Building Britain – Budget reaction

Following Chancellor Philip Hammond’s budget speech, the construction industry has been reacting to his announcements and it will affect the industry.

Most reports show industry is reasonably happy with the announcements made, but the majority also expect another budget to be announced in Spring once Britain’s exit from the EU has been signed off.

Tackling the housing crisis remains a priority for the government and this has been reflected in a number of funding boosts.

Paul Butterworth, Partner, Ashfords LLP Real Estate Team, commented: “A further £500M for the Housing Infrastructure Fund again underlines the importance of housing and offsetting from developers the costs of infrastructure on major schemes to help unlock housing developments.

“The extension of SDLT exemption on shared ownership properties valued up to £500,000 purchasing a £300,000 share, sorts out an anomaly in the tax system whereby they were caught by an SDLT hit whereas buying 100% didn’t give rise to this. It’s interesting that this is applied retrospectively so is this going to be claimed via the individual tax code.

“All in all a reasonably positive housing budget, not necessarily adding anything new but follows the trend from previous budgets.”

Kenny Ingram, Global Industry Director for Engineering, Construction and Infrastructure at IFS, said: “The announcement of the Housing Infrastructure Fund, funded by the NPIF, will increase by £500M to a total £5.5Bn, unlocking up to 650,000 new homes. The removal of the Housing Revenue Account cap, which currently controls local authority borrowing for house building, will also enable councils to increase house building to around 10,000 homes per year. In addition, the British Business Bank will deliver a new scheme providing guarantees to support up to £1Bn of lending to SME housebuilders, which is a good step towards solving the housing crisis.

“Unfortunately though, Hammond did delay decisions regarding large housebuilding firms. The independent review of the gap between housing completions and the amount of land allocated or permissioned published separately will only be responded to in February next year.

“Whilst the extensive government support for housebuilding is to be welcomed, the lack of support for private housebuilding will mean that the UK still continues to fall short of the 300,00 housing target the government is currently aiming for. The UK simply cannot deliver the amount of housebuilding it needs with the model it has today, so whilst the injection of cash from the NPIF is a welcome boost, it is important that the government evaluates how they build with modern methods of construction.”

Britain’s small builders have received some relief through business rates, many continue to bemoan the generally high rates:

Melanie Leech, Chief Executive, British Property Federation commented: “It is good to see the Chancellor acknowledge that many small retailers are struggling against powerful headwinds and provide additional relief from business rates. However, today’s announcement does not change the fact that at almost 50%, the rate of business rates is simply too high for occupiers of all sorts. It is time to recognise that business rates are unsustainable in their current form and causing untold damage to our economy; time for a fundamental review.”

Relief also comes in the form of the apprenticeship levy changes, with smaller businesses having their contributions halved to five per cent.

Duncan Green, Managing Partner leading property, construction and infrastructure consultancy Pick Everard, said: “I am pleased to hear that Mr Hammond has announced a £695M initiative to help small firms hire apprentices. I believe that apprenticeships for both males and females in construction are crucial to the future of the industry, especially because of the skills gap, and training needs to remain a top priority if we’re to see real change in the UK’s infrastructure. Essentially, skills and training are how we will see the high wage, high skill economy of the future.”

Reacting to the Budget statement, Recruitment & Employment Confederation (REC) chief executive Neil Carberry says: “Businesses across the country will welcome the pro-enterprise tone taken by the Chancellor this afternoon. While we would have liked to see more on reforming the Apprenticeship Levy to allow the training of temporary workers, delaying changes in taxation for private sector contractors is a big win for business. This was the main thing the REC wanted from the Budget as it maintains access to short-notice skills and expertise at a vital time. We’re delighted the Chancellor has listened.”

Responding to the announcement that an additional £420M is available to tackle pot hole and minor works repairs, Rick Green, Chairman, Asphalt Industry Alliance, said: “The additional funds announced today will go some way towards tackling the annual shortfall local authorities have in their highway maintenance budgets, but remains significantly less than the £1.5Bn extra a year we believe is needed to bring local roads up to target conditions so that they can be maintained in a cost-effective way in the future.”

“Whilst today’s announcement recognises the important role local roads play in supporting the economy and keeping communities connected, it is not enough to stop the on-going decline of the local road network caused as a result of years of underfunding. Hopefully, it is a welcome first step towards sustained annual increases in local road maintenance funding.”

While Christopher Snelling, Head of UK Policy, Freight Transport Association (FTA), commented: “The £420M announced in today’s Budget to repair potholes is a drop in the ocean when you consider that work that will cost more than £8Bn is needed to rectify years of under investment in our road network.”

Further infrastructure spend has been secured through the Northern Powerhouse Rail, £20M to develop a strategic outline business case for East West Rail and £291M to unlock 18,000 new homes in East London through improvements to the Docklands Light Railway.

Darren Caplan, Chief Executive of the Railway Industry Association (RIA), said: “On major projects, we welcome today’s commitment in the Budget for further funding to Northern Powerhouse Rail, East West Rail and the Docklands Light Railway, all of which are vital and will unlock economic growth, investment and jobs in different regions of the country. We urge the Government to move at similar speed on Crossrail 2, and to set out its response to the Independent Affordability Review as soon as possible, in order for the project to progress at pace.

“The Railway Industry Association (RIA) is concerned that the Government did not use this opportunity to deliver on the key asks of the rail industry, namely smoothing out ‘boom and bust’ rail funding, providing a visible pipeline of enhancements, ensuring electrification remains on the table when decarbonising the rail network, providing match-funding for rolling stock R&D in Control Period 6 and ensuring the Rail Review does not stall investment in the rail network.

“RIA will continue to campaign on these issues, and calls on the Government to engage with the industry to ensure the rail supply community can deliver the best rail network possible.”

 

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HS2: Archaeologists to probe Europe’s largest dig

10,000 years of British history along the 150 mile HS2 route between London to the West Midlands are to be unearthed by an army of archaeologists.

Over the next two years more than 1,000 archaeologists, scientists and conservators from all over the UK will explore and record around 60 archaeological sites on behalf of HS2 Ltd.

Ranging from the Prehistoric and Roman Britain to the Anglo-Saxon and Medieval periods, and the Industrial Revolution and World War 2; the archaeology programme is Europe’s biggest dig and promises to give fascinating insight into the everyday lives of the people and communities who helped forge modern Britain.

Crucially, these efforts are essential to the ground preparation works for Phase I of the project; London to Birmingham. HS2, its contractors and supply chain are well underway with a programme of work, clearing sites ahead of construction next year. Early finds include prehistoric tools in Buckinghamshire, medieval pottery in Stoke Mandeville and two Victorian time capsules, with more discoveries to come as archaeologists begin to probe our past.

“How we build HS2 is as important to us as what we are building and we are committed to sharing as much of our cultural heritage as possible,” said Mark Thurston, Chief Executive of HS2 Ltd. “Before we bore the tunnels, lay the tracks and build the stations, an unprecedented amount of archaeological research is now taking place between London and Birmingham. This is the largest archaeological exploration ever in Britain, employing a record number of skilled archaeologists and heritage specialists from across the UK and beyond.

“As well as improving connectivity, generating 30,000 new jobs and creating a network of new wildlife habitats, our archaeology programme shows that HS2 is more than a railway; it’s an opportunity to tell the story of our past, create opportunities in the present and leave a lasting legacy for generations to come.”

HS2 has granted BBC Two access to this pioneering project, to be documented in a new series made by Lion TV – due on air in 2019/20 and presented by Professor Alice Roberts.

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Hamilton Architects to carry out Canterbury Christ Church University design

Northern Irish architectural practice Hamilton Architects has been awarded a contract for the design of a £42M project which will help transform the City Campus of Canterbury Christ Church University.

Hamilton will carry out the design and enabling works for an 18,000 square metre state-of-the-art Science, Engineering, Technology and Health teaching facility; one of three new buildings planned for the old Prison Quarter site.

