Paving the way for a greener future

When Highways England introduced its Road Investment Strategy: 2015 to 2020, it was designed to provide a network for the future, that will be smoother, smarter and more sustainable. This involves the efficient movement of people and goods, utilising technology to deliver safer roads and ease congestion and delivering economic, environmental and social benefits.

The strategy supports Highways England’s design vision “to put people at the heart of our work by designing an inclusive, resilient and sustainable road network; appreciated for its usefulness but also its elegance, reflecting in its design the beauty of the natural, built and historic environment through which it passes, and enhancing it where possible.”

The Road Investment Strategy was followed by the launch of Highways England’s first Sustainable Development Strategy last year.

Its aim is to encourage economic growth, while protecting the environment and improving safety and quality of life for current and future generations, with Highways England adhering to the principles of sustainable development in everything it does.

There are five main concepts in the Sustainable Development Strategy:

• Financial capital, or the capacity to invest
• Human capital, or the knowledge and capacity of the workforce and stakeholders
• Natural capital, or the natural resources and services
• Social capital, or the relationships, networks and communities
• Manufactured capital, or the infrastructure and technologies

For each ‘capital’, Highways England has identified a ‘vision’ and ‘ambition’ in the Sustainable Development Strategy. To turn the visions into a reality, the company is setting about delivering a series of focused actions.

The 2015-2020 roads period will be a time of significant investment in England’s roads. Through this investment, Highways England will improve the condition of its assets and increase its ability to cope with change. Assets are designed using rigorous standards to produce infrastructure that lasts, and the company is seeking to ensure resilience to climate change so it is embedded in its business activities to reduce costs and increase safety.

The sustainable strategy will ensure climate change is considered in the future standards within the Design Manual for Roads and Bridges. This begins with a general requirement that the goals of sustainable development shall be delivered throughout the design lifecycle, including that the design shall aspire to be resilient to future climate change. Existing adaptation plans are also being reviewed.

The agency aims to deliver a meaningful contribution to the UK Government target of an 80% reduction in greenhouse gas emissions, against the levels in the 1990s, by 2050. Carbon reduction is a key requirement of Highways England’s licence and the Road Investment Strategy makes commitments to adopting low carbon technology. This has seen Highways England investigating low carbon technology use on the strategic road network.

The Sustainable Development Strategy describes the unique priorities, visions and ambitions for sustainable development. This strategy is designed to communicate the company’s approach and priorities for sustainable development to its key stakeholders. This, alongside other strategies and plans, will contribute to the sustainability of the company and the strategic road network. Highways England is keen to ensure its actions in the future will further reduce the adverse impact of its activities seeking a long-term and sustainable benefit to the environment and the communities it serves.

Current objectives for the agency are to: remove energy-inefficient lights from the network; improve the operation of energy-consuming assets; and to get inventories accurate.

Efficient LED lighting on the M621

One project on which Highways England has implemented this policy is on the M62 and M621 near Leeds, where 1,618 street lights have been replaced with modern efficient LED lighting units.

New efficient technology for signals and road lighting can achieve a 30% energy reduction if converted to LED, plus, another potential 20% through smart management of lighting levels. On the M62 J22-J25 scheme, Highways England approached specialist lighting companies in order to adapt sodium lighting technology for the motorway. This type of solution is commonplace for architectural ornamental lighting, such as monuments and halls, but this is the first time it is being used to light a highway.

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

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

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

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

The difference between LED and traditional lighting.

Another example of the policy in action is on the A160 upgrade scheme. The upgrading of the A160 between the A180 Brocklesby Interchange junction and Immingham Harbour was seen as a priority project for Highways England to improve access to the Port of Immingham.

The scheme started in spring 2015 and was completed in spring last year. Highways England worked collaboratively with its suppliers to deliver the much-needed upgrade. More than two years before work started on site, the project partners undertook a rigorous research programme to ensure the design and delivery of the scheme had sustainability at its heart. Core samples taken from the existing road identified tar-bound asphalt, a hazardous waste material – a constraint. To divert the 2,800 tonnes of planings from landfill, a supplier suggested that they be encapsulated in the sub-base cement-bound granular mix material as part of a total of 30,000 tonnes of recycled aggregates used in the project – the opportunity.

Early engagement across the supply chain also ensured that innovations such as lower temperature asphalt were built into the road design, saving more than 200 tonnes of carbon dioxide equivalent.

 

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PwC: Drones could give UK GDP a £42Bn boost by 2030

New research conducted by PwC has shown that drone technology could give UK GDP a £42Bn (2%) boost by 2030.

In its report – entitled ‘The impact of drones on the UK economy‘ – PwC estimates that the number of drones in UK airspace will soar to around 76,000 in 2030, with more than a third (36%) expected to support the public sector – be it defence, education or health. There are significant gains to be made all round however, with construction and manufacturing set to see an impressive £8.6Bn increase in GDP.

The report also predicts that the UK could recoup a potential £16Bn in savings thanks to a host of efficiency and productivity improvements brought about by drones. Here, the technology, media and telecoms sector will lead the way, with potential net savings worth £4.8Bn anticipated by 2030.

Meanwhile, PwC estimates that 628,000 people will be part of the so-called drone economy in twelve years time. New jobs to develop, build, operate and regulate drones will be required to remain in-step with productivity and consumer demand as a direct result of drone usage.

“Drones have the potential to offer a powerful new perspective for businesses across a variety of industries, delivering both productivity benefits and increased value from the data they collect,” said Elaine Whyte, UK Drones Leader at PwC. “The UK has the opportunity to be at the leading edge of exploiting this emerging technology, and now is the time for investments to be made in developing the use cases and trial projects needed to kick-start our drone industry.

“I envisage that the advantages of drone technology will be well established within the decade – not only for business purposes, but also for helping to protect our society, for example, through being used by the emergency services. There is a need for current UK drone regulation to advance to see the estimations in our report become a reality, but it’s positive to see the government already taking proactive steps to address this with the draft Drones Bill.

“In order to realise the full potential from drones, the immediate focus must be on developing society’s confidence in the technology to help drive acceptance and increase adoption. While drones are often currently viewed as more of a toy, by combining this emerging technology with the right business understanding and human insight there is a huge opportunity to help solve some of business and society’s most important problems.”

UK Construction Online recently published its own take on drone technology and supply chain opportunity, with guidance from CRL, Drone Major Group and the Civil Aviation Authority.

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Morrison Construction appointed to Inverness flood protection scheme

The Highland Council has contracted Morrison Construction to carry out the final phase of the £6.2 million Smithton and Culloden Flood Protection Scheme in Inverness.

The much anticipated project will alleviate flood risk throughout the Smithton and Culloden communities following a prolonged period of flooding. In total, 129 properties will be protected that would otherwise be at significant risk.

These latest works will complement those carried out in earlier phases and cover the replacement of a culvert between Lochlann Court and Redburn Avenue, the creation of flood storage areas in Culloden Park and Smithton Park, the removal of a culvert running beneath Smithton Park and the removal of a second culvert stretching between the railway line at Murray Terrace and Smithton Park.

It is thought that the works will commence on-site within the next four to six weeks with the project due to complete in summer 2019. In the meantime there will be a unfortunate spike in traffic as equipment and materials are ferried on-site, while traffic lights and pedestrian diversions will be required at various locations throughout the works. The Highland Council has pledged to work closely with Morrison Construction to ensure these disruptions are kept to a minimum however.

As for Morrison Construction, the Inverness based contractor will undertaking various community initiatives during the contract – updating community groups, attending schools to engage with children and providing work placement opportunities and apprenticeships for senior high school pupils and university students.

“We look forward to continuing our working relationship with the Highlands Council and delivering these vital flood defences that will safeguard homes in the Smithton and Culloden communities,” said Morrison Construction’s Jim Steele. “We live in the communities that we work in. Our engagement with local stakeholders will continue throughout construction ensuring this project has a lasting positive impact.”

