Winvic Wins Place on Highways Framework

Winvic Construction has been awarded two lot contracts across four regions in England within the new Scheme Delivery Framework from Highways England. Winvic is one of 50 contractors to deliver £3.6 billion of road renewal works on England’s motorways and trunk roads over the next six years.

Winvic, a leading main contractor which specialises in the design and delivery of multi-sector construction and civil engineering projects, has worked closely alongside and for National Highways on a number of occasions. This includes extensive liaison relating to the construction of a new railway bridge over the A5 at Prologis DIRFT III, delivering S278 agreement works that facilitated IM Properties’ Hinckley Park; and working collaboratively on two Nationally Significant Infrastructure Projects (NSIPs) for SEGRO, where delivery of the Strategic Rail Freight Interchanges (SRFIs) and highways improvements works ran concurrently and adjacently to the M1 Smart Motorway Project (SMP).

However, this six-year appointment, which started on 21 September, marks the start of an even stronger working relationship where Winvic will be helping to keep England’s major A roads and motorways running safely and smoothly.

The two lots awarded to Winvic within Band C are Lot 8 Structures, Waterpoofing and Expansion Joints and Lot 10 Structures, Structural Services & Concrete Repairs. Winvic will be undertaking the works in these programme areas throughout the South East, East, North West and North East.

Social value was inherent throughout the procurement process, ensuring that suppliers are measured on their contribution and impact socially within each region. Additionally, the SDF supports the delivery of National Highways’ decarbonisation, sustainability and environmental ambitions across its renewals programme.

Rob Cook, Winvic’s Civils and Infrastructure Director, said: “Winvic has built a strong relationship with National Highways over a number of years, not least through the complex collaborations at SEGRO Logistics Park East Midlands Gateway and then SEGRO Logistics Park Northampton, where we remain on-site and undertake weekly, if not daily, interfaces.

“Therefore, working on more significant National Highways renewal projects is a natural progression for us due to our expertise in highways works involving structures, through both S278 agreement works and on vast industrial and infrastructure schemes. We couldn’t be more pleased that National Highways has the utmost confidence in Winvic to deliver over the six-year period, aligning with its key imperatives and focusing on building a one-team collaborative working relationship in the SDF.

“Whether it’s going above and beyond to reduce disruption to road users, getting involved in local initiatives that make a difference to local people’s lives or simply ‘Doing It Right’, our visions are aligned, and we look forward to delivering the first programme of works safely and swiftly.”

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Six Months Since Brexit: The Government Needs to Open the Door for Start-ups

Sohan Panesar, Director at Wulf  writes about how the UK Government should open the door for start ups in the six months since the United Kingdom left the EU

In January 2021, the long-awaited assault on the manufacturing and construction industry was felt as a result of the UK’s official exit from the European Union (EU).  Businesses operating in these sectors could no longer benefit from frictionless trade with the EU, and efficient supply chains became a thing of the past, as did the EU’s talented and specialist workers’ ability to plug key skills gaps.

This January, we saw the biggest decline in manufacturing exports from the UK to the EU since 1997.  The total value of goods, not exported to the EU was worth £5.6bn, with a drop in imports valued at £6.6bn. These figures certainly reflect the lack of confidence in importing and exporting for established businesses operating in the UK and in the EU.

With this in mind, it’s safe to say that unless the government makes radical changes to the support provided to start-ups operating in the manufacturing and construction sectors, then doing business in the EU, will be deemed as no man’s land for start-ups.

The ‘Pandexit’ effect

‘Pandexit’ in its known form, is the exit from the COVID-19 global pandemic, but for many in our industry, it’s also the reality of trying to adjust to Brexit disruptions, whilst recovering from the impact of the pandemic.

Whilst I’m not suggesting it’s been easy for them; long-established businesses have fared better overall in most situations. Unlike start-ups, many have the advantage of having strong existing relationships with suppliers, as well as cash reserves in the bank to cope with price increases and the credibility behind them to enforce price increases to their customers. Not to mention pre-agreed contracts enabling them to at least plan workload for the foreseeable future.  We have also seen an increase in ‘stockpiling’ by cash-rich companies who have the warehouse storage facilities, which then leads to an increase in material costs for everyone else.

What’s more, from a recruitment perspective, they have an established reputation, which provides the security candidates seek when considering joining a new team, and then there’s the ability to claim through the CJRS, which provides further reassurance in such uncertain times.

By contrast, as a start-up, you’re a new kid on the block – something I’m sure we can all relate to. When the pandemic first struck and our industry was required to support the production of ventilators, new hospital builds and the supply of PPE products, the government and businesses didn’t turn to the new kids on the block. In fact, rather than identifying the need to support smaller, and often more innovative businesses, the government reportedly paid millions to businesses owned by friends and family – and some even outside of the UK! As a start-up, how do you compete with that?

Fortunately, at Wulf, we were able to build on connections through our sister company PEC, and so fared better than most start-ups.  However, many didn’t have such an advantage. By no means was it an easy feat, we were still a company most had never used or heard of, and with credibility and reliability a top priority, we really had to pull together as a team to demonstrate our suitability.

The rising costs of exporting

The Government gave export businesses reassurance that there would be no tariffs, therefore products can move freely between the UK and the EU without quota requirements. However, as with all things new, there were new customs to learn, which caused issues at the border.   UK businesses need to declare the origin of their goods and put in place mutual recognition agreements (MRAs), in order for their products to be certified for sale in the EU.

These new rules have added time and a rise in costs for British companies doing business in the EU.  Many manufacturers have already expressed concerns.  A survey cited that customs delays and the increase costs of regulation were regarded as the two biggest risks to businesses who export.   Many large businesses may be able to handle the rise in costs, but it’s the small businesses and start-ups who will suffer the most. They don’t have the cash required to make adjustments under the new UK-EU trade agreement.  In fact, a recent poll conducted by the Federation of Small Businesses (FSB) forecasts that 250,000 companies are expected to fold over the next 12 months, if they don’t receive financial aid from the Government.

Access to international talent will be a barrier

Doubts have emerged over the UK’s ability to continue to attract international talent post-Brexit.  The jobs website Indeed revealed that the number of EU citizens seeking work in the UK has fallen by 36% since Brexit.  Additionally, over 52% of manufacturers, expressed concerns over their ability to attract international talent following Brexit.

Pre-Brexit, manufacturers requiring employees with specific skillsets, struggling to attract talent from the UK, often looked to the EU to fill those skills gap.  However, the new immigration system which came into effect on the 1 January 2021 has been tricky for businesses to navigate.

The new immigration system has a lower salary threshold and a lower skills requirement for sponsored visas.  The idea is to make it more accessible for smaller companies to sponsor workers who were previously unable to.  The caveat with this option is that it requires a sponsor licence, which is issued by the Home Office. This brings additional responsibilities.  Sponsored employees come with significant costs, for example, sponsoring a single employee without dependants, for five years, can cost up to £10,000. On top of this, there are also visa application fees, administrative fees for work authorisation as well as skills and healthcare surcharges. Larger businesses may be able to cover these costs, but smaller manufacturers will struggle, the cost of recruitment will significantly increase.

Another noted issue is that when people are provided with work, it’s often difficult to keep them. This is partly due to the nature of the work and the skills and experience required to carry out the role. It’s difficult as people desperately want work and so take on contract work, before quickly realising it’s not for them. And of course, there’s the aspect of job security.

