The impact of Brexit on immigration and the skills shortage

In a sector heavily reliant on migrant workers and imported skilled labour, Tsige Berhanu, immigration lawyer at Keystone Law, discusses the implications of Brexit on the skills shortage.

Tsige Berhanu

The European Economic Area (EEA) regulation which provides for EU nationals to move freely within the EEA will cease to have effect once the UK leaves the EU and the transitional period ends.  In its place, a new domestic immigration policy will be introduced. What the new immigration policy will provide is, however, yet to be determined.

The Greater London Authorty (GLA) recently published findings showing that 45% of all construction workers in London alone are not from the UK. Concurrently, 27% are from the EU, a concerning statistic for post-Brexit Britain. And this is not unique to London. These findings have also been mirrored across regions such as Manchester, Liverpool and Leeds. But, at this stage, can we estimate the impact of Brexit and can business plan for the consequences?

The Migration Advisory Committee (MAC), an independent body that advises the government on migration issues, has been commissioned to assess the impact on the UK labour market of the UK’s exit from the EU and how the UK immigration system should be aligned with a modern industrial strategy. This is in order to provide the evidence base for UK migration after the implementation period in 2021.

Although the MAC’s final report is not due until September 2018, it released an interim update on 27 March 2018, following a call for evidence and meetings with various stake holders.

The interim update showed that employers in all sectors are concerned about the prospect of future restriction on EEA migration.

The current immigration scheme for highly skilled workers from non-EEA countries is considered by many to be very costly and highly bureaucratic. Requiring EEA national migrants to comply to these rules is therefore causing concern to many employers.

Those sectors relying on lower skilled workers are even more concerned as there is no immigration route for low skill level migration under the current rules to enable businesses carry out a comparative assessment of the possible impact.

The decrease in numbers of skilled workers seems already to be taking place. According to the latest reports from the Office for National Statistics, in the quarter ending in December 2017, there was a large fall in EU net migration with fewer EU citizens coming to the UK to work.

Furthermore, the current trend indicates that employers are increasingly relying on non-EEA national workers to fill vacancies. There has been an unprecedented over-subscription of the monthly quota for Tier 2 General certificates – (the route to skilled workers’ migration) for four months in a row (December 2017 – March 2018).

The Tier 2 General route allows employers to sponsor skilled workers from outside the EEA if they cannot fill the vacancy with a settled worker, i.e UK and EEA nationals. A job is considered a skilled job if it is a graduate level job (at least NQF6) and appears in the Immigration rules’ codes of practice for skilled work.

There is an annual limit on the number of certificates of sponsorship available under this route. The limit for 2018-2019 is 20,700 certificates, the same number as in the last few years. The annual allocation is released in batches each month. Employers will need to make a request for a certificate allocation from a specific month before being able to sponsor a non-EEA national skilled worker.  The monthly quota has only ever been reached once before since the introduction of the annual limit in April 2011. The quota being reached for an unprecedented four months in a row mirrors the finding of the Office for National Statistics and the possible decline in available skilled workers from within the EEA.

In the Tier 2 scheme, when demand exceeds the number of certificates available for a specific month, priority is given to applicants filling a shortage occupation role followed by PhD level occupations. Thereafter decisions will be made based on the salary payable in a descending order. In December 2017, jobs with salaries under £55,000 were rejected, whereas in January and February 2018, salaries below £50,000 failed to go through. March 2018 carried the highest rejection rate so far with all jobs paying less than £60,000 being rejected. This could possibly result in salary inflation, as some employers have been offering higher salaries than originally intended in order to secure sponsorships for vacancies they wish to fill.

To be given priority as a shortage occupation role, a job has to appear on the Shortage Occupations list published by the Home Office. The list has been compiled and is regularly reviewed by the MAC. Apart from being given priority for certificate allocation from the monthly allocation, shortage occupation roles are also exempt from the resident labour market test the employer needs to meet.

For all other skilled jobs that pay less than £159,600 per annum and that do not appear on the Shortage Occupation list, the employer is required to carry out a resident labour market search before offering the role to a non-EEA national.

Looking at jobs that are lower skilled in that they do not appear in the codes of practice to support sponsorship under the Tier 2 scheme, there is no existing immigration route at present that allows non-EEA nationals to take up such jobs. These roles have traditionally been filled by UK and EEA nationals. Employers who currently rely heavily on EEA nationals to fill these vacancies are, therefore, concerned about the impact future immigration restrictions will have on their ability to secure employees.

The overall response to the call for evidence by MAC showed great concern in particular in areas with lower skilled workers. The interim report from MAC showed that the EEA employment share in the construction sector in 2016 was 8.1%, an increase of 0.7% on 1997. According to the report, the evidence from the construction sector focused on what they described as the large numbers of EEA workers employed in construction as well as the high proportions of self-employed workers and the number of small and micro businesses. The sector said that the current Tier 2 system would not work for the construction sector where self-employment and small and micro businesses predominated. Some said they would like to see construction students given an automatic post-study path into employment in the sector.

We have to wait until at least the last quarter of 2018 to find out what recommendation the MAC will make to the government about the new immigration policy for workers from the EEA.  Until such time, despite the fact that the effective date for the UK’s exit from the EU is less than a year away and the transitional period is due to end in December 2020, businesses remain unable to plan for the possible impact they will face.

 

 

 

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Paving the way to the future

Northern transport investment is booming, with recently released figures showing a greater spending on road and rail upgrades in the north than in London and the south.

The North will see a higher transport spend over the next three years, according to the Department for Transport, with some £831 per head invested in road and rail upgrades across the northern counties, compared to £799 in the south.

The figures were released ahead of attending the Northern Transport Summit in Manchester, where Aviation Minister Baroness Sugg extolled the virtues of an expanded Heathrow for the rest of the country, not just London; with 15% of slots reserved for regional flights.

Some £1Bn is being spent on improving the rail network across the North with further investment through the Northern and TransPennine Express franchises expected to deliver room for 40,000 more passengers to travel on over 2,000 more services a week, with all trains replaced or refurbished by 2020. There are also plans to invest a further £3Bn upgrading the Transpennine rail route, better connecting Manchester, Leeds and York.

Meanwhile, the government has committed to the Northern Powerhouse Rail (NPR), providing Transport for the North with £60M of funding to develop proposals for the scheme, alongside investing £300M to ensure HS2 can accommodate future NPR services.

The road network is not to be left behind, with upgrades being made across the network. Manchester is about to benefit from the opening of its smart motorway stretch on the M60, while the last stretch of motorway-standard road between Newcastle and London via the A1(M) and M1 was officially opened in May, providing quicker connections from the north-east. While the final section of the M62 upgrade between Leeds and Manchester is expected to start construction in 2019/20, leading to quicker, safer and more reliable journeys.

A further 22 projects are already in the works by Highways England, including road upgrades, dualling work and improving junctions on the M621.

Baroness Sugg said: “We are investing more than £13Bn to improve connections across the north between 2015 and 2020, getting people to their work, family and friends, quicker and easier than before.

“This investment demonstrates the government’s commitment to the Northern Powerhouse, which will help unlock economic growth and much-needed housing across the region.

“And a new Heathrow runway will bring further benefits to the north, better connecting the region’s airports with the UK’s hub airport and opening up new trade opportunities which could deliver a further boost to the northern economy.”

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Director banned after failing to pay health & safety fines

The Director of Allen and Hunt Construction Engineers Limited has been banned from forming another company following failure to pay health & safety fines.

Allen and Hunt Construction Engineers Limited, a specialist company in manufacturing and erecting steel-framed agricultural and industrial buildings, was found to be in breach of multiple health & safety rules in 2016, following a HSE investigation.

A worker had been injured on a site when carrying out repairs on a farm building in Buxton, falling through the roof and suffering life-changing injuries. Allen and Hunt Construction Engineers Limited were found to have breached several health and safety regulations, among which the HSE found that the company had failed to carry out health and safety plans for the site in Buxton, did not properly train the employee to carry out fragile roof work and equipment was inadequate and insufficient for the risks posed. The company was fined £274,671 in November 2016.