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Double adjudications the way to go for employers failing to serve a pay less notice

 

Up until the recent decision in Grove Developments Limited v S&T, employers who failed to serve a pay less notice on time often ended up on the wrong end of a ‘smash and grab’ adjudication decision, resulting in a requirement to pay their contractor, as well as legal and other fees involved in the process. However, the TCC has now given its blessing to a way for employers to try and gain the upper hand.

In Grove, the parties entered into a JCT design and build contract. Grove was the employer and provided the contractor, S&T, with information regarding the basis of valuation of their work; however, this was out of time. Grove then served a pay less notice (on time), but without providing any further information regarding the basis of valuation. Grove argued that there was no need to send this because it was provided to S&T earlier. The problem was that the pay less notice did not, by itself, set out the basis of calculation that the employer said was due, contrary to the contractual requirement and s.111(4)(b) of the Housing, Grants, Construction & Regeneration Act 1996.

Perhaps knowing that it was about to lose that case, Grove attempted to persuade the court that it could argue the “true value” of the work undertaken by S&T in a separate adjudication. The court decided not to follow previous cases in this area suggesting that an adjudication as to value in relation to the same sum as the notice of adjudication would have to wait until a final account. Coulson J held that an employer can start a second (counter) adjudication in order to dispute the value of the contractor’s work. This case therefore provides more hope to employers who fail to serve a pay less notice on time. It is likely to lead to a substantial increase in double adjudications.

Prior to the decision in Grove, the central message to paying parties was to follow strictly the payment procedures in their contract; thereby avoiding defending a ‘smash and grab’ adjudication. While Grove should be welcomed by paying parties, the potential benefits need to be appreciated in light of two important limitations.

It is true that there is a statutory right to launch the ‘true value’ adjudication before a decision is reached in the ‘smash and grab’ adjudication. Indeed, a paying party to a construction contract can start adjudication on ‘true value’ as soon as the party is in a position to do so. However, courts will not refrain from enforcing any sum awarded in the ‘smash and grab’ adjudication simply because the decision in the ‘true value’ adjudication is still pending. Therefore, if a paying party leaves it too long, it could easily face the prospect of a summary judgment application to enforce the smash and grab award and need to pay the costs of those proceedings, as well as the award.

The second limitation comes from the time and costs associated with the ‘true value’ adjudication, particularly if the disputed sum is significant, which will inevitably require the help of appropriate experts and legal advisors. The paying party will normally be the one responsible for bearing those costs regardless of the result of the adjudication. Additionally, as above, the paying party will need to quickly prepare its case or anticipate the need to launch a true value adjudication in advance, and it is often the case that a true value adjudication will take longer to prepare than an adjudication for payment because no pay less notice was served.

Despite the decision in Grove, ‘smash and grab’ adjudications will no doubt continue and in my experience the strategy in similar situations should always remain the same: employers should always aim to serve a pay less notice within the relevant timeframe. Although those who fail to do so will be provided with more hope following the decision in Grove, this will always be subject to the limitations above.

Article submitted by Mark James, Partner – Dispute Resolution, Coffin Mew

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Heathrow flies into the future

The sustainability objectives of the expansion of Heathrow Airport were set out in Heathrow 2.0, launched last year. The strategy sets out the Airport’s aims for sustainability leadership that goes beyond simply reducing negative impacts to delivering positive impact in a way that enables others to thrive as the airport grows.

The report sets out a series of goals that will guide the future of the airport as it expands, as well as guiding plans for the development of the new northwest runway.

As part of the policy, earlier this year Heathrow Airport launched a search for partner logistics hubs to aid in the expansion of the airport.

Heathrow will be the first major infrastructure project in the UK to pioneer the large-scale use of logistics hubs – aiming to build as much of the project off-site as possible. The hubs will work by pre-assembling components off-site before transporting them in consolidated loads to Heathrow, as and when required. This method will boost the project’s efficiency and cut emissions by transporting components to site in fewer lorries.

Research by WPI Economics revealed that integrating an off-site manufacturing supply chain into a major project has the potential to reduce the overall cost of the project by as much as 25% whilst speeding up delivery by up to 30%.

Lord Deighton, Chairman at Heathrow Airport, said: “Heathrow Expansion is a once in a generation opportunity to transform the UK construction industry, build for the future and deliver a lasting skills legacy for future generations. All of this comes at a pivotal time for our country, as it prepares itself to leave the EU and where we need to build for our future in both travel and trade.

“An expanded Heathrow is for all of Britain and the Logistics Hubs are instrumental in our aim to ensure that expansion spreads the huge potential of its £187Bn in economic benefits across the UK, whilst minimising the impact on the airport’s local communities. Off-site construction is an innovative way for these balances to be met and we can’t wait to see for ourselves the opportunity we have in working with the best businesses in the country.”

UK Construction Media (UKCM) spoke to Matt Palmer, Heathrow Expansion Development Director, about the plans for the airport and how they aim to ensure sustainable development.

UKCM: What are the sustainability objectives for Heathrow’s expansion?

MP: Heathrow 2.0 is the airport’s plan for sustainable growth and our commitment to encourage sustainable aviation. Heathrow’s plan is to expand in a way that creates a positive impact on our community, environment and economy.

UKCM: How are you implementing this?

MP: Heathrow 2.0 details our aspiration that, as Heathrow grows to meet demand, with a new runway, there would be no net increase in carbon emissions: “carbon neutral expansion”. The initiative attempts to decouple aviation growth from climate change – a world first.

We have developed a carbon plan as part of the overarching strategy. Heathrow is committed to a range of measures including operating a zero-carbon airport, reducing carbon in Heathrow’s supply chain, increasing UK access to Heathrow via sustainable means and addressing the challenges of passenger transportation and vehicles.

As we prepare for Heathrow’s expansion, we plan to work very closely with the teams delivering other large infrastructure projects, such as HS2 and Crossrail, to bring this vision to life.

UKCO: How has sustainability affected the plans for Heathrow expansion?

MP: Sustainability will play a key role in the expansion project. We want to deliver sustainable growth and we stand by our ‘triple lock’ guarantee to deliver expansion in accordance with the UK’s legal air quality obligations. This includes meeting our existing commitment to improving air quality by not increasing the amount of airport-related vehicle traffic on the road and supporting improved surface access connections, ensuring further measures are ready to be introduced if required to reduce traffic, and binding our commitment by guaranteeing that extra capacity at an expanded Heathrow will only be released when it is clear that the airport’s contribution will not delay compliance with legal obligations on air quality.

The objectives are both environmental and economical.

The Logistics Hubs are essential in ensuring Heathrow expansion delivers for the whole country by spreading jobs, boosting productivity and modernising the construction industry outside London and the South East. They will ensure that 60% of procurement spend will be outside London, spreading the benefits of local investment up and down the country. As well as the direct benefits, new research from WPI Economics shows that, if adopted more widely, the approach could spur growth in off-site construction and lead to a productivity boost worth £30Bn for the industry outside London by 2025.

UKCO: Are there any new technologies you are implementing through the sustainability initiatives?

We’re still in the early stages of the expansion programme, having recently closed the UK’s largest consultation on the options that will be used to develop the preferred masterplan. Although we’re refining our plans, we’ve made clear that the businesses interested in helping to deliver the new runway will need to demonstrate a complementary commitment to sustainable innovation in order to be considered. Suppliers and successful hubs will need to show consideration for local communities and the environment, will need to help ensure the project delivers for the whole of UK and use innovative techniques and cutting edge technology.

UKCO: What are the aims and objectives of the Logistics Hubs? How will they work?

MP: During the site tours the Logistics Hubs will have the opportunity to demonstrate strengths in a range of areas. Bidders will not only need to illustrate the merits of their site, but they will also need to demonstrate a skilled and dedicated workforce, capability to collaborate on the nationwide project and good connectivity, allowing output to be easily transported to Heathrow.