While building work on the STEM facility – provisionally known as Building 2 – is currently on-site with a delivery date of 2020; the overall redevelopment of the university estate will take up to 15 years to complete at a cost of over £150M.

“Hamilton Architects are delighted to have won the contract to deliver this prestigious project against stiff national competition,” said Mark Haslett, Partner and Project Lead. “It is one of 18 education projects, valued at over £150m, which are currently on our books.

“We are very happy with how the project is progressing following the significant development of a design we inherited which has appreciably increased the amount of usable teaching space.

“With all approvals now in place our team is on site one to two days a week and we have forged a partnership with  architecture practice Hazle McCormack Young to act as our representatives in Canterbury.”

Hamilton also has offices in London, where the practice has been appointed to five design frameworks – for the Metropolitan Police, Metropolitan Housing, North River Alliance, Orbit Housing and the Central and North West London NHS Trust.

“We are very pleased at how well the expansion of the practice into London and the south-east is going,” Mark added. “We are nearing completion of a social housing project for Ealing Council and are currently carrying out a refurbishment of six police stations for the Metropolitan police.”

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Budget review 2018

On Monday 29 October, the Chancellor of the Exchequer Philip Hammond outlined his vision for the UK economy.

Arguably, this was a Budget unlike any other in recent memory; the UK’s last as an official EU member state. But given that negotiations between London and Brussels have so far failed to bear fruit, Mr Hammond had an oddly specific set of circumstances on his hands. Is it possible to accurately chart a country’s economic road-map when the destination has yet to be agreed?

And so, it was perhaps unsurprising when – in the run up to Monday’s announcement – the Chancellor revealed that a ‘no-deal’ scenario would likely require a very different approach; an entirely new Budget in point of fact.

Understandably, with so much up in the air, UK economists forecast a fairly modest announcement from Mr Hammond – one that erred on the side of caution. For his part, the Chancellor confirmed that all spending plans would go ahead regardless of the outcome of Brexit, thanks to lower borrowing in the year to date.

He did have a few surprises up his sleeve however, most notably the much-publicised end to austerity. With windfalls gained from tax revenue boosting funding for the NHS, headlines have noted that this budget is the ‘biggest giveaway’ in a generation. However, once the NHS funding is used up, there is little left to go around and some departments might yet still face cuts.

Those in the construction industry were waiting on announcements to help their businesses go forward into the post-Brexit future.

The salient points for the industry were these:

• Fuel duty remains frozen for the ninth year in a row – meaning freight and transport costs won’t be rising.
• A £30Bn funding package for England’s road network, including a programme of highway maintenance and pothole repairs. The largest ever investment of its kind, the fund will benefit the Strategic Road Network as well as the Major Road Network and help to fund larger local road projects. While local authorities will receive £420M as a pothole fund, plus £150M for local traffic hotspot improvements.
• While the six Metro Mayors will have access to an extra £240M to create significant transport improvements in their regions. Plus some £37M will be available to support the development of Northern Powerhouse Rail.
• Tackling the housing crisis still remains a huge priority for the government, and Mr Hammond announced that the borrowing cap on local authorities will be lifted to allow them to build more housing. The Welsh Government is also taking immediate steps to lift the cap in Wales.
• This will be supported by a £500M investment into the housing infrastructure fund, bringing the fund up to £5.5Bn and allowing a further 650,000 homes to be built.
• While some £75M from the Home Building Fund will go to St Modwen plc to fund the infrastructure required for some 13,000 new homes.
• SME home builders will benefit from a British Business Bank scheme, which will see loan guarantees of up to £1Bn to help Britain’s SME builders to help plug the housing gap.
• From April, large businesses will be able to invest up to 25% of their apprenticeship levy to support apprentices in their supply chain. Smaller firms will have levy contributions slashed to five per cent, with a £695M package to support apprenticeships.
• PFI schemes were also finally killed off by the Chancellor, with the announcement that he will ‘never sign another deal’. Existing projects will continue to go ahead, but no new projects will be furthered- this raises questions over how the Stonehenge A303 project will be financed.
• Individual project funding announced in the budget will see £70M go towards developing the national element of the Defence and National Rehabilitation Centre and £100,000 to developing proposals for Eden Project North in Morecambe.
• While local high streets will benefit from a £675M fund to develop town centre infrastructure.

Overall it was an interesting budget, with some loosening of the purse strings which will consolidate national priorities at a time where a grasp on the future is tenuous.

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‘Smash and grab’ adjudications; is it all over?

Allowing contractors to take advantage of the failings of an employer by claiming payment in full where no valid payment or pay less notice is served, it is no surprise that so-called ‘smash and grab’ adjudications have become one of the construction industry’s hottest topics.

By Kate Onions, Shakespeare Martineau

Going against the courts’ previous stance on these disputes, the recent ruling in Grove Developments Ltd v S&T (UK) Ltd [2018], has been hailed by many as the beginning of the end for this controversial approach to deciding contractor payments. However, with the smash and grab approach still likely to prove a useful tool for contractors looking to achieve a swift decision regarding outstanding payments, it is essential that employers ensure their processes around issuing payment and pay less notices are up to scratch.

The cash flow benefits provided by smash and grab adjudications have made them increasingly popular with the claiming party to construction contracts. Under the 1996 Construction Act, employers are required to issue a valid payment notice no later than five days after the due date, detailing the sum due for payment at the due date and the basis on which that sum has been calculated. In the event that the payer disagrees with the ‘notified sum’, they are required to serve a ‘pay less’ notice ahead of the final payment date.

Employers who fail to serve a valid and timely payment or pay less notice may find themselves in a sticky situation, facing claims for the full amount of payment applied for, whether this represents the true valuation of the works carried out or not. The judgments in ISG v Seevic [2014] and Galliford Try v Estura [2015] show the courts’ previous approach to these cases; that the failure of the paying party to serve a pay less notice constitutes a ‘deemed agreement’ to pay the sum in full, as requested by the contractor.

The decision in the Grove Developments case has been seen by many as a fatal blow for smash and grab adjudications. In this dispute, the judge’s decision went against the courts’ previous position that the failure of an employer to serve a pay less notice represents a deemed agreement, preventing them from launching a counter adjudication to determine the ‘true value’ of an account. The conclusion, that there was a ‘powerful reason’ not to follow the precedent set by previous cases, was based on the reasoning that the Construction Act contains no limitation as to the nature, scope and extent to which either side can refer a dispute to an adjudicator.

For many businesses and institutions who regularly take up the services of construction sector contractors, this conclusion is likely to be welcomed as the light at the end of the tunnel. However, it would be premature to assume that the industry has seen the last of smash and grab adjudications. The judge’s proviso that the paying party may only launch a counter-adjudication after the first has been concluded means that there is still a financial incentive for contractors to launch a smash and grab. With the opportunity to gain a healthy short-term injection of cash, some contractors may bank on the chance that the paying party will not want to invest the time and costs needed to gather necessary evidence and launch a second adjudication, and they may therefore get away unchallenged. While employers may be able to rectify overpayments in a later payment cycle, that isn’t always going to be the case where the application is made towards the end of a contract. On this basis, smash and grab adjudications still provide a fast means for contractors to boost their cash flow and even manoeuvre themselves into a strong position for settling the final account.

With smash and grab adjudications likely to continue to prove a useful strategy for contractors for the foreseeable future, it is vital that their employers recognise the importance of issuing accurate and timely payment and pay less notices. A failure to do so could result in them being forced to part with more cash than the claiming party is fairly entitled to, threatening the smooth delivery of projects and even the financial stability of the business. The decision in the Grove Developments case, which emphasises a ‘pay now, value later’ approach, may well have implications for future cases, therefore the old saying of ‘prevention is better than cure’ is one which employers would do well to heed.