However, Allen and Hunt Construction Engineers Limited went into liquidation in December 2016 and Michael Allen told investigators that the business closed down because it could not afford to pay the fine imposed by the court. But further investigations by the Insolvency Service found that after the accident and to allow for a clear division between fabrication and installation activities, a new company was incorporated in October 2014. The new company carried out fabrication services, while the installation side of the business was wound down.

And if the fabrication contracts had remained within Allen and Hunt Construction Engineers Limited, the original company, there would have been sufficient funds to pay the fine.

Dave Elliott, Chief Investigator for the Insolvency Service, said: “Michael Allen had a lack of regard for the workers, which unfortunately resulted in a horrific injury for one person.

“Directors who fail to adhere to health and safety regulations to protect their employees and then fail to pay the fine can expect to face the consequences of a period of disqualification.”

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Social housing investment boost

Secretary of State for Communities, The Rt Hon James Brokenshire MP, has confirmed a massive funding boost for social housing across the country.

Over £1Bn has been secured in the social housing deal, which will deliver 23,000 affordable homes across the UK through a new generation of council housing. The funding is aimed at helping solve the housing crisis and provide the country with the homes communities need.

Some £1.67Bn will be invested in providing more than 23,000 new affordable homes, including at least 12,500 social rent homes in high cost areas in a move to support families struggling to pay their rent.

The funding comes as part of the government’s £9Bn investment in affordable homes, with £1.67Bn allocated to London in March 2018 this latest funding will deliver homes across the rest of the country.

The new generation of council housing was signaled by Mr Brokenshire inviting local authorities to bid for a share of the extra funding to build much-needed homes. This £1Bn borrowing cap raise will be split equally between London and the rest of England. Local authorities have requested this extra financial flexibility, which will be allocated to those in areas with the highest affordability pressures to ensure homes are built where they are needed most.

The Rt. Hon James Brokenshire MP, Secretary of State for Communities, said: “The government has ambitious plans to fix the broken housing market and build the homes our communities need.

“Today’s announcement is a further milestone. It will secure the delivery of an additional 23,000 much-needed affordable homes as well as paving the way for a new generation of council houses.”

“The majority of these new homes will be in high cost areas helping to ease the burden of rent on hard working families and delivering stronger communities.”

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LEGO® builds Engineers of the Future

LEGO®, the Year of Engineering, and the Institution of Engineering and Technology have teamed up for the Engineers of the Future roadshow, which will allow schoolchildren get to grips with STEM skills.

LEGO® is supporting the Year of the Engineer through a national campaign which will bring children face to face with engineering experiences and role models.

The Engineers of the Future roadshow will be heading to primary schools across the UK this autumn as part of the government’s Year of Engineering campaign. Led by engineers equipped with LEGO® Education solutions, including LEGO® Education WeDo 2.0 and LEGO® Education MINDSTORMS® EV3 , the roadshow aims to inspire children by giving them access to quality hands-on learning experiences and by helping them to discover the exciting opportunities that are possible for all young aspiring engineers.

Minister for the Year of Engineering, Nusrat Ghani, said: “Engineers are at the forefront of technology and infrastructure advances which are shaping all of our lives, from how we communicate and travel to tackling major challenges in healthcare and the environment. But the opportunities of this creative, innovative and hugely important profession are all too often misunderstood and overlooked by young people and their parents.

“That’s why I’m thrilled to announce our collaboration with LEGO® as part of the Year of Engineering. LEGO®’s enduring popularity is testament to the curiosity, ingenuity and creativity that make so many children natural engineers, and Engineers of the Future is a chance to build on this – helping young people from all backgrounds discover how these skills could be their passport to a varied, well-paid and exciting career that makes a real difference to the world around them.”

LEGO® is the latest company to announce its support for the Year of Engineering, joining the likes of Apple, Usborne and the BBC along with more than 1,400 other businesses, charities, schools and colleges.

This summer, the Year of Engineering is inviting children to get curious and creative during the school holidays with The Holiday Makers campaign which encourages them to collect engineering experiences and take part in activities at home for the chance to win prizes and wow their classmates.

The engineering profession needs 203,000 skilled people each year to 2024, and has an annual shortage of 20,000 graduates. The workforce also faces a major lack of diversity – only 12% of engineers are female and just 6% come from black, Asian or minority ethnic groups. The campaign aims to help change this by giving young people in all corners of the UK the chance to take a closer look at engineering by experiencing it for themselves – from meeting engineering role models in their school to taking part in hands on activities and workshops or engineering open doors events with their families.

Find out more about the Engineers of the Future Challenge and how schools can get involved.

For details of Year of Engineering events and activities taking part across the country, including how kids can take part in the Holiday Makers challenge, head to https://ift.tt/2DaDf8V.

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Digital construction: transforming skill-sets within the sector

We take a look into the future with to Marc Beacom, Operating Director within the Property & Construction practice at Michael Page Recruitment, and how new technology will change the construction industry.

New technologies are constantly redefining how organisations operate, whether to keep up with current trends or improve their efficiency, and those businesses within the construction space are no exception.

As the construction market still feels the effects of the 2008 financial crisis, due to a lack of hiring and training during the three following years, we could ask ourselves how these digital improvements may affect the industry and its workers. Could they resolve the current skills-gap? Or will we simply see new and more tech-orientated roles appear within the sector?

Jobs may be replaced, but others will be enhanced, sped up and even created

We’re already seeing an increase in the use of digital technology in construction, and as more tech-savvy generations enter the workforce, there are truly endless possibilities to the evolutions we will see within the sector.

Unmanned aerial vehicles (UAVs) are making site surveillance a quicker and more efficient process, while robots and automated equipment are taking on the once very manual and laborious tasks of digging, excavating and site clearing.

Some manual jobs may be replaced by these automated technologies, but this may allow us to bridge the current skills gap within the sector, by allowing manual tasks to be taken on by machines, and skilled individuals to take on more specialised roles.

In everyday life, digital technologies continue to impact the way we interact with one another, and in construction, individuals are already using 3D and virtual technologies to present and sell properties and construction projects to their customers. This will continue to be enhanced and more widely used as more individuals are trained in these areas.

Organisations in the construction industry will continue to seek different skill-sets to meet their requirements and ensure their sustainability. From positions in tech and IT, to innovation and energy-efficient building systems, businesses will continue to create new and more specialised roles within the sector.

Digital transformations will create opportunities in construction

With Brexit pending, a larger threat to the supply of the already small candidate pool and existing workers, it is time to seriously consider how we can attract the next generation of UK property and construction professionals.

Digital enhancements will be a huge selling point when it comes to attracting fresh talent within the industry. As highlighted by an online study by Keepmoat in 2017, revealing that only 13% of female respondents would consider a career in the construction sector compared to 21% of males, there is a lot we can do to make the industry more appealing to skilled individuals.

The truth is that the rise of new technology we’re currently seeing will truly have the potential to reshape the industry and the current perceptions that individuals hold. With the enhancement and creation of new roles, businesses will continue to provide more opportunities for skilled individuals, both male and female.

Upskilling will become a key necessity

The rise of digital technology will also impact those who are already working within the construction sector, in order to keep up with the innovations we will continue to see, but also as more tech-savvy individuals join their businesses.

Businesses must consider the development of those who are already working within the sector, by offering clear and well-structured upskilling programmes to their current staff. Combining their current experience in construction with new and more relevant skills will considerably improve their efficiency, but also the sustainability of the sector.

Whether it’s through in-house training, courses or personal development plans (PDPs), there are many ways to introduce upskilling within your business – and it doesn’t have to be expensive or time-consuming. Apprenticeships will also continue to play a key role in the fight for the very best talent, and be a relevant way of introducing these new skills into your business.

 

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Europe promotes clean energy

An ambitious target has been agreed by the European Commission, European Council and European Parliament designed to improve energy efficiency and the use of clean energy throughout Europe.