The latest Covid 19 Manufacturing monitor, published by Make UK, confirms the threat of further redundancies looming, with 25% of companies planning to make redundancies over the next 6 months. Make UK, alongside unions and industry, have called for a National Skills Taskforce to be set up. The purpose of the task force is to retain key skills within the industry by re-deploying employees who have lost their jobs to other companies, enabling them to be re-trained and retained in the UK to avoid further skills shortage.

Take action before it’s too late

The fog of uncertainty surrounding the UK-EU relationship has put a cloud on our economy since the referendum in 2016, it also makes it difficult to attract investment when confidence is low.  For SMEs and start-ups, it’s vital that they have access to finance.  The Government should acknowledge that Brexit has presented additional barriers, these being a significant rise in costs and the challenges created by the new immigration system in accessing international talent. The Government’s response for businesses to “adapt” is not enough.  The Government need to listen to small business leaders and take action before it’s too late.

Ideally, I’d like to see SME’s being given the opportunity to be heard and for their requests to be actioned in order to alleviate the issues surrounding availability of suitable resources. Like many, I feel that more funding being available outside of digital transformation would massively provide support to the smaller organisations. Not only can they continue to sustain their business and retain growth in the local economies, but they can set an example to new start-ups who would thus be provided with the confidence to succeed.

There’s no denying we need to see improved recruitment strategies, but what that looks like I don’t know. Clearly there needs to be a plan for the UK manufacturing sector to be self-sustainable rather than following the path at the moment whereby costs of materials and labour are extortionately high and continue to rise.

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Mammoet removes bridge section in confined city center

More than 30 years ago, a freeway junction on the Vienna southeast tangent in Austria was built but never put into operation. As part of a recent redevelopment program, the last bridge section of this “closed exit” would be demolished.

Due to an elevated road below and confined space around the tangent, the 43m long, 550t bridge could not be demolished in a conventional way. In order to develop a safe solution, the client ASFINAG contacted Mammoet at an early stage.

The planning phase of the project started twelve months before its execution. Working in continuous contact with the customer, its technically complex crane lifting phase was engineered in detail several times until the optimal solution was found. Suggestions were also made for optimizing the rigging configuration.

Furthermore, as the Danube is usually at low water in August, transport of equipment to the site was planned by road as a precautionary measure so as not to jeopardize the scheduled execution date. A total of around 100 truck trips including 20 special transports was drawn up.

The developed solution was to lift the bridge section in one piece and place it at the side of the tangent. Work could only be carried out on one side of the road due to the congested surroundings, so only a DEMAG CC 8800-1 crane could be considered.

The crawler crane, which is one of the largest in Europe, was configured for this application with a main boom length of 78m. The experienced team needed just one week for its erection.

During execution, a section of the southeast tangent – a busy route in Vienna – had to be fully closed in both directions. Two short time windows were planned for the work in order to disrupt traffic as little as possible. In addition, the crane’s location was in the airport’s approach corridor, which made air traffic control measures necessary.

“For the heavy lift, it was particularly important to exactly calculate the center of gravity of the bridge in advance and to precisely adapt the rigging equipment to it. In this case, a 31m long special spreader beam for a load of 650t was required. The weight of the rigging equipment alone was 70t. An ‘integrated stinger’ as fitted to the superlift of the 1,600t crawler crane also enabled the fast changes of the load,” reported Gernot Öder, Manager Crane and Transport Projects, Engineering & Project Management at Mammoet.

Due to precise planning, very close cooperation and an innovative crawler crane solution, Mammoet was able to carry out the work safely and even finish it ahead of schedule. After the end of the construction work, a large part of the area is to be renatured as a local recreation area.

Watch the timelapse video here.

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Offshore wind powers into North-East

An offshore wind boom has blown into the North East, with more than 440 jobs being created thanks to some £130M of government and private investment.

Offshore wind cabling manufacturer JDR Cable Systems Ltd is receiving funding from the government’s £160M Offshore Wind Manufacturing Investment Support scheme, which, together with private investment from the company, will see £130M invested in facilities that will develop and build components for next generation wind turbines.

The investment will centre on a new factory in Cambois, near Blyth, as well as protecting jobs at its existing facility in Hartlepool.

The investment has come about as part of the Prime Minister’s 10 Point Plan, and brings the total investment of government and private sector investment to £675M this year, which is creating and protecting almost 3,600 jobs across the Humber and North-East. The investment will build on the UK’s offshore wind capacity, helping to deliver clean electricity generation as the country ends its reliance on coal for power by 2024.

As the UK steps up building a secure home-grown renewable energy sector and is reducing its reliance on unreliable fossil fuels and exposure to volatility in global wholesale energy prices, the capacity for using clean, domestic offshore wind to help power the country is set to accelerate in the next decade.

Business and Energy Secretary Kwasi Kwarteng said: “The UK’s offshore wind sector is a major industrial success story, but we need to ensure local workers and manufacturers fully reap the economic benefits of this booming industry.

This major investment is a perfect example of how our transition to a low carbon economy can attract new industries, create jobs, reduce our reliance on unreliable fossil fuels and generate export opportunities as we build back greener from the pandemic.”

The new Blyth facility will supply the Hartlepool site with state-of-the-art cable cores and high voltage underwater cabling that will enable the UK to compete more effectively with foreign manufacturers and increase its standing in global export markets.

The creation of new ports and the development of new factories on the Humber and on Teesside is supporting government ambition to build a domestic manufacturing base while backing industry to reach its self-imposed target to ensure 60% of offshore wind farm content comes from the UK supply chain.

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Major School Rebuilds Begin in England

The Education Secretary, Nadhim Zahawi, has broken ground on one of the first schools to be rebuilt under Prime Minister Boris Johnson’s ten-year School Rebuilding Programme, as he joined workers, pupils and staff at West Coventry Academy.

The School Rebuilding Programme carries out major rebuilding and refurbishment projects at schools and sixth form colleges across England, with all new buildings to be net-zero carbon in operation.

The Education Secretary was visiting West Coventry Academy, where new buildings will be designed to reduce both energy consumption while also supporting the UK’s net-zero 2050 target. The £38.4 million project is a complete rebuild of the school and will include a brand-new, state-of-the-art sports hall, which will also serve the local community.

Mr Zahawi said: “Today I broke ground on one of the first 500 schools that the Government is rebuilding, which will transform the lives of thousands of children over years to come.

“We are revolutionising the school estate to future-proof both our children’s education and the environment, with new school buildings that are net zero in operation – leading the charge for more sustainable schools and supporting students and teachers to make a positive impact on the environment.

“These rebuilds and refurbishments, with the first 100 projects backed by £2 billion Government funding, will create world-leading education facilities, from classrooms and science labs to sports halls and dining rooms.”

The Government is currently consulting on how to prioritise which schools will be selected for the School Rebuilding Programme in the future. The Department for Education will be showcasing work to make school sites more sustainable at COP26 in Glasgow this coming November.

Measures which will be announced at COP26 will focus on the Government championing climate education and skills, as well as making it easier for schools and pupils alike to support local biodiversity and make a positive impact on the world around them.