Similarly, the decision about whether to commence a counter-adjudication against a contractor should not be taken lightly. If the employer has neglected to serve the correct payment or pay less notice, and therefore made an over payment early on in a project, there may be a chance to recoup funds further along the line without taking on additional legal fees. However, if the slip – up happens late on in the life of a contract and / or the contractor appears to be struggling financially, particularly where an employer does not have sufficient security against contractor insolvency, they may need do everything in their power to avoid waving goodbye to a significant sum.

While smash and grab adjudications are still very much an option for contractors looking to get paid on a technical knockout basis, it could be argued that the courts’ latest ruling means that for both parties of a construction contract, things are no longer as clear cut. It is also important to bear in mind that for contractors looking to secure repeat business from employers, launching an adjudication may well be short-sighted in terms of marring the commercial relationship and also detracting from delivering projects on time and within budget.

By taking a meticulous approach to issuing payment and pay less notices, employers can help to avoid claims for excessive sums and the legal fees associated with counter adjudications as to the true value, and instead focus time and efforts on ensuring the smooth and cost-effective delivery of the project at hand.

Kate Onions is a construction partner at law firm, Shakespeare Martineau.

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Grenfell Tower environmental checks to go ahead

Environmental checks will soon take place in and around the Grenfell Tower area to give residents greater reassurance over current air conditions.

The Ministry of Housing, Communities and Local Government has partnered with the Royal Borough of Kensington and Chelsea, NHS England, Public Health England and the Environment Agency to ensure the North Kensington community receives the health assurances and support it needs.

Furthermore, up to £50 million has been pledged by NHS England to undertake a five-year health monitoring programme. In addition to ongoing air quality monitoring on-site, the proposal includes:

1. further environmental sampling on-site, including comprehensive soil analysis to unearth any signs of contamination;
2. water analysis, which will take place if required; and
3. a wider programme of health monitoring and treatment options to reassure those affected.

“Since the Grenfell Tower tragedy we have been working very closely with local health partners and the Grenfell community to ensure that they have access to best available public health evidence and advice,” said Dr Yvonne Doyle, Regional Director for London at Public Health England.

“It is not unusual to find areas of contamination in cities which is often associated with historic land use or heavy traffic. It is generally considered to be very low risk to health because people would need to be exposed to the soil over long periods of time. We will continue to speak to local people and community groups to ensure they have all of the information they need about health.”

In the aftermath of the Grenfell Tower fire the immediate risk to health was from potentially contaminated air. An independent air quality monitoring was subsequently commissioned by Public Health England, which has shown risk to public health to be consistently low.

Soil analysis will determine whether there are contaminants beyond those which would be expected in urban environments like London. Typically, contaminated land is considered to be very low risk to health, as any impact would have to be the result of exposure over a long period of time.

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Contract awarded to resurface RAF Northolt runway

The Defence Infrastructure Organisation (DIO) has awarded a contract to Lagan Aviation & Infrastructure to resurface the runway at RAF Northolt.

The contract, worth £23 million, will upgrade the existing runway, improve drainage and install new arrestor beds to improve safety. The resurfacing work will extend the life of the runway by 10 to 15 years.

RAF Northolt is the RAF’s strategic site in London, home to 33 supported units from all 3 armed services and wider government. 32 (The Royal) Squadron are the resident flying squadron at the unit, who provide air transport to UK government and military leaders on official business.

Clement Adekoyejo, DIO’s Project Manager for the work, said: “We are pleased to have successfully awarded the contract for this vital project for military capability to Lagan Aviation & Infrastructure as the main contractor, and Mott MacDonald as our Principal Support Provider. DIO plays a crucial role in maintaining infrastructure to allow the armed forces to live, work and train. We appreciate the public support for the station and will endeavour to keep disruption to a minimum.”

The airfield works are expected to take around six months with the runway being closed for renovation from spring to autumn 2019. During this time, military aircraft will operate from RAF Benson in South Oxfordshire and civilian aircraft will operate from other civilian airports.

RAF Northolt’s Station Commander, Group Captain Mike Carver said: “RAF Northolt is home to the last remaining military airfield within the M25 and the flying operations that take place here provide a vital contribution for defence, wider government and the United Kingdom. The runway resurfacing works will assure those flying operations for decades to come.”

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Mayor of London approves £1Bn council housing bid to build 11,000 homes

Mayor of London, Sadiq Khan, has green lit plans to provide more than 11,000 new council houses for social rent over the next four years.

The proposals form part of the ‘Building Council Homes for Londoners’ strategy – City Hall’s first-ever dedicated council housebuilding programme, which launched last May. In the months since, there has been “overwhelming interest” from the London boroughs, with Mayor Khan agreeing allocations for 11,154 new council houses and a further 3,570 homes – including those for London Living Rent.

Delivery will require councils to bolster their building rates over a four year period to five times greater than that of the previous four years. While Mayor Khan has welcomed the government’s decision to boost the amount councils can borrow, he said this alone would not fix the housing crisis. According to City Hall, the capital will need around £2.7Bn each year to build the council, social rented and affordable homes Londoners so desperately need.

“London’s housing crisis is hugely complex and has been decades in the making,” said Mayor Khan. “There is no simple fix – but council housing is the most important part of the solution. Londoners need more council homes that they can genuinely afford, and local authorities have a fundamental role to play in getting London building the homes we need for the future.”

“Newham residents are at the forefront of the housing crisis,” added Mayor of Newham, Rokhsana Fiaz – who pledged begin building over 1,000 quality homes across 40 sites by 2022.

“Too many families are desperately in need of a sustainable home they can genuinely afford. We have over 27,000 households on our housing waiting list and more than 4,800 households in temporary accommodation. This is why I have committed to build over 1,000 new council homes at social rent levels over the next four years. Only through a massive council housebuilding programme can we begin to address the scale of this challenge.”

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CITB: Construction Wales Innovation Centre opens in Swansea

The Construction Wales Innovation Centre (CWIC) has officially opened on the site of the £350 million SA1 Swansea Waterfront development, the Construction Industry Training Board (CITB) has announced.

CWIC marks a milestone agreement between CITB and a consortium led by the University of Wales Trinity Saint David (UWTSD). The £6.5 million centre will support future workforce needs, skills development and innovation in the Welsh construction sector, providing state-of-the-art facilities and training to individuals and organisations alike.

Central to the CWIC is the ConstructZone, with classrooms, dedicated IT suites and conference facilities also available and a scaffolding training facility sited nearby. Already, CWIC is delivering courses across Wales through partner colleges Coleg Sir Gâr, Coleg Cambria, Coleg y Cymoedd and Coleg Ceredigion as well as the Building Research Establishment (BRE). It is thought that 1,200 students will be trained via CWIC facilities across Wales each year.

According to the latest CITB Construction Skills Network research, the Welsh Construction industry is expected to grow quicker than any other region of the UK – with more than 12,000 new roles to be created in the industry by 2022. The centre will help meet the skills needs for future projects including the South Wales Metro and Wylfa Newydd.

“I am delighted that CWIC has officially opened its new state-of-the-art facilities where thousands of learners will get cutting-edge training that meets the needs of our changing industry,” said Mark Bodger, Partnerships Director for CITB Wales.

“CWIC reaffirms CITB’s commitment to the construction industry in Wales and shows what can be achieved by working in collaboration with employers, education providers and Welsh Government. CWIC has already made a huge impact on the sector in Wales through its partners across the nation, and the SA1 hub will help the industry to deliver and expand on its ambitions.”

Jane Davidson, Pro Vice Chancellor at University of Wales Trinity Saint David, added: “The UWTSD Group has a strong tradition in offering skills solutions for the construction industry at all levels. It is now particularly pleasing to be collaborating with CITB on delivering a much wider national vision for Wales. The launch of the CITB funded CWIC is a significant initiative on this journey and will be a major catalyst for delivering the Welsh Government’s Employability Plan for Wales.”

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British Safety Council supports Usdaw campaign for fair legal representation

The British Safety Council has voiced its support for an ongoing Usdaw campaign to give injured workers fair access to legal representation.

