fraud and contractual disputes. The creation of ‘smart contracts’ allows information to be shared securely at speed, by way of a continuously reconciled database, ensuring all parties in the blockchain are informed, and providing control to what can be incredibly complex payment structures. Just this year, the Republic of Georgia committed to use the bitcoin blockchain network to authorise property-related government transactions. Other countries are set to follow suit, seeing the potential to revolutionise supply chain management in the property industry and bring together multiple contractors and disparate suppliers across geographies and sectors.

With the pace of technological change rapidly increasing it is little wonder, therefore, that some are predicting worker-free building sites by 2050. Where once we saw hard hats and high vis jackets, there could well be autonomous bulldozers coordinated by drones circling overhead with 3D printers churning out new designs at a pace beyond that of human skill. However, there remain real challenges to make today’s fiction tomorrow’s reality. Not least the threat of cyber attacks, that come with increased digitalisation and the fast-paced adoption of emerging technologies. This year saw 200,000 organisations in 150 countries hit by the ‘WannaCry’ ransomware, with the NHS in the UK being particularly impacted, partly due to its outdated systems and under-investment in cyber security. Real estate business and buildings themselves are similarly under threat, particularly as smart becomes normative.

In an industry that is traditionally risk-averse, it is understandable there has been hesitancy to fully embrace the opportunities new technologies bring. Indeed, blockchain is still classified as an ‘emerging technology’ and take-up has been slow, perhaps partly due to the negative connotations associated with early crypto currencies in addition to privacy concerns around sharing data. Furthermore, such technology requires significant changes to be made to existing systems as well as a complete cultural shift to a decentralised network, requiring the opt-in of all parties – a potential logistical nightmare in itself.

Technology solutions are often trumpeted as improving energy efficiency, sustainability and building lifespan, but in an industry that accounts for three million jobs, equal to 10% of total UK employment, the fear of robots taking over and ‘stealing’ construction jobs is a startling one. However, industry age demographics and the likely impact of Brexit points to a shrinking workforce, providing a compelling case to embrace change. In a survey recently undertaken by the Institution of Civil Engineers (ICE), nearly 80% of respondents believe that AI will have a positive impact on the infrastructure sector, leading to substantial improvements to design and delivery, in turn boosting productivity. Indeed, the future is closer than we think with September seeing construction begin on Europe’s first 3D-printed building. Likewise, the precast ‘Tech Crete’ method used at Victoria Gate, Leeds, has taken BIM to whole new levels of design intricacy, though as stated “the machine to replace human creativity has not yet been invented”.

Legal, financial and insurance organisations have a role to play in enabling modernisation, and traditional procurement and contract structures, as well as debt financing models, will need reviewing. In particular, any increase in off-site construction (for instance) will require the consequential realignment of construction and new approaches to development risk. The support of professional bodies will also be key to direct the refocus of design into early stage manufacturing and to recognise the requirements of an off-site modular approach in the tender process, if delivery cost and productivity benefits are to be maximised.

The Farmer Review has promoted the consideration of the opportunities and challenges for the construction industry in the digital age with the headline call to the industry to “modernise or die”. The pace of technological innovation is rapidly increasing and as a relative latecomer to the digital revolution, the construction and development industry requires proactivity to ensure procedures and policies are in place from the outset. Today’s challenge is not only to keep up but also to think ahead and future-proof the industry for tomorrow’s city.

 

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Are we really altogether now?

Barry J Ashmore of Streetwisesubbie.com discusses the major problems facing subcontractors in the industry.

If ever there was a time for clear and unambiguous leadership in the construction industry it’s now.

Recent tragic events have very publicly highlighted what happens when we get construction wrong, but what we don’t see is all the things that are wrong with construction in the UK but are hidden away under the surface.

No amount of hard work on a building’s decoration will overcome problems lurking under the surface. If the foundations are defective no amount of papering over the cracks will resolve the real problems.