The DoE is also looking at how it can take school buildings a step further in lowering their carbon footprint, including research into construction and layout of school sites, the creation of more outdoor spaces within schools, and improvements to the way schools are powered.

COP26 will bring education and climate ministers together from across the world to set out the Government’s vision and encourage others to make commitments to sustainable education – making schools greener while equipping young people with knowledge about their environment and highlighting education and training opportunities in the green economy.

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Consultation on future of Transport

A consultation has been launched which will consider the ground-breaking technologies that will transform how we travel over the next decade and how we can unleash the UK’s potential as a world leader in the future of transport.

Proposals set out by Transport Secretary Grant Shapps include:

• placing the UK at the forefront of cutting-edge transport technologies
• the expansion of EV chargepoint network across the UK
• how drones and autonomous vessels could safely perform new functions, such as delivering goods and aiding search-and-rescue missions

Radical changes are expected in transport over the next decade, and the government wants to ensure the right framework is in place to drive innovation, keep people safe and harness the benefits of new technologies right across the country.

Among the proposals being considered are future plans for a robust and expansive chargepoint network that will allow everyone to make the switch to electric, supporting the government’s commitment to phase out the sale of new petrol and diesel cars by 2030. This would see even more chargepoints along motorways, streets and at popular destinations to make them more accessible, as well as helping to ensure they are inclusively designed so they are easy to use by all.

Building on the views expressed in the consultation, the government will bring forward final proposals on the Future of Transport, addressing the systemic changes in transport happening due to electrification, automation and new digital and data-driven ways of doing business.

Transport Secretary Grant Shapps said: “This is a hugely exciting time for transport in the UK. On our roads EVs are set to become the norm within the decade, on our seas autonomous and remotely operated vessels will increase efficiency and improve safety, and in our skies drones and novel aircraft will transform the way people and goods move around.

“Supporting these innovations will not only ensure high standards for consumers but also create a research-friendly environment so we can continue being world leaders in transport. We will create a safer, greener transport system that attracts investment and supports skilled jobs across the country.”

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How Construction Can Stem Water Pollution

Filip Stefanovic is Head of engineering at Ecocoast  in this feature, he writes about how the construction industry can stem water pollution a the source.

As with all industries, the construction sector is responsible for its fair share of greenhouse gas emissions, accounting for 10% of global energy-related CO2 that is released into the Earth’s atmosphere annually. However, emissions are not the only challenges facing the industry as it sets targets to transition across into the new, green economy.

Last month, residents of Narragansett Bay, New England’s largest estuary, witnessed another of the increasingly regular storms that has been afflicting the region over the last several decades. The rain on its own was not the problem, necessarily, it was what the rain was carrying that concerned locals.

Through standard longitudinal monitoring, environmental scientists working in Narragansett have noticed a trend: pollutants and toxic chemicals have begun to accrue in the bay at a concerning rate. Though the more frequent rainstorms are undoubtedly an important factor, they are far from the whole story.

Recently, the estuary’s watershed has witnessed a rapid increase in development, with several building projects taking place delivering much needed housing to the area.

One of the largely invisible impacts of construction projects, however, is that, in order to lay the structure’s foundations, the site’s vegetation and topsoil must be stripped. Grass and soil act as a natural barrier to runoff from reaching bodies of water, but when they are removed, this can exacerbate the polluting effects of rainstorms. This in turn imperils the health of not only the wildlife that depends on the estuary and the habitat that it provides, but also the people who fish there, who grow vegetables in the soil surrounding it, and whose lives and health are so inextricably linked to it.

Water pollution is a common environmental impact of construction projects – as seen in Narragansett. Fortunately, however, this is becoming less true with time. The industry has acknowledged that water pollution poses an immediate threat to the health of ecosystems and people, and is an issue that must be given equal consideration to carbon emissions when discussing what the buildings construction industry’s goals and priorities for change should be going forward. It has therefore begun to make moves to reduce its environmental impact.

Water pollution from construction activities comes in several forms. Substances such as silt, fuels, cement, adhesives, solvents and paints are only a small number    of examples of the types of chemicals and materials that can enter our water systems and severely disrupt aquatic life and, in some cases, end up in our drinking water or food. This is a phenomenon that can be amplified by rainfall, which has the effect of mobilising these substances and dispersing them into surrounding areas.

Concrete pollution is a particularly pervasive and challenging issue for the industry. The pH of concrete wash water is incredibly high – typically 12 to 13, which is equivalent to the pH of oven cleaner. Preventing concrete wash water from entering waterways is essential, as it takes 10,000 litres of water to get 1 litre of concrete wash water with a pH of 12 to an acceptable pH of 8 – making dilution of water after the fact neither affordable, sustainable nor practical.

These substances can enter the water system through several channels, such as collection through drainage systems, seeping into soil or running directly into lakes and rivers. However, though this is a well-known phenomenon, whose mechanisms are well understood, there are, as of yet, no standardised frameworks to minimise this type of pollution.

Construction is an absolutely vital industry upon which we are all reliant for safe, quality buildings, housing and infrastructure, but as countries strive to meet their climate obligations set out under the Paris Agreement and to reduce their footprint on the planet, the construction industry will also need to strive to protect the water systems and aquatic habitats from the unintended consequences of its work. Construction companies can simultaneously build the foundations for our communities, whilst ensuring that these foundations are sustainable.

A growing number of industries are beginning to recognise their impact on the environment, and the many ways in which this occurs. But, of course, change cannot happen overnight. Not every business has the expertise or the resources immediately at their disposal in order to take the steps that they would like, or to even know where to begin. Collaboration between businesses who want to change and businesses who know how to facilitate that will be an increasingly popular trend. And fortunately, the technology required to quickly solve many of these challenges already exists and is readily available.

Ecocoast was founded precisely to prevent damage and pollution to our coastlines and waterways, and over the last decade, we, as well as our subsidiary Bolina, have developed a range of innovative and industry-leading technologies that have been demonstrated to reduce water pollution from construction-related activities.

Last year, for example, we collaborated with local authorities and contractors to ensure that its construction of a new hydropower dam in the Hajar Mountains, in the UAE, did not affect the water around which the dam was being built. Ecocoast installed its Ecobarrier silt curtain and oil booms, in order to address the major project-specific risks, and successfully managed to protect the quality of the reservoir’s water. Similarly, in 2016, Ecocoast implemented a 700m silt curtain in the waters surrounding the Louvre Abu Dhabi, so as to prevent large amounts of sediment from leaking into the water during the construction project and adversely affecting the water’s quality.

Working together, and pooling expertise will allow us to bring about meaningful change to the industry and, in doing so, support the realisation of our collective goals.    We here at Ecocoast and Bolina are industry leaders in providing construction companies with the insights and the tools required to allow them to fulfil their development commitments in a way that minimises their impact on the local environment, and ensures a more sustainable future for the people that they serve.

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Additional £300M for UK Housebuilders

A new fund announced last week, the Housing Growth Partnership II (HGP), is aiming to support the development of new homes by 2025.

Housing Growth Partnership, which has been established by Lloyds Banking Group and Homes England, has announced a new £300 million commitment to SMEs and regional housebuilders within the UK. This partnership aims to bridge the homebuilding funding gap. The new funds will allow homebuilders to build more residential properties throughout the UK as well as growing their businesses.