UKCO: What will be delivered by the Hubs?

MP: For this project, we will need sites that can be used to pre-assemble the components of an expanded Heathrow. These components could be a range of things including materials within the terminal buildings themselves or on the expanded airfield. Other sites will be used to consolidate loads before they are transported to Heathrow. With the two types of sites working together, we can reduce the number of vehicles on the airport’s surrounding roads, cutting congestion and emissions.

UKCO: What are the benefits of off-site construction?

MP: These Logistics Hubs will help ensure that businesses across the UK can form part of the airport’s supply chain, enabling Heathrow’s new runway to deliver a legacy of construction excellence across the UK. The sites will play a key part in helping to spread the £187Bn in economic benefits and 180,000 in new jobs that the expansion is expected to bring.

The hubs will also play a key role in supporting expansion’s efficient delivery, helping us to deliver the new runway on time and on budget whilst mitigating the impact that concentrated construction activity would otherwise have on the airport’s local communities.

UKCO: How will this affect the skills market in the UK?

MP: Heathrow expansion will be the first major infrastructure project to pioneer the large-scale use of Logistics Hubs and these sites will play a key role in developing skills and boosting growth outside London and across Britain.

The Hubs are just one of the ways that Heathrow is working to develop construction skills across the UK. In 2017, we announced the launch of the Heathrow Skills Taskforce, chaired by Lord Blunkett. The taskforce was a UK-wide online forum to gather independent views on the airport’s future education, employment and skills strategy. The expansion project is expected to create as many as 100,000 jobs outside London and the South East, and we set out to identify the best teaching, employment and career progression opportunities to make the airport a role model for social mobility and diversity.

UKCO: What legacy do you want to leave with the project?

Heathrow expansion is a major national infrastructure project and a once in a generation opportunity to transform the UK construction industry, build for the future and deliver a lasting skills legacy for future generations. All of this comes at a pivotal time for our country, as it prepares itself to leave the EU and where we need to build for our future in both travel and trade.

The Logistics Hubs feature in the Government’s Industrial Strategy, listed as an example of how to develop skills across the UK and create conditions where successful businesses can emerge.

UKCO: Do you think larger infrastructure projects should embrace this method?

We believe that this method is instrumental in our aim to spread the benefits of expansion up and down the country and have begun working with other major infrastructure companies to explore how the final sites could be used for future projects. When looking for the final four Logistics Hubs we will be considering their longevity and potential to collaborate with other projects in the hope that other large infrastructure projects embrace this method.

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Managing claims and avoiding disputes in Offshore Energy projects: The importance of timely and adequate contractual notices

 

Companies involved in marine construction projects in the renewable energy sector (such as offshore wind farm projects), which operate within complex contracting environments typically involving multiple construction contracts, can be drawn into significant disputes related to time and money claims.

If a dispute arises, the failure to make prompt and adequate notices of claim can be the end of otherwise valid claims. This article, from Haynes and Boone CDG LLP, sets out some key considerations to keep in mind when notifying claims, and the approach of the English Courts, which would also guide arbitrators deciding English law arbitrations.

Considerations for Contractual Notice Provisions

Bespoke contracts or contracts based on international model forms used in the offshore construction sector typically include notice and time bar provisions in relation to claims. The ability to make a valid claim will depend on the wording of the notice provisions, applying the usual principles of contract construction,[1] and whether they are construed as directory or mandatory.

If parties intend notice provisions to operate as a condition precedent to the making of a claim, clear language should be used stating (i) the precise time within which the notice is to be served; and (ii) that failing timely notice, the party making the claim will lose its right to claim under the clause. An ambiguous provision would not be construed as a condition precedent because, since such provisions are intended to operate in the interests of both parties, that would only benefit one party and would deprive the other of a potentially valuable right to claim an extension of time. However, the phrase “provided that the Subcontractor shall have given within a reasonable period written notice to the Contractor of the circumstances giving rise to the delay”, even though it did not contain an express warning as to the consequences of non-compliance, has been held to be a condition precedent, as the courts considered that it made clear in ordinary language that the right to an extension of time was conditional on the notification being given. The relevant event triggering a time bar should be clearly identifiable to avoid uncertainty, especially given the serious effect of a condition precedent clause. Provisions may be drafted to ensure notice is given either at the earliest opportunity upon the occurrence of the trigger event, which would be in the employer’s interest, or only once the contractor, having knowledge or means of knowledge of the event, is delayed by the event or reasonably believes it will be delayed.

Typically notices need to be made in writing and care should be taken to comply with any additional requirements as to content and form, as they will be subject to careful scrutiny especially in the event of a dispute. Simply put, a notice should be clear and unambiguous as a recognisable claim. The notice should make clear to the other party that the party making it is contending that the relevant event has occurred and has led to a delay giving rise to a claim. Unless the contract includes specific requirements, the level of detail of the claim and supporting documents may not be an absolute obligation but may depend on what is available to a party at the time of the notice. To put matters beyond doubt, a written notice should provide sufficient details as to the claim by describing the event and the information, as to additional time and/or money claimed, which is available to it at the time the notice is made, and make reference to the contractual provision relied on.

Where no formal notices or doubtful notices are made, subsequent attempts to construe project correspondence as valid notices, if these were not originally intended as notices, or to justify a claim through technical and project reporting, or reliance on the fact that the circumstances of the claim were known to the other party or discussed between parties, will be unlikely to succeed. If the notice provision is a condition precedent, the party seeking to make a claim would not be relieved from the obligation to give proper and unambiguous notice of the claim.

The contractual provisions about the circumstances in which notices are to be given should always be read in conjunction with the provisions regarding delivery of the notice, which are usually included in the so-called “boilerplate” clauses. These provisions are generally mandatory such that notices would only be deemed to be valid if the requirements as to the provision of written notices, the person(s) to be notified, the place and permitted modes of delivery (whether these are to be sent by letter, email, or fax) and the time of deemed receipt, are also complied with. It is essential to check whether any changes to the delivery address have been formally notified. Care should also be taken, if there has been consistent conduct by parties using another address (such as a site office) for correspondence during the project, as this may operate as a waiver of strict compliance with the service provisions. However, when formal notification of changes is absent, the notice provisions must be followed to the letter.

Both parties need to pay careful attention to the notice obligations. The onus is first on the party making the claim, and a failure to serve a compliant notice may be a complete answer to such claims, even if the claims would in theory be valid. However, such provisions typically also stipulate a time limit within which the other party is to respond, and a failure to do so or raise any objections as to non-compliance with these requirements may constitute a waiver of the right to reject the claim in future.

Conclusions

Notice provisions, in particular those which impose strict obligations, are intended to provide commercial certainty in preventing late and unparticularised claims, thus enabling parties to know where they stand as regards claims as soon as possible. Timely notice also gives the other party the opportunity to investigate whether or not to allow the claim, and to consider and possibly mitigate any financial consequences of the claim. Such clauses also operate as gateways to liability and, especially in complex international construction projects, where many claims may arise during the course of the project, care needs to be taken to ensure that notices and responses to them do not fail to comply with the essential requirements of the notice provisions.

 

Article submitted by Helen Conybeare Williams, Counsel, Haynes and Boone CDG, LLP

[1] What a reasonable person, having all the background knowledge available to the parties, would have understood the words of the contract to mean, using the language in its commercial and factual context. Where there are rival interpretations, concepts of business common sense can be relevant as an aid to construction.

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FTA calls for open Irish border

An open Irish border is needed after Brexit to keep trade flowing freely, say the Freight Transport Association.

In a meeting with leading British politicians, held at Stormont over the weekend, FTA’s Northern Ireland policy manager Seamus Leheny, stressed that the association’s members need trade to continue to flow freely across the border, without delays, to ensure that business can be supported on both sides of the border.