The Commission’s proposal forms part of the implementation of the Juncker Commission priorities – in particular “a resilient Energy Union and a forward-looking climate change policy”.

This agreement is the latest in a line of legislative proposals in the Clean Energy for All Europeans package. On 14 June a political agreement was reached on the revised Renewable Energy Directive, and on 14 May, the Energy Performance in Buildings Directive was adopted. Thus progress towards making the Energy Union a reality is well under way and the work initiated by the Juncker Commission is being delivered.

The new regulatory framework includes an energy efficiency target for the EU for 2030 of 32.5% with an upwards revision clause by 2023. This new objective shows the EU’s high level of ambition and demonstrates the remarkable pace of change of new technologies and reduced costs through economies of scale.

Commissioner for Climate Action and Energy Miguel Arias Cañete said: “Europe is by far the largest importer of fossil fuel in the world. Today we put an end to this. This deal is a major push for Europe’s energy independence. Much of what we spend on imported fossil fuels will now be invested at home in more efficient buildings, industries and transport. The new target of 32.5% will boost our industrial competitiveness, create jobs, reduce energy bills, help tackle energy poverty and improve air quality. Our path to real energy security and climate protection begins here at home, and this deal shows Europe’s determination to build a modern economy that is less dependent on imported energy and with more domestically produced clean energy.”

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How sustainable construction is key to government’s Clean Growth Strategy

With the publication of the Clean Growth Strategy, the Government has outlined how it plans to realise its commitment to reduce the UK’s greenhouse gas emissions by at least 80% by 2050. The pledge is wide reaching in its scope and includes plans to:

1. Improve the energy efficiency of UK homes with investments of around £3.6Bn.
2. Support the roll-out of low carbon heating across the country by phasing out high carbon fossil fuel heating and improving the standards of the 1.2M boilers installed in England every year.
3. Earmarking up to £2.5Bn for investment in low carbon research and innovation, with funding targets in transport, power generation, business, and waste disposal.

Although the report notes that the UK now uses roughly double the level of low carbon energy than in 2010, there is still much to be done. This is particularly relevant in the construction sector as environmental pressures exist at all stages of the construction cycle, including the manufacturing of construction products, physical construction, use of buildings, renovation and management of waste.

It is estimated that up to 45% of total UK carbon emissions (27% from domestic buildings and 18% from non-domestic) are produced by the built environment. Furthermore, 32% of all landfill waste is estimated to come from the construction and demolition of buildings; and 13% of products delivered to construction sites are sent directly to the landfill without being used. One of the answers to these concerning figures is sustainable construction.

As a concept, sustainable construction is construction that meets society’s current needs for domestic housing, commercial properties, and infrastructure without compromising the ability of future generations to meet their own needs. Implementing sustainable construction can be a complex matter and requires consideration from the outset of a development.

Approaches might include an environmental risk assessment, which forms part of a broader environmental plan that assesses the risk posed by the mooted development to the environment. Relevant considerations will be whether refurbishment is a suitable alternative, the availability of locally sourced materials, the potential impact on local ecologies and the types of construction material used. There should be engagement with the architect to create a design that seeks to minimise the impact on the environment; particularly with a view to creating an energy efficient building.

Site waste management and recycling should also give pause for thought. On average, just under six million tonnes of construction and demolition waste (CDW) are transferred to landfill sites per year, at a cost to construction companies of around £35 per tonne. With proper planning and execution, most CDW can be recovered and reused. For example, metal can be taken to a recycling facility and wood can be chipped and used in MDF. Taking CDW to landfill should be the final alternative and avoiding unnecessary use of landfill may help save costs.

So, is sustainable construction financially viable? Sustainable developments are generally more expensive to build, sometimes known as the “green premium”, due to the materials and techniques employed. Despite this, many consider that sustainable construction is still by and large cost effective as the high initial outlay is offset by an array of financial (and not to mention environmental) benefits. These benefits, which include energy savings, should be considered through the lifecycle of a cost methodology, not just evaluated in terms of upfront cost.

From a legal point of view, parties ought to consider whether the construction contract itself should be amended or varied to include clauses compelling the need for the parties to carry out their work incorporating these initiatives. Until this happens, it is arguably not going to be taken seriously enough and will only remain a desirable, rather than necessary, outcome.

 

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

 

 

 

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Next generation of track work contracts

Network Rail has launched its search for tenders for its next generation of track work contracts, the largest of its kind being undertaken for the upcoming funding period.

This next package of contracts is valued at up to £5Bn, covering ten years of railway track works which commence in 2019. For the first time, the contracts have been split into three areas, allowing for geographically focused alliances between Network Rail, designers and construction suppliers.

These alliances are North Alliance (Scotland Route); Central Alliance (London North West, London North East and East Midland routes); South Alliance; (Anglia, South East, Wessex, Western and Wales routes). They will combine the development, design and delivery of plain line track and switches and crossings, as well as associated infrastructure works for each area.

This step sees plain line and switches & crosses brought together operationally and commercially as a means of delivering infrastructure works more efficiently and effectively for customers. This move is a key component of Network Rail’s Infrastructure Projects CP6 procurement strategy, which aims to promote collaborative arrangements with the supply chain that offer better value for money for devolved route customers.

Steve Featherstone, Network Rail’s director for Track said: “Combining our plain line expertise with that of switches & crossings will bring huge benefits to both our route customers and the wider supply chain. The proven alliance model offers a flexible and cost effective solution with a greater focus on each route’s specific requirements and needs.”

The maintenance and renewal of Britain’s 20,000 miles of track forms part of Network Rail’s Railway Upgrade Plan, which sees £130M invested every single week on improvements for passengers.

Given the large scale and long-term nature of the contracts, prospective bidders will be expected to exhibit their commitment to delivering value through the relentless pursuit of excellence, highly innovative approaches, and a demonstrable track record of success in collaborative environments. Potential bidders are now invited to submit their Expressions of Interest via BravoNR in accordance with the details provided in the Contract Notice. The pre-qualification period for the tender will start in June.

The published Contract Notice Works – 262492-2018 – TED Tenders Electronic Daily contains full details on the tender and information of where suppliers can register their interest.

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Carillion worsens SME payment crisis

The fall of construction giant Carillion has exacerbated the payment crisis for small construction firms, according to research from Funding Options, the online business finance supermarket.

Late payments are the subject of intense scrutiny at the moment, with Parliament having introduced a bill this month to accelerate payments made to SMEs, and the liquidation of Carillion has made matters worse this year. Some SMEs are now waiting over 42 days to get invoices paid, up from 40 days on average five years ago.

With construction supply chains often including many small and medium sized businesses with tight profit margins and less ability to deal with payment problems, delays in paying suppliers can threaten the whole supply chain’s financial stability, putting jobs at risk and threatening the Government’s ambitious housebuilding targets.

Part of the problem is that many large businesses in the construction industry are able to stipulate long repayment terms to suppliers; many smaller suppliers to Carillion, for example, had to agree to 120 days for payment. Following Carillion’s collapse in January, these businesses received almost none of the payment they were owed, with some estimating they will receive at most a penny in the pound.

In June of this year, a new bill has been introduced in Parliament, which aims to address late payments for SMEs through introduction of a deposit scheme.

Conrad Ford, CEO of Funding Options, says: “A single late payment can be an issue even for larger and more successful firms, and worsening delays could create more insolvencies.”

“Carillion’s collapse sent shockwaves through the industry, affecting smaller suppliers who will now never get paid what they are owed. Construction businesses have high overheads and labour costs, and many cannot afford to wait for payment for lengthy periods of time.”

“It is crucial that construction companies understand all the options available to them for the funding they require to minimise the impact of late payments.”

“There is a variety of alternative lending available to small businesses seeking funding, such as invoice finance, asset finance, crowdfunding and peer-to-peer lending. This abundance of choice can mean it can be difficult to know which sort of finance is the best fit for a particular need, or who is out there to provide it.”