“Workers should not be prevented from pursuing redress whenever they sustain workplace injury or ill-health through no fault of their own simply because of financial limitations,” said David Parr, Policy and Technical Services Director at the British Safety Council.

“Wherever employers are found to be negligent in the management of workplace health and safety, there should be accountability. No-one should be injured or made ill at work, but if they are, workers should have the support and agency to hold the employer to account, so that incidents do not reoccur.”

Usdaw – the Union of Shop, Distributive and Allied Workers – has led the campaign to lower the threshold limit for employer liability cases. In it’s view, the measures might be discouraging workers from taking their employer to court if they are injured in the workplace.

On Tuesday 23 October, the Civil Liabilities Bill passed its third reading. It will now progress to Royal Assent to be enshrined in English and Welsh law. The Bill is the overarching legislation that lays the foundations for regulations relating to the level of legal aid an individual can receive to progress their claim for damage and/or loss to court.

Richard Burgon MP explained: “Through that route, the government want to increase the small claims limit from £1,000 to £2,000 in all cases and from £1,000 to £5,000 in road traffic accident cases. That will make it much harder for workers to get compensation for workplace injuries, and for genuinely injured people to get a fair settlement. A significantly greater number of claims will be dealt with through the small claims procedure, whereby no legal costs are usually awarded, even in successful claims.

“When legal fees are not covered, tens of thousands of working people will simply be priced out of obtaining legal assistance, resulting in many pulling, dropping or not pursuing their cases.”

During the House of Commons debate, Ruth George MP, a former Usdaw worker, added: “It is a huge undertaking for a layperson to take a case to court. Most would not even dream of it, especially a case against their employer, who will be armed with their own lawyers and often with an insurance company.

“It is extremely difficult to determine liability in the case of many accidents at work, especially in instances like those I saw when I worked for the Union of Shop, Distributive and Allied Workers. Deliveries are made to stores by a third party and there are incidents in warehouses that may be the fault of one party, the fault of another company or the fault of the employee. Those arguments are exceedingly difficult to pin down, especially for an individual claimant, and they require the assistance of a lawyer.”

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Nationwide growth slows among construction SMEs, says FMB

Growth has slowed among construction SMEs nationwide, according to the Federation of Master Builders’ (FMB) latest ‘State of Trade Survey‘.

The FMB survey – currently the industry’s only quarterly assessment of SME performance – revealed that workloads had remained broadly positive during Q3 2018, though the rate of growth shrank in comparison to the previous quarter. Elsewhere, 86% of SME builders reported a rise in material prices in Q3 – up from 76% in Q2 2018.

Compounding these issues is the much-publicised skills shortage. More than two-thirds (68%) of SME builders have struggled to source bricklayers in Q3, while 59% have experienced similar difficulties hiring carpenters and joiners. Encouragingly enough, more than half (58%) of SME builders expect salaries and wages to rise over the next six months however.

“This slowdown in growth should ring alarm bells for the UK government and give rise to a total rethink of its misguided post-Brexit immigration proposals,” commented Brian Berry, Chief Executive of the FMB. “Currently, the government wants to significantly limit the number of construction workers coming into the UK post-Brexit, labelling them ‘low skilled’ and therefore somehow surplus to requirements.

“Migrant construction workers are indispensable with 13% of our construction workers being from outside of the UK. If construction firms are unable to hire migrant workers post-Brexit, the already severe skills crisis will worsen. This will mean we won’t be able to the build the new homes the government is keen on delivering and infrastructure projects will grind to a halt. It is imperative that the post-Brexit immigration system allows construction firms to continue to hire workers of varying skill levels. We hope the government heeds the warning that these latest results show, before it is too late.”

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Better Together Expo showcases innovation in the North West

Willmott Dixon’s Better Together Expo drew to a close earlier in the month, having showcased some of the North West’s most promising supply chain innovations.

With the Better Together Expo, Willmott Dixon aims to give supply chain innovation a platform in the North West. This year the annual two day event took place in Rochdale, with 35 regional companies taking part to showcase their innovations to potential buyers, alongside a varied programme of guest speakers and seminars.

Hundreds attended the expo held at Willmott Dixon’s Rochdale Riverside regeneration; one of the most significant schemes to be undertaken in the town for over a generation. Pupils from nearby Hopwood Hall College were also given an opportunity to get to grips with some of the new technologies on display.

Among the innovations was a high-tech upper body exoskeleton designed to provide arm support during heavy lifting. The vests are currently being trialed by Willmott Dixon in partnership with robotics firm, Eksobionics, to better protect and support the company’s workforce.

“Innovation is in the DNA of Willmott Dixon and our supply chain partners,” said Anthony Dillon, Managing Director of Willmott Dixon in the North. “I have been amazed and inspired by the ingenuity on display. After the success of our first event in Blackpool last year, this event is now a staple of the northern construction calendar and it was great to see such a fantastic turnout over both days, which created a buzzing atmosphere and a really exciting forum for new ideas.

“As we look to the future of construction and to inspire a new generation, visitors needed only take one look outside at the live Rochdale Riverside project to see how, together, we are all shaping the future of our communities.”

Developed by a Genr8 and Kajima joint venture in partnership with Rochdale Borough Council, Rochdale Riverside will provide 200,000 square foot of retail and leisure space once complete.

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Belfast City Council to move forward with first ‘Build to Rent’ scheme

Belfast City Council has approved its first ‘Build to Rent’ scheme – a 16 storey, 52 metre tall apartment block in the Cathedral Quarter.

The landmark proposal was approved unanimously by the Belfast City Council Planning Committee. It is the city’s fifth scheme to be led by joint venture Lacuna Watkin Jones, which has invested around £120 million over the past three years. The 90-apartment scheme is now expected to begin on-site in January 2019, with completion scheduled for early 2020.

“This scheme is a direct response to Belfast City Council’s exciting ambitions to improve the city and particularly to increase the city centre’s residential population,” said Anthony Best, Managing Director at Lacuna Developments.

“This decision reflects the hard work of Belfast City Council’s planning department, the planning committee and its senior leadership team, and it builds upon the growing image of Belfast as a vibrant place open for high quality investment.”

According to Lacuna Watkin Jones, Belfast is already playing catch-up with other cities. But this decision demonstrates that Belfast is open to the ‘Built to Rent’ model, which marries city centre apartments with services more commonly associated with the hospitality sector – a concierge, building management, communal amenity space and a ground floor cafe.

Michael Gordon, Head of Planning for Northern Ireland at Turley who advised on the proposal, added: “This is potentially the beginning of a new trend for Belfast. Academy Street will be the first scheme to introduce build to rent accommodation, a new form of city living that will help Belfast City Council meet its ambitious target to deliver 8,000 new homes in the city centre.”

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World-first home energy research lab

A £16M home energy research centre in Salford has been given the go-ahead by funders.

The unique facility at the University of Salford will offer state-of the-art testing for hundreds of UK companies innovating in the construction, energy, smart homes and digital sectors.

The investment was welcomed by business leaders and politicians, which will give Greater Manchester the world’s first all-weather research centre for whole building performance capable of cutting test times for new products “from years to a matter of weeks.”

The new facility – Energy House 2.0 – is timely given the UK’s Industrial Strategy on ‘clean growth’ and also supports Greater Manchester’s plans to position itself as a world-leading green business and clean tech hub.

GM Mayor Andy Burnham said Energy House 2.0 would pave the way for net zero carbon homes and workplaces: “We’re determined to push boundaries to make Greater Manchester one of the greenest city regions in Europe. Energy House 2.0 at the University of Salford will be a significant driver towards truly net zero carbon homes and workplaces, not just here in Greater Manchester, but across the UK.”

Mike Ormesher, Research and Product Development Director at the standards agency the British Board of Agrement, said: “It is fantastic news for industry. This is a much needed support mechanism for the UK’s new and existing building stock and will provide the research quality we need in the industry.”