The FTA supports a border solution which protects frictionless trading arrangements.

Talking to Secretary of State for Exiting the EU David Davis MP, Secretary of State for Business Greg Clark MP and Secretary of State for Northern Ireland Karen Bradley MP, Mr Leheny said: “Logistics operators are clear that the Irish border must remain frictionless after Brexit, to ensure that trading relationships are protected and business can continue to flourish.”

“This weekend’s meeting gave us the chance to share the concerns of the freight and logistics sector with ministers, who were open to possible solutions which would protect the integrity of Ireland’s businesses, as well as its borders.”

During the meeting with business representatives, the MPs supported a “maximum facilitiation” solution to the Irish border and considered ways in which the constitutional and economic integrity of the UK could be upheld, while reinforcing commitments made to the people of Northern Ireland.

“The Irish border situation is complicated, with physical and political constraints that need careful consideration before a workable solution can be found,” Mr Leheny continued. “The conversations we had this weekend were a welcome opportunity to raise the concerns of the logistics industry directly with those at the negotiating table in Brussels, particularly the need to avoid infrastructure at the border, and the fact that technology at the border on vehicles will not be a workable solution.

“Clarity over the rules of origin for goods is vital, and despite the fact that compliance for the north-south trading route will be difficult to administer, I am confident that our message – that Ireland needs to remain open for business, with no delays at its borders – will be carried into the next round of talks with the EU.”

 

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March HPI shows subdued market

The latest House Price Index has been released showing that, while house prices are continuing to rise at a steady rate, the overall market is generally subdued.

Overall the UK annual house price growth remained steady at 2.1%, with London once again the weakest performing region, showing house prices are down one per cent year-on-year.

Average house prices now come in at £211,625.

Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said: “UK house price growth remained broadly stable in March at 2.1%, little changed from the 2.2% recorded the previous month. House prices fell by 0.2% over the month, after taking account of seasonal factors.

“On the surface, the relatively subdued pace of house price growth appears at odds with recent healthy rates of employment growth, a modest pick-up in wage growth and historically low borrowing costs. However, consumer confidence has remained subdued, due to the ongoing squeeze on household finances as wage growth continues to lag behind increases in the cost of living.

“Looking ahead, much will depend on how broader economic conditions evolve, especially in the labour market, but also with respect to interest rates. Subdued economic activity and the ongoing squeeze on household budgets is likely to continue to exert a modest drag on housing market activity and house price growth this year.

“But historically low unemployment and mortgage interest rates together with the lack of properties on the market is likely to provide some support for house prices. Overall, we expect house prices to be broadly flat, with a marginal gain of around 1% over the course of 2018.”

Taking the figures on a regional basis, we can see that Northern Ireland is leading the rate of growth, with a substantial increase of 7.9%. However, these figures are still below the pre-crisis levels.

Wales is also enjoying a pick up, with a 6.1% year-on-year increase, the highest since 2014. While England growth of 1.9%. Only Scotland saw weaker price growth than England, with prices up just 0.2%.

With London house prices dropping, the North-South divide is beginning to narrow, for the fourth consecutive quarter, regions in the North of England recorded stronger annual house price growth than those in the South. Although, prices in the North of England are, on average, still less than half of those prevailing in the South, with typical northern house costing £163,138, compared to £331,047 in the South.

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Manufacturing on even keel

The latest report from CBI’s Industrial Trends Survey shows that manufacturing output has remained on an even keel in the three months to May.

Output has remained broadly unchanged across manufacturing, still keeping above average figures, although output in the last quarter is the lowest since April 2016.

The survey, which seeks the opinions of over 400 manufacturers, found that orders had fallen to their lowest since November 2016, but are also still above the long-run average. While export orders are holding their own at a steady level well above average.

The current figures leave the sector feeling positive, with substantial growth expected over the next quarter.

Anna Leach, CBI Head of Economic Intelligence, said: “UK manufacturing has lost some steam since the start of the year, on the back of a softening in both domestic and global growth.

“While global economic growth – particularly in the EU – has disappointed in the first quarter of the year, demand from overseas continues to shore up manufacturing activity in the UK, with export order books remaining well above historical average.”

Tom Crotty, Group Director of Ineos and Chair of CBI Manufacturing Council, said: “Overseas markets are crucial for the prospects of UK manufacturers.

“To plan their future investments effectively, it’s absolutely vital that trade between the UK and the EU remains as frictionless as possible, and that there are no further barriers to trade either North-South or East-West for Northern Ireland. Progress must also be made on critical issues like immigration and EU rules.”

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Homes England launches new framework

Homes England, the government’s housing delivery organisation, is launching a new framework which will help speed up the delivery of new homes.

Procurement through the new Multidisciplinary and Technical Services Frameworks, will broaden the range of technical and design services available to support Homes England’s and other public bodies’ work to accelerate the supply of new homes, with the frameworks providing direct access to the professional, technical and design services needed to prepare land for housing development.

Using the new frameworks will provide users with an OJEU compliant and efficient means to procure technical and design services.

Stephen Kinsella, Director for Land at Homes England said: “This will be the fifth generation of our multidisciplinary framework and our biggest yet, demonstrating Homes England’s expanded role in bringing together land and expertise to speed up the building of new homes.

“We want to create strong working relationships with a wider range of companies who can provide valuable technical advice and design expertise to help accelerate housing development, deliver value for money and great places to live.”

The new frameworks have been introduced to support the government’s ambition of delivering 300,000 homes a year by the middle of the next decade. Other public sector bodies will be able to use the frameworks, boosting the government plan to access developable land across the country, by providing the infrastructure needed.

With an estimated value of £150M, these frameworks will replace the current Homes England’s framework that expires in November 2018. They will act as a one-stop-shop to procure a range of integrated technical and design services from a single source. Homes England has operated this arrangement successfully in the past, which will enable the organisation to continue to work with companies and their specialist sub-consultant teams.

The Multidisciplinary Framework will also be supplemented by a range of specialist frameworks to meet specific future needs and enable Homes England to engage directly with a broader range of companies. These specialist frameworks will consist of:

• Five regionally based frameworks to provide planning, masterplanning and consultation services to help obtain planning permission
• A project, cost management and development monitoring framework
• Specialist site survey and asbestos frameworks to provide very specific services towards developing  brownfield land.

 

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DIO awards Clyde Construction Framework

A flagship ten year construction framework has been awarded by the Defence Infrastructure Organisation (DIO), on behalf of the Ministry of Defence.

The Clyde Commercial Framework supports the £1.3Bn Clyde programme to ensure that personnel responsible for delivering the UK’s continuous at sea nuclear deterrent are able to live work and train in safe, state-of-the-art facilities.

The companies selected for the framework are VolkerStevin, Kier Graham Defence and Morgan Sindall. They will advise and deliver cost effective construction services and other infrastructure solutions to enable Her Majesty’s Naval Base Clyde to continue to endure in its new role as the Royal Navy’s Single Integrated Operating Base.

DIO, along with support from a team of procurement specialists including Mott Macdonald and Jacobs, adopted an innovative process to choose the successful suppliers.

In the past teams working on Clyde projects had tried various methods of contracting suppliers with varying degrees of success. All companies which bid for work on the Clyde programme could meet the core construction requirements of the contract, but through the new process the team was looking for an approach that could help them select not only a good construction company but a good partner.

Selection focused primarily on the company’s relationship with the Clyde team and its ability to work collaboratively. This new approach was put to potential bidders at a range of industry days and all were supportive of this new way of working.

This unique way of choosing suppliers, having established they all had the required technical capability, focused on evaluating their behaviours and on how well they work together with teams at the Clyde.

The Clyde team worked with behavioural experts to set out the criteria for successful companies. This team of experts then observed, scored and helped to evaluate the behaviours of each company as they took part in a series of practical exercises with members of the Clyde project teams.