The new funding will support a wide range of housing tenures to meet the UK’s diverse and evolving housing needs. Building upon the success of the first HGP funding, announced in 2016, this new £300 million commitment will help the partnership achieve its target of supporting 10,000 new homes by 2025.

Housing Minister Christopher Pincher said: “It is a top priority of this Government to increase housing supply so hard-working people can be helped into home ownership.

“A thriving SME sector is crucial to our housebuilding targets and ambitions. This significant amount of funding will help smaller and regional housebuilders by providing them with the financial support necessary to deliver much-needed new homes.”

The fund will be broader in scope to enable investment into larger housebuilding with a development value of up to £75 million. It will also offer support for the delivery of a wider range of housing projects, including Build to Rent Regeneration and Retirement Living. The partnership will also look to prioritise projects with a greater sustainability focus, along with those using modern methods of construction (MMC) and other revolutionary construction methods.

Since its launch, HGP has invested alongside 46 housebuilders to support the delivery of 4,568 new homes, with nearly half now completed and sold to families across the UK.

Regional Growth Initiative

The HGP fund will also partner with the most ambitious SME housebuilders in the UK to support their growth and development through its new Regional Growth Initiative. This scheme will see HGP committing a higher level of dedicated equity support to these housebuilders over a defined period, to allow them to invest in their businesses and target larger and more strategic sites.

The first five regional partnerships are already in place across four different regions of the UK, with Genesis Homes, Durkan Homes, Stonewood Partnerships, Briar Homes and Cruden Homes.

The Regional Growth Initiative is being rolled out UK wide with the aim of trying to support the next generation of large regional housebuilders.

Support for the housing market

This announcement is part of Lloyds Banking Group’s commitment to helping Britain recover by working across the market to expand the availability of high-quality and affordable homes. As well as being one of the biggest backers of housebuilders in the UK, the Group has also committed over £9 billion of funding to the social housing sector since 2018. The UK not only needs more homes, but also to make them greener, so Lloyds Banking Group is supporting the creation of national sustainability standards for housebuilding finance and has assessed the energy retrofit requirements of over 240,000 homes in the social housing sector.

The launch of Citra Living earlier this year marked the Group’s entry into the private rental market, building on its existing support for the buy to let sector. The Group remains committed to helping first-time buyers realise the dream of home ownership, with £9 billion in lending already provided this year and a commitment to reach £10 billion by the end of the year.

Vic Hepburn, CEO of Housing Growth Partnership, said: “We are pleased to be building on the success of the Housing Growth Partnership by extending the range of support we can provide to the UK housebuilding market. This includes our new multi-tenure approach, which will provide more flexibility for housebuilders and more choice for homebuyers.

“The introduction of the Regional Growth Initiative will also allow the Housing Growth Partnership to support the most ambitious housebuilders in a more substantial way with additional financial and strategic support.”

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£2bn Investment for Public Transport Routes

The West Midlands Metro (WMM) network is set to be extended in Walsall, Birmingham, Dudley, Sandwell and Wolverhampton thanks to a new wide-ranging plan to help revolutionise transport throughout the region.

The investment will see rail stations opened, new rapid bus services launched, lower fares, more zero-emission vehicles and a very light rail line in Coventry, as well as miles of safe cycle routes created to support the region’s economic growth and its #wm2041 net-zero carbon targets.

On 17 September, the West Midlands Combined Authority (WMCA) approved bids to the Government’s City Region Sustainable Transport Settlement (CRSTS) fund and Bus Service Improvement Plan Fund which could secure investment of up to £2 billion over the next five years.

This also included £280 million for improvements to the existing WMM network and for design and detailed planning work for the next series of extensions:

• Wednesbury to Walsall along the disused railway line
• Wolverhampton city centre to New Cross Hospital
• Hagley Road, Birmingham and Sandwell
• Brierley Hill to Stourbridge

Mayor of the West Midlands, Andy Street, said: “We are already putting unprecedented investment into our transport network with projects such as the new Wednesbury to Brierley Hill Metro extension, the opening of five new railway stations and the roll-out of West Midlands Cycle Hire earlier this year.

“This new funding will build on that by not only helping us get some projects, such as Aldridge Railway Station, over the finishing line, but setting us well on the road to a real revolution in transport for the West Midlands, delivering the next round of Metro extensions, bus routes and train lines that will help our region grow and prosper.

“This investment will transform the fortunes of communities by better linking people to key locations like New Cross Hospital and by making the switch to public transport and active travel easier and better value for everyone.”

Development of key interchanges, such as the Sutton Coldfield Town Centre Gateway, Dudley Port and redevelopment of Solihull railway station, will forge better links between bus, rail and cycling routes. More rapid and reliable cross-city bus routes, such as a line between West Bromwich and Castle Bromwich, could also be delivered.

Also included in the bid is the innovative Very Light Rail scheme in Coventry city centre which is designed to offer the benefits of trams with lower development costs, and 16 new safe cycle routes on the Starley Network.

Further region-wide schemes to be supported include installation of electric vehicle charging facilities, some of them rapid charging points; and expansion of contactless ticketing and best value fare-capping.

The WMCA Board has also backed a bid for £55 million investment in a fleet of 200 zero-emission hydrogen buses in collaboration with National Express West Midlands.

Cllr Ian Ward, WMCA portfolio holder for transport and leader of Birmingham City Council, commented: “We have set out an ambitious bid which supports our aims of delivering a green revolution in transport and targets investment in the region’s more deprived and poorly connected communities – as better connections attracts both jobs and supports new housing.

“It is therefore right to make a huge ask of Government to secure the funding necessary to deliver on these plans and give people more reasons to take the tram, bus and train or cycle.”

The WMCA is bidding for a share of a £4.2 billion CRSTS funding pot set aside by Government. A decision on the region’s allocation is expected during the autumn with the funding covering transport investment for five years from April 2022. It is backed with more than £550 million investment from public and private sector sources within the region.

A further bid for Bus Service Improvement Plan funding sets out investment plans over three years, including:

• Lower and simpler fares – with Transport for West Midlands (TfWM) offering uniform pricing and seamless ticketing across operators and types of transport.
• Investment in 110km of new bus lanes and priority junctions with more cross-city bus services, Sprint rapid transit routes and other services to improve journey times and punctuality (c£200m).
• Enhanced real-time information for passengers showing where the bus is on the network and provision of accurate fastest-route information.
• Zero-emission bus regional areas (Zebra) is a bid for £55m, which will top up private bus operator investment in a fleet of 200 hydrogen buses and 24 articulated low-floor buses for the new Sprint route.

The City Region Sustainable Transport Settlement includes:

Detailed planning for new Metro lines:

• Wednesbury to Walsall
• Wolverhampton to New Cross Hospital
• Hagley Road
• Refurbishment and upgrade of the original Birmingham to Wolverhampton line

Rail:

• Build and open Aldridge Station
• Develop business case and detailed plans to reopen Sutton Park line
• Begin planning for a new station at Tettenhall
• Snow Hill Platform 4 development – to support Midlands Rail Hub scheme
• Redevelopment of Solihull railway station
• Sutton Coldfield Gateway – complete development of new rail and bus interchange in the town centre

Cycling:

• 16 new cycle routes proposed to further develop the Starley Network – including extension of the Birmingham A38 cycleway to Longbridge and Kersley to Coventry city centre

Other projects:

• Deliver 1000 electric vehicle charging points and ten ultra-rapid charging stations at key locations for commercial fleets
• Transport links to proposed gigafactory at Coventry
• Coventry Very Light Rail – to see the innovative city centre project through to completion offering the benefit of trams, without large construction costs and timescales
• New park and ride sites
• Road safety measures to reduce serious accidents
• Further roll-out of a contactless and best value fare payment system across the network
• Support for innovation, research and new technology in transport

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The Journey to Net Zero Cities Starts at Home

Jai Thampi is Senior VP Strategy & Innovation at Schneider Electric’s Home & Distribution division. In this piece, Jai shares insights into the development of smarter cities, and what we need to do as individuals to make it happen.