Energy House 2.0 is a successor to the University’s hugely-successful Energy House, which opened in 2011 and has provided the science behind technological change and a raft of initiatives to save on energy bills particularly for Britain’s 5 million ‘fuel-poor’ households.

The existing facility – a Victorian terraced house inside an environmental chamber – is one of the most famous laboratories in the UK, and has regularly featured on TV and in the media.

The new blueprint is a much a larger, more flexible facility, where all sorts of buildings can be constructed, tested and demolished. The laboratory will create wind, snow, rain, solar simulation, and temperatures between -20C and +40C. It houses sensor, thermal, data and visualisation laboratories and new product development unit under a single roof with viewing galleries and a board room.

Vice-Chancellor of the University of Salford, Professor Helen Marshall said: “Energy House 2.0 is an excellent example of a university, industry and government working together to tackle some of the major environmental and social issues of our times while supporting innovation and business growth.”

The facility is funded by the European Regional Development Fund, the Office for Students and the University of Salford, and is due for completion in 2020.

 

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What opportunities will London’s new Crossrail bring?

The Elizabeth Line, or the new Crossrail, is a suburban rail service which connects London and the South-East of England. Currently the biggest engineering project in Europe, this service plans to connect all of London’s main employment centers and reduce congestion on already overcrowded tube services.

The Crossrail will link 40 stations through 21 London boroughs with an estimated 200 million passengers travelling on the service each year. It will draw more people into the center of the capital through greater access, bringing around 120,000 more people every day and increasing London’s rail capacity by 10%.

So far the Crossrail has generated 55,000 full-time jobs throughout the UK, including more than 5,000 unemployed and local people who were given work opportunities as a result of the partnership between Crossrail contractors and Jobcentre Plus.

The Crossrail has proved a positive educational opportunity for the younger generation of engineers and construction workers. It has provided more than 1,000 apprenticeships to train younger generations in underground construction skills. So far 20,000 people have received training at the Tunnelling and Underground Construction Academy in Ilford, which has now been given to Transport for London. Through the Young Crossrail programme, which partnered with local schools in areas affected by the Crossrail, over 44,000 students were taught about the project.

According to plans for the second Crossrail, 200,000 new homes will be built along the length of its line and 100,000 more jobs will result. With London’s population expected to rise to 10.8 million by 2041, the Crossrail will be a necessary addition to public transport services in order to accommodate for the estimated six million extra journeys each day.

Crossrail project is now 93% complete and is entering the critical testing and commissioning stage. While the arrival of the Crossrail is only a few months away now, investors have already made their stake in areas set to see price rises because of improved transport links.

New developments in areas close to the Crossrail have led to an increase in work for civil contractors and trade contractors working for house builders. While infrastructure construction is set to grow by only 3.2% in 2018, in 2019 construction will rise by 13.0% due to large projects such as the Crossrail, generating an all-time output high of £23.6Bn by 2020.

Charlotte Slingsby and her startup company, Moya Power, have come up with the idea to generate electricity using the wind created by the new trains. She has already installed grids of lamellae-covered plastic sheets in underground tunnels which are designed to flutter when a draft is created, generating renewable energy. While the Moya Power strategy does not produce as much energy as traditional wind power plants, Slingsby has come up with a creative way of embracing new technology whilst also keeping sustainability at the forefront of the new Crossrail.

Investors have already been buying properties in areas where the initial plans for the Crossrail were set, and therefore house prices have risen in spite of the development not being in a state of completion yet. Now seems to be the time for investors to explore opportunities along Crossrail two’s planned route. Property prices in the South East, which will have direct transport links to London via the cross rail, are set to rocket. But if these places want to become destinations rather than just commuter points, infrastructure will need to be built to accommodate visitors. This provides an opportunity for investors to make plans for leisure and entertainment facilities in areas now reached by the Crossrail, since it usually takes more than improved transport links to motivate someone to move to a new area.

There are also specific areas which pose an opportunity for new developments. Regions including Southall, Wood Green, Camden Town, Lisson Grove and Canada Water all have room for further development activity and, therefore, potential for price rises.

In particular, there are numerous new housing developments coming to Southall. Southall recently agreed to convert a former margarine factory into 2,000 new homes under a £1Bn regeneration scheme. A 64 luxury apartment development has been unveiled in The West Works development, a mere five minute walk from Southall station and due to be available in 2021. In spite of plans for new housing developments, in contrast to its neighbor Ealing, Southall has a lot more scope for regeneration projects.

Wood Green is another London district which is facing huge development with proposals for hundreds of new homes, a medical centre, an office and shopping space approved by the Haringey Council. Wider plans for the transformation of Wood Green will include a £3.5Bn developing encompassing 4,000 new jobs, 6,400 new homes and a thriving town centre.

While renters seem to be in a good position, since they will soon have a lot more choice of housing which is in commutable distance from central London, it is inevitable that rent prices will increase. Good for investors and landlords, not so great for tenants.

Article submitted by Marc Trup, Founder and CEO of Arthur Online

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2018 European Week for Safety and Health at Work underway

Monday saw the launch of the 2018 European Week for Safety and Health at Work, designed to promote the prevention of exposure to hazardous materials in the workplace.

The week-long campaign forms part of a two-year European Agency for Safety and Health at Work (EU-OSHA) initiative; dubbed ‘Healthy Workplaces Manage Dangerous Substances’. The initiative aims to minimise both the presence of and exposure to hazardous materials in the workplace by raising awareness for the risks involved.

According to HSE, 8,000 Briton’s die as a result of exposure to carcinogens in the workplace each year, while an additional 13,500 are diagnosed with occupational cancer. Similarly, across the European Union, there are around 80,000 fatalities relating to work-related cancer each year, while 120,000 workers develop cancer as a result of their occupation. Crucially, many of these diagnoses are avoidable.

“We are working to highlight the scale of the problem and the importance of preventing exposure to carcinogens at work as part of our current campaign,” said Christa Sedlatschek, Executive Director of EU-OSHA. “We believe that by informing and educating workers and employers, as well as offering practical solutions, we can reduce and even eliminate exposure to carcinogens at work, thereby preventing needless suffering and deaths from cancer.”

Predictably, the construction industry has more occupational cancer cases than any other sector, with an approximate 3,500 cancer deaths and 5,500 new cancer registrations in Britain each year. Past exposure to asbestos is the leading cause of death from occupational cancer today, but exposure to silica, diesel engine exhaust emissions, solar radiation, shift work and welding fumes may well become the main causes of occupational cancer in the near future.

David Parr is Policy and Technical Services Director at the British Safety Council. He said: “Although use of some of the most dangerous substances, such as asbestos, are now banned or strictly controlled, modern workplaces continue to expose workers to dangerous agents, such as highly toxic liquids and chemicals, as well as nanomaterials, the health risks of which are not yet fully understood but predicted to be even greater.

“The most effective way of managing exposure to dangerous substances in the workplace is the creation of a risk prevention culture. When this happens, workers are pro-actively involved in risk assessment processes and are well informed about the dangers, as well as the control measures that can be taken to prevent or control them.

“Occupational exposure limits (OELs) for hazardous substances laid down in European OSH directives are crucial for the protection of workers’ health. With Brexit growing increasingly imminent, it essential that the well-established control regime relating to this issue is not compromised in any way by the UK’s withdrawal process.”

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The need for innovation in construction

Peter London, construction indemnity specialist at Willis Towers Watson, weighs up the pros and cons of taking up new technologies.

After working in specialist construction insurance for many years, I am old enough to admit that the industry may not always be the first to embrace the latest technology. Innovation brings new possibilities and new threats along with it.

Construction will stay largely a physical job in a physical world for as long as we all use roads, buildings and other infrastructure. For the foreseeable future, bricks and mortar, hammers and nails, hardhats and lunchboxes will still have a place in the industry. So you’ll have to forgive us if we have a tendency to prefer technology you can hold with both hands.