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Stewart Milne help bring troops home

Stewart Milne Timber Systems is due to start work on a project this month, which will see 4,000 service personnel relocated back to the UK from Germany.

The UK’s leading offsite timber frame manufacturer has been contracted to the MOD Army Basing Programme (ABP), a massive relocation programme being undertaken by the MOD, to construct new modern homes for the personnel and their families who have been living in Germany.

The contract sees Stewart Milne working with Lovell on this £250M programme which will see some 900 homes built across three sites Ludgershall, Larkhill and Bulford by May 2020. Stewart Milne will be responsible for developing 467 of the 917 modern first-class homes across two of the three sites; Ludgershall and Larkhill, with each home providing an energy efficiency improvement of 25% over building regulations.

Stewart Milne was selected for the project following a two-stage tender process, easily meeting the key requirements of a fast build time, high levels of energy efficiency, scope for adaptability, and cost efficiency.

With a handover rate of approximately 20 homes per week, the high-volume fast-track homes project will be the largest-ever contracting scheme for Lovell, part of the UK construction and regeneration group Morgan Sindall Group plc.

Successful completion of the scheme will rely on the support and skills of a high-calibre supply chain and an accelerated construction programme. Stewart Milne has applied its in-house design expertise to successfully adapt its standard automated manufacturing process to align with the specific requirements of the scheme.

Mike Perry, Sales Director at Stewart Milne Timber Systems, said: “This is an exciting house-building project for Salisbury Plain, and we’re very proud to be associated with it. We have a proven method for manufacturing high-quality, value-engineered products, consistently on time, and will apply this to meet Lovell’s target of 20 completed homes per week.

“Typical industry pace is delivery of one-to-two homes per week, so it’s a stretching target, but from the outset of this project, we have all committed to working openly and collaboratively to ensure the successful completion of this scheme. We believe that this project will be an exemplar for the industry. It will demonstrate what can be achieved with an offsite manufactured timber frame solution and a collaborative working relationship with all partners.”

Commenting on the appointment of Stewart Milne Timber Systems, Lovell’s Major Projects Director, John Leary, said: “Intelligent selection in supply chain assembly is essential in a project of this magnitude.  This stands across the trades but is clearly crucial on key packages such as timber frame.  The speed of build on the SFA scheme means that timber frame and thus an element of off-site manufacture was a given but the choice of provider is the challenging piece.

“After an extensive selection process considering the country’s leading providers, we elected to partner with Stewart Milne Timber Systems.  We have worked successfully with Stewart Milne in the past and have only a positive history.  Importantly we have been entirely comfortable working together in a very open and transparent manner, developing design solutions and fashioning the technical and commercial package over a series of months.

With a company of this stature and credential exhibiting such a supportive and collaborative approach, we are extremely confident in our ability to deliver the timber frames to programme, across each site.”

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Parliament overrule Hackitt report

The Housing Secretary has published a government consultation banning the use of combustible cladding.

Following the publication of the Hackitt Report, which was instigated after the Grenfell Tower disaster, James Brokenshire has announced a ban on the use of combustible materials on the external walls of high-rise residential buildings.

Residential buildings above 18m will now not be able to use this cladding, and the government believes the cladding on Grenfell Tower was unlawful under existing building regulations and should not have been used. With the release of this consultation, the government wants to ensure that there is no doubt about which materials can be used on high-rise residential buildings.

The consultation seeks views on the revision of building regulations looking to ban the use of combustible materials in the inner leaf, insulation and cladding that are used in external wall systems on residential high-rises.

The government is legally required to consult on substantive changes to the buildings regulations before any change in the law and this consultation will end on 14 August 2018.

The Secretary of State for Housing, Rt Hon James Brokenshire MP, said: “The Grenfell Tower fire was an appalling tragedy and we must do everything we can to ensure a disaster like this never happens again.

“I have listened carefully to concerns and I intend to ban the use of combustible materials on the external walls of high-rise residential buildings, subject to consultation.

“The cladding believed to have been used on Grenfell Tower was unlawful under existing building regulations. It should not have been used. But I believe that the changes on which we are consulting will offer even greater certainty to concerned residents and to the construction industry.”

In Dame Judith Hackitt’s report into fire safety and building regulations, she recommended a simpler but more robust approach to the construction and on-going management of high-rise residential buildings. However, the government has taken this recommendations further, committing to:

• banning or restricting the use of desktop studies from being used to assess the fire performance of cladding systems, unless our separate consultation demonstrates that they can be safely used; the consultation has closed and we are reviewing responses
• change the law to achieve meaningful and lasting reform of the regulatory system, with strong sanctions for those who fail to comply
• invite views on how the government could implement major reform of the regulatory system in line with Dame Judith’s review
• clarify building regulations fire safety guidance (Approved Document B)

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Skills transferability needed post-Brexit

The CITB has released new research investigating how to tackle the skills crisis.

With Brexit on the horizon, the research points to the need for greater skills transferability, with a key goal to attracting talent from other sectors and trades.

The new report, ‘Construction and Built Environment: Skills Transferability in the UK’, surveying 500 employers across the UK, found that with a smaller construction talent pool post-Brexit, the sector needs to look at encouraging people from different industries to look at construction as a good career progression.

The industry is not noted for its diversity of talent, with researchers finding that 62% of employers took no action to encourage employees to transfer between trades. This is despite approximately one in five (19%) of construction sector workers having previously worked in another sector.

The report highlighted manual occupations, such as steel erectors and bricklayers, as the roles with the best potential to transfer skills.

The survey pointed to a number of challenges in increasing skills transferability, including:

• Improving the image of the industry
• Changing the way training is delivered to it promotes multi-skilling
• Concerns from employees and unions around multi-skilling

Steve Radley, CITB Policy Director, said: “Our research shows that transferability of skills is a growing issue, particularly with Brexit looming.

“While many employers are not yet looking at it, it could become a significant way to meet our skills needs in the coming years.

“CITB clearly has a role to play in this. Our forecasts can help prioritise support for upskilling and ensure training providers are well placed to respond. In addition, we will collaborate with industry to develop top-up courses to enable transition for people with relevant transferable skills.”

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Multi-million pound Construction Skills Fund launched

Skills Minister Anne Milton has officially launched the £22M Construction Skills Fund to help tackle the industry’s crippling shortage of skilled workers.

It’s thought that 158,000 construction jobs will be created in the UK over the next five years, and the Construction Skills Fund will bring their training onto the construction site, enabling new learners to apply their knowledge in a real-world environment.

The 18-month initiative is funded by the Department for Education and will be administered by the Construction Industry Training Board (CITB). In total, 20 on-site training hubs will be established alongside a host of work experience and placement opportunities, including pathways for the unemployed or those looking to transition into an exciting new career in construction.

“For our economy to thrive we need everyone, regardless of their age or background, to be able to get the training and the skills they need to make the most of the opportunities that lie ahead,” said Skills Minister Anne Milton. “The Government has committed to building 300,000 new homes a year by the mid-2020s and we want to make sure that we are investing in the UK skills base to deliver this.”

CITB has since called upon employers, housing associations and local authorities to submit their own Expressions of Interest for new and existing on-site training hubs. The funding will only support on-site training provision however, and access to live construction sites is essential to qualify.

Steve Radley, Policy Director at CITB, concluded: “The Construction Skills Fund is a milestone scheme for the sector and provides a significant investment in skills and training. It will help attract new talent and bridge the gap between training and working in the industry. Having training on or near to major projects will reveal what an exciting sector this can be, while also putting new talent in the shop window.”

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Leadership skills: investing in the heart of the organisation

It is well documented that behavioural skills are just as important as technical skills in the construction industry. In particular, those in key influential positions – the ‘leaders’ at all levels who create the environment and culture – need to possess these skills as an integral part of managing their teams and stakeholders. The quality of their daily leadership behaviour is hugely significant in determining a project’s overall success or failure.