Climate change is real, and the climate is a ticking timebomb. In 2021, Net Zero cities have become the focus, calling for an integrated approach from individuals and governments to make our cities more sustainable.

To address this challenge head-on, many initiatives strive to make our cities climate neutral or carbon neutral by the end of the decade. The EU Commission has undertaken a mission to support and promote 100 European cities in their systemic transformation towards climate-neutrality by 2030. Many cities within The Carbon Neutral Cities Alliance (CNCA) – from Adelaide to Amsterdam, from Helsinki to Washington DC – aim to achieve carbon neutrality within the next 10-20 years.

Why the focus on cities, and not industry? We must definitely tackle both, but the main difference is that decarbonizing metropolises can deliver impact at scale. Cities only cover about 3% of the Earth’s land, but they produce around 72% of its total greenhouse gas emissions. On top of that, cities are growing fast and will continue to be major centres of emissions despite the effects of COVID-19. If the fight against climate change can be described as a war, our biggest battles will have to be fought in cities.

The way I see it is that both the climate emergency and the pandemic provide us with opportunities for change – a rebirth. Policymakers and urban dwellers can play a leading role in rethinking urban planning, to build back more sustainability into our cities. Some solutions could include clean electrification, smart digital technology, efficient buildings and infrastructure, along with a circular economy approach to water, waste and materials.

Mind over Money

Transforming our cities into bastions of carbon neutrality – whether within 10 or 30 years – will be a challenge. However, technology and innovative solutions for sustainable homes, office buildings, energy, transport, food, water and material systems already exist – and more are underway due to the fall in sustainable tech prices and more financial support coming from investors.

The real challenge is to alter how we think. For the world to change, people need to change first, and transformation can be painful. As large corporations, we need to make everyone aware that sustainability doesn’t have to impact productivity, success or living standards. Smart, sustainable buildings mean less waste, fewer emissions and lower energy costs. Then we need to turn barriers into opportunities through the power of modern technologies.

Smart homes can make cities smarter

Responsible for up to 30% of CO2 globally and expected to become the single largest GHG emitters over the next decade, homes must be at the top of the net zero cities agenda. In a post-pandemic world, they’ll be where we spend most of our lives and consume the majority of our energy. The democratization of domestic energy production allows for fast decarbonization. Solar, for example, makes homes cleaner and more sustainable. We should then also provide homeowners with the capability to sell their excess energy back to the grid or to their local community.

But we need to go further than that. Smart home systems can provide unprecedented insight into energy usage, be it for heating, cooking, charging your car, or entertainment. Such smart sustainable homes provide more personalized comfort as well as efficiency in the form of reduced energy bills. AI-driven sustainable tech will also keep us safe – not just by ensuring we breath clean air and our room temperatures remain comfortable – but by also proactively alerting us to potential electrical faults. Think of the impact if we could stop electrical fires from ravaging our livelihoods.

Digital solutions that work in a smart home can then be scaled up and linked up to other, larger buildings – even to an entire community or city. However, large net-zero ecosystems will only be achieved through the use of world-class modern digital infrastructure, deployment of the IoT and related applications at scale. The same applies for open and interoperable datasets, which are linked and shared across the city ecosystem to break down silos and generate practical insights through big data analytics and AI. This is what all organizations should be clamouring for – partnerships, cross-industry collaboration and the use of best of breed technologies that could drive synergies though interconnectivity and analytics.

To achieve this collective success, we must keep an open mind and pursue a policy of lifelong learning as an industry. This is crucial as new technologies and innovations emerge. When it comes to saving the planet, our work is never done. The best solution from a few years ago won’t be today’s silver bullet.

For instance, today’s overreliance on passive retrofits – such as building insulation – will outgrow its utility as our cities burgeon with new buildings. Isolated, small-scale thinking will get us nowhere. It can only slow our collective progress towards net zero. Instead, there needs to be consideration for active, digital retrofits of existing homes as well as buildings in general. We need the right digital tools to accurately measure and decisively curb our energy consumption. And we must deploy them at scale.

Saving the world while preserving the economy

We are in the midst of an energy revolution. If you look into human history, you’ll see that the growth of any economy was driven by the availability of affordable energy. The only difference now is that we are talking about an unprecedented level of consumption, and the need for clean energy.

Making our cities carbon neutral is no easy task. It is clear that we need to embrace the right mindset, stay the course and follow an attitude of ‘our work is never done’. Using the latest digital technology will give us insight and power to achieve our common goals, while more sustainable jobs, tech innovation and ESG investment will help drive economic recovery. Whatever route we chose to fight the climate crisis, whatever solutions we implement, we must remember, like all good things, sustainability starts at home.

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MMC: Why It’s Time to Set the Standard

As the Government’s own 2025 deadline approaches for new build homes to be ‘zero carbon ready’, and with mandates for 25% of new homes to be built using Modern Methods of Construction (MMC), Ian Atkinson, partner at law firm Womble Bond Dickinson, discusses the now-urgent journey to secure industry-wide MMC standards.

The Government is determined to make the shift to MMC happen: to steer the construction industry, by hook or by crook, towards more flexible, more sustainable and more consistent construction methods. “Modernise or Die” as Mark Farmer bluntly stated back in 2016.

While the construction industry isn’t widely known for readily adopting change, in this case there is plenty of enthusiasm for MMC.  The efficiencies of modern processes bring immediate speed and cost advantages to both clients and contractors whilst the labour shortages commentators have been warning of for years become a real industry concern in our post-Brexit, “pingdemic” world.

However, there remain concerns about its adoption and whether the sector can meet the deadlines the Government has set. Chief among them is the lack of standards to which MMC must be graded and assessed.

It’s something of a Catch-22: standards can’t be set until sufficient work has been done to establish what is and isn’t achievable. But because standards haven’t been set, there remains a barrier to investing in greater volumes of MMC work. The onus (and risk) has so far fallen on pioneering independents, as well as on the public/social housing sector, to lead the way while the volume/private builders watch with interest.

What do we need to see?

The BSI is currently looking at offsite construction, saying “well defined standards can help to maximise the benefits of offsite construction, and BSI is working with the industry to identify the necessary measures to ensure the correct standards are in place” – and it is working on a number of standards, like BS 5606 Accuracy and tolerance in design and construction and on prefabricated buildings.

However, these and other standards will take some time to be finalised, and it may be that in the meantime we need some best practice industry guidance – even perhaps a voluntary standard – or at least more collaborative working and risk sharing between MMC providers and the industry to fill the gap.