However, the industry now faces significant productivity challenges. A recent McKinsey & Company study shows that the typical large project in mining, infrastructure and oil and gas construction runs 80% over budget, and takes 20% longer to complete than scheduled. Construction productivity has not kept up with overall economic productivity, which has led to volatile financial returns for contractors.

Embracing new and more efficient ways of doing things, chiefly through technology, can unlock productivity leaps. However, with opportunities come risks.

BIM

Great leaps are being taken in building information modelling or management (BIM), particularly in 3D printing and additive manufacturing solutions and, as is so often the case, many of the “movers and shakers” are companies coming from Asia and the East. Chinese companies are already 3D printing properties.

While BIM is deeply entrenched in many parts of the industry, it still presents technological issues that are gradually becoming more apparent. Through sharing documents and tools that are part of BIM, companies can spot critical dependencies and prevent bottlenecks in material and work deliveries. But, the collaborative nature of BIM may be challenging, especially considering that bidding on jobs is a traditionally non-collaborative task, involving privately considering estimates about resources, time and effort.

Opportunities

• Instant communication and access to information
• Avoid bottlenecks and scheduling mishaps
• Role clarity
• Efficient project management

Risks 

• Difficulty in allocating management and determining liability
• Complicating the bidding process by revealing work details
• Increased cyber security threat

Cyber security raises unavoidable questions for any online system, making BIM part of this growing topic of discussion. Cyber-crime increases along with cyber dependency. We are more exposed to cyber vulnerabilities the more that we go online. An art thief would be very happy to hack into the blueprints for a gallery, store or other facility where valuable items are stored. And so, whether we like it or not, the sector is joining others, from banking to retail, where cyber security experts are continually ensnared in ongoing battles against cyber criminals, and the owners of data are facing questions related to liability in the cyber age: who is responsible when data is stolen? Those who developed it? Those who store it? Or, perhaps those who access it?

Drones

Drone technology is advancing, and the construction industry is one of the leaders of the charge. According to recent reports, the industry accounts for a significant proportion of the waivers that the Federal Aviation Administration (FAA) has granted for commercial drone use. The value of using drones to make inspections and carry out deliveries in hard-to-reach places is clear. However, the risks associated with drones – outlined below – will have to be addressed.

Opportunities

• Inspections of work and work areas
• Material delivery
• Documenting project progress

Risks

• Air safety issues
• Air traffic control on the job site (including unauthorised drones)
• Protection from crashes — property and liability issues
• Privacy issues
• Supervisors looking in on works (possibly subject to union negotiation)
• Inadvertent recording of off-site activity

The advantage of drones is that they require no human passengers or pilots. However, this carries with it its own risk as humans end up having access to anything and everything drones see and record. In the event that a company drone sees some suspicious activity, is that company obligated to report it? If a potentially embarrassing moment is recorded by a drone’s video and then the clip goes viral, where should responsibility lie for the ensuing reputational damage? These are just a couple of issues companies need to consider before they begin flying ahead with their plans.

Laser scanning and its applications: autonomous vehicles

Accurate measurement is critical in construction work; measure twice, cut once – the age-old carpenter’s principle is a sure reminder. Laser scanning, the technology behind self-driving cars, makes measurement accuracy even more important. The potential value is enormous. Being able to accurately measure a 360-degree view of the world, as the technological basis for self-driving cars, lays the foundation for the development of autonomous construction vehicles, including cranes and other robotic devices.

Opportunities

• Laser accuracy
• Measurement of complex spaces
• Use of self-driving construction vehicles

Risks

• New technologies to learn, new expertise required, dependence on specialised equipment
• Liability, reliability and safety issues facing self-driving, autonomous vehicles

While the technology is costly, it’s probably safe to say the robots are coming and the opportunities presented by laser scanning in taking measurements during construction outweigh the risks. Taking the technology to the next level and using autonomous vehicles, which use laser scanning to be the eyes of the self-driving machinery, may be a different matter. While the benefits of autonomous cranes are obvious, the work can be very precarious and dangerous. However, the recent news reports of the first death of a driver of Tesla’s semi-autonomous vehicle – while perhaps pointing to human error rather than machine error – reminds us of the liabilities and dangers facing those early adopters.

Clearly, both risks and opportunities abound. Early adoption will heighten both risk and opportunity, but those who dare to embrace could separate themselves from a pack that must subsequently play catch-up, or risk fading into obscurity or irrelevance.

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Tool theft plagues industry

New research from the FMB shows that half of UK builders have been victims of tool theft.

Tool theft is plaguing the industry, causing disruption to companies, projects and builder’s merchants as tools and equipment are replaced, and sensitive details changed for security.

The recent research from the FMB shows that of those victims, a large majority registered thefts from vans. The most common reason was having company vans broken into via side panels or doors broken/pierced and prised open, with a quarter having windows smashed and doors opened from dashboard; and 22% had their locks picked.

Builders’ (being a resourceful lot!) have a number of preventative measures in place to help prevent tool theft. These include, bringing tools in at night, to extra van security such as extra locks, alarms, safes and cctv, parking against a wall, and marking tools with an address, phone number or painting them a special colour, as well as parking in an area not visible from the road, while few register serial numbers of tools on an online database.

Commenting on the research, Brian Berry, Chief Executive of the FMB, said: “More than half of builders in the UK have fallen foul of tool theft with concerns growing over a crime wave wreaking havoc across the construction industry. Tools are being stolen from vans and direct from construction sites, with some builders even being assaulted by would-be thieves. The impact of this on the nation’s smaller building firms is particularly disruptive. Not only is there a high cost in terms of both time and money spent replacing these expensive tools, and to fix the damage caused, but without the right tools, firms are simply unable to work. This is leading construction firms vulnerable at a time when other factors, such as skills shortages and material price rises, are already causing the sector a headache.”

Berry concluded: “Of course, the best solution to this problem is builders preventing it from happening in the first place. Where possible, builders should bring tools inside at night. If that’s not possible, they should install extra locks or safes in the van and park against a wall or in a secluded location not visible from the road. However, even when taking these precautions, theft can still occur. It’s therefore important that builders put measures in place that give them the best chance of recovering their tools if they are stolen. Installing a basic CCTV system is one option but builders should also ensure they overtly brand their items with their company details. They should also register their tools’ serial numbers on an online database. We are also calling on the public to be vigilant and report any suspicious activity to the police. The courts have an important role to play too by ensuring they take this crime seriously, with appropriate sentencing when cases are brought before them.”

Sally Picker, Crime Reduction Tactical Advisor, Lincolnshire Police Service, said: “We’re grateful that the Federation of Master Builders is assisting us in reducing current crime rates by taking measures to prevent the theft of their tools. The Lincolnshire Police Service recognises builders’ frustrations at this type of crime and its seriousness. We will continue to work hard to ensure that as many cases as possible are brought before the courts. A strong message needs to be sent to the thieves that commit these crimes so that they are left in no doubt that if they choose to commit these crimes, charges will be sought to match the emotional and financial impact that tool theft has on their victims.”

Andrew Radford, Radford Construction, had thousands of pounds worth of tools, PPE and a wallet stolen when a company van was broken into. Discussing the theft, Radford said: “Losing the tools was a huge blow because it delayed work on site while we replaced them. We also had to spend a lot of time contacting our insurance company, the police and cancelling the cards. Also, because our builders’ merchants details were in the van, we had to set up passwords to make sure it was only company colleagues who could obtain goods on our account.”

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London Gatwick: Have your say on ambitious draft masterplan

London Gatwick has launched a 12-week public consultation to gather feedback for its newly published draft masterplan.

It is hoped that the continued development of London Gatwick will help meet future aviation demand for sustainable growth, while ensuring stronger connections between Britain and other global markets post-Brexit. It’s thought that the development will also provide new opportunities across the South East, boosting the regional economy for generations to come.

Looking ahead to 2030, the draft masterplan considers how the airport might grow via one of three scenarios summarized below:

1. Using new technology to increase the efficiency and capacity of the main runway.
2. Bringing an existing standby runway into routine use by the mid-2020s.
3. While London Gatwick is not actively pursuing an additional runway, it may safeguard land south of the airport for future use.