But sadly, that is what I see in a construction industry that is almost unrecognisable from the one I joined 47 years ago! Worse still we seem to have developed a culture of spin, and BS, and smoke and mirrors that is not only infuriating it is actually exacerbating the problem.

The Smoke and Mirrors

Whilst the industry is facing a whole host of issues, payment is by far and away the biggest and most obfuscated issue. But the simple truth is that if you don’t get paid you don’t have a business.

If you spend most of your time trying to get paid you have less time to address all the other issues that need your attention, and as for planning for the future, you probably can’t think beyond the end of the month.

So, why are we as an industry failing to recognise this and why isn’t it being properly addressed?

Regrettably, it is such a major problem and such a controversial issue, that even when it is discussed the truth seems to be largely absent.

Here Are Some Facts

Streetwisesubbie recently supported a piece of statistically significant academic research. With some 502 respondents, its findings cannot be ignored. Some 354 of the respondents were Sub-Contractors, and over 70% of respondents had a turnover exceeding £1M.  Proper firms facing very real problems.

Here’s what the survey uncovered:

• A total of 87.17% of Subcontractor’s main issue of dispute was regarding payment, compared to 64.21% of contractors suggesting Contractors receives payment within the agreed terms more frequently than their Sub-Contractors
• Even on public sector projects only 25% of Subcontractors were paid on time, and on private sector projects that fell to just 15%
• Subcontractors were subject to set off on 88.7% of their projects and between 9 and 34% (depending on turnover) said they were subject to set off on every project!

So What’s To Be Done?

A staggering 95.66% believed that neither the government nor the trade bodies were doing enough to tackle the problems in the industry!

So, I say let’s start by cutting out the spin, and the BS, and the smoke and mirrors!

Lots of Contractors don’t pay their Subcontractors properly. What’s difficult about saying that?

Everyone knows what good payment looks like! Pay on time and value fairly

The Supply Chain Payment Charter isn’t even legally enforceable, never mind the fact that only a handful of major Contractors have even signed up to it!

And finally, the introduction next year of the Duty to Report on Payment Practices legislation requiring large companies to report on their payment practices. Some say that this will introduce real transparency for the supply chain.

And pigs will fly! The regulations are so woolly that they won’t tell anyone anything of real value, and you can rest assured that those companies that engage in such practices certainly won’t be reporting on their under-certification and wrongful set off.

Why Does It Matter?

Here are a few recent headlines to contemplate;

“Subbies and suppliers owed £7Bn in unpaid invoices”

“Subbies owed £4m after Titan Construction Management collapse”

“Subbies under attack from new breed of aggressive QS”

And some people wonder why there’s a skills shortage!

Frankly no amount of talking, is ever going to fix the problem. “Jaw jaw” might indeed be better than “war war” but for an awful lot of Subbies getting paid is a one sided battle, which they are never going to win without the big guns of proper legislation.

Without it we will never deliver the massive culture shift that is required to rid this industry of its morally bankrupt payment practices.

And, as for all sitting round the table together, it isn’t currently working, and I can’t see it ever working. After all the “Anti Fox Hunting / Pro Fox hunting Association” doesn’t sound like a group that’s going to please any of its members or agree on anything!

So Are We Altogether Now?

Maybe we can leave the last word to the lyrics of the old Farm song “Altogether Now”;

“All together now

All together now

All together now, in no man’s land

The same old story again

All those tears shed in vain

Nothing learnt and nothing gained

Only hope remains”

Or maybe we can all get behind a campaign for effective action to fix the problem once and for all, such as making our Fair Treatment Charter legislation, or adopting all of the other recommendations of the All Party Inquiry Into Late Payments conducted by Debbie Abrahams MP in 2013.

I’m happy to talk to any of the interested parties to see how we can help.

 

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CPA reports cost increases

Some 90% of construction product manufacturers have reported cost increases to the CPA.