MMC Warranties and Insurances

One of the core tenets of MMC is that defects will be ironed out at the factory stage and never reach the site, but even so, we need consistent, industry-wide warranties that will protect the eventual buyers from the costs of possible defects.  Indeed, most lenders and mortgage providers will insist upon them.

Warranty providers currently use different standards for their assessment of homes, making it difficult to know what these homes have been tested for.

An industry wide standard warranty would go a long way to providing reassurance to those buying these properties that there is no greater risk in purchasing a house with MMC elements than purchasing one built using only traditional methods of construction.

Progress is being made here, with a number of leading industry bodies, including the National House Building Council (NHBC), having recently signed a Memorandum of Understanding agreeing to work towards a shared standard for assessing homes built using MMC, but this needs to move forward as quickly as possible.

It’s possible that even if there were a greater (perceived) risk in buying an MMC property, this becomes more palatable to buyers if there is a standard, affordable insurance available. But insurers are naturally risk adverse, and in all likelihood they would need to see MMC coming through faster and in greater volumes to “normalise” it from their perspective, so that they can understand the risks involved and then create appropriate insurance products.

Mortgages and lending for MMC-built properties

There is no industry standard between lenders as to whether (and if so on what terms) they are prepared to offer a mortgage on a home built using “non-traditional” MMC/off-site construction methods. While perceptions of MMC homes are improving, many lenders still have concerns over long-term build quality.

Most residential lenders will lend only if properties have the benefit of one of a prescribed list of warranties, or latent defects cover.

Through a combination of bringing MMC within longstanding accreditations / certifications, and the adoption of some of the newer forms of cover by the lenders, real progress will be made.

For example, the NHBC now offers an ‘NHBC Accepts’ accreditation, applied to a small number of already-available products and systems, which shows that a product or system has been rigorously assessed and that the NHBC considers that it meets its robust standards.

For now though, any owner or potential owner of a home built using MMC is likely to be faced with less freedom of choice of lenders, and additional conditions (including potentially less favourable terms) as compared with those available for traditionally built homes.

MMC is still on course to be the “future of construction”, but it is up to the Government, the construction industry, and the funders, to accelerate the outputs of their collaboration to bring that future forward.

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Triple Point: Long-Awaited Clarity for Delay Damages

Kate Onions, partner and head of construction disputes, and Laura Taylor, associate, at law firm Shakespeare Martineau. In this latest feature, they write about the Triple Point decision from the Supreme Court and explain how this decision will impact customers and suppliers and how the decision will affect parties’ legal position in the case of contract termination.

Thanks to the recent Supreme Court ruling in Triple Point v PTT, the construction sector has received much needed clarity around a longstanding issue. This decision reverses the previous verdict from the Court of Appeal, confirming that delay damages, also known as liquidated and ascertained damages (LADs), can be claimed in the case of contract termination. For construction companies that were facing difficulties in recovering LADs after the termination of a contract, this is welcome news.

LADs act as compensation upon breach of contract. In construction, they’re often used in respect of a delay in the completion of building works. An agreed fixed sum payable by the contractor for each day or week that a project is delayed, they provide businesses with the financial means to continue construction, without having to prove any loss suffered due to the delay. This provides certainty for both employer and contractor, no matter the cause or consequence of the delay.

For years, it was generally accepted that employers could claim LADs up to either the date of project completion or the date of contract termination. General damages would then be recoverable in respect of any losses suffered by an employer thereafter. However, in the Triple Point case, the Court of Appeal decided that LADs should fall away completely should termination occur, as the works could not be completed by the initial contractor. Instead, general damages should be claimed.

General damages are more difficult to claim than LADs, as an employer must prove firstly that a loss has been incurred due to the delay, secondly, detail what that loss is, and thirdly, demonstrate that they have mitigated and sought to minimise that loss. LADs were introduced as a commercial workaround, enabling employers to avoid the complexities that come with claiming and evidencing general damages.

The Court of Appeal’s decision sent ripples through the construction industry. Its reasoning was based on a combination of a) the works being incomplete at the time of termination and a different contractor completing the outstanding works, and b) there being no specific drafting in the contract providing that LADs would be recoverable if the contract were to be terminated. The Court of Appeal pointed to the fact that there would need to be express words in the contract recording the parties’ intentions that a LADs clause should survive termination.

Following this decision in 2019, there has been a heightened focus on the specific drafting of these clauses, as well as a level of confusion as to the commercial benefit of them, particularly if the employer is considering terminating the contract prior to completion of the works. Whilst the Triple Point case concerned a software development contract, it contained a number of key clauses that are familiar in construction contracts too.

The good news is that the Supreme Court recently considered and ruled on the issue and in so doing has provided clarity which sees a return to the general position previously thought to apply. The Supreme Court was critical of the Court of Appeal decision in that it said its conclusion was unrealistic and ‘inconsistent with commercial reality and the accepted function of liquidated damages.’ The ruling clarified that the purpose of parties including a LADs clause in a contract is to provide a remedy that is both predictable and certain for a particular event, in this case, delayed completion. In reaching this decision, the Supreme Court reinstated the generally accepted view that where there is a LADs clause, the amount of LADs will accrue up until the date of termination, after which any further losses must be recovered as general damages.

Both contractors and employers should carefully consider how LADs clauses are incorporated into any future contracts, including whether there will be any express reference to the consequences of termination on LADs.

LADs generally operate as a cap on what an employer can recover for its delay related losses. It isn’t uncommon for employers to underestimate the actual cost of a delay, setting the sum at a much lower figure than would be needed to cover the full losses. Getting the level of LADs right is therefore important. Every aspect of the potential costs arising out of delay to a project should be considered when calculating the LADs figure, to ensure the employer doesn’t find themselves in a sticky situation.

That being said, commerciality is still an important factor. If an employer pushes for the inclusion of a LADs figure in the contract which is out of all proportion to the likely losses, it may not be enforceable. For obvious reasons, contractors tend not to like to have to account for LADs and, as such, if there is a prospect of arguing that the LADs are not enforceable as they are a penalty, there is a real risk that they will do so.

Including a holiday period or a tiered provision can help to make a LADs clause more commercially attractive to contractors. A holiday period would mean that for a specified period (usually a number of days or weeks), no LADs will be charged. Alternatively, a tiered provision sees the amount of LADs increase the longer the delay continues. Pegging LADs specifically to sectional completion dates where applicable is also generally sensible.

The Triple Point ruling has provided the welcome clarity that the construction industry needed and re-affirms the importance of LADs in providing parties with contractual certainty in the event of delay.  There are, however, multiple factors to be taken into account when formulating LADs clauses in contracts. The potential commercial and financial ramifications of getting this process wrong can be significant. Whether an employer or a contractor, it is important to understand how a LADs clause operates. Ultimately, it needs to deliver the appropriate commercial protection if there is a delay to the completion of the works.

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Plans to Drive Levelling Up Agenda

The Ministry of Housing, Communities and Local Government is set to get a name change, becoming the Department for Levelling Up, Housing and Communities as the UK Government delivers on its central mission to level up every part of the country.

The new change comes as the former Bank of England Chief Economist, Andy Haldane was appointed on 19 September as the new Head of the Levelling Up Taskforce. This taskforce has been jointly established by the Prime Minister, Boris Johnson and the new Secretary of State for Levelling Up, Michael Gove.