London Gatwick is keen to encourage responses to the 12-week consultation, and more information on the events being held to gather feedback is available here.

“As the UK heads towards an important new chapter, Gatwick’s growing global connections are needed more than ever but this must be achieved in the most sustainable way,” said Stewart Wingate, CEO of London Gatwick. “From using new technologies on our main runway, to the innovative proposal to bring our existing standby runway into routine use, our draft master plan offers agile, productive and low-impact ways of unlocking much-needed new capacity and increased resilience from within our existing infrastructure.”

CBI Director-General Carolyn Fairbairn added: “Now more than ever, unlocking new aviation capacity to deliver global trade links is critical for a strong UK economy. London’s airports are set to be full in the next decade, so the CBI welcomes Gatwick’s highly productive proposals to deliver increased capacity that complements expansion schemes at other airports. This will drive trade and investment, create new jobs and help British businesses thrive.”

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Hook, line and sinker – don’t get caught by the phishers

It’s a dangerous world for businesses; almost half were hit by a cyber attack last year, and construction companies are increasingly finding themselves in the crosshairs of the criminals. With complex supply chains consisting of numerous contractors and third-parties, those in the construction sector are often seen as an easy target as there are so many avenues into the corporate network. Government recognised this earlier this year, announcing fines of up to £17M for infrastructure firms that fail to implement adequate security measures.

Every day a myriad of emails are exchanged, forming a complex web of communication between architects, contractors, clients and other stakeholders. And it’s not only the emails that can be a conduit for a successful cyber attack, but phonecalls, physical access to facilities, contractor computers with access to networks and poorly managed user accounts. Exploiting these vulnerabilities is known more broadly as social engineering.

The construction industry is particularly susceptible to cyber attacks since its security practices are generally less formal. Historically, the construction industry has adopted new technology at a slower rate than other sectors, leading to vulnerabilities that cyber attackers are beginning to exploit. With an extensive supply chain, too, it’s difficult for the construction industry to consider the potential impact of contractor security on its own networks, which make it a prime target.

Social engineering is all about deception – making a target hand over sensitive information, such as passowrds, physical locations and network identifiers, without realising. Often, all a potential cyber criminal will need is an employee name or user name – but even the technology in use or work schedules can create a potential opening for later exploitation, and since the majority of this information could be seen as being relatively mundane, an employee may be willing to hand this over while on the phone or via email. Security technologies are becoming stronger by the day, so attackers instead hope they can exploit human psychology to persuade individuals to unwittingly give them the data they desire.

In practical terms this usually takes the form of a ‘phishing’ email purporting to be from a trusted party, asking you to either reply with log-in details or visit a website that then asks you to log-in. But in reality the cyber criminal is sitting behind it all, hoovering up the credentials and using them to plan a more substantial attack on the corporate network.

Cyber criminals opt for this tactic because it’s so successful, and pretty easy to do. The FBI believes corporate phishing has become a $5 billion global business. The McAfee Labs Threats Report warns that for every ten phishing emails sent by attackers, at least one will be successful. McAfee presented ten real emails to more than 19,000 people from across the globe and asked them to identify whether they were dangerous or legitimate. It found 80% incorrectly identified least one phishing email.

The reason the success rates are so high is because humans are always the weakest link in the security chain. People make mistakes and humans will always be fallible. These attacks exploit social norms and human nature, including reciprocity, curiosity and pride.

Phishing emails have become more sophisticated. Gone are the days of the ‘Nigerian prince’ scam which was sent en masse to millions and tried to trick people to wiring money to a foreign account. These days the attackers can be targeted; impersonating a colleague or contact and asking a seemingly innocuous task to be carried out. It might be the CEO asking a finance assistant to send an advance to a new supplier, or the head of IT asking for your username and password for the intranet. Cyber criminals are putting in the work to research their targets in order to create very convincing communications. The best can be almost impossible to spot.

For construction companies, once an attacker has picked a target there are a huge number of suppliers and third parties that could be spoofed through a spear phishing email.

The question is, what can be done to effectively defend against these attacks? It’s well worth educating staff about security basics and regularly reminding them of the risks. Sensible advice includes only opening emails you are sure about – if the name is familiar but the content seems unusual, check with them first – and not giving the benefit of doubt to strangers or staff members when they ask for sensitive information. But precautions of this kind alone are not enough to stop breaches occurring.

However, the best advice is to implement defences that either prevent the attack from being successful, or at least minimise the effects. These don’t have to be costly either, with some simple steps that are easy to implement being multi-factor authentication for passwords and device encryption on laptops or mobile phones to protect against access to stolen physical devices. It’s about getting the right security foundations in place rather than spending all of your IT budget on ‘next generation’ solutions that end up doing very little if the basics aren’t spot on.

On a practical level, this also involves ensuring admin rights are removed from all employees. Essentially, this means staff are empowered to do the jobs they need to do but don’t have the ability to access the wider network. Therefore, if they do fall for a phishing scam and have their account or machine compromised, the attacker is then prevented from moving through the corporate infrastructure.

Application control is another measure that can make a big difference. Through this only approved applications can run, so anything malicious that is accidently downloaded by an employee cannot cause any harm.

Construction companies are more vulnerable to targeted social engineering than many other sectors. However, if you get the foundations of good security in place you’ll be in a much stronger position if staff do slip up.

Article submitted by Kevin Alexandra, principal technical consultant at Avecto.

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West London Construction Academy launched

Berkeley and West London College have launched one of the UK’s first purpose-built construction academies.

Aiming to tackle the UK’s construction skills crisis and addressing the exodus of talent from the industry, the new college at Southall Waterside will inspire young people to study in its state-of-the-art facilities.

Recent figures from the RICS show that more people are leaving the construction industry than joining it, threatening productivity and growth. The skills shortage is now seen as an even more pressing problem in the industry than planning and regulation.

Together with the shortage of homes, and government drive to tackle the house building crisis, it is vital that the sector tackles the skills crisis head on. If it does not the workforce will decrease by 20–25% in the next decade.

Berkeley Group chief executive Rob Perrins said: “The West London Construction Academy aims to address the industry’s skills gap for the long term by inspiring the next generation and preparing them for the world of work, including giving them the best chance of securing a placement at the end of their apprenticeships.

“We want people to see that an apprenticeship is often just the first step of a lifelong career. At Berkeley half of our 15 divisional managing directors don’t have a degree, with four starting out as apprentices. The experience they gained onsite was invaluable and goes to show that apprenticeships open doors and are just as valuable as degrees – if not more.”

The state-of-the-art West London Construction Academy is situated on Berkeley’s 88-acre regeneration site in Southall and will be delivered in partnership with West London College.

The new ‘By Industry, For Industry’ curriculum has been designed by Berkeley Group, West London College and trade partners. Apprentices will gain on-the-job experience alongside classroom and online learning, bridging the skills gap for the long term and allowing students to earn as they learn.

The Construction Academy offers a range of state-of-the-art facilities and equipment, including future plans for virtual reality technology and 3D scanners, to ensure that apprentices have access to the very best tools to aid their learning and development.

A wide variety of courses are available, giving apprentices graduating from the academy the best chance of securing employment. This will maintain momentum and motivation and help retain skills within the industry. Apprentices will also be given the chance to work on the Southall Waterside project, an exciting regeneration project in the heart of London.

Karen Redhead, chief executive at West London College, said: “West London has a number of major projects either planned or underway, from Southall Waterside and HS2, to Crossrail and Old Oak Common; training local people will be integral to the success and timely delivery of these projects – and will be an incredible opportunity to build experience and establish desirable skills. West London College is thrilled to be in the position to offer such an incredible facility to the industry.”

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Productivity app launched

Responding to UK government’s Construction Sector Deal, international property and construction consultancy Gleeds has launched a new design app.