Ian Arbuckle, DIO Assistant Head of Commercial Services, said: “We are incredibly pleased to launch our new framework for the Clyde. We have successfully selected three reputable industry partners who have demonstrated a commitment to delivering better value for Defence.”

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How is smart technology helping to re-imagine health and safety?

A new Donseed white paper looks at how smart technology is starting to bring a step-change in the management of wellbeing, health and safety on UK construction sites.

Fundamental to the success of every construction project is its approach to the wellbeing, health and safety of its workforce. From changing behaviours and ensuring everyone has the right training and qualifications to monitoring exposure to health risks – there are an increasing number of areas to consider.

Written by the team at Donseed, who provide leading biometric workplace management solutions to the construction industry, the white paper focuses on four main areas:

• A virtual lesson in using smart technology on site.
• Tackling the issue of fatigue management.
• The use of data intelligently.
• Mental health and occupational wellbeing.

The UK construction industry is often accused of being slow to react to change, stuck in its ways and constrained by its fragmented nature, with hundreds of thousands of construction companies doing things the way they have always been done. But smart technology is changing that.

Find out how by downloading the white paper for free here.

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Tunnelling ready to begin on Thames Tideway

Tunnelling is ready to begin on the multi billion engineering project to improve London’s sewerage system.

The first two tunnel boring machines are in place and ready to be lowered, marking the start on Thames Tideway, of one of the largest schemes of its kind in Europe.

Minister for London Jo Johnson visited the site as engineering teams got ready to start tunnelling work on the £4.2Bn sewage system. He said: “London is a thriving international city, and people will always want to move here. We must ensure that opportunities for housing and work are there – and that Londoners are offered the best possible quality of life.

“The Thames Tideway Tunnel is an incredible feat of engineering and a big part of this ambition. It will help guarantee that the groundwork is in place to support our great city for the decades to come.”

The tunnel is the biggest ever investment in the capital’s sewerage system, and is set to deliver billions of pounds worth of benefits to London by modernising the century old system. It will start at Acton Storm Tanks in West London, and end at Abbey Mills Pumping Station in East London, with the tunnel due to be completed in 2023. The Thames will also benefit from better water quality with the new systems dramatically reducing the amount of sewage overflowing into the river, allowing its biodiversity to flourish.

Mark Sneesby, Tideway’s Chief Operating Officer, said: “The lowering of our first two tunnel boring machines will mark a significant milestone for the construction of Thames Tideway Tunnel, ahead of tunnelling later this year. When complete the tunnel will prevent tens of millions of tonnes of untreated sewage entering London’s iconic River Thames every year.”

Read how the project is benefiting from using a digital strategy, here.

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Transport Secretary unveils enhanced A1 following £400M overhaul

Britain’s biggest road is today a little bigger following a comprehensive £400M pound overhaul intended to boost journey times and better driver safety.

Transport Secretary Chris Grayling was on-hand to officially reopen a section of the A1 to oncoming traffic. The scheme, which represents the biggest road building project of its kind in the North today, has delivered new motorway links from London right the way through to Newcastle.

The comprehensive road improvement programme has also provided an additional lane running in each direction near Catterick, which promises to reduce average journey times by a fifth and prevent 450 road traffic accidents over a 60 year period. Crucially, upwards of £1Bn pounds will be pumped into the UK economy.

The overhaul forms part of the government’s £15Bn pound road investment strategy, which aims to transform the road network and bolster connectivity between Britain’s towns and cities.

“Our record investment to improve our roads is making a real difference to people’s lives – providing quicker and safer journeys for millions of drivers,” said Minister Grayling. “This scheme will not only save motorists time stuck in traffic, but will also help unlock £1Bn into the economy.

“It also fills in the missing link to provide motorway-standard roads between Newcastle and London, helping businesses in the north by opening up new opportunities thanks to better and more reliable connections to the rest of the country.”

Highways England Senior Project Manager Tom Howard added: “This is great news for the almost 70,000 drivers who already use this section every day and whose journeys will be safer and faster. At the same time we’ve also made it easier for local people to access the A1 safely, and we’ve planted miles of hedgerows and acres of woodland.

“This has been the biggest road project in the north and I would like to thank everybody involved in the scheme for their hard work and commitment in making it happen.”

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CIS Contractors missing out on tax relief

Construction contractors working under the Construction Industry Scheme (CIS) are being urged to educate themselves about capital allowances, as they might be missing out on some tax.

David Redfern, tax expert and founder of DSR Tax Claims, has discovered that many contractors are missing out on valuable tax relief due to their lack of knowledge around capital expenditure and HMRC legislation. Many companies are missing out on thousands of pounds of tax relief per year, he says, mostly due to the complexity of the regulations, with contractors feeling discouraged from claiming for their plant and machinery expenditure.

He continued: “most CIS contractors are aware of business expenses such as their mileage and subsistence costs, but far fewer are aware of the advantages that can be gained through capital allowances.

“For many contractors, these advantages could be substantial due to the type of capital purchases likely to be made by those in the construction industry.”

CIS contractors are able to claim capital allowances on plant and machinery, including tools, as well as business vehicles such as lorries or vans, such large purchases can have a significant impact on a contractor’s finances. Many contractors are unaware of the full range of items that can be considered under capital allowances, these include: integral features of business premises, such as lifts or air-conditioning units, and fixtures and fittings, such as CCTV systems, kitchens, and bathrooms.

Mr Redfern added: “The feedback we received from CIS contractors throughout our campaign suggested that many construction contractors find the topic of capital allowances daunting due to the complex nature of capital allowance rules – however, with the substantial sums often involved in large business expenditure, it would benefit many to seek expert advice on claiming their full capital allowances.”

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£20M boost for UK’s hydrogen economy

New funding has been announced designed to boost innovation in the development of low cost hydrogen.

Energy and Clean Growth Minister Claire Perry delivered the £20M boost during a visit to Swindon’s innovative Hydrogen Hub and Recycling Technologies. The funding will help companies investigate the development of a low cost, low carbon hydrogen for industry, buildings and transport and help create hundreds of clean industry jobs.

Clean and green innovation is at the heart of the modern Industrial Strategy, with over £2.5Bn of government investment from 2015 to 2021.

Hydrogen fuel is a safe and low-carbon alternative for energy in buildings, industry, and transport – but is currently very costly to produce and transport. The £20M funding is aimed at changing this, looking to significantly reduce the high cost of producing large volumes of low carbon hydrogen, so that the technology can become a competitive, clean energy supply of the future.

Speaking at the Swindon Hydrogen Hub, Energy and Clean Growth Minister, Claire Perry, said: “Clean, green and safe, hydrogen has an exciting role to play powering the UK but needs to be cheaper and more widely available to live up to its potential. Today’s £20M funding boost, part of our modern Industrial Strategy, will help to address these challenges so that we can sustain the exciting momentum building in our low carbon hydrogen economy, creating high-value jobs up and down the country.

“Clean Growth is at the heart of our modern Industrial Strategy and creates huge opportunities for the UK, securing our place as global leaders in this field.”

The minister met with Hydrogen Hub members to discuss the UK’s strength in hydrogen and fuel cell technology development, and the potential for the UK to be at the forefront of a new hydrogen economy, helping us to meet our climate change targets.

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Wates Group appointed to Parliamentary Northern Estate Programme

Wates Group is celebrating its appointment as framework contractor for the renovation of the Parliamentary Northern Estate.

As framework contractor Wates Group will comprehensively refurbish several historic listed buildings in and around Westminster – most notably Norman Shaw North and South, 1 Parliament Street and 1 Derby Gate – effectively future-proofing the estate for generations to come. Crucially, the renovation will also ensure there is space enough to accommodate the House of Commons as the Palace of Westminster undergoes its own restoration in the near future.