In this article we speak to Steve Holliday, Director at Lacerta Consulting, a culture and behavioural change consultancy that works with a range of national and international organisations. Steve specialises in cultures of leadership, safety and customer orientation, he says that the quality of daily leadership behaviour is hugely significant in determining a project’s overall success or failure.

Despite more of an effort in recent years to invest in the leadership skills of what are often called ‘middle and front-line managers’, the most significant development investments are still retained for directors, senior managers, and for talent development.

How many site managers or department heads have long-term access to a leadership coach? How many local teams have access to deep team development work? How many foremen or supervisors get regular support and challenge from a change specialist who knows their operational world? Not many.

Indeed, many of these managers may not even think of themselves as leaders, thinking that this title is reserved for ‘those above them’. That in itself is a challenge, as in order to lead effectively, we all need to bring the best version of ourselves.

Good leadership is a craft that requires time, investment, training, and deep practice. To be clear, directors, senior managers and those identified as future talent all need investment and nurturing.

However, supporting the leadership practice of those ‘middle’ people, who actually lead and engage most of the employees on a day-to-day basis, is one of the most valuable development investments organisations can and must make.

These people have to navigate partnering with their senior managers in understanding the mission, strategy, targets and expectations, while at the same time, engaging their own teams in delivering both the right approaches and end results – often amid significant change.

Given this backdrop, deeper investment in growing these people is not only inevitable, it’s essential. So, what core behavioural skills are crucial to thrive in these roles?

Building Relationships

Central to building relationships is communicating effectively with each different character you find yourself working with. Not only are we all different, but it is often the case that different types of language gets used as you go through an organisation from senior managers to front line. As such, it takes skill and practice to get to know people, to tune into understanding each other, and to build the relationship so that openness and trust develops.

All of this requires high levels of self-awareness and leadership practice, to develop the range so you can engage well with the various parties in the organisation – be that shop floor, peers at site or department head level, with senior managers, or customers.

Managing relationships successfully can be the difference between completing a build on time or not, and doing it safely, to a high quality, and on budget.

Developing Resilience

Resilience – our ability to adapt and bounce back when things don’t go as planned – is a real skill, and can easily be mistaken for toughness. Actually, it’s much more about elasticity, and working to deliberately stretch the size of that elastic.

Frontline construction managers are caught in the middle of a pressure zone, as they manage competing demands from their senior managers and their teams. This can be further compounded if they are in dispersed teams; with a more senior manager in one location and their direct team in another, they can be pulled in different directions.

In the same way professional sports people develop their ability to become good at dealing with pressure, so too managers need development to be able to thrive when pressure builds.

Managers need to develop the skill of seeing difficulty as a challenge, not as a paralysing event. Failures and mistakes are chances to learn and grow, and not a personal reflection of their competence or talent. These moments need to be seen as temporary, and something to be worked through.

Managers also need to grow the practice of placing focus and energy on the things they can impact, which in turn will help them to feel empowered and confident.

Developing Agility

Whether it be a merger, contractual changes, an internal restructure, or commercial pressures in the market, things are constantly changing – and so must we. The most successful people get good at moving and adapting to what is playing out.

How do we use what we know and apply it to new situations and have a go? How can we learn, adapt, and apply ourselves in changing situations? This is a paradoxical experience for middle and front-line managers, who often speak of wishing for stability and certainty – for a while at least.

In reality, organisations are often both stable and certain, while at the same time, unstable and uncertain – such is the complexity and nature of organisations and the changing nature of markets they are in.

To that end, organisations can really help managers develop the ability to navigate change when it comes – and this should be expected as a core skill. This means nurturing a mindset that change is inevitable, while at the same time ensuring enough discipline, rigour and high standards to enable that very change.

Following the development of that mindset, it’s key to focus on:

• Empowering people – to take on these challenges, and that you have belief in their ability to lead them. Make this normal. Risk taking and experimentation needs to be encouraged, without fear of failure.
• Promoting experimentation – nurture a culture of trying things out. These experiments not only help to navigate change, but they can also make a big impact and be the difference. New ways of working can emerge, if we are ready to develop and try them.
• Promoting collaboration & human connection – being agile will require collaboration, connection and leaning on others, and to learn more from each other through daily operational experiences. Make it clear that human connection is essential – with lots of horizontal working.

A Process to Support Developing Resilience & Agility

Helping managers to process these scenarios live is crucial to developing these skills. Action-learning groups can enable a powerful learning space to let the person talk about the live situation they’re in, unpack the disturbance and work through their thoughts and feelings, often with peers for support. Access to this type of ‘leadership cohort’ enables the person affected to quickly and safely locate the source of the issue, and helps them to get back into action sooner.

Inside these groups, nurturing the ability to improvise can be a highly effective technique in helping managers adapt to new conditions. Helping people to think on their feet and respond to something not planned for can also help to actually speed up processes.

Middle and front-line managers lead most of the workforce day to day, and therefore how they behave and lead directly correlates with performance. It follows then, that when organisations make a conscious choice to invest deeper into their leadership skills and training, it will have a significant impact on business performance.

 

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£3Bn investment for London-Gatwick

A five-year Capital Investment Plan (CIP) has been confirmed for London-Gatwick Airport.

Artist’s impression of Gatwick’s Pier 6  shows the proposed new extension to the west of the pier, more than doubling its size compared to today, and also highlighting other aspects of the project including the position of the new A380 stand on Pier 5, and the widened taxiway which will enable the A380 to move between the pier and the runway.

Speaking at the British-Irish Airports Expo in London, Chief Executive, Stewart Wingate announced the plans, which will see some £1.1Bn invested over the next five years, with £266M of investment already planned for 2018/19.

With airport numbers expected to increase upwards of 53M through long-haul passengers and general growth, Gatwick is exploring how it can grow sustainably and make best use of its existing infrastructure. Gatwick is looking to provide additional capacity, improve resilience and harness new technology to support its growth, whilst also supporting the local and national economy and enhance the passenger experience.

Since the airport changed ownership in December 2009 the total investment figure, combined with this new five-year plan rises to £3.14Bn.

A number of projects have been identified as significant parts of the expansion plan, with a number of developments expected to get underway this year.

First off will be the Pier 6 Western Extension, where Phase I will kick off with enabling works to Pier . This will allow it to handle the A380 aircraft, so that it can move from its current home on Pier 6. Work involves the widening and reconfiguration of a taxiway to accommodate the 80m wingspan of the A380.

A new domestic arrivals facility, including a new baggage reclaim in South Terminal will be constructed, while a  new mezzanine level extension in the North Terminal departure lounge will accommodate new restaurants.

Externally, the new road system and taxiway entrance to the new Boeing aircraft hangar will be completed, connecting the airfield with the new facility. The new hangar opens next year and will service the growing number of long-haul aircraft operating from Gatwick.

Works to the South Terminal will see a reconfiguration of the hotel capacity, with the long stay car park benefitting from an extra deck and 1,200 new car parking spaces for summer 2018.

Meanwhile, enabling works will be carried out to Gatwick Station precipitating a Network Rail upgrade, and a new reception area will be developed for passengers with reduced mobility in the North Terminal.

Further projects to improve security, and support the use of Electric Vehicles are also underway.

Gatwick’s Chief Executive, Stewart Wingate, said: “Gatwick is a major piece of national infrastructure, and our continued growth and ability to attract long-haul airlines is vital for the health of the UK economy, particularly in a post-Brexit world. We are exploring ways to grow our capacity, including developing new systems and processes to handle more passengers, and considering how we use all our existing infrastructure in the future.

“By committing to spend another £1.11Bn, Gatwick can continue to grow sustainably, attract new airlines and offer more global connections, while providing an excellent service to passengers.

“This year we will welcome new quieter aircraft with the introduction of A321s by easyJet and we are developing our infrastructure now, by reconfiguring airfield stands and planning for the construction of a major extension to our Pier 6 facility. These initiatives will support this next phase of growth.