The Secretary of State will drive cross-Whitehall efforts to deliver a programme of tangible improvements in every part of the UK. With responsibility for UK governance and elections too, Mr Gove will therefore also take on the additional title of Minister for Intergovernmental Relations, working closely with the Territorial Offices and leading coordination with the devolved administrations on the Prime Minister’s behalf.

He will be supported in the department by new Minister of State Kemi Badenoch and Neil O’Brien, who has been appointed Parliamentary Under Secretary of State.

The Prime Minister said: “This Government is committed to uniting and levelling up every part of the UK and I am determined that as we build back better from the pandemic we are geared up with the teams and expertise to deliver on that promise.

“Andy is uniquely qualified to lead our efforts to raise living standards, spread opportunity, improve our public services and restore people’s sense of pride in their communities. I look forward to working with him, and with my new ministerial team, to deliver the opportunities this country needs.”

Reappointed to the department are Ministers of State Christopher Pincher and Lord Greenhalgh, and Parliamentary Under Secretary of State Eddie Hughes.

Andy Haldane will join as a permanent secretary in the Cabinet Office on secondment from the Royal Society of Arts, Manufactures and Commerce (RSA) for six months. He will head up the Levelling Up Taskforce that will report jointly to the Prime Minister and the Secretary of State for Levelling Up, Housing and Communities.

Mr Gove commented: “I’m thrilled that the PM has asked me to lead the Levelling Up agenda, the defining mission of this Government. With a superb team of ministers and officials in a new department, our relentless focus will be on delivering for those overlooked families and undervalued communities across the United Kingdom.

“We have a unique opportunity to make a real difference to people’s lives.”

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Pagabo Launches Bidding for Civils Framework

Pagabo, a national framework provider, has officially launched bidding for suppliers to join its brand-new £1.6 billion Civils and Infrastructure Framework, which is due to go live at the start of 2022.

The new framework will run over four years and will allow local authorities, as well as public sector bodies, to procure a range of products such as rail, nuclear, bridges, roads, maritime, water and power projects.

The Civils and Infrastructure Framework will feature four lots, covering value bands of up to £30 million and above, with each lot featuring six regional and national organisations, along with three reserve organisations:

• Lot 1 – £500k to £5m
• Lot 2 – £5m to £15m
• Lot 3 – £15m to £30m
• Lot 4 – £30m and above

Jason Stapley, Managing Director at Pagabo, said: “We’re really pleased to be welcoming bids for our latest framework, which is designed specifically for civils and infrastructure projects within the built environment.

“The framework will cover a range of areas, ensuring that the projects procured through it over the coming years are working towards tackling the climate crisis. The framework has been designed with the Construction Playbook in mind, which will help our clients to meet its principles in the most effective manner.

“This is the first framework that Queen Elizabeth Hospital, Gateshead will be acting as the contracting authority for, and we’re very much looking forward to receiving bids, appointing suppliers, bringing this new offering to the market, and most of all getting projects procured through it.”

Bid documents must be submitted via the procurement portal by 12pm on 20 October 2021.

The framework is set to launch in early 2022.

For more information, please visit https://www.pagabo.co.uk/

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Premier Modular Achieves BOPAS Accreditation

Premier Modular has announced that it has achieved BOPAS accreditation for its modular living solutions. This follows on from the company’s expansion into the residential sector.

Established in 1956, Premier has five factories at its production centre in East Yorkshire. It has capacity to produce 100,000sqm of living space each year, with the ability to increase output to meet demand.

The Buildoffsite Property Assurance Scheme, or BOPAS, is the industry benchmark to give funders, principal mortgage lenders, valuers and purchasers the confidence that homes built using offsite construction will have a life of at least 60 years. It also demonstrates the integrity of the offsite system; consistent delivery along with long-term performance to specification.

Premier Modular specialises in the offsite construction of affordable, sustainable and fast-track apartments, studios and multi-occupancy buildings for social housing, build-to-rent, schemes to address homelessness, hotels and student accommodation. It works as a partner to local authorities, housing providers, developers and contractors.

Commenting on the new accreditation, Jeff Maxted of BOPAS and a director of BLP Technical Services (UK), said: “It is fantastic to see Premier’s expansion into the residential sector, building on their vast experience in other areas. BOPAS is an independent, standards-led benchmark for modular housing, providing long-term assurance to lenders and valuers that homes built using non-traditional methods of construction offer longevity and reliability.”

Dan Allison, Director of Premier Modular, commented: “We are immensely proud to receive this industry accreditation which reinforces our expansion into the residential sector. BOPAS provides our local authority and developer clients as well as funders and mortgage lenders with complete reassurance of best practice and that our modular apartment solutions meet or exceed the required standards.

“We have ambitious plans to bring innovation and sustainability to the UK housing market. We already have a number of residential projects on-site and nearing completion and are receiving a high level of enquiries for new schemes. We anticipate the demand for offsite construction will continue to increase to help address the housing crisis and the drive for net zero.

“We offer a range of modular solutions for low to mid-rise apartment developments, and the speed of offsite manufacturing will help to reduce housing waiting lists. We have also successfully demonstrated the structural stability of our building system beyond 15 storeys, giving our customers even greater confidence in our design and construction capabilities.

“The residential sector is facing considerable challenges – from the shortage of skilled labour to the need for increased productivity and improved quality in housebuilding to meet the rising demand for new homes. By moving the construction of new apartment schemes offsite and into a more controllable factory environment, we can produce energy-efficient homes with less impact on the environment, to reduced programmes, and significantly enhanced quality.”

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McGoff Group Reveals Development Plans

The McGoff Group has announced that it has acquired 2.9 acres of land in Adel, Yorkshire with planning permission granted for a new mixed-use residential development.

The site is located on Oltey Road and will be transformed by McGoff, who will deliver a 74-bedroom care facility along with six bespoke two-bedroom bungalows. The care facility will be operated by New Care, part of the McGoff Group, and will be the first care home in Yorkshire for the company.

New Care is well known for providing quality clinical offerings, including residential, nursing, dementia and respite care services, within a comfortable and safe environment.

The bungalows will be available for private sale, appealing to homebuyers looking for a luxury property which also offers some domestic support at home to enable continued independent living.

McGoff Construction, also part of the McGoff Group, has made an immediate start on-site with the groundworks well under way.

Chris McGoff, director at the McGoff Group, said: “The site in Adel is superb. It benefits from amenities in nearby Headingley, just 750 metres away, and overlooks open countryside.

“The size and location of the site really suit our proposed scheme, with bespoke two-bedroom bungalows built in a picturesque setting and an expertly designed, purpose-built care facility in the heart of the community.

“The development itself will be nestled away and largely invisible from the road, adding to its appeal. We are very much looking forward to bringing the New Care brand to Yorkshire and are confident the care home will exceed all expectations. The bungalows, with domestic support on-site and the option for additional support packages when required, complete the development and perfectly complement the care facility.”

McGoff Construction is anticipating a 77-week build programme, with completion of the bungalows set for December 2021, and practical completion of the care home confirmed for April 2022.

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GRAHAM Secures Place on £20bn Framework

Homes England has selected GRAHAM Construction as one of its 66 preferred partners on its new Delivery Partner Dynamic Purchasing System (DPS).

The £20 billion procurement framework is the biggest DPS of its kind and is set to replace the Delivery Partner Panel 3 (DPP3), making it easier for housebuilders and developers of all sizes to apply to join the preferred list of partners by giving them the option to join at any time.

As one of the largest vendors of residential land, this is a significant step to making sites for development more widely accessible.

Rob Joyce, Development Director at GRAHAM, said: “This framework will play a significant role in helping to deliver the homes that our country needs and we’re proud to be part of a strong line-up of housebuilders that will deliver them over time. It will simplify the procurement process in a significant way, making it easier for housebuilders to bid for sites of interest and local authorities and housing associations to build on their land.”

Other public bodies may also use the DPS to procure developers, increasing housebuilders’ exposure to potential projects.

The Government’s housing delivery agency is planning to issue expressions of interest via the DPS in the coming months for a number of sites, including a 14-acre site in Burgess Hill that will support the delivery of up to 350 homes and a site located in Cradley Heath, Dudley that has planning permission for 89 homes.

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VolkerFitzpatrick Wins Contract for Blade Factories

Siemens Gamesa Renewable Energy has announced that it has awarded VolkerFitzpatrick an £82 million design and build contract. The contract will deliver two wind turbine blade manufacturing facilities, along with repurposing an existing factory, at its site in Hull. The works began in August and have a completion date for May 2023.

This award follows on from VolkerFitzpatrick’s successful delivery of the existing blade factory at the same site in 2016. Once they reach completion, the new factories will enable Siemens Gamesa to produce larger blades with greater efficiency.

Phase one will see pre-cast piling, drainage and foundations with steel frame structures. The steelwork has also been specifically designed to allow 40m clear spans, with a working height of 18m and significant load-bearing capability, to accommodate the various gantry and console cranes required during the wind turbine blade manufacturing process.

Stuart Deverill, Managing Director of VolkerFitzpatrick’s Building division, said: “VolkerFitzpatrick has a longstanding, collaborative relationship with Siemens Gamesa, having worked together on its original blade factory in 2016. I am delighted that we have now been appointed to deliver these two new facilities and look forward to seeing the works progress over the coming months.”

The buildings will span a footprint of 42,362m² and will be finished with aluminium-faced insulated panels to the roof and walls, in continuity with the existing blade factory. The mechanical and electrical fit-out will include services for lighting, power, water, humidity control, ventilation and cooling.

Rob Bullen, Head of Real Estate UK and IE for Siemens Gamesa, commented: “Siemens Gamesa is again delighted to be working with VolkerFitzpatrick to deliver an industry-leading infrastructure project. This project is more ambitious even than the initial factory-build in Hull back in 2016, and Siemens Gamesa needed a partner that could match our aspirations for delivering the project.

“It’s evident, even from the early stages of working together on the project, that we have found that partner in VolkerFitzpatrick.”

Phase two will involve modifications to the existing 34,217m² blade factory, to repurpose it from a production facility to a finishing area. This will include internal reconfigurations, as well as upgrading and replacing mechanical services. The team will also alter the building’s envelope, steelwork and doors, to allow for larger blades to be manoeuvred in and out.

Throughout the project, VolkerFitzpatrick will support the local community by hiring trainees and a portion of its supply chain from the surrounding area. The team will also reuse stone from the existing site, helping to minimise waste material.

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How Can Businesses Overcome Supply Chain Disruption

The way we purchase has changed over the last 18 months. Traditional methods are no longer an option. Stocks at the manufacturers and wholesalers used to be plentiful. There was also no issues with the pipelines.

That was until COVID-19 hit early last year, of course.

What we’ve been left with is those pipelines clogged up and congested, while broad materials are scarce across multiple industries. Because of the pandemic, factories closed for long periods of time. A combination of that and Brexit has meant catching up has proven to be incredibly difficult during 2021 – to the point that it has been estimated that construction won’t see a complete recovery back to pre-crisis 2019 levels until 2023.

Sticking with that theme of purchasing, though, and I’m sure many businesses, and particularly buyers, in the construction and manufacturing industries will recognise how difficult it has been over the last eight months.

A good example of products that have been caught up in the supply chain disruption is PPE. That shortage led to another issue: price hikes, which are up 70% on what they were prior to the pandemic.

That equipment wasn’t alone. Numerous products have seen the same increase and forced many businesses with a decision to make on whether to purchase a product for an inflated price in big volumes, in the hope that it sells through before prices could fall again. That issue is still ongoing now and has made purchasing incredibly difficult.

Here at Protrade, we have been no different, but we have pivoted accordingly. We learned that we have to forecast far further ahead than we have had to before, especially with our larger suppliers. We’re placing orders for the next year or 18 months, scheduling the products so we know when we’re going to receive them.

Rather than placing weekly £10,000 orders to top-up stock levels, we’re now having to place £500,000 to £600,000 orders to ensure we’re covered over a set period of time. That does mitigate the issue but it certainly doesn’t solve it, because there are still some products and materials that we cannot get into our depots until Q1 or even Q2 of 2022.

As well as forecasting ahead, there are other steps that businesses can take right now to ease the heavy burden of pressure being caused by this supply chain disruption.

Put your money where your mouth is

I referenced the importance of forecasting earlier in this article, but it is also necessary to recognise the financial implications of taking such an approach.

In short, business leaders in the construction and manufacturing sectors need to be able to confidently put their money where their mouth is if they are to avoid being left behind.

When the pandemic arrived, a lot of businesses were, naturally, cautious in their approach. There was a reluctance to speculate and place orders of big volumes because no one was really sure what was around the corner.

Purchasing levels initially dipped when COVID-19 arrived in the UK, but, according to the Chartered Institute of Procurement and Supply (CIPS) back in May, that has since picked up and gone beyond the level they were prior to the first lockdown.

By taking a leap of faith and securing significant volumes of stock, we have managed to maintain supplies across the majority of our product portfolio. We’re merchants within the construction and manufacturing industries, and if we haven’t got stock on the shelf, we have a big problem.

Being flexible with your stockholding is key

At Protrade, our stockholding, prior to the pandemic, was £1.8 million.

That has since grown to £3.5 million as we continue to manage the supply chain disruption we’re facing. Our approach is if we can get a product through the door, we will get it in and manage the holding accordingly.

Although we have almost doubled our investment in stock, which invariably impacts cash flow, it has stood us in great stead especially as prices continue to rise in the marketplace.

It’s not as simple as just stocking up though; many scarce products that have experienced significant price increases over the last few months could potentially settle in the near future, possibly leading to costs going in the other direction.

There are also products with shelf lives to consider, so it’s a fine balance between selecting the right type of stock and avoiding pitfalls. The biggest impact taking this approach has had on our business is that we have got plenty of stock for immediate delivery.

Certainly, within the construction industry, there’s a reliance on having the materials on-site when they’re required, so having it on the shelves and readily available is paramount.

Scanning the market is fine, but consider how short-term decisions could impact your business in the long-term

An obvious tip to alleviate supply chain issues is switching to alternative comparable brands or types.

In many situations, this can work but there will often be circumstances where rigorous safety or performance testing has taken place that determines a specific product has to be used.

If one ingredient in the product mix changes, the whole testing process becomes null and void. Brand loyalty can also come into play; changing a product that customers have used with no issues for years, can potentially lead to disappointment and even conflict.

In a manufacturing or production