Frame© is a new online BIM and project management application, designed to allow members of the construction team to collaborate easily and deliver all the benefits of BIM Level 2, including reduction of risk, better cost management and the more accurate projection of timelines.

Frame© is a direct response to the Construction Sector Deal, which calls for the transformation of productivity of the industry to the benefit of the wider economy.

Richard Steer, Chairman of Gleeds Worldwide, said: “A staggering one third of UK companies have seen little or no productivity increase since the year 2000 according to a Bank of England survey. For the best part of a decade our productivity growth has been consistently weaker than at any point since 1965 and as a result each of us is on average 1/5th poorer today than we would be if productivity had continued at its previous rate.

“A major reason for this is our failure to invest in new technology so Gleeds is proud to have developed Frame© in a bid to make the construction process more transparent, whilst reducing the costs of building. To incentivise others in the industry we have offered it as a pro bono option for over 100 firms, from contractors to architects, and it will now be rolled out across the built environment,” he went on to add.

With a focus on collaboration, Frame© provides an easy to follow narrative around what BIM Level 2 is, what the processes are, and when they should be implemented, as well as holding an extensive suite of templates and guidance based on Gleeds’ expertise.

Paul Hill, BIM specialist at professional services firm Arup, reviewed the beta version of the Frame© application and is an advocate for programmes of its type. He said: “An app like Frame© gives us much greater clarity of the BIM process and its roles and responsibilities, providing an exceptional level of detail around what has been and what needs to be delivered over the life cycle of a project. As a result, we would be able to reduce the risks associated with a scheme”.

Accessed via desktop or mobile, the developers advocate Frame© as representing a fundamental step change in the way buildings are constructed and maintained, helping to improve productivity through enhanced transparency and supply chain connectivity. Gleeds argues that it is one of the first substantive technology-based responses to the government sponsored Farmer Report, which implored those who work in the built environment to “modernise or die”.

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Building the buildings of the future

The adoption of technology into building design is becoming more prevalent, with early adopters citing many benefits from more flexible spaces, to enhanced user experience. The industry is standing on the edge of a revolution. With the government pushing for better productivity within the industry and technology ready to make the leap into practical applications, now is the time for the construction dinosaur to become the pathfinder to the future. We spoke to Peter Greaves at Aurecon about the development of technology in the built environment and where it would lead us.

Can you give me a little background about yourself/your company?

Aurecon brings ideas to life to design a better future. Imagining what is possible, we turn problems into solutions. We provide advisory, design, delivery and asset management services on projects across a range of markets, in locations worldwide.

I am Aurecon’s Buildings of the Future Leader. My passion with Intelligent buildings is to create smart buildings not only from a technology perspective but an emotional intelligence perspective. I am also a chartered building services electrical engineer with over 20 years of international engineering experience within the construction industry. As a manager of multi-disciplinary teams, I have worked on a variety of projects including defence, health, education and sports facilities, museums, theatres, historical buildings, data centres, and commercial and residential buildings.

I am passionate about the use of Digital Engineering not only in design and construction, but also in procurement and over the entire life of assets. I support the growth of teams and individuals to do more than the average. I am excited about what the next 20 years will mean for engineers and how we can help shape the future.

Can you give me some background on the use of technology in construction?

Operational construction functions, activities and experiences, as well as expectations around performance, are evolving. A ‘one-size-fits-all’ approach to building design is becoming less and less palatable. The use of new, flexible construction materials, including composite materials, additive manufacturing concrete, solar polymers and carbon fibre balsa, is fuelling new design approaches. These options are unlocking the architectural limitations of size, weight and shape that the building and construction industry works within today.

In future, we may see buildings being mass-designed with flexibility in mind. Buildings will no longer be rigid structures that can’t change: by design, they will adapt and their spaces will be adaptable without significant building modifications. This could give rise to a greater degree of modular or off-site construction. In addition, the ability of robotics to simplify and automate a diverse range of tasks is also set to revolutionise construction. Within the construction industry, robots are now available to lay pavers and bricks, while drones provide new surveying and security opportunities and are used to construct sculptures and houses.

What facilities have you invested in for demonstrating/using the new technologies?

Aurecon established its new Melbourne base camp at 850 Collins Street, Victoria Harbour, Docklands, it did so with its staff’s needs driving the design. The eight-storey Aurecon Centre houses all 700 Melbourne-based staff in the top five interconnected floors to offer innovative, market-leading standards of air quality, energy efficiency and sustainability. Essentially the Smart Centre is a digital platform that connects a range of sensors that are located throughout the Aurecon Centre building. These sensors can be found in places like the main walkways, stairwells, bike racks, office areas, lunch break-out rooms, recreational areas, and meeting rooms. They are linked to an online platform that allows the user to identify and interpret a range of useful data to recommend how the building should be modified. The Smart Centre allows us to monitor a variety of simultaneous dynamics: how many people are working from home, how the teams are interacting, when they are interacting, how many people are using meeting rooms, etc.

How are clients/designers responding to the technologies?

Through our Buildings of the Future research, we interviewed a broad group of professionals across the built environment who were asked to imagine what Buildings of the Future might look like and how they might be created. What we found was our clients and designers believe that technology is the supporting act to design and one of the important tools that we use to achieve our aims, but it is great design that helps us to make optimal choices about technology solutions. Our research showed that our clients will react positively toward new technologies i.e. robotics, automation, new materials and new approaches to energy creation, use and storage, when these technologies support their needs and make life easier – not technology for technology’s sake. Technology must have a purpose and remaining focused on the needs and expectations of your tenants and their workforce is key.

Technologies seem to be progressing rapidly from a gimmick to a vital piece of equipment. What is propelling this and will it continue?

What is propelling this is the people’s needs and expectations. We need to accept that as the needs and expectations of people change, the way we design and construct buildings will need to follow. Increasingly, employees will value mobility, a shift to ‘the cloud’, on-demand services – to name just a few. As mentioned previously, new technologies and construction materials create new approaches to building design. Technologies such as 3D printing, modular construction, sustainability measures, centralised and digital facilities management are now considered vital to create flexible and attractive spaces for future tenants and landlords.

Do you think the adoption of BIM at higher levels will go hand in hand with the development of technology and virtual construction?

The quick answer is yes. However, BIM is not a silver bullet. BIM is a tool that designers, operators and building owners can use to integrate their designs operation and maintenance through the entire lifecycle of an asset. When you consider that in approximately 75% of the building cost is after construction, the need for reliable trustworthy data is key, not just data for data’s sake. Data fog, as I call it, is the enemy of buildings of the future. The winners will be the building owners and teams that are able to filter the data to achieve outcomes to drive businesses and communities forward. BIM at higher levels is probably the first step to our industry really taking the step change required and adopting techniques from areas such advanced manufacturing, aerospace and car industry. BIM will need to evolve along with us.

What do you think it will take for SMEs and smaller businesses to integrate/embrace the technology?

Understanding the value of these technologies is imperative to integration. Our research shows that often initiatives get culled during the schematic design and design development stages because we don’t yet have the necessary financial models to convey the message. We call for a ROI model that reflects the importance of designing buildings for the long term and looks at both the financial and non-financial benefits of intelligent buildings, such as improving employee productivity and wellbeing, while maintaining design flexibility to plan for a rapidly changing future. When these organisations can see the value of their investment from a long-term view, we will start to see new technologies integrated and embraced. Also, the technology must be simple for users to understand and operate. This is a key part of the ROI.

Are there any other emerging technologies coming to market?

There are many emerging technologies coming to the market ranging from new materials, to re-use of material, energy storage devices, machine to machine communication and artificial intelligence for self-learning buildings. Along with these technologies there is also acceleration of off-site construction and use of automation, which is increasing tolerances and speed on site.  Some of these emerging technologies are being driven externally to the construction market – for example reliability and cost of power is becoming important to many people. This forces building operators and owners to reconsider not only the type of energy, but how do we ride through interruptions. Artificial intelligence is being linked to this as it can assist in driving down energy consumption.

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