“Looking beyond this capital investment programme, we welcome the Government’s support for airports making best use of their existing runways and we will plan for our longer term future by developing a Masterplan later this year”.

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Learning the new tricks of the trade

 

As the discussion continues around how the construction industry can tackle its skills shortage, offsite manufacturer Fusion Building Systems is seeing an increasing interest in its light gauge steel panelised solution and the opportunities which are fast becoming a reality through its adoption of Building Information Modelling (BIM). Fusion Building Systems’ Head of Business Development, Robert Clark, explains:

Robert Clark, Head of Business Development, Fusion Building Systems

Do you think the skills shortage in the construction industry is getting worse?

“Yes. It’s no secret that we’re suffering from a lack of young people coming in to the industry and, coupled with an increasing number of skilled workers leaving, we’ve found ourselves approaching a crisis. The situation isn’t being eased by Brexit either, as our previously prosperous Eastern European workforce is sadly starting to experience a less accommodating atmosphere.

“On the flip side, when you scan across the offices of the UK’s large housebuilders, you see a young, dynamic workplace which is full of enthusiasm and energy. There’s clearly investment and opportunity there – which is being driven by healthy career prospects and technology.”

What factors are restricting the industry from moving forward?

“There’s a lack of people who are able to embrace and proficiently use new construction technology. BIM will enable the industry to move forward because the opportunity for its application will attract bright, eager new talent and its capabilities will enable us all to work smarter. The challenge we face, however, is in training the existing workforce. I’ve seen experienced construction personnel trying to work with BIM software, which is fine until they hit a problem and they stop – then they go back to their old ways of working because it’s what they know and feel comfortable with. We can’t move forward, though, if we take that attitude.”

What efforts have you seen made by industry bodies and major industry players over the past 12 months to address this?

“The publication of Mark Farmer’s report, ‘Modernise or Die’ was the wake-up call the industry needed. And, as Mark continues to campaign for education, change and opportunity, organisations such as Design, Engineer, Construct (DEC) are working to get modern construction ideals taught in schools. Challenging perceptions and educating in this way, at a grass roots level, is vital if we’re to position careers in the construction industry alongside aspirational choices such as medicine or law, for example.”

Technology is transforming Fusion’s offsite solution

What opportunity do you think offsite construction presents as a solution for the future?

“It is the future. It has to be. Research has shown we can’t keep up even with current construction demands using traditional building methods. We need to employ and train a workforce which can realise the opportunity which offsite presents and knows how to use the technology which will enable it to be a success.

“Building (properly) using offsite methods requires a complete supply chain restructure, re-education and adoption of technology. We’re seeing people voting with their feet where traditional building methods are concerned. Offsite provides an alternative route into the industry and one which is completely committed to technology.”

As an offsite manufacturer, what practical steps are you taking to train the next generation?

“We believe in and use apprentices. We’re not a big company, but we currently have apprentices working in our design and estimating teams, and on our shop floor. They’re mentored, supported through day release to college, and are being given real work to do, for real clients, generating real income!

“We’re also looking into opportunities for partnering with progressive further education centres like Dudley College and with the Manufacturing Technology Centre in Coventry. And, having recently been introduced to representatives from Design, Engineer, Construct, we’ll shortly be welcoming them to our Northampton manufacturing facility, for discussions about how we might be able to work together to achieve a shared objective.”

Do you think we’ll still be facing a skills shortage challenge in ten years’ time?

“No I don’t. The momentum we’ll see gathering for technology over the next few years will crack the situation and the industry will become one which people aspire to work in.

“Technology is the driver – the missing link is the people.”

Fusion Building Systems works with some of the UK’s largest developers on both commercial and residential projects. Adopting an integrated approach where offsite manufacturing is incorporated into the supply chain from the start, Fusion’s partnerships deliver a seamless programme which produces high quality, precision-engineered structures for numerous market sectors.

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House prices still rising

The latest HPI statistics have been released, showing that house prices continue to rise across the country, albeit at a slower rate than previous months.

The figures show average house prices in the UK have increased by 3.9% in the year to April 2018, lower than the 4.2% growth rate in March 2018. The latest results show that the average house price growth has been slowing down over the past two years, remaining under five per cent for most of that period. The exception was October 2017.

This is its lowest annual rate since March 2017 when it was 3.7%.

The seasonally adjusted rate shows house prices increased by an average of 0.7% between March and April this year, just above the 0.5% rate registered between March and April 2017.

House prices in England provide the main source of growth, showing a 3.7% increase, bringing average house prices in England to £244,000. Wales has shown a good increase, with 4.4% growth over the last 12 months bringing prices to a £156,000 average, with prices in Northern Ireland also enjoying an increase at 4.2%

Regionally, the south west is leading the growth rates at 6.1%, with regional devolution helping to boost West Midlands’ prospects with a 5.9% growth. While the North West saw prices increase by 2.4%.

Once again, London continues its downward trend, with prices reflecting the capital’s market with just a one per cent increase.

Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “These figures are interesting, albeit a little dated, in that they show house prices are continuing their more modest upward trend with little sign of correction any time soon. Behind the numbers bears out what we’re finding on the High Street – transactions are falling while listings have increased but not making up for an historic shortfall whereas demand is relatively flat.

“As a result, the increase in house prices is more to do with the lack of supply of appropriate property in places where people most want to live rather than a marked improvement in confidence.

“Looking forward, we do not expect major change but do hope more sellers appreciate the difference between vanity and sanity when it comes to recognising these new market conditions.”

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New innovative road surface for A64

Drivers in York will benefit from a new road surface on the A64, following works by Highways England.

The project has seen some 97,610sq m of resurfacing work in total, with a section of the works incorporating the new anti-skid surface.

The new Ultigrip surface lasts approximately three times longer than traditional methods, it also doesn’t require regular maintenance or repair, reducing the amount of road closures need to maintain the stretch of road.

The section of works that used the new material was near to the Bramham roundabout on the A64, providing additional grip to the junction. In total, the project will resurface 20 acres – or the site of the National Railway Museum in York and still have some left over.

The £2.3M scheme will also see 3,162 new reflective road studs installed and 15 miles of new road markings.

Highways England Project Manager Chris Dunn said: “We are always looking at ways we can improve things for our customers. This new form of resurfacing not only improves safety with the anti-skid surface but lasts longer, reducing the amount of night closures needed to maintain and repair it.

“As part of this scheme we carried out further maintenance work. We renewed 500m of roadside drainage to address local flooding concerns, carried out some bridge maintenance work at Bramham roundabout and we installed new sensors on the weather station near Askham Bryan, which improves our information during severe weather such as the recent Beast from the East.

“Carrying out this work at the same time reduced even further the amount of closures we need to undertake in the future, helping us to continue providing smoother and safer journeys for drivers.”

This new method of resurfacing has received national recognition including being highly commended at the Highways England’s Supply Chain Awards for resurfacing solution efficiencies and continuous improvement.

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Drone view of Southern Water site

Southern Water has been using a drone to capture the progress of works at its Scaynes Hill WwTW.

Works are underway at the site near Haywards Heath to improve the facility and enable it to cope with growing population numbers, it currently serves some 38,000 people.

The drone footage captures a major milestone of the £8M project with new process equipment being winched into position.

A new sludge treatment process will be employed, with updated sludge process equipment and a new chemical dosing kit installed. The process will assist in improving the quality of wastewater leaving the works, ensuring that it meets strict new environmental standards.

Southern Water Project Manager Robin Woodward said: “We’ve spent several months planning and preparing the ground for delivery of the new processing equipment, so it’s a big milestone to have met.

“When complete, the improvements will mean that the quality of wastewater leaving the site will meet higher standards set by the Environment Agency. This is good news for both our customers and the wider environment.”

Works began in August 2017 and are due to complete by the end of 2018.

 

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Latest ONS construction stats published

The latest statistics on construction output have been released by the ONS showing a difficult three month series for the industry.

Following on from the monthly release, the three-month on three-month series has shown a decline in output for the sixth consecutive month. Construction output has been calculated as falling 3.4% in April, the biggest fall seen since August 2012.

