Highways England’s ‘Road to Growth’ hailed by IED

The Institute of Economic Development (IED) has hailed Highways England’s strategic growth plan at its annual awards.

‘The Road to Growth’, Highways England’s plan to unlock economic growth through development and support of the country’s motorways and major A roads, was recognised as having ‘Greatest Economic Impact’ by the economists.

The plan includes Highways England’s Innovation, and Growth and Housing Funds.

Highways England’s Executive Director of Strategy and Planning, Elliot Shaw, said: “It is a great achievement to have been recognised by the Institute of Economic Development for our innovative approach to unlocking economic growth. While we continue to successfully deliver the Government’s Road Investment Strategy, we are actively looking ahead to 2020 and beyond. It is this strategic and innovative thinking that is showing the difference we are making.”

Announcing the award Bev Hurley, Chair, Institute of Economic Development, said: “We would like to congratulate Highways England as the first winner of our Greatest Economic Impact award. The Road to Growth is the first strategic economic growth plan for Highways England and draws upon extensive research, consumer and stakeholder feedback. It is closely aligned with the Government and Department of Transport’s vision for a high performing road infrastructure that positively impacts the economy, employment and housing markets.

“Highways England has made ‘supporting economic growth’ one of its five strategic priorities and at the same time has set funding aside for innovation, some strategic projects that could unlock growth and produced a planning guide setting out how to work with the organisation. Whilst the overall approach may not yet be fully measurable, it was considered clear from the documents submitted that this shift to concentrate on economic growth can make a considerable difference to the economic growth of locations across England.”

 

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Online tool for sustainable development launched

The Sustainable Development Commission (SDC) has launched a free online tool for assessing the sustainability of a proposed development.

The National Planning Policy Framework (NPPF) has a ‘golden thread of sustainable development’ running through it and it is important for all developers to aim towards a sustainable standard. However, up until now, there was no clear-cut NPPF-based way to assess a scheme’s sustainable development credentials, making the current assessment process tricky and subjective.

The SDC was established by property advisory firm Iceni Projects, in March 2016, to find solutions to this very real planning issue.

Dan Jestico, Director for Sustainable Development, Iceni Projects, said: “Although the NPPF has a presumption in favour of sustainable development at its heart, assessing the degree to which a project complies with this is highly subjective. Thanks to the Sustainable Development Scorecard, everyone from architects to developers to local residents will be able to easily assess how sustainable a proposal really is.

“The Sustainable Development Scorecard means that for the first time, it will be possible to see to what extent a scheme really has a ‘golden thread of sustainability running through it’.”

The Scorecard is a free and easy-to-use tool. A series of questions are presented about the development, with users asked to agree or disagree with statements.

Scores are then given based on the answers; a sustainability score assesses how closely the development proposals conform to the NPPF’s definition of sustainable development; and a parity score, assessing how equally the three pillars are balanced. Equal representation of the three pillars is a key part of the NPPF.

Nick Raynsford, Chair of the Sustainable Development Commission, said: “Over the past 18 months, the Sustainable Development Commission has worked with Iceni Projects to develop and refine the core elements of the scorecard tool. The aim is to provide a better and more rigorous understanding of how different factors can combine to achieve sustainability. So there is no over-simplistic ‘Pass / Fail’ outcome.

“Instead the scorecard gives, for the first time, an indication of how closely a scheme fits with the NPPFs definition of sustainability, together with guidance on how this might be improved. We hope that we will see more sustainable schemes coming through as a result.”

Ian Macleod, Assistant Director, Regeneration Birmingham City Council, said: “The development of the scorecard has been challenging, but has produced a tool which can be applied to the real world and potentially aid the transparency and consistency of decision-taking and plan-making.”

Ian Fletcher, Director of Real Estate Policy, British Property Federation, added: “We very much welcome the work of the Sustainable Development Commission, and the creation of a transparent, accessible tool that can be used by developers and community groups alike. With the country facing a housing crisis and local planning departments operating with constrained resources, it is clear that the need for continued investment in the built environment remains strong and encouraging a more consistent approach to development will help create great places where people want to live and work.”

The Scorecard can be accessed at http://ift.tt/2ipTq9v

 

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Energising a nuclear workforce

Balfour Beatty, the leading international infrastructure group, has launched its latest in a series of Public Policy papers, “Building Nuclear Skills: A workforce for the future”.

The paper focuses on the challenges in building the civil nuclear skills base and presenting solutions for both Government and Contractor alike.

Over the next decade, the UK Government has committed to the biggest new nuclear programme outside of China, with three projects currently underway. It is estimated that by 2035, 38% of the country’s energy will come from nuclear power. With some 500 nuclear reactors in planning around the world, Britain has the opportunity to place itself at the forefront of this nuclear revolution and become a leader in the field.

With the UK’s electricity predicted to rise by about a quarter during the next decade, as the networks and transportation links are electrified, the nuclear programme is designed to meet these needs and this integral approach to nuclear energy generation is key to keeping the country connected.

However, as the Paper states, there is a startling skills shortage in the industry – and across construction as a whole. Making the reality of delivering such a transformational energy programme difficult.

Some 50,000 construction jobs are being created through the construction phase alone, while Hinkley Point C in Somerset, Wylfa Newydd in North Wales, and Moorside in Cumbria developed. A further 3,000 permanent roles will be available once the plants are operational. This is in addition to the 65,000 people currently employed across the UK’s civil nuclear sector.

As the industry stands, the skills shortage makes filling these job vacancies extremely challenging.

In order to successfully bridge this gap, a decades-worth of training is required to bring employees up to the specialist level of skill required; and while a significant investment in nuclear skills took place back in the 1990s, nothing since has been implemented to develop the talent required to fill the cyclical nature of nuclear investment. As such, the ageing workforce will reduce by 20% over the next decade as natural retirement age is reached, leaving behind a workforce gap which can only be addressed through on-going investment in training the next generation of engineers.

While the Government acknowledges the issue, through the publication of its Nuclear Skills Strategic Plan and setting up a National College for Nuclear, industry has an important part to play.

In its paper “Building Nuclear Skills: A workforce for the future”, Balfour Beatty sets out five key challenges and solutions to building the civil nuclear skills base:

• Remote Locations
• Not developing all necessary skills
• Brexit
• Remaining uncertainty about nuclear build
• Attracting young people into the industry

The full paper is available to read here.

Stephen Tarr, Managing Director Balfour Beatty Major Projects business, said: “The UK is embarking on a nuclear renaissance that will place significant delivery demands on the country’s supply chains. Whilst Government has to provide the policy framework and the confidence the industry needs to invest, the industry in all its guises has a key role to play in training and attracting new talent into the sector. Only by doing this, can we ensure that we have the appropriately skilled staff in place to build new nuclear facilities that will help position the UK as the world-leading expert in the provision of nuclear energy.”

 

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London’s largest ever artwork installed

Work is currently underway to install London’s largest ever artwork, which will be displayed at Crossrail’s Paddington Elizabeth line station.

The artwork, designed by critically acclaimed artist Spencer Finch, is printed onto the glazed roof of the new Elizabeth line station, which reaches some 120m and makes it one of the largest permanent artworks ever created in the capital.

This week has seen the first of these panes of glass lowered into at Paddington station. The canopy itself appears to float above the platforms 25m below ground. Construction has seen a steel grid developed that holds 220 bespoke glass panels, each one weighing over a tonne.

Finch has hand-drawn 60 original pastels that combine to create a unique collage of clouds, that when printed onto the transparent canopy will appear to change according to the light, weather and the time of day.

The hand drawn scene will be ‘painted’ onto 180 of the panels using ceramic dot matrix printing that not only creates the image, but also reduces solar glare into the station.

Such a large artwork gives visitors different views and impressions, depending on what way they enter, leave or move through the station.

Funded by Heathrow and the City of London Corporation, a number of major works of public art are being integrated into the new Elizabeth line stations as part of the Crossrail Art Programme – a line-wide exhibition designed to reflect the ambition of London’s newest railway and the communities it serves. The artwork at Paddington was selected by the Crossrail Art Foundation supported by an advisory Round Table in collaboration with Lisson Gallery and station architects Weston Williamson.

An estimated 25 million passengers a year are expected to use Paddington Elizabeth line station when services through central London begin in December 2018.

 

Watch a video of the installation here.

 

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Positives for post-Brexit construction sector

Experts at leading construction and property consultancy, Thomas & Adamson, are holding a positive outlook for the UK construction sector for next year and post-Brexit.

The consultancy is going against the gloomy forecast for construction, saying that plenty of opportunities remain in a post-Brexit UK and the sector could benefit from the European-divorce.

“The outcome of Brexit for the construction industry will ultimately depend on the terms of any Brexit deal and the industry’s ability to adapt to its new situation and capitalise upon that,” said Chris Narrowmore, Partner at Thomas & Adamson.

“We expected a downtown on the back of Brexit, but it hasn’t kicked in fully across the UK yet.” He added. “There are still real opportunities out there. The main concern is how UK-based major funds will be looking to place investment. This could initially mean more outward investment rather than into the UK. That said, we have seen a fair amount of foreign investment in 2017 – especially into the UK student accommodation market.”

Recent forecasts from the Construction Products Association predict that the sector will expand just 0.7 per cent in 2018, the slowest rate in six years; although it remains positive about the overall construction output growth for 2017, predicting it to be 0.3 per cent higher than previously thought, at 1.6 per cent.

Senior Partner at Thomas & Adamson, Alastair Wallace, said: “Although uncertainty has the potential to derail the industry in the short term, the construction sector has a unique opportunity in a post-Brexit world to market itself.”

He added: “It must clearly define what a prosperous post-Brexit construction sector looks like. We cannot wait on politicians to determine the sector’s success. The construction sector’s players need to take the market by the horns and push ahead. Economists are talking about a decline in construction, but this really is more attributed to big infrastructure projects. There are still a lot of opportunities outside of government-funded projects and that’s what we as a company are focusing on.”

Mr Wallace points to Thomas & Adamson’s internal growth as a positive sign for the industry in 2018, with key projects already secured and an investment in staff continuing.

Key projects for the company include: Jaguar Land Rover, Cityheart, Greenwich Millennium Village, Tesco, Pears Property, Muse Developments and British Land.

 

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Durham Villages sees £97M investment

Work is underway in the county of Durham, which will see £97M invested in housing across the borough.

Since formation in 2001, DVRC has invested more than £150M, creating over 1,300 homes, many of which are for shared ownership or affordable rent. Durham Villages Regeneration Company (DVRC) is a joint venture between the county council and Keepmoat Homes, creating a unique profit sharing agreement which has also provided funds in support of local authority initiatives and services.

Some 695 homes are being constructed by the JV, with current developments at Middlestone Moor, Newton Aycliffe and Sherburn Hill seeing 302 properties being built.

DVRC has also recently secured planning permission for building at Dipton (56 homes) and Peterlee (84), while an application is also lodged for 78 homes at Chester-le-Street and 59 more are planned on an as yet unnamed site.

The latest development is at the seaside town of Seaham. The site, at Heathway, will provide 116 two-, three- and four-bedroom houses in the Parkside area. There will be 108 properties for sale – three at 30% below market value for local people who qualify – and eight for affordable rent.

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

Ian Prescott, Land and Partnerships Director, Keepmoat Homes North East, added: “In total DVRC identified eight potential sites for development across County Durham. This is the fourth on which work is now underway, providing a new impetus for the partnership, whilst helping to address the UK’s well documented housing shortage and providing opportunities for first time buyers.”

The Heathway initiative is on a former school site owned by Durham County Council and a small parcel of land previously owned by County Durham Housing Group. The housing group will take on the management of the eight homes for rent and plans a further 48 affordable homes on an adjoining site that will provide a mix of both two- and three-bed bungalows and three-bed family homes

County Durham Housing Group Chief Executive, Bill Fullen, said: “This innovative and complex project has brought together skills from the public, private and not for profit sectors. It’s really pleasing to have shovels in the ground and bricks being laid on this scheme. In early 2018 we’ll also be starting work on our adjoining site to deliver further affordable homes. We know that affordable homes in Seaham will be in high demand and can’t wait to see the first families moving in.”

 

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Scape Group publishes National civil engineering and infrastructure framework

Scape Group, the public-sector partnership that manages infrastructure frameworks across the UK, has published details of its National Civil Engineering and Infrastructure framework.

Due to be re-procured in 2018, this second generation framework will deliver major civil engineering and infrastructure projects across the country with an increased total value to £2Bn. This time, the framework includes a dedicated £400M lot specifically for the public sector in Scotland.

The growth, in both size and value, of the framework reflects the growing pipeline of major infrastructure projects across the United Kingdom. The framework has been developed following engagement with local authorities, Local Enterprise Partnerships and other public sector bodies across the country, as well as industry body the Civil Engineering Contractors Association (CECA).

Bidders are invited to tender for the four year framework either in individual lots or both lots, and the framework will also be open to consortium bids.

Victoria Brambini, Managing Director of Scape Procure, comments: “Investment in infrastructure is vital to unlocking long-term regional growth, bringing local economies closer together and ultimately strengthening communities. Our aspiration is to continue to provide a framework that allows time and cost certainty as well as delivering extensive social value for the public sector for every pound spent.

“The Scottish Government has demonstrated a clear commitment to investing in infrastructure and there is a real passion and drive from Scotland’s public bodies to achieve maximum social value. Our decision to create a separate lot for projects in Scotland reflects this ambition. We expect the new framework to continue delivering positive outcomes for public sector bodies across the United Kingdom building on the excellent engagement we have had with local supply chains, local labour and SMEs under the existing framework.”

The current framework, led by Balfour Beatty and supported by an extensive local supply chain, was procured with an expected value range of between £1bn and £1.5bn and is on target, running until January 2019.

Scape Group are holding market awareness days in Edinburgh and London in early December for prospective bidders.

 

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The Chancellor’s Construction Conundrum

The UK’s ongoing economic problems have taken their toll and the UK construction industry has been teetering on the edge of recession for the last few months.

The uncertainty in Britain’s economic future means investors are holding back on signing off on future projects. No one can dispute that the Chancellor has been dealt a tricky hand: the need to tackle the deficit through austerity measures whilst trying to stimulate a flailing economy seems like an impossible task. There are, however, ways in which he could be doing more to “Get Britain Building”, as has been famously promised.

Public Investments:

The Chancellor has announced £44 billion of investment into housing with the aim of building 300,000 new homes per year, a development which will be met positively across the industry.

Although there are some positive steps here, recent months have seen a consistent and steady decline in both civil engineering and commercial activity so the industry could do with a more significant leg up. Far more is required in order to have the desired effect – some key issues have been overlooked.

George Osbourne’s attempt to revive northern industry has seen significant infrastructure projects undertaken, such as the ambitious HS2. In October, the Chancellor announced another £400 million for further infrastructure projects in the north – a huge sum which will undeniably give the sector a healthy boost. He has also just announced the extension of the infrastructure fund from £23 billion to £31 billion.

These investments are a good starting point – attention certainly needs to be paid to UK housing and its ongoing crisis. The Government is well behind targets on this front and national prices continue to rise in relative cost. In Parliament, there’s a clear consensus on both sides of the house that an emergency strategy is needed on affordable housing. The encouragement of housebuilding will help solve this social crisis as well as providing a vital boost to the construction sector.

As of last week, Theresa May has declared the housing crisis a ‘personal’ mission. We will have to wait and see how effective the new investments will be. The government must ensure it takes frequent advice from industry professionals on where the money would be most aptly used.

Commercial Support:

Investment alone, however, will not be enough. In order to really kick start the industry, the Government needs to create enthusiasm within the sector and encourage both businesses and individuals to take on new and innovative projects – something which will be crucial whilst the Brexit fog remains.

To stimulate things in this way, the Government should be spending time and money on creating and allocating bespoke grants and R&D incentives. Allocating rewards like these for ambitious projects will facilitate development plans, helping boost the economy but also inspiring a new wave of innovation in UK construction.

The problem with these at the moment is the difficulty and reluctance with which the rewards are granted by HMRC. Removing the obstacles that currently stand in the way when pursuing these incentives would get projects on the move and encourage people to undertake more.

HMRC’s belt-tightening has caused ventures to become stagnant. The bureaucracy and lack of coordination in R&D applications have made processes overly stringent, with case workers challenging every detail of applications. HMRC is not living up to the expectations of those in the sector. Despite loudly promoting the construction industry, the Government is withholding vital funding and failing to provide the necessary support. Actions are failing to match words.

With these issues being overlooked, construction in the UK will continue along its sluggish trajectory for the foreseeable future – at the very least until Brexit uncertainty passes.

Skills Shortage:

The Royal Institution of Chartered Surveyors released a report last week revealing a distinct lack of able construction workers. According to the data, two-thirds of surveyors are struggling to recruit the necessary man power for building projects. So why is there this lack of talent? ‘Brexodus’ may have played its part, but the problem goes deeper.

Attracting people to the industry is key. This has, in part, been addressed with the introduction of a £34 million fund for training construction workers. However more has to be done – this is a mere drop in the ocean!

Providing additional subsidies for apprenticeship schemes across the industry will help draw workers to pursue a career in the industry whilst also enabling businesses to take on and train new employees they otherwise wouldn’t.

Then in order to foster and retain talent from the grass roots, university courses must be made more appealing to students. Assistance should be given to universities to train aspiring construction workers by ensuring universities are capable, with all the necessary equipment.

What Next?

It seems clear that the Government needs to work closely with the industry. A ‘well-constructed’ plan involving a combination of private and public talent and investment will be essential. Naturally, the Government has its obligation to tackle the deficit, so now is the time to look to means beyond blanket infrastructure and housings investments. Innovation will be essential in the years to come.

By Justin Arnesen, Ayming, Director: R&D Tax and Grants

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£250M investment in new homes on Salisbury Plain for service families

The Defence Secretary Gavin Williamson has announced plans to invest £250 million to build new homes for Service personnel and their families on Salisbury Plain.

The significant investment will see nearly 1,000 new homes built in three locations across Salisbury Plain, the British Army’s largest training area in the UK.

The new homes will offer modern three and four bedroom accommodation, as well as a number of bungalows and adapted homes for families with specific needs, such as wheelchair access.

The new homes will support Service personnel and their families relocating from Germany in 2019 and also units moving within the UK.

Pre-construction work on the project has already begun, including off-site highways to facilitate access to the new homes. The returning troops can expect modern accommodation, as well as access to catering, retail and leisure facilities.

The £250 million investment comes alongside a further £90 million in road and utility improvements in support of the three developments. £1.1 billion has already pledged to the Salisbury Plain area for living and working accommodation ‘behind the wire’ including 2,500 bed spaces for single soldiers and the construction, conversion or refurbishment of nearly 250 other buildings such as offices, garages, workshops and mess facilities.

Defence Secretary Gavin Williamson said: “This considerable investment in nearly 1,000 new homes is a reflection of our commitment to supporting Armed Forces families. Service families make an immense contribution to our country and I’m delighted to announce this £250 million funding for new homes to welcome our troops relocating from Germany.”

Work on the new homes, which are being built under the Army Basing Programme (ABP), is expected to be completed in May 2020.

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Virtual Reality to transform HAE Training

Hire Association Europe (HAE) is investing in state-of-the-art virtual reality (VR) technology to improve the safety of staff operating equipment

Being able to use the training off-site is just one of the benefits for HAE members, who will be able to access the series of VR safety guidance modules at no cost to them or their clients, just access to the Samsung Gear VR and paddle. Modules will focus on experiences such as how to operate equipment safely, basic maintenance and advice on occupational health.

It is anticipated that immersing workers in a virtual world, akin to playing a video game, will give them visual and practical understanding of the issues involved and how to mitigate risk more effectively. Virtual reality safety training is a much more exciting and engaging alternative to printed guidance leaflets currently provided by equipment, plant and tool hirers; which often don’t get through the supply chain to the right person.

The technology was trialled at the Trade Fair & Convention held at Coventry in October. Following enthusiastic feedback from the show, HAE is initially planning to roll out up to 20 of the modules in the summer of 2018 including occupational health related to dust, noise and vibration.

Whether it’s driving a mini digger, operating mobile access equipment or tackling dust issues, providing the opportunity for workers to practice offsite their “moves” and responses to potentially dangerous situations, will help operators of machinery to minimise onsite risk and improve engagement in health and safety matters at all levels.

Just like in gaming technology, there will be different stages that the user will have to successfully finish before going to the next level. At the end of the exercise there is a multi-choice questionnaire which will also have to be completed as evidence that the training has been effective.

HAE managing director, Graham Arundell, said: “We wanted to give our members a learning tool that’s more immersive than traditional e-learning. Our V-Hire programme is a more inventive way to engage hirers so that they are more likely to recognise the safety issues associated with operating equipment, and have the opportunity to improve their skills and knowledge before they even make it onsite.

“VR means we can also do assessments in a remote environment. For example, some of the training can be done from home as they work their way through the different levels to reach a safe standard of competence, improving safety and minimising risk all round.”

Tool, plant and equipment hire in the UK is mainly confined to these shores and is worth over £7Bn to the economy, though the public will usually relate the equipment they see operating on infrastructure projects, construction sites and motorway works with the main contractor rather than the hire companies.

The hire sector is a vital component in enabling the delivery of economic activity, commercial and public, in the UK and globally. HAE members facilitate and provide the equipment for major entertainment, sporting and exhibition events. It is also enabling resource and capability behind much public and commercial investment: in land and buildings, infrastructure, national and international events and corporate hospitality.

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MPs to debate urgent Palace of Westminster restoration

On Thursday 11 January the House of Commons will debate how best to carry out the extensive and increasingly urgent restoration of the historic Palace of Westminster in London.

A Joint Committee on the Palace of Westminster was established in 2015 to investigate potential solutions to the Westminster problem. The findings, published in a paper last year, revealed that the Palace faced an “impending crisis” – one which can no longer be ignored.

According to the committee, the risk is substantial and growing. Whether the result of a single, catastrophic event – a devastating fire, for instance – or a succession of incremental failures in essential systems, Parliament could one day find itself unable to occupy the Palace.

Now, the government has announced an official date to discuss what happens next. An as yet unpublished motion is anticipated which will allow a sponsor board and delivery authority to be established to oversee and deliver the restoration and consider the options available for delivery.

According to central government, the three options up for consideration are:

1. A full move out, relocating both the House of Commons and Lords for the duration of the works.
2. A partial move out, during which one House will relocate at a time.
3. A foothold, retained during the works – in Westminster Hall, for example.

The government has also intimated that once the risks, costs and benefits have been weighed up and both Houses are in agreement with the Sponsor Board’s recommendation – subject to a further vote – the chosen option will be taken forward to design and delivery phase.

It is thought that the House of Lords will hold its own debate shortly after the Commons.

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Balfour Beatty to build £287M Manchester Engineering Campus

The University of Manchester has contracted Balfour Beatty to carry out its ambitious £287M Manchester Engineering Campus Development (MECD).

The four year MECD forms part of the University’s decade-long Campus Masterplan, which aims to create a world-class education estate that benefits staff, students and visitors alike.

The development is envisioned as a state-of-the-art facility housing the University’s engineering department, innovative teaching spaces and research concerns such as the Dalton Nuclear Institute and the BP – International Centre for Advanced Materials (BP-ICAM).

Crucially, the MECD will consolidate much of the University’s existing estate onto a single site, creating a compact and environmentally responsible campus that reduces carbon footprint and running costs.

At peak construction the MECD will require a 1,000 strong workforce with apprenticeships and graduate placements on offer. The project team will also employ off-site manufacturing techniques and the latest in BIM technology to optimise construction efficiency and deliver a smart facility to the highest standards possible.

Once complete, the MECD will benefit from ‘green’ construction techniques resulting in smart energy consumption and advanced water recycling and waste systems. The campus will host a wide variety of flexible hi-specification laboratories and lecture spaces and welcome up to 7,000 students and 1,300 staff.

Dean Banks, Managing Director of UK Construction Services at Balfour Beatty, had this to say: “We are delighted to have been appointed to construct the MECD, one of the largest single developments ever undertaken by a higher education institution in the UK.”

Diana Hampson, Director of Estates at The University of Manchester, added: “The Manchester Engineering Campus Development will be a world-leading centre for learning and research. This development is central to the University’s ten-year Campus Masterplan which is creating an exceptional environment for our exceptional people.

“We are providing state-of-the-art facilities that will rival those of our international competitors and help attract world-class academic talent to the institution.”

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Bridging the structural skills gap

Alongside digitalisation and the internet of things, the skills gap has been one of the most widely discussed and impactful topics in the worldwide engineering industry in recent years. Its severity continues to escalate, particularly in construction and structural engineering. Here, Sam Carigliano, CEO of cloud based structural engineering software provider SkyCiv, explores how we can build a better tomorrow for industry.

Sam Carigliano

For more than five years, the engineering skills gap has been one of the key challenges for industry to overcome and it is construction and structural engineering currently bearing the brunt of it. Factors, such as aging workforces, growing populations and industrial developments are driving significant demand in the sector, which exacerbates the effects of the shortage.

Australia exemplifies this dilemma. In its report for quarter four 2014, specialist recruitment agency Hays identified that Australia was lacking in “super skilled” workers — notably structural engineers and building cost planners.

Three years later, Hays’ quarter two 2017 report identified civil engineers as being in “massive demand” in the country’s growing building construction industry. The report itself identifies the problem with meeting this demand, citing an issue in “the sheer volume of urban work and shortage of people with the relevant subdivision experience”.

Yet it is the UK that is one of the countries where this skills gap is hitting hardest. The 2016 Hays Global Skills Index report revealed that the UK’s engineering skills shortage had worsened for five consecutive years, which highlights the extent of the problem — particularly when you consider that construction alone accounts for six per cent of UK annual GDP.

A “seriously debilitated” industry

At around the same time that Hays’ 2016 index report was published, so too was a report sponsored by the UK Department for Business, Energy and Industrial Strategy. The report, authored by construction consultant Mark Farmer, provided a stark, and frankly bleak, overview of the state of UK construction.

The report identified that the construction industry was at a critical crossroads, where it will struggle to deliver economically if it failed to take advantage of industry trends. In Farmer’s own words, “If the opportunities are not harnessed, the risks may become overwhelming… if action is not taken quickly, [the industry] will become seriously debilitated.”

While this may paint a bleak picture of the future of construction and structural engineering, it is important to remember that even Farmer acknowledges there is still time to resolve these issues before they impact the sector too heavily.

But, what can be done to tackle this ongoing skills shortage? As a structural engineering software provider that works closely with students, educational organisations and businesses of all sizes, SkyCiv has observed areas that can be improved. Many of these relate to the growing digitalisation of the sector, both for education and practice.

 

Students and young engineers

According to US labour market analysis, 24% of civil engineers are aged 55 and above. This aging workforce in the construction, civil and structural engineering industries is not US-specific; the Farmer report stated that it is “acute in UK construction” and projected that there may be a “20–25% decline in the available labour force within a decade.”

With many experienced structural engineers nearing retirement, young engineers are beginning to take on more responsibility in the workplace. With little experience, they may feel overwhelmed by the pressure and high standards expected in the profession. Likewise, there is a growing need for engineering students to maximise their employability in the sector.

Critically, young structural engineers can improve their prospects by networking effectively, getting hands on experience with multiple structural analysis programs and actively pursuing projects outside of study.

Although networking has been a valuable tool for many years, younger engineers are now armed with social media platforms such as LinkedIn, allowing them to network more effectively than previous generations. They can also very easily take digital copies of their CVs with them to send across to potential employers.

Likewise, structural engineers should actively find an industry niche that interests them most, as projects can range from urban building to offshore rigging. Students can discover this by experimenting with different projects and hobbies in their spare time.

Young structural engineers should also ensure they are familiar with a variety of general and niche structural software packages to be prepared for whatever software a company is using. The problem is that, because many traditional software programs require expensive licenses and costly hardware, they’ve historically been inaccessible to students and those new to the industry.

Fortunately, recent developments in cloud computing mean that there is software that can be accessed on a cheaper subscription model, such as SkyCiv’s structural engineering software, using nothing but a web browser on a variety of devices. This makes it accessible to budget-conscious students outside of learning hours.

 

Educational schemes

Aristotle famously stated that “our children hold our future in their hands”. Effective education is critical to ensuring that those hands are safe, so it is essential that institutions are up to date with the latest structural engineering methodology and regulations. It is then a matter of sharing this knowledge effectively.

For example, structural analysis software that can provide detailed material analysis and accurate testing is essential for modern construction and engineering. Educational institutions must therefore have access to recent versions of this software to ensure that students are designing to relevant regulatory standards.

The challenge here comes from budgetary constraints. Many countries have seen educational budgets reduced in the years since the great recession, which leads institutions to minimise expenses by using legacy software. As regulations and practices change, outdated software impacts the quality of education.

Similarly, there is an inevitable learning curve associated with software that, with the current rate of technological change, means teachers are seldom experts in multiple pieces of software. Educational institutions must address any shortcomings in teacher proficiency by working closely with software providers to develop effective training plans.

The same applies to construction companies with internal training and apprenticeship schemes, who should try to invest in analysis software that is both effective and intuitive. While many businesses consider the former, the latter is often overlooked.

This is often due to a misconception that millennials — the generation that many budding structural engineers now entering the sector will fall into — are instinctively better with technology.

According to US STEM education charity Change The Equation, this is not true. In 2013, the organisation analysed the results of a survey and found that almost 60% of millennials have low technology skills. Therefore, there is still a requirement for software to be intuitive and not have a cluttered or overly-complicated interface.

The skills gap will undoubtedly dominate discussion in the engineering sector for the remainder of the decade, with a significant overhaul of education and business practices required to truly resolve it.

Such an overhaul is only realistic by taking steps in the right direction now, such as bridging the gaps in analysis and design software expertise. With the right tools and partnerships in place, educational institutions and young engineers themselves can help to build a better future for the construction industry.

 

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BAM wins place on £8Bn ESFA

BAM Construction has been appointed to the Education and Skills Funding Agency (ESFA) Construction Framework.

The company will carry out high value works in both the North and South Frameworks, delivering school buildings over £12M. Six contractors have been selected for the North lot, at an anticipated £1.4Bn, while eight contractors are delivering the south lot at £2.6Bn.

BAM is involved in the current four year framework, which has seen the company deliver 43 schemes totaling some half a billion pounds. The new framework is due to commence at the end of November.

Andrew Brookes, BAM’s Framework Manager, said: “We have been a highly active participant under the current frameworks, and the ESFA has also praised BAM for having the best health and safety performance of all its contractors.

“We’re obviously delighted to have secured both lots that we bid for on the new framework, which is transforming so many young lives by delivering modern learning environments for our teachers and children.

“We welcome the increasing collaborative approach taken by the ESFA. It is true of all our clients that the secret to successful building lies in the partnerships we form with them and the quality of our understanding. The perfect balance is an economical and systematic approach that preserves the integrity of the clients’ needs and captures the key design elements to make the building exactly what they need.”

One of the key challenges within the framework is the management of asbestos procedures. BAM is working closely with the ESFA on asbestos management as many of school buildings under the project were built during times when the hazardous material was in use. The health and safety aspects of asbestos mean this subject is of equal concern to contractors as it is to schools.

 

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FTA: “fuel duty freeze is a missed opportunity”

With the Chancellor delivering his budget this week, the FTA has commented on the decision to freeze fuel duty.

While the decision to freeze has been welcomed by the logistics sector, the FTA suggest that a cut would have done far more to boost the economy. The logistics sector is battling a five year high in inflation and while the freeze helps, it is not enough to make any great difference in the sector.

The FTA, the UK’s largest membership association for the whole logistics sector, has been campaigning for a 3p cut in fuel duty for some time. A cut would provide a significant and immediate positive impact on the nation’s economy, they say.

Christopher Snelling, FTA’s Head of National Policy, said the freight industry is disappointed by today’s Budget announcement, with the belief that the Chancellor could have gone far further to assist the sector which supports all other businesses across the UK.

He said: “A freeze in fuel duty is a welcome decision, but it demonstrates a real lack of ambition by the Chancellor. The cost of moving goods around the country and overseas determines the cost of doing business in Britain and the price of goods in our shops. At a time when British business is under extreme pressure to prove its credentials and reinforce existing trading relationships, Mr Hammond has missed an opportunity to cut these costs, and make the UK a more competitive place to do business.

“Fuel duty increases would have been the wrong tool to use to address air quality. As logistics operators currently have no practical alternative to diesel it would have produced no change in behaviour, just adding cost to those businesses who are facing the burden of the planned Clean Air Zones.”

Research conducted by the FTA has shown that the price of diesel accounts for nearly a third of the operating costs for an average 44 tonne truck, meaning that just a one penny increase in the cost of a litre can add £470 a year to the cost of running one of vehicle. With fleets running to hundreds or even thousands of vehicles, this rise in cost can have a significant effect on operating margins and future solvency. This can lead to more companies being declared bankrupt. Statistics from the Insolvency Service shows the number of freight firms filing for insolvency between April and June was almost double the same period last year and has reached its highest level in five years. In the three months up to 30 June 2016, 32 UK road freight companies declared insolvency, just a year later, the figure had reached 59.

FTA, whose membership operates almost half the UK’s HGV fleet, says the sharp increase illustrates the impact of rising fuel prices and a weakening economic outlook on the logistics industry.

 

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Budget 2017: Infrastructure, housing, and skills receive boost

Chancellor Hammond gave his budget speech to Ministers yesterday, delivering a wide and varied speech setting out his vision for the future of Britain. Most tellingly, his budget centered around housing and making “the dream of home ownership …. a reality in this country once again.”

The housing crisis was addressed with a number of measures, legislative and funding, committing some £44Bn over the next five years. He wants to see 300,000 homes being built a year into the mid 2020s, a rate of building not seen since the 1970s, with the Help to Buy scheme continuing to support first time buyers. To support this, stamp duty has been abolished for first time buyers in homes up to £300,000.

The Chancellor acknowledged that there was no ‘magic bullet’ for the housing crisis and that simply pouring money in would not help solve the problems, so the money committed will be spread over a number of measures, including training of construction workers, releasing more land for construction, and helping more SME house builders.

Some £34M will be set aside to help train construction workers and improve construction skills, while SME house builders will be supported by a Home Builders Fund to get SME house builders building again. Mr Hammond said that reliance on the large house building companies was not good for the market, and we needed more choice in the market.

However, planning reform is required too, said Mr Hammond. He says there is a large gap between the number of permissions given and the number of homes actually built. A new review chaired by Oliver Letwin, will look at how land is being used for housing. If it finds that vitally needed land is being withheld from the market for commercial, rather than technical, reasons, Mr Hammond has promised government intervention to ensure the land is developed, using compulsory purchase orders if necessary.

“In London alone there are 270,000 empty properties” he says and more homes needed to be built in high demand areas and around transport hubs

New money will be directed to the Home Builders Fund to get SME housebuilders building again, with a further £630M small sites fund designed to unstick the delivery of 40,000 homes.

A further £2.7Bn will be invested to more than double the Housing Infrastructure Fund, with more than £400M set aside for estate regeneration.

A £1.1 billion fund will be developed to unlock strategic sites, including new settlements and urban regeneration schemes, while HRA caps will be lifted for councils in high demand areas to get them building again.

Furthermore some £8Bn of new financial guarantees will support private housebuilding and the purpose-built private rented sector.

In order to help Local Authorities and developers tackle the challenge, Mr Hammond announced that the Homes and Communities Agency will expand to become “Homes England”, bringing together money, expertise, and planning & compulsory purchase powers.

The Agency will have a clear remit to facilitate delivery of sufficient new homes, where they are most needed, to deliver a sustained improvement in affordability.

Mr Hammond then announced the support of five new locally agreed Garden Towns for areas under pressure. The projects will be delivered through public-private partnerships designed to attract long term capital investment from around the world.

The government has lent its support to the first, following the publication of the National Infrastructure Commission’s report on the Cambridge-Milton Keynes-Oxford corridor, backing its vision for one million homes by 2050. As well as completing the road and rail infrastructure to support them.

As part of this, the government has agreed an ambitious Housing Deal with Oxfordshire to deliver 100,000 homes by 2031.

Infrastructure and investment in infrastructure was also a major theme, with the chancellor reminding listeners of the government’s commitment to two of the biggest infrastructure projects in europe: HS2 and Crossrail.

Half a trillion pounds has been invested in infrastructure since 2010, with the biggest rail programme since Victorian times, the largest road building programme since the 70s and the biggest increase in science and innovation funding in four decades.

The Chancellor also marked the government’s backing of the Northern Powerhouse, the Midlands Engine, and elected mayors across the UK, with a new £1.7Bn Transforming Cities Fund. One half of the fund will be split between these cities, giving elected metro mayors powers to deliver on local transport priorities, with remainder open to competition by other cities in England.

Mr Hammond confirmed a further £300M to ensure HS2 infrastructure can accommodate future Northern Powerhouse and Midlands Engine rail improvements, whilst also committing £30M to trial new solutions designed to improve mobile and digital connectivity on trains on the TransPennine route. Some £1Bn of discounted lending will be made available to local authorities to support high value infrastructure projects, helping to support development across the country.

All this, while continuing to finance two of the largest infrastructure projects ever: Crossrail and HS2.

The budget has received mixed reviews from construction and property experts, with cautious support for the Chancellor’s measures to tackle the housing crisis, balanced against concern from larger house builders.

Image: Sovastock / Shutterstock.com

 

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NFRC launches new accreditation

The NFRC has announced a new accreditation designed to protect and support the growth of the roofing industry.

Launched at its conference this week, the new accreditation is set to bring skills boost to the roofing industry, and is the result of collaboration between the NFRC and the Construction Industry Training Board (CITB).

The accreditation, aims to improve efficiency, upskill the workforce, encourage the use of new technology and attract new talent. Backed by CITB funding, the scheme will begin next year.

James Talman, Chief Executive of the NFRC said: “I am pleased to officially announce that the CITB has reached agreement with the NFRC to launch an accreditation scheme for the UK roofing sector.

“The industry recognises that it is faced with an ageing workforce, structural challenges which limit its professionalism and lacking career paths.

“Our aim is to address some of these issues and make sure roofing contractors have the support they need to operate efficiently and confidently.”

Mark Noonan, Industry Relations Director at CITB, said the accreditation was focused on engaging with existing and potential contractors to create a career learning programme which would inspire and motivate.

He said: “The CITB is placing its support with the NFRC to create the sustainable demand for professional roofers in the built environment and by doing so ensuring that employers and clients benefit from an accredited workforce. We anticipate the scheme benefits would be supported across all specialist federations, professional training providers and other relevant stakeholders.”

Jon Vanstone, chair of the Competent Person Forum and Trade Association Forum, will chair the programme of delivery for the accreditation. In his post he has worked on numerous accreditation schemes, across a variety of sectors.

He said: “This is an incredibly exciting step forward for the roofing industry and with engagement across the board it could change the perception of a career in roofing and encourage more people into the sector.

“It could also mean that we are not just actively recruiting but we are recruiting individuals who know what they are doing.

“Collaboration is key to the success of this programme and we will be looking to work together with representatives across the industry to ensure it is of value.”

 

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Mabey unveils new bridge lifting technique

Mabey, the leading bridge and engineering specialist, has trialled a new technique for bridge lifting.

A first of its kind for the UK, the solution was developed in conjunction with Alun Griffiths Ltd, Cass Hayward and Network Rail IP Engineering. The unique system was trialled on a project for Network Rail, which saw essential works carried out to a 150 year old viaduct safely and quickly.

Trialling the project in a live environment saw the timber viaduct crossing the River Artro in Gwynedd repaired. The new system allows the repairs to be carried out without the need to strip the track and deck structures – saving time and minimising disruption to Network Rail’s Pensarn to Llanbedr line.

The new system was so successful, it will be considered for other projects, such as the upcoming refurbishment of Barmouth viaduct, the longest viaduct in Wales.

Mabey’s new approach involves a combination of proprietary steel supports and jacking, designed to be built remotely and transported into position. The innovative system allows the repair or complete replacement of timber crossheads or support piers without having to strip the track and deck structures, enabling the repairs to be carried out more quickly, safely and efficiently. If applied to larger timber viaducts, such as the one in Barmouth, the saving in time and cost would be significant.

The £1.4M project forms part of Network Rail’s Railway Upgrade Plan to help accommodate for growing passenger numbers.

Steve Richardson, Contracts Manager, Rail, Alun Griffiths Contractors Ltd, commented: “We approached Mabey because of their expertise in delivering bespoke, smart engineering solutions in a short time-frame. As a long-term partner of ours, the team clearly understood our unique engineering requirements and the importance of developing a system that will bring significant benefits when adopted and applied to larger projects in the future. The successful trial over the River Artro will change the way we approach and programme these repairs.”

Andrew Sperring, Programme Manager for Network Rail in Wales and the borders, said: “The railway is vital to economic growth. Our essential renewal work to the River Artro viaduct will ensure it remains safe and reliable long into the future. This project will play a key role in our improvement work to Barmouth viaduct, allowing us to use our new bridge lift techniques on a similar structure.”

Gordon MacDonald, CEO, Mabey UK Hire commented: “The River Artro viaduct is a vital crossing for passengers travelling on the route from Pensarn to Llanbedr, so trialling the replacing of the timber crosshead in the quickest, safest and most efficient way possible was key. Our innovative new jacking system was a momentous success, and the new bridge lifting techniques are being considered for wider Network Rail improvement works to the nearby Barmouth viaduct.”

 

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Construction missing out on R&D tax credits

Figures released by HMRC show that construction companies in the UK are missing out of tens of thousands of pounds available for Research and Development.

HMRC has published its latest data on R&D tax credits, which are designed to support innovation, that shows construction is falling behind other sectors in claiming this government support.

Analysis shows that some £45M was claimed in 2016 by construction companies, an increase of 29% on 2015, but this is still far behind other sectors, such as Manufacturing which secured £860M in R&D tax claims and Professional, Scientific & Technical which claimed back £635M.

Construction claims accounted for 2.7% of claims, with the average company receiving £64,000 per R&D tax claim.

The figures show that construction is missing out on this valuable tax relief and driver to innovation. According to one of the UK’s leading R&D Tax Credit specialist the Momentum Group, this is due to a number of reasons, from a lack of awareness, to not understanding which activities and costs qualify for this purpose.

Momentum Group Managing Director, Tom Verner, commented: “One of the biggest issues with construction companies claiming their full R&D tax relief, is that many believe R&D Tax Credits are only available for traditional research sectors and ‘white coat’ industries.

“Interestingly, the statistics show that SME’s are driving the growth in claims, accounting for 77% of construction companies’ total R&D Tax Credit claims. This is positive for SMEs in operating in the construction sector which need all the help they can get. As a UK company specialising solely in R&D Tax Credits, Momentum partners with construction companies of all sizes to ensure they claim what they are legitimately entitled to.” he continued.

Tom added: “These claims are so important in encouraging companies to innovate and by not taking advantage of this available tax relief, construction firms risk stagnating their growth and restricting their competitiveness which effectively holds back our overall economy. Relief can be in the form of cash, or a reduction in corporation tax liability.”

Momentum has been working hard to raise awareness of R&D Tax Credits amongst companies in construction. It is calling on all construction businesses and accountants to explore this valuable incentive.

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Budget 2017: Plans for 300,000 more homes a year

In a pre-curser to today’s budget, Phillip Hammond has announced plans that will see 300,000 extra homes built a year.

Speaking on Andrew Marr’s BBC show, he said that: “It is not acceptable to us that so many fewer young Britons are able to own a home”

The Chancellor said that this will be addressed in the Budget, with the government determined to tackle the housing crisis, starting with building an extra 300,000 new homes a year.

However, this was not a promise of extra money with the Chancellor saying there was no ‘magic bullet’ and the government would not be throwing money at the problem.

By speeding up planning permission and giving more help to small building firms, the government hopes to see a revival in the housing market. He pledged to use ‘powers of state’ to ensure planned developments were constructed and included the promised number of homes. The government will also assist in getting more brownfield or contaminated sites ready for use, while smaller sites will be made available to sme builders. Loans to small house-builders will also be guaranteed by the government.

Housing will be a key theme of today’s budget, with the government already showing support through the Help to Buy scheme – there is more pressure to help solve the issues faced by first time buyers, such as mortgage costs, deposits and availability.

While the Chancellor repeated the government’s pledge to assist the next generation of home owners, he fell short of committing to Sajid Javid’s call for some £50bn to help finance a push of house building. He said that the government was following through on its commitment, with new homes being built at record levels seeing some 217,350 properties built in England in 2016.

 

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Construction polluters fined

The Environment Agency has successfully prosecuted a house building company who failed to control silt run off from a site.

Harron Homes were fined £120,000 for illegally polluting a watercourse in Huddersfield, in 2015. The Leeds-based company was sentenced yesterday following prosecution by the Environment Agency and admitting to one charge of causing illegal discharges from its Farriers Croft estate in 2015.

After failing to control silt run off from the site, the Environment Agency found that the watercourse had been polluted on several occasions with the run off entering a tributary of Grimescar Dyke.

The Agency responded to reports of pollution and an officer visited the site on 20 November 2015, they witnessed polluted water flowing out of the entrance of the construction site. The company was also pumping silt contaminated water from site excavations which also entered the watercourse.

Harron Homes attempted to control pollution by setting up settlement tanks, yet further incidents of pollution were reported in November and December 2015. Subsequent inspections by the Environment Agency revealed that this system was inadequate and silty water was found to be discharging, resulting in further pollution.

Samples taken from the discharges showed that they were having a significant impact on the water quality in the watercourse up to three kilometres further downstream. Some samples showed there to be nearly 35,000 milligrams of suspended solids per litre of water, whereas a healthy watercourse is expected to have a concentration lower than 30 milligrams per litre.

Mark West, environment management team leader at the Environment Agency, said: “These pollution incidents had a significant impact on the water environment over a number of weeks, and were entirely avoidable. In West Yorkshire there has been a worrying increase in the number of pollutions incidents reported to us that on investigation are attributable to the construction sector.

“Construction companies should consider the potential environmental impact of developments they undertake at the initial planning stage and must adhere to environmental permitting rules and invest in appropriate management systems to prevent their activities from affecting the local environment.”

Harron Homes has stated that it had now put procedures in place to prevent future pollution incidents.

In addition to the fine, the company was ordered to pay £8,706.71 in legal costs and a £120 victim surcharge.

 

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Construction rental market back to strength

Bucking the trend against difficult economic and political circumstances, the UK’s construction equipment rental market is set to beat prerecession levels, with figures forecasted at £4.7Bn in 2019.

The ‘Construction Equipment Rental Market Report – UK 2017-2021 Analysis’ report, published by AMA Research, shows that growth in this market has been continuous since 2011, at a level of 3-4% per year.

Certain end-use sectors are driving the growth, such as hire of planers, pavers and rollers depending on the level of highway repair activity, and forklift hire on the level of distribution & warehouse activity. Other areas naturally fluctuate, with influences like the having an impact on the level of hire of pumping and climate control equipment, for example.

Housebuilding is a strong user, with demand growing as housebuilding increases. Infrastructure also remains the key end-use sector, with offices, education and industrial also bolstering the figures.

Major non-construction sectors include manufacturing, waste management and events.

Other equipment categories, earth moving equipment represents the largest sector, accounting for around 22% of equipment hire value, with lifting, access equipment, skips & rubbish chutes, portable buildings & environmental control and hand & power tools also strong.

Many companies choose to hire plant and tools, helping to avoid capital investment risks, operating risks and legislative/compliance risks, although there are numerous other benefits, such as use of the latest machinery and technology.

Construction industry trends are also leading to changing market impacts, with the drive for environmentally friendly products increasing, leading to changes in product ranges.

“From 2018 onwards, construction sub-sectors forecast to increase output include infrastructure, entertainment & leisure, industrial and health, as well as housebuilding, while sectors such as education, offices and retail are not forecast to experience growth in the short term” said Keith Taylor, Director of AMA Research. “The biggest risk factor in the forecast will be the effect of the ‘Brexit’ negotiations on the levels of business confidence and investment, which in turn will impact on the construction industry.”

The report is available now and can be ordered online at http://ift.tt/1MbtgrL

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Prime Minister announces investment boost for R&D and transport

Prime Minister Theresa May has unveiled the biggest ever increase in research and development investment, alongside a brand new transport connectivity fund for city regions across the UK.

The new measures, which form part of the government’s proposed Industrial Strategy, are aimed at improving productivity and generating better, higher paid jobs nationwide.

In order to make good on those aspirations, the government will boost expenditure on R&D to 2.4% of GDP by 2027. This could increase public and private R&D investment by as much as £80Bn over the next decade.

A further £2.3Bn is to be made available during 2021/22, raising total public investment in R&D to £12.5Bn that year alone.

What’s more, a £1.7Bn Transforming Cities Fund will soon launch, enhancing transport links and promoting local growth within our city regions. This includes a £250M sum for better transport links throughout the West Midlands.

Writing in The Times, the Prime Minister explained: “One of my first actions as Prime Minister was to begin the development of a modern industrial strategy that will help businesses to create high-quality, well paid jobs right across the country.

“This is a new long-term approach to shaping a stronger and fairer economy for decades to come. It helps young people to develop the skills they need to take up the high-paid, high-skilled jobs of the future.

“Our Industrial Strategy will propel Britain to global leadership of the industries of the future, seizing the big opportunities of our time – from artificial intelligence and big data to clean energy and self-driving vehicles.”

The Industrial Strategy White Paper will announce four ‘Grand Challenges’ that reflect the global trends that will shape our future and industries where the UK has a competitive edge. These are artificial intelligence and the data economy; clean growth; healthy ageing; and the future of mobility.

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Kier Construction Scotland to helm Golden Jubilee hospital scheme

Kier Construction Scotland has been named Principal Supply Chain Partner for a brand new elective care facility at the Golden Jubilee National Hospital in Clydebank.

Valued at £34.5M, the two phase construction project will create a dedicated cataract surgery unit, in addition to an orthopaedic and elective surgical care facility.

The appointment follows calls from the Scottish Government to expand the Golden Jubilee and build five new elective treatment centres across the country. Here, hip, knee and cataract procedures will be carried out, reducing waiting times and enhancing the overall patient experience.

The Golden Jubilee is a national resource for NHS Scotland. It houses regional and national heart and lung services, a centre of excellence in orthopaedics, a major diagnostic centre and is one of the largest cataract providers in the UK.

“This is another major win for Kier Construction Scotland and illustrates our strength in delivering healthcare projects throughout Scotland,” said Brian McQuade, Managing Director for Kier Construction Scotland. “These new facilities will provide improved healthcare services within the Golden Jubilee National Hospital and well as giving the local economy a boost as we will be creating local jobs and learning opportunities for local suppliers.”

June Rogers, Director of Operations at the Golden Jubilee Hospital added: “It’s great to see the plans for these new facilities take a step forward and reach this exciting stage with our partners. Our expansion will provide a number of community benefits such as additional jobs, learning opportunities and environmental projects.

“Once we get approval to proceed, our new facilities will make a huge difference to thousands more patients in the future. It will allow us to deliver more effective healthcare services by continuing to deliver a world-class standard of safe and effective care that the patients of Scotland deserve.”

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North to get new transport powers

Transport Minister Jesse Norman has announced the government is set to devolve transport powers to regions, with the North becoming the first to benefit from the pioneering legislation.

Underlining the government’s commitment to the Northern Powerhouse, the new powers will allow regions to make transport investment decisions themselves.

TfN will be given unprecedented powers in this move to transform TfN into the first ever statutory sub-national transport body – with legal powers and duties.

TfN – backed with up to £260M of government funding – will transform transport across the North of England, providing the infrastructure needed to drive economic growth and create jobs and boost skills. The move to put TfN on a statutory footing means that its recommendations must be formally considered by the government.

The news follows the award of £18.5M from a £150M government fund for TfN’s smart ticketing programme. TfN will use this to introduce paperless, smart card season tickets for Northern and TransPennine Express and Merseyrail passengers by the end of 2018.

Transport Minister Jesse Norman said: “We are committed to the Northern Powerhouse, and to giving the great towns and cities of the North more say over transport investment through their umbrella body TfN. This government is investing the most cash for a generation in transport projects for the North. These new powers will give TfN far greater influence over national infrastructure decisions, as well the certainty they need to plan and drive forward projects such as Northern Powerhouse Rail and smart ticketing.”

Northern Powerhouse Minister Jake Berry said: “We are investing a record £13 billion in transport in the North of England – more than any government in history. As part of this, TfN will be a game-changer, with powers to speak with one voice on northern transport projects and drive forward ambitious plans to improve transport connections and unlock economic growth across the Northern Powerhouse.”

Independent Chair of TfN John Cridland said: “TfN gaining statutory status is an important step towards transforming the North of England and giving it the voice and powers it needs to move forward. To have the statutory instrument laid before Parliament is a tremendous achievement, having secured the support of 56 local authorities including all 19 of our constituent authorities. We look forward to continuing to work closely with our partners to transform the region’s infrastructure and grow the UK economy.

“Becoming a sub-national transport body means that the Secretary of State of the day will take into account the North’s priorities when making transport infrastructure investment. These priorities will be developed collaboratively and we are currently working with our partners to finalise the draft strategic transport plan, which will be published for public consultation early next year. This is a 30-year transport strategy for the North that will help drive economic growth in the region and help to rebalance the UK economy – statutory status will ensure this plan is considered as a formal statutory document that can provide a solid, evidenced-based framework for transport investment in the North over the coming decades.”

 

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Vision 2020: Bold new strategy for the CITB unveiled

The Construction Industry Training Board (CITB) has unveiled a bold new strategy for its future, dubbed ‘Vision 2020: The Future CITB‘, with a view to reestablishing it as an agile, forward-thinking skills body.

The much-anticipated modernisation of CITB follows the Government-led ITB Review and the triennial Consensus process. While the industry has voiced its support for the construction levy, it has also called for significant reform. That outcry has been driven by past CITB performance and the industry’s need for a skills body that can help it meet of trials of tomorrow – Brexit, for example.

Over a three year period, ‘Vision 2020: The Future CITB’ will shape the skills body into a simpler, more streamlined organisation. It will become a commissioner of outcomes that serve the construction industry’s core objectives. The Future CITB will also use Levy money to better guarantee a sustainable training and development environment, intervening only when a service is unavailable in the marketplace or not to the quality sought.

“Construction needs to modernise and CITB is no exception,” said Sarah Beale, Chief Executive of CITB. “We accept the challenges laid down by industry and Government and we will deliver a future-fit training body by adapting and updating our business model.

“Some really tough decisions could be made under these proposals but I’m confident in our commitment to becoming a more representative, accountable and reliable ‘levy in, skills out’ organisation. We now have a clearly defined path, and we see a bright future for a modern, engaged CITB. We look forward to working with our industry and Government to build a better Britain.”

The three key tenets of CITB remain ‘Careers’, ‘Standards and Qualifications’ and ‘Training and Development’, but the new organisation will adopt a different approach to delivering on these:

1. Evidence: Develop a robust evidence base through research and market intelligence to determine the construction industry’s current and future skills needs, the supply of training and interventions required.
2. Influence: Work with the industry to influence skills funding, vocational training, government policies and provisions.
3. Funding: Make use of employer funds to support construction, with employers addressing their own skills needs.

In its quest to become more accountable, CITB has also developed an ‘Agenda for Change’ – a six-point set of outcomes for 2018 and beyond. In it are commitments to be more relevant, representative and responsive to construction industry’s needs – from SMEs all the way up to major contractors. The skills body has also pledged to adapt its governance so that it accurately represent the construction industry of today.

Sarah Beale, Chief Executive at CITB, concluded: “I understand this strategy will bring about big changes to employees at CITB and we will be supporting our colleagues as much as possible throughout this process. These are tough calls to make, but needed if we are to meet the future demands and make the greatest impact to construction.

“We have worked hard to develop robust, well thought-out plans which meet our industry’s needs whilst building a solid foundation for CITB’s future. The proposals outlined today will be phased in over the next three years, and with our customers always in mind it’s business as usual.”

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HGV taxes pay for almost all the UK’s road maintenance

New independent research conducted by the Freight Transport Association has shown that HGVs pay enough tax alone to cover almost the whole of UK spending on road maintenance.

Coming ahead of the budget, the report shows that not only do lorries more than pay for all the wear and tear effect they have on the roads, but in fact they pay 94% of the UK’s total spending on road maintenance.

The report has found that heavy goods vehicles pay three times more in tax than the estimated cost of damage to infrastructure.

Some £4.7Bn was spent by central and devolved governments, and local authorities on road maintenance between 2015 and 2016. In the same period, HGV taxes (vehicle excise duty, road user levy and fuel duty) raised £4.4Bn. However, the cost estimate for infrastructure damage imposed by HGVs totalled only £1.5Bn. Overall the report shows that £33.5Bn was collected in vehicle taxes – more than seven times as high as the road maintenance budget.

FTA’s Head of National and Regional Policy, Christopher Snelling commented: “This report supports FTA’s central points for this Budget – road freight taxes are too high and vital infrastructure spending is too low.

“Taxes on UK road freight are already the highest in Europe – any further increase would add to the cost of doing business in the UK and the cost of goods in the shops. Instead of raising duty, the Government should cut taxes on road freight to help stimulate the economy.

“The fact that HGV taxes alone almost pay for the whole of UK road maintenance also shows that Britain still does not support the quality of the roads well enough. Whether it is potholes, road closures or long running road works, we all suffer when the roads do not work as they should. Congestion is bad for the environment as well as the economy. The UK Government should provide for more spending by Highways England and our local authorities to ensure the roads are fit for purpose.”

The full report is available at http://ift.tt/2hNwP6j

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Images:  Michaelpuche / Shutterstock.com

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Government outlines housing vision

Following PM Theresa May’s assertion that she will personally oversee plans to fix the UK’s ‘broken’ housing market, the government has released its future ‘vision for housing’.

Earlier this week, she acknowledged the lack of affordable properties in the UK and a generation is missing out on being home owners. She said too few homes have been built, and too slowly, forcing prices to rise.

“The number of new homes being delivered each year has been increasing since 2010, but there is more we can do,” she said on Wednesday.

“We must get back into the business of building the good quality new homes for people who need them most.

“That is why I have made it my mission to build the homes the country needs and take personal charge of the Government’s response.”

The comments preceded new figures that show the number of new homes in England has risen by 15% over the past year, with the government beginning to see the results of efforts to tackle the housing crisis – such as Cameron pledge to build a million new homes.

The figures show 1.1 million additional homes have been built since 2010

Communities Secretary Sajid Javid welcomed the figures, and set out the next steps the government will take to fix the broken housing market and boost building more homes.

Speaking in Bristol, which in the past year has seen one of the largest increases in England – 30% – in the number of homes, he set out his vision for housing.

Communities Secretary Sajid Javid said: “These latest figures are clear evidence that this government is turning things around with over 1.1 million homes delivered since 2010.

“Steps have been made in the right direction – but I want to see a giant leap, and hundreds of thousands more homes. We owe it to our future generations to fix this broken housing market and help them find a home of their own.

“Whilst some councils are recognising their responsibilities and stepping up to meet the housing challenge, too many are still not acting. That’s why I’m stepping in now to make sure they act.”

The local plan was introduced in 2004, which asked councils to set out how and where they expect to meet their residents’ needs for new homes.

Latest figures show that more than 70 local authorities still have not had a local plan adopted and 15 of these are showing particular cause for concern having missed deadlines and failed to make progress.

The government is taking this commitment seriously, and these councils will have action taken against them, with the government beginning the formal process of intervention as set out in the housing white paper.

Without a local plan in place it can mean uncertainty for local people and piecemeal speculative housing development. It can also mean the right investment in local infrastructure isn’t made.

 

 

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Candidate ownership – What construction companies need to know when using multiple recruitment agencies

When two recruitment agencies claim ownership of the same candidate, which agency should attract the introduction fee?

Candidate ownership is a frequent problem for recruitment agencies but when two agencies each claim that they have introduced the same candidate, how does the client ascertain which is entitled to the fee?  Unfortunately, in this case, it is common for both agencies to pursue the client for an introduction fee for the same candidate placement. Faced with the prospect of paying two fees, often equating to 50% of the candidate’s remuneration in aggregate, clients will often prefer to retract an offer of employment rather than pay both agencies. Clearly this situation is of benefit to no one in the process as the client does not hire the suitable candidate; the candidate does not receive an offer the job and neither agency attracts the introduction fee.

It is important for construction firms to attract the right candidates at the recruitment stage to avoid high staff turnover which can adversely affect productivity and project completion. With this in mind, it is helpful for clients to understand the legal and contractual stance that should underline good recruitment practice. When two agencies claim ownership of the same candidate, there are two basic principles which will determine which agency is entitled to be paid; contract law and the ‘effective cause’ principle.

Contract Law

When a recruitment agency submits a candidate’s details to a client, it is offering a contractual agreement typically based on the agency’s standard terms and conditions of business. As this is a contractual offer, the client is entitled to accept or reject it. By acting on the introduction and arranging to interview the candidate, the client has affectively accepted the offer and the agency will ordinarily be entitled to claim an introduction fee.

If two agencies introduce the same candidate for a position, the client is free to accept one introduction and reject the other. There may be several reasons why a client will choose one introduction over the other but often, it will come down to four main points:

• Agency approach and candidate suitability
• Which agency has the most robust screening and compliance processes
• Commercial terms
• Working relationship, industry expertise or previous experience with the client

In this instance, it is highly advisable for the client to ensure they inform the unsuccessful agency that the introduction has been rejected. If the client does not inform the unsuccessful agency that it has rejected the offer, the agency may assume acceptance and continue to claim ownership, despite having done nothing more than submit a CV.

Informing an agency that their introduction has not been accepted allows the client to move forward with the selected agency without any confusion regarding introduction of the candidate. Clearly if there is no other agency involved and the client proceeds to interview and engages the candidate, the selected agency making the introduction may still be entitled to claim a fee, subject to their contractual terms and conditions of business.

Unfortunately, it is often the case that clients do not actively reject duplicated introductions from their agency suppliers. As a result, it becomes necessary to work out which agency is the ‘effective cause’ of the hire.

Effective Cause

Many clients recognise the need to advise an unsuccessful agency of rejection of a candidate introduction to avoid duplication. However, as this process can be time consuming and administration heavy, some clients prefer to operate a “first to introduce” policy. Put simply, this means that the agency who submits the candidate’s details to the client first, is entitled to the introduction fee. This policy is often a successful one but there are some significant flaws to consider.

Firstly, the policy can be responsible for poor recruitment practice as agencies compete to be first to submit the candidate regardless of whether they have received candidate consent. The drive to be the first agency to place a candidate can also encourage mass mailing of CVs with little real understanding of the candidates’ suitability and skills set. Agencies who use this approach will often benefit from a “first to introduce” policy even though they have made no attempt to sell the role to the candidate or comply with their obligations under the Conduct Regulations and Data Protection Act. Within the construction industry this can have serious ramifications if qualifications and site based certification aren’t checked.

Secondly, email can be an unreliable communication method as mails can be easily ignored, automatically filtered to junk or lost in the client’s inbox. Clearly it is not viable for an agency to claim ownership of a candidate if the email has not been read while a second agency has actively discussed the candidate with the client, arranged the interview and managed the recruitment process. 

The law of effective cause ensures an agent will not be entitled to any fees unless they are deemed to be the effective cause of the candidate being hired. Most of the litigation around this rule is found in estate agency disputes but it is also commonly used to resolve dispute in the recruitment industry.

The cases of Wallace Hinds and Associates v Lastolite (2000), and Law Staff Legal Recruitment Limited v Just Costs Limited (2009) are two useful examples.

In the above cases, the court considered whether the agency had played an effective role in the employment of the candidate. Had the agency been ineffective, there would be no entitlement to an introduction fee. The details of the cases differed but they did follow a common theme. In both cases, the court decided that the agency had not played any part in the client’s engagement of the candidate and so were not the effective cause. As a result, the agencies’ claims for fees failed.

Thankfully, courts are now generally unwilling to uphold a “first to introduce” approach and instead enforce the effective cause principle in such dispute cases.

An ethical approach

Contract law and the effective cause principle protect clients and the recruitment industry from unscrupulous agencies. An ethical agency will of course respect a client’s decision to use another agency, avoiding any dispute over fees. 

A shortage of skilled workers within the construction industry continues to impact recruitment so it is important that construction clients have a clear understanding of these principles so they can screen agencies and encourage ethical recruitment practice. Good recruitment practice is of benefit to all parties involved ensuring the best candidate is hired, the best agency is paid and the client is satisfied and confident in the recruitment process to meet the needs of the industry.

Article submitted by Simon Girling, Founder and Director of Girling Jones – Construction, Engineering and Property recruitment consultancy

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