The latest State of Trade Survey (Q3 2017) has been released by the Construction Products Association, with results showing increases to costs across the board. Manufacturers are expecting slower growth in sales and activity as cost rises and slowing construction output further weaken market conditions.

The survey shows that 10% of heavy side manufacturers reported an increase in sales in Q3, compared to 40% reporting a rise in Q2. With 36% of light side product manufacturers reporting higher sales, decreasing from a balance of 55% in the previous quarter.

The results from this survey align to several other surveys recently carried out, pointing to a slowdown in construction output and activity across the industry. The results also reflect manufacturers’ expectations for lower product sales in Q4. No firms on the light side anticipate an increase in sales during the October to December period, whilst 21% of heavy side firms expect sales to decline.

Rebecca Larkin, CPA Senior Economist said: “For construction product manufacturers, the near-term outlook is being clouded by the perfect storm of a broad-based rise in input costs, slower economic growth and signs of an emerging weakness in construction activity outside of private housing.

“Overall costs increased for 90% of all manufacturers in Q3. Although the survey showed inflationary pressures are anticipated to ease slightly over the coming year, the industry has turned noticeably more pessimistic about the strength of activity in coming quarters. New orders in construction fell to the lowest level in three years in Q2 and the survey suggests this will start to filter through to reduced activity on site by the end of the year.”

Key survey findings include:

• A balance of 10% of heavy side firms and 36% of light side firms reported that construction product sales rose in the third quarter of 2017 compared with the second quarter
• On an annual basis, sales rose for 30% of heavy side firms and 45% of firms on the light side, on balance
• On balance, 21% of heavy side manufacturers anticipated a fall in sales in Q4, decreasing from a balance of +7% in the previous quarter
• On the light side, no firms expected an increase in product sales in the next quarter, compared to a balance of 20% in Q1
• Annual cost increases were reported by 90% of manufacturers on the heavy side and the light side
• Raw materials costs rose according to 85% of heavy side manufacturers and 100% of those on the light side
• 78% of heavy side manufacturers and 67% of light side manufacturers anticipate a rise in costs over the next year.

View the CPA’s State of Trade Survey for 2017 Q3 here

 

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NFB calls for procurement reform

Following the publication of a report on the state of public procurement across Wales, by the Wales Audit Office (WAO), the NFB has called for procurement reform.

According to the report, Welsh public sector bodies spent approximately £6Bn on the procurement of goods, services and works, and auditors have pointed out “notable procurement failures” across local public institutions in Wales.

Huw Vaughan Thomas, auditor general at the WAO, said: “Our findings are clear: while public bodies face a range of challenges in a changing procurement landscape, they can do more to strengthen their procurement arrangements and recent examples highlight the financial and reputational risks of getting procurement wrong.”

The National Federation of Builders (NFB) is calling for procurement reform, as it believes that SMEs are often overlooked in spite of the expertise and efficiency they bring to the supply chain.

Construction SMEs are particularly important to the local economy, through employment, training and retaining two-thirds of all construction workers. For every £1 invested with an SME, 90p remains locally to train local apprentices, employ local workers, and grow the local economy.

A further study by Bangor Law School, looked into the barriers preventing SMEs from securing public sector contracts. Results from that study have helped to bring about greater transparency in public procurement and resulted in more successful bids for SMEs.

The WAO research has uncovered a number of flaws in public sector tendering. There is evidence that public bodies in Wales were not providing sufficient tender evaluation information. In many cases, they were not even advertising ‘sub-OJEU-level’ contracts (below £130,000), which are of the ideal size for SMEs.

Rico Wojtulewicz, policy advisor of the NFB, said: “With a third of the £6Bn procurement spend in construction; the Welsh Government has a chance to reform its procurement process and begin enabling local SMEs, who train and retain two out of three apprentices in the industry.

He continued: “Unless frameworks become more SME-friendly, Wales will struggle to make sure its investment sees sustainable economic returns.”

Image: DeymosHR / Shutterstock.com

 

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