With figures from the more volatile monthly statistics showing output rebound somewhat in April, the three-month series shows that the industry suffered quite badly over the winter period. Anecdotal evidence from the monthly series points towards the terrible weather in March slowing construction starts on site and this may well have affected the winter three-month on three-month, with the industry in general slow-down mode over winter. The April monthly figures showed an increase of 0.5% as the spring weather turned sunnier.

Construction output peaked in December 2017, with figures showing a highpoint of 30.3% above the lowest point in the last five years, April 2013. Even with the decline in output from the beginning of 2018, output still remains 23.4% above this low point, and confidence in the sector remains steady.

However, total new orders decreased over Quarter One with a fall of some 4.6% across the industry; infrastructure, one of the strongest performing sectors due to government investment, shows notable declines in new work, dropping some £379M. Future government ambitions will hopefully see this sector turn around sharply.

Other notable falls came in total housing repair and maintenance, and private housing new work. While the private housing sector enjoyed the most positive growth, increasing by £29M, this was offset by falls in public other new work, which contracted 14% and private commercial work, which decreased 7.6%.

Commenting on the construction output figures for April 2018, Brian Berry, Chief Executive of the FMB, said: “The UK construction sector declined by 3.4% in the three months from February to April compared with the previous three months. This is the biggest fall since the latter stages of the recession in August 2012. The Beast from the East has certainly played its part as it forced many construction sites to close in March. Indeed, builders were reporting that it was too cold to lay bricks.”

Berry continued: “Alongside the cold snap, the drop in construction output can also be attributed to rising costs for construction firms large and small. While wages are continuing to rise because of the acute skills crisis in our sector, firms are also feeling the pinch thanks to increased material prices. The depreciation of sterling following the EU referendum has meant bricks and insulation in particular have become more expensive. We expect material prices to continue to squeeze the construction industry with recent research by the Federation of Master Builders showing that 84% of builders believe that they will continue to rise in the next six months.”

Berry concluded: “In the medium to longer term, with nine months until Brexit-Day, the future is uncertain for the UK construction sector. The Government is still to confirm what the post-Brexit immigration system will look like. The construction sector is largely reliant on accessing EU workers with more than eight per cent of construction workers coming from the EU. It is therefore imperative that the sector knows how, and to what extent, it can recruit these workers post-Brexit.”

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Working at height safety highlighted by HSE

Two companies have been fined following an accident which saw life changing injuries for a worker.

The HSE pursued prosecution of a contractor and scaffolding company following the incident in December 2015 when a subcontractor fell from a roof during works.

Jhanade Ryan was working as a subcontractor for Centreco (UK) Ltd, installing solar panels to the roof of Firth Steels, Brighouse, when he slipped and slid down to the edge protection. The toe board of the edge protection snapped and he fell through the scaffold, falling five metres and landing on a sub-station flat roof. The fall resulted in a fracture to his spine, a broken coccyx and nerve damage, with Mr Ryan still suffering from mobility issues after almost three months in hospital.

The HSE investigated the incident and found that not only had the scaffolding company had not erected the scaffold to a known industry standard or design, but also that roof lights were present which needed to be made safe to prevent workers falling through their fragile surface.

Oswestry Shropshire Scaffold Ltd of Pool Cottage, Oswestry, Shropshire pleaded guilty to breaching Section 3(1) of the Health and Safety at Work Act 1974 and has been fined £28,800 and ordered to pay £945.20 in costs.

Centreco (UK) Ltd of Hearle House, Chorley, Lancs pleaded guilty to breaching Section 3(1) of the Health and Safety at Work Act 1974 and has been fined £33,500 and ordered to pay £945.20 in costs.

After the hearing, HSE inspector Jayne Towey commented: “Falls from height often result in life changing or fatal injuries. In most cases these accidents are needless and could be prevented by properly planning to ensure that effective preventative and protective measures are in place such as edge protection or barriers built to the correct standard.”

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Tyne Green flood defence scheme underway

Work has begun at a flood defence scheme in Northumberland, designed to protect homes in Hexham.

The Environment Agency began work on the £65,000 scheme this week, which will see the creation of a new flood bank for the Northumberland town. The work follows serious flooding in December 2015, when Storm Desmond precipitated the flooding of 15 properties when water from the River Tyne flowed through an underpass beneath the Newcastle-Carlisle railway line near to Tyne Green Golf Course.

This project is unusual as it has been funded solely by the residents who have pooled individual grants made available to them following flooding over the winter period of 2015/16.

The Environment Agency prioritises delivery of new and improved flood defences using government funding over a rolling six year programme, with a focus on schemes which provide the greatest benefits to protect properties from flooding. With the number of properties affected by the flooding in Tyne Green being relatively small, the Environment Agency was unable to fund the flood defences for the area.

Tyne Green residents have worked closely with the Environment Agency, Northumberland County Council, Northumbrian Water and Network Rail to provide a creative solution. A new flood embankment will help steer flood waters away from the houses in a similar flood event created by Storm Desmond.

Construction, by Breheny Civil Engineering, will take approximately three weeks.

Chris Hood, Project Manager for the Environment Agency, said: “The start of this work marks the final step in what has been a long and difficult journey for local residents. I would like to thank them for their support and continued patience while we have worked together with Network Rail and others to find the best and most cost-effective solution at Tyne Green.

“They have used their initiative and all worked together to pool their grants which has allowed us to be able to build this flood bank. We hope this protection afforded by the new defence will now provide local residents with peace of mind when bad weather threatens in the future.”

Northumberland County Councillor Glen Sanderson, Cabinet member for Environment and Local Services, said: “It shows what a big impact Storm Desmond had on our county when improvement schemes are still ongoing more than two years after the event.

“This is another fine example of agencies working with local communities to find innovative solutions to improve their areas and prevent flooding events damaging their homes in the future.”

County Councillor for Hexham Central with Acomb Trevor Cessford added: “This is great news for local residents and should hopefully provide peace of mind and security for the future. I would also like to say a huge thanks to all the residents for their patience and understanding in this drawn out matter and for the selfless financial contributions they themselves have made towards the project.”

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London Mayor unveils £1.1Bn vision for East Bank

The Mayor of London, Sadiq Khan, has revealed his £1.1Bn vision for East Bank at Queen Elizabeth Olympic Park.

The vision sees the creation of a new powerhouse of culture, education, innovation and growth.

Sadler’s Wells

Supported by a £151M contribution from the government, the reimagined East Bank will see a number of prestigious institutions set up shop on the waterfront, with the BBC, Sadler’s Wells, London College of Fashion (part of University of the Arts London), University College London (UCL) and the V&A including a partnership with the Smithsonian Institution, already confirming their presence.

The BBC will create a new home for the world-renowned BBC Symphony Orchestra & Chorus and BBC Singers, with a substantial presence from the BBC Concert Orchestra, including state-of-the-art recording facilities to host recording sessions and live performances across all genres from global stars to emerging talent.

Sadiq Khan unveiled plans and designs for numerous buildings on the site, and announced that at least 50% of new homes created across the development sites on the Park – Stratford Waterfront, Pudding Mill and Rick Roberts Way – will be affordable, in line with the Mayor’s own commitment on new development sites.

The new site for UCL (University College London) at East Bank will see a new and pioneering campus, UCL East, created.

The scheme will provide skills and jobs for local people, bring over 10,000 students to the site, and attract thousands of visitors from London and beyond. Inspired by the success of the South Bank in transforming a location through world class art and learning opportunities, East Bank will help to cement the capital’s reputation as a world leader in culture, education and innovation.

Designs for the reimagined East Bank have been provided by Architects Allies and Morrison, O’Donnell + Tuomey, and Camps Felip Arquitecturia following detailed public consultation.

V&A

The Mayor of London, Sadiq Khan, said: “Great cities are defined by their ambition as much as their achievements – East Bank is the most ambitious new project of its kind for decades. I have made culture, innovation and growth a top priority, and as London’s centre of gravity extends east, I’m delighted that we’re placing culture and education at the heart of this development and the Olympic legacy.