Built between 1864 and 1906, the Parliamentary Northern Estate collectively houses 950 people. Despite this there has been no significant investment for over 30 years, meaning that the buildings are costly to run and in varying states of disrepair. Beginning in 2019, the programme of works will greatly enhance the standard and amount of office space while boosting environmental performance and improving safety and accessibility.

Wates Group was appointed following a competitive procurement process and hundreds of jobs are to be created as part of the programme. Wates has also pledged to ensure the direct benefits of the scheme are felt across the country.

“We are delighted to have been chosen to deliver this nationally significant and exciting programme of work on the Parliamentary estate and look forward to continuing our successful relationship with Parliament,” said Paul Chandler, Group Managing Director of Wates Construction.

“These buildings are at the heart of the UK’s heritage and we understand the responsibility we hold in helping to preserve them for generations to come. We will bring more than 120 years of experience and knowledge to this project and will create a lasting legacy through our commitment to providing new training, employment and skills opportunities.”

The programme is currently in the design and planning stage for each of the individual buildings. The project team is currently working to identify the least disruptive and most cost-effective method of phasing the works.

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Sustainability within construction: Waste not, want not.

With contractors under increasing pressure to reduce their levels of site waste, as well as facing scrutiny over the sustainability of their practices, the need to adopt more efficient methods and materials within the supply chain has become an absolute necessity. Robert Clark, Head of Business Development at offsite light gauge steel manufacturer Fusion Building Systems, discusses the opportunity.

The traditional UK construction industry produces more than its fair share of waste – a staggering 32% of all landfill in fact. Every year over 400 million tonnes of materials are delivered to site and of that, around 60 million tonnes is waste – often down to over-ordering or damage. DEFRA commented in its Digest of Waste and Resource Statistics report in 2015 that while some efforts have been made to address and reduce this, very little has really been achieved in recent years.

This isn’t the case (broadly speaking) for offsite methods of construction. Because products arrive on site pre-manufactured, the waste which is typically generated through the production process is contained and managed by the manufacturer, and recycled. However, depending on what type of offsite method you use, you may still need to factor in some level of on-site waste.

If you’re using a timber frame structure, your site waste will be considerably less than if you were building using traditional methods – it would include, for example, the protective plastic packaging used during transit, as well as the stillages and the timber props for the assembly process. For projects constructed using volumetric modular systems on the other hand, you’re enjoying having the finished product delivered to site with all fixtures and fittings in place, so site waste would be kept to a minimum.

Any waste from rolls of light gauge steel at Fusion’s manufacturing facility are made into brackets or melted down and reused.

The other offsite construction option is panelised light gauge steel. This solution produces virtually zero waste on site – and actually very little in the manufacturing process too. Any steel offcuts which are collected in the very small bins in our factory for example, are simply bent through 90 degrees to make brackets, or melted down and recycled. Panels also don’t need to be shrink-wrapped for their storage or journey to site, and reusable materials are used in the assembly process.

The sustainability discussion encompasses more than material waste, however, and it’s fairly standard practice now for large developers and contractors to scrutinise their supply chain on factors such as the locality of their workforce, or the carbon footprint of their logistics operations. Local authority contracts now insist on local employment, but how are suppliers addressing this when their work requires skilled craftsmen?

Well, again the offsite approach can offer many benefits. Fewer personnel are required on site compared to traditional methods of construction. This is regardless of which system is being used because the labour required for the manufacturing process is located back at the factory. For our projects, we typically only have three or four skilled erectors on site – and these are people who will lodge locally until the contract is complete to save on unnecessary travel. If more personnel are required, we’ll recruit locally, having our trained erectors working alongside them to ensure the job is completed to the high standard our clients expect.

In terms of transport, we’ve calculated it takes five times fewer lorry loads to transport our light gauge steel panelised structures to site than it would for the equivalent requirement for traditional building materials to be transported. This not only has a considerable impact on the carbon footprint of the construction process, but is also significant in managing the logistics of the build programme, especially when working on a site with restricted access – not least because of the reduced impact on local residents.

Fusion’s panelised system is efficient to transport to site

Finally, a conversation about sustainability in construction can’t be complete without reviewing the environmental credentials of the finished product. But, whatever new technology is installed, however advanced the performance of the materials are, or whichever energy self-generation systems are specified, a building constructed using offsite methods will always have a far better ‘ecohouse’ performance rating than one built using traditional methods. This is because the overall credentials of a property are calculated based on mass, rather than efficiency – and for that, offsite systems will always top the sustainability charts.

 

 

 

 

 

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SMEs report biggest surge in growth

AXA, one of the UK’s biggest construction insurers, has released a report on the SME construction industry outlook.

Following a tough start to the year, with the ‘Beast from the East’ wreaking havoc on construction sites across the UK, and the waves created from the collapse of Carillion, SME growth optimism is at a high.

Reporting the biggest surge in growth optimism in five years, AXA is seeing construction SMEs rising against drops in housebuilding and rises in material prices. Some 56% of SME construction firms are predicting rising workloads over the next six months, double the number in the same period of 2016, with the number of firms citing ‘lack of work’ as the biggest risk also falling, to just 16%.

While the collapse of construction giant, Carillion, sent shockwaves through the industry, SME firms have escaped the brunt of its effects. A whopping 84% of SME builders report they work entirely for private householders and local businesses, rather than larger contractors.

While the industry as a whole is calling on SME builders to plug the gap in the housing market, few companies are reporting an appetite to break into the sector. Eight in ten rely entirely on small residential projects for business, and while two thirds have the appetite to break into housebuilding and public works, just one in ten say they have any realistic prospect of doing so, citing a ‘closed shop’ culture’.

The top reason given was that both arenas are considered ‘closed shop’, with contracts and permissions going to an elite circle of bigger companies. Difficulties accessing finance and skilled workers were cited in second and third place only.

Gareth Howell, Managing Director, AXA Insurance UK plc, lent his support to industry calls for an SME ‘Help to Build’ scheme: “The UK is 100,000 houses per year down on its target for new affordable homes. The biggest public-sector contractor has just crashed, leaving this field open to newcomers. There have been suggestions that small firms will ride to the rescue on both fronts, but they have been out in the cold for way too long. In the case of housebuilding, 30 years or more. Small firms have learnt to live without such projects, but can our infrastructure live without them?”

 

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Bureau Veritas calls on construction industry to give Part 8 the green light

 

With just a few months to go until the arrival of the 18^th Edition of the IET Wiring Regulations, Bureau Veritas is calling on construction industry to embrace the changes brought by the new Part 8 section – stating it is an important step forward in the UK’s green agenda.

As one of the most successful countries in its carbon reductions, the UK continues to make huge headway in its target towards reducing emissions by 80% on 1990 levels before 2050 – with the adoption of more energy efficient solutions integral to this.

Yet until this point, there has been no official best practice regulation around the design and installation of energy efficient technology – meaning it has been all too common for installations to be completed with little regard to energy use and emissions.

Cue the arrival of the 18^th Edition this July (2018) which, for the first time, will go beyond just looking at safety requirements to include a section dedicated to energy efficiency in installation – a move which Bureau Veritas states will bring renewed focus on the energy efficiency plight.

Mahendra Mistry, Technical Manager for electrical systems at Bureau Veritas, said: “Although it’s been the subject of much debate, with some stating that the Wiring Regulations should be confined solely to safety requirements, the introduction of an energy efficiency section is an vital step forward in ensuring the most current and relevant guidance possible.

“Until now, energy efficiency has all too often been a ‘nice to have’, with it all too common for installations to be chopped and changed, with little regard to the distribution of electricity or potential losses. However, by making energy efficiency a primary focus from the offset, we can look to ensure that each and every installation is completely as safety and sustainably as possible.”

Comprising 25 pages, the new Part 8 section provides guidance on ensuring the energy efficiency of electrical installations with a view to lessening environmental impact, reducing energy losses, using energy only when required and potentially at a lower tariff, reducing maintenance by ensuring equipment is installed correctly and enhancing lifetime efficiency.

The consensus is that the change could help to drive increased demand for smart solutions, such as electric vehicles, LEDs, power factor correction and the like, while, in turn, opening up new business opportunities for electrical contractors.

Mahendra adds: “As an industry, we still have a huge job to do in terms not just of meeting carbon reduction commitments but ensuring a sustainable infrastructure; which Part 8 will help to more adequately address. Indeed, it may mean more change for construction sector and contractors to get to grips with but it is an important regulatory reform which not only aid our sustainability plight but create new opportunity.”

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Grenfell Review calls for system overhaul

After ten months intense investigations, Dame Judith Hackitt has released her report on the Grenfell Tower tragedy.

Chair of the independent review launched into Building Regulations and Fire Safety, Dame Judith has recommended a fundamental reform of the building system in order to improve building safety and rebuild trust in the safety of high rise properties.

Much to the surprise of many within the industry, the report has fallen short of calling for a total ban on flammable cladding.

The review has been looking into the design, construction and management of buildings in relation to fire safety, and has concluded that the regulations and guidance for construction are in themselves “ambiguous and unclear” and that the systems for testing and certifying products was “disjointed, confusing, unhelpful and lacking any sort of transparency”.

She said that the system needs a complete overhaul and the construction industry needs to take responsibility for the delivery of safe buildings.

“This is a systemic problem.” She says in the report “The current system is far too complex, it lacks clarity as to who is responsible for what, and there is inadequate regulatory oversight and enforcement. Simply adding more prescription or making amendments to the current system, such as restricting or prohibiting certain practices, will not address the root causes.”

In a damning remark on the industry, she says: “[these] issues have helped to create a cultural issue across the sector, which can be described as a ‘race to the bottom’ caused either through ignorance, indifference, or because the system does not facilitate good practice. There is insufficient focus on delivering the best quality building possible, in order to ensure that residents are safe, and feel safe.”

The full review builds on the interim report, released in December, which showed the failings in the current system and set out six key areas for further work. It sets out an ambitious vision for a new framework which will improve standards for both new and existing buildings.

Recommendations from the report include:

• a new regulatory framework for buildings over ten-storeys
• holding developers and building managers responsible for fire safety
• the creation of a new body to ensure the management of safety risks
• clearer roles and responsibilities for duty holders
• better testing regime plus better labelling and product sourcing
• more effective procurement prioritising high-safety and low-risk rather than cost

Nick Baveystock, Institution of Civil Engineers (ICE) Director General said: “The review makes the important point that we must begin thinking of buildings as a system. The UK’s infrastructure sector has recognised this, and is leading the way in adopting Building Information Modelling. This approach has changed the way in which we look at the whole life of an asset, by modelling and recording aspects of this complex system in a digital version.”

Brian Berry, Chief Executive of the FMB, said: “Today’s report is the culmination of a long and thorough review into the weaknesses of the current approach to competency and compliance in the sector, weaknesses which can serve to undermine safety. It is a suitably serious response to the Grenfell Tower tragedy. Dame Judith has understandably focused the attention of the review on high rise residential buildings, but we believe strongly that some of the recommendations must be taken as a blueprint for the wider industry. In particular, the industry as a whole needs to develop a comprehensive approach to competence. There is an opportunity here for the whole industry to step up and ensure we have adequate levels of competence across the sector.”

Survivors and bereaved of the Grenfell blaze have said they are “saddened and disappointed” that the call to ban combustible cladding products has been ignored.

On the day of the review was released, the 2018 FM Global Resilience Index revealed that the UK ranks 34th in the world when it comes to resilience to fire.

The UK is currently less resilient to fire-risk than countries such as; Russia (21st) Bulgaria (24th), Bosnia and Herzegovina (26th), Greece (10th), Poland (13th), Turkey (17th). It is also way behind other developed nations in the EU.

The fire risk quality score takes into account the quality and enforcement of a country’s building codes, along with a measure of the fire risk quality of actual facilities visited by FM Global’s property risk engineers.

Tom Roche, Senior Consultant for International Codes and Standards at FM Global, commented on the findings of the Hackitt Review: “While the Hackitt Review provides some clarity over who is responsible for what and when, it’s disappointing not to see a direct call for current technical guidelines to be reviewed. Instead, it looks like the Government will be pushing more responsibility onto industry to ensure building safety. Pushing responsibility onto industry without issuing updated technical guidance is likely to create further confusion for building owners who are typically looking to government guidelines and building standards to make sure they are compliant. Hackitt also falls short of calling for a ban on combustible materials, again pushing the responsibility onto industry to trace and test materials. Without any bans in place, it’s even more imperative that the Government takes responsibility for updating technical guidance for the industry to use.

“Hackitt’s report focuses heavily on high rise residential buildings. No doubt this is an important area post Grenfell. However, Grenfell exposed multiple failings across the UK’s fire safety systems that were not just specific to high rise buildings. When it comes to fire safety, we need the same level of rigour to be applied to all buildings, including homes, schools, hospitals and workplaces, many of which are low rise buildings.

“What is clear from this review is that rather than waiting indefinitely for the Government to provide answers, building owners need to get ahead of the issues and have a fire safety strategy in place. If there’s a material they are unsure about the safety of, they shouldn’t delay for the Government to make recommendations, they should get it looked at now.”

In anticipation of the review, the government announced it will fully fund the removal and replacement of unsafe cladding by councils and housing associations.

In a move estimated to cost some £400M, the government will ensure non-profit making Local authorities and housing associations will be given access to funds to help with reasonable costs of removing and replacing unsafe cladding from buildings which they own to ensure people are safe in their homes.

The fund follows the government’s offer last year of financial flexibilities to assist local authorities with essential fire safety work. Interim safety measures are in place in all affected buildings and latest figures from the Ministry of Housing, Communities and Local Government show that over 65% (104 out of 158) of social housing buildings with unsafe cladding are currently going through the process of remediation.

Housing Secretary Rt Hon James Brokenshire MP said: “People must always feel safe in their own home.

“Since the tragic events at Grenfell Tower, we have taken steps to ensure the immediate safety of all high rise buildings.

“This money will ensure local authorities and housing associations are being given the support they need to get this work done now as well as removing the uncertainty around funding.”

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Mental Health Awareness Week: Why managing stress matters

 

This year, Mental Health Awareness Week (14-20 May) is shining a spotlight on stress. With one in six adults experiencing depression, anxiety or issues relating to stress at any one time – and with 12.5M working days lost due to work related stress, depression or anxiety last year – helping employees to manage their stress should be a priority for all employers.

This is especially true in the construction sector, where transient working patterns, long periods away from home and demanding hours can all contribute to a stressful lifestyle. We need to be conscious of overwhelming stress as something that can lead to mental ill health, more so than even in an industry where male site workers are three times more likely to die by suicide than the average UK male.

So how can construction employers take practical steps to help their employees address their stress?

Here, Jaan Madan, Workplace Lead at Mental Health First Aid (MHFA) England, offers some key advice.

What is stress?

Stress is the body’s natural response when it senses danger. We all experience stress and need it to function, and healthy amounts of stress can be a motivator at work. But when stress interferes with our lives, it becomes a problem. Too much stress, for too long, can make us ill. If unaddressed, stress can cause mental health issues like depression or anxiety and harm our physical health.

Raise awareness

Stress can arise from a range of factors, both positive and negative, spanning across work, home and environmental factors. But regardless of where stress comes from, it’s important for all employees to understand what it is and how they can gain control over it. Communicating basic information about what stress is, what it looks like, what its impacts are and how it can be tackled is a straightforward way to help familiarise the issue.

Communicating the signs of stress is also key here. Each person will show stress in different ways, but common signs include: becoming overly angry or irritable, becoming withdrawn or losing confidence, or frequent minor illness. Displaying posters or other materials with this information can be a good first step to raising awareness

Start the conversation

Raising awareness can also empower people to speak up and one of the most effective ways of relieving stress is through conversation. Encouraging people to speak out if something is concerning them is therefore really important.

In practical terms, managers can play an important role in helping these conversations to take place. Even taking ten minutes every week with each team member to ask, ‘how are you?’, could be vital in helping those struggling with stress to open up and get access to further support.

Encourage healthy behaviours

Thinking upstream about how we stay healthy is also key. Eating a varied diet and taking time to do the things you enjoy are some of the foundations of good mental health. However, many employees in construction work long, irregular hours, which can mean that these important habits become neglected. Offering tips and advice on how to adapt your diet to reduce stress levels – such as avoiding too much sugar, alcohol or caffeine – and providing information on how to have a balanced diet can help everyone to make healthier choices.

Act now

We want to empower people to talk about stress and ensure it’s something everyone feels comfortable addressing in every workplace. That’s why, this week, MHFA England has launched the ‘Address Your Stress’ toolkit: a set of free, simple and practical tips and tools to help everyone better understand and manage their stress.

Download the toolkit now and find out more about Mental Health First Aid training for your workplace to take the next step.

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FM Global cautions on desktop assessment amendments

FM Global, the international risk assessment and insurance provider, has cautioned on the government’s plan to restrict desktop assessments in fire testing.

A government consultation has been launched to address concerns over using desktop assessments on fire risks of external cladding systems using Aluminium Composite Materials (ACM), following the Grenfell Tower tragedy.

However, FM Global believes that options proposed by the government to restrict these assessments do not address the fundamental issues with the accuracy of the tests, and may actually result in a higher number of assessments being carried out. In their opinion, if the government proposals are passed, it may send a signal to the industry that desktop assessments for ACM cladding are acceptable and could therefore encourage their usage. However, FM Global argues that there appears to be nothing in the proposals that would increase the evidence base that the assessments rely on.

The Company suggests that there is strong evidence to suggest that desktop studies may have contributed to the use of dangerous combinations of building materials. Following the tragic fire that engulfed London’s Grenfell Tower in June 2017, the Government has been identifying public buildings with Aluminium Composite Material (ACM) cladding systems to assess whether the systems pass fire safety standards. Of 319 public buildings the Government has identified with ACM cladding, only 13 had cladding systems that meet safety standards. The rise of desktop assessments for ACM cladding systems is the primary factor in explaining why the vast majority of the buildings tested by the Government have failed safety tests. Desktop assessments are often used to replace traditional fire-testing as a cost-effective solution, but critically, many assessments base their findings on limited knowledge and assumptions, allowing potentially dangerous, flammable materials on to building façades.

“We simply do not have enough data from actual fire tests to know if the desktop assessments are reflecting how these materials would behave in a fire. Therefore, we have no confidence in them. The Government proposals will not change the data that desktop assessments are based on and we are concerned they would in fact contribute to their wider use.” said Chris Johnson, Executive Vice President, FM Global.

“Testing for ACM cladding needs to be vigorous to avoid any more disasters like Grenfell. Only through scientifically based testing will we be able to develop the knowledge base and experience to fully assess the materials and whether they are fit for purpose. Without a sufficient knowledge base and detailed understanding of all the variables, relying on desktop assessments for cladding systems is like building on sand.”

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London construction costs ease despite Brexit

Figures released from the Turner & Townsend International Construction Market Survey 2018 predict that while construction costs will continue to rise in the capital, the rate will ease to 2.8%, 1.1% lower than in 2017.

With Brexit looming, the construction industry is carefully watching what affect it will have on costs and the labour market. The latest survey conducted by Turner & Townsend show that London’s construction costs remain higher than the rest of the country, creating a two-tier construction market where London construction costs are 27.7% higher than the UK average. London remains the fifth most expensive place to build in the world, behind New York, San Francisco, Hong King and Zurich.

Leading the higher rates is labour, with costs for skilled labour rising by 3.1% across the UK and London remaining the most expensive place to secure labour, with an average £34.00 per hour paid in the capital. The five top cities within the report have seen labour rates rocket by ten per cent in the last year, with New York construction workers commanding an average cost of labour of US$98.30 per hour. Overall, more than half of the markets within the survey report a skills shortage.

Elsewhere in the UK, devolution seems to be supporting a flurry of investment in infrastructure and housing. Key cities, including Manchester and Birmingham (the new base for HS2) have seen rising construction costs.

Globally, Turner & Townsend’s International Construction Market Survey forecasts that construction costs will rise 4.3% as economic growth unlocks new projects in key markets – placing pressure on labour and resources. Almost half (46%) of markets surveyed are shown to be heating up, with a large number of projects pushing up prices.

Through analysis of the results Turner & Townsend suggest that industry needs to incentivise innovation in materials and methods to control costs.

Steve McGuckin, Global Head of Client Programmes at Turner & Townsend said that fundamental changes were needed to the UK and global industry: “Global GDP growth of 3.9% is driving a resurgence in construction activity across international markets. While this uptick will inevitably push up costs, inflation is being exacerbated by skills shortages: put simply, we need to do more work with fewer workers.

“In the UK the skills challenge continues to contribute to cost inflation. We need to adopt digital tools, modern manufacturing methods and automation if we are to ease the pressure on resources and help attract new talent to our dynamic sector.

“We need a fundamental shake up of the industry model to incentivise this investment, otherwise there is every excuse not to change. Projects need to be set up to deliver better performance from the construction supply chain – rewarding innovation in methods and materials which ensure better outcomes for the communities we build for.”

 

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RoadPeace & CEMEX UK call for construction CLOCS

RoadPeace, the national charity for road crash victims, and CEMEX UK, a leading provider of aggregates, cement, ready-mixed concrete and rail sleepers, are collaborating to encourage the construction industry to join the Construction Logistics and Community Safety (CLOCS) scheme.

The collaboration has seen a video produced, aimed at the construction industry, highlighting the reasons why the scheme is so important.

Around 500 pedestrians, cyclists and other vulnerable road users are killed or seriously injured each year, on our roads, by HGVs. The CLOCS standard seeks to reduce this number in three ways:

1. by reducing the imbalance between on-site health and safety and work-related road risk;
2. encouraging wider adoption of best practice across the logistics industry;
3. improving the safety of vehicles.

To further demonstrate the need for CLOCS, RoadPeace is giving a voice to people who have been injured or bereaved by construction vehicles, as part of this campaign.

Victoria Lebrec, RoadPeace spokesperson and victim of a construction lorry crash, says: “In 2014 my life changed forever when I was hit by a tipper truck whilst cycling in London. I lost my leg in the collision, and have had over 12 operations and months of physiotherapy. I urge all construction companies to join up to CLOCS and take on board some simple, effective methods to make their vehicles safer. If signing up means saving someone the pain I went through, then it is absolutely worth it.”

Andy Taylor, Health and Safety Director CEMEX UK says: “We are delighted to be involved in this video and would encourage everyone in our industry who isn’t a member of CLOCS to become members. Over the years, the construction industry has shown great commitment and done an excellent job of raising health and safety standards on sites. Now it is time to go beyond the sites themselves to roads and site access to raise the level of safety by sharing best practice and implementing innovation and change.”

Derek Rees from CLOCS says “I am delighted that RoadPeace and CEMEX UK have joined forces to create a hard-hitting video calling on others within the sector to join up to the scheme. As an industry, the construction sector takes health and safety on site really seriously. But very few clients, principal contractors and sub-contractors seem to recognise their legal and moral responsibilities for the vehicles servicing their sites. As soon as that lorry leaves the site the same rules don’t seem to apply. The CLOCS scheme is a way of introducing workable solutions which help everyone in the industry protect the wider community, their colleagues and themselves.”

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