“My vision for East Bank is one where everyone, regardless of their background, can access world-class culture and education on their doorstep. East Bank is a fantastic collaboration of inter-disciplinary work and world-class institutions that will drive forward growth and inspire more young Londoners to take up creative careers, transforming the communities of east London.”

Communities Secretary, Rt Hon James Brokenshire MP, said: “I am delighted to confirm the Government’s financial support for this exciting project. Building on the 2012 Olympic and Paralympic legacy, this ambitious scheme will create an exciting new cultural hub in East London. East Bank is also about creating new opportunities and innovation to drive greater prosperity for this area and help change lives. Through this multi-million pound contribution Government is helping to bring these exceptional institutions and thousands of jobs to the area. It will deliver a huge boost to the local economy and a renewed vision for East London.”

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Netherlands to build first 3D printed homes

Eindhoven University of Technology has partnered with Houben & Van Mierlo Aerchitecten to deliver the world’s first habitable 3D printed homes.

The ‘Milestone’ project will see five 3D-printed houses constructed in the Bosrijk area of Eindhoven in a world first. The project, delivered in collaboration with contractor Van Wijnen, the Municipality of Eindhoven, real estate manager Vesteda, materials company Saint Gobain-Weber Beamix and engineering firm Witteveen+Bos, will see 3D concrete printed homes created.

This innovative industrialised building technique has been customised to create the homes, which have a ‘tongue in cheek’ stone-age design, created with the most progressive techniques.

The first home, which is due to be ready for occupation in 2019, will be single-storey. The homes will be built consecutively, with the rest being multi-storey, allowing the partners to apply lessons learnt from the previous construction.

The homes will be finished to a high quality with key sustainability goals, for example, the footprint is very compact so that the surrounding landscape can meander through the building volumes as much as possible. Much less concrete is needed and hence much less cement, which reduces the CO2 emissions originating from cement production.

The elements to create the first home will be printed at the university, with the intention to move the entire construction to site as the development progresses.

3D-printing of concrete has been mooted as a game changer in the building industry, allowing the construction of almost any shape, in all kinds, qualities and colors of concrete, all in a single product. This enables the integration of all sorts of functions into one building element, with the added element of bespoke design.

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To create value in the system, we must fix the Apprenticeship Levy now

In this article, Verity Davidge, Head of Education and Skills Policy at EEF, the manufacturers’ organisation, talks to UKCO about the problems and solutions for manufacturers presented by the Apprenticeship Levy.

Manufacturers have always been true champions of Apprenticeships

Apprenticeships have been ingrained within the manufacturing sector for decades. Only five per cent of EEF members have never offered apprenticeships. The majority are doing so, and the remainder in the process of doing so. They are one of the key ways manufacturers secure the skills they need for the future. They are also a key channel to get more young people into manufacturing. Indeed seven in ten manufacturers say raising awareness of apprenticeships will get more young people into the industry.

It is this passion and enthusiasm for apprenticeships that so many manufacturers have, that has led us to stand firmly behind the Government’s ambition to get more employers investing in high quality apprenticeships.

The Apprenticeship Levy had laudable aims but has failed to deliver

EEF recently published a report makes the case for unravelling and addressing the alarming drop in apprenticeship starts since the introduction of the Levy and then looking at positive solutions which are on the table to make the Levy work for employers and learners in the long term.

The report found that, whilst the Apprenticeship Levy had laudable aims, what should have been a win-win situation has turned into a lose-lose including for those sectors such as manufacturing and engineering which have been true champions of high-quality apprenticeships for decades.

The headline figures say it all, with continuous falls in starts each month in comparison to pre-Apprenticeship Levy years. And whilst there appeared to be green shoots emerging – more apprenticeship standards and higher level apprenticeships being created, other reports such as that from Reform have put a big question mark over quality too.

When skills shortages are rife companies cannot afford to stop training

Manufacturers cannot afford to stop training apprentices altogether. How can they when three-quarters of manufacturers (according to the report) are concerned about their company’s ability to access the skills they need? Add to that an ageing workforce, Brexit and a fast-moving industry where new technologies are changing the way firms work as well as the skills they need.

Where possible, manufacturers have powered through what has been a costly and complicated programme of reform. That said, one in ten have either delayed or cancelled an engineering apprenticeship specifically because of the Levy.

These are apprenticeships that could have been created, these are opportunities that could have been available to young people, but because of the complexity and rigidity of the Apprenticeship Levy and wider reform programme, they have been cancelled or put on hold.

We need to add value in the system. If we haven’t added any value, then what was the point of this radical reform?

The Government has not delivered on the Levy’s initial promises to employers.

In one of the (many) consultations the Government has published following the Richard Review of Apprenticeships, the Government made promises about the Levy to employers: the Levy will be simple; the Levy will be fair; the Levy will allow employers to get back more than put in; the Levy will give employers real control.

On hearing this, manufacturers bought in to some aspects of the Levy. While over a third of companies saw no benefits to the Levy, some saw silver linings in the form of greater purchasing power to buy the provision they needed and the opportunity to create more apprenticeships in their businesses.

But these promises have been broken. Our report highlights the stark difference between the Government’s “vision” and manufacturers’ “reality.” Manufacturers have faced challenges at every step of their Apprenticeship Levy journey.

Rushed reform and an inflexible system have created problems

Manufacturers’ frustrations about the Levy aren’t driven solely by the fact the Levy is a tax, but rather by the frustration that the Apprenticeship Levy has not helped them to create more quality apprenticeships.

The reforms were rushed in. Manufacturers felt unprepared and received key information too late. Forcing the introduction of the Levy too quickly has also had implications for the wider Apprenticeship system. According to the EEF report, over half of manufacturers said that standards were not ready for delivery – and those were the lucky ones who managed to find firstly a relevant standard and secondly  a provider willing and able to deliver it.

Then there are the funding rules themselves, which are complex and inflexible.

For example, some manufacturers don’t recruit on an annual basis because they have just 24 months to spend their Levy funds. Many companies, particularly SMEs, will only recruit apprentices every two to three years, so are immediately put at a disadvantage.

There is also a cap on the amount a Levy payer can spend (of what was supposed to be their own money!) The absolute maximum for the very best, most expensive apprenticeship is £27,000. This is supposed to cover training costs and assessment. But it takes no account of the huge on-site costs and additional costs manufacturers incur to get the apprenticeship training they, and the learner need. In fact it’s not uncommon for manufacturing employers to say for every £1 of the Levy they are spending £4-5 again out of their pockets.

This is just a snapshot of some of the challenges.

Solutions to save the Apprenticeship Levy

According to the EEF report, 95% of manufacturers want to see some form of change in the Apprenticeship Levy. Only 5% want to leave it as it is.

The majority (52%) want to see improvements made, 26% want to see the Levy evolve into a wider training Levy payable by all business and 17% want to scrap the Levy completely.

The mandate from the industry is to save not scrap. But we need to save it now. We cannot wait around in the hope that the numbers might pick up. EEF has been clear on what must now happen to the Levy to get it back on track. We are recommending that the Government:

1. Move the Apprenticeship (Levy) Budget from Department Expenditure Limit (DEL) to Annually Managed Expenditure (AME)
2. Increase the time that employers have to spend their Levy funds to at least 48 months
3. Review the funding band structure, removing the upper limit
4. Expand incentive payments to employers, providers and learners for STEM apprenticeships
5. Increase the amount of unused funds employers can transfer to over 50% and remove restrictions on transferring to a single employer
6. Allow employers to agree a payment schedule with their provider
7. The process of signing off standards must become quicker and more transparent and empower the role of employers further

Getting apprenticeship policy, and wider education and skills policy right is more important than ever as the UK prepares to leave the EU. Manufacturers are committed to playing their part but Government must act now and fix what is clearly broken in the system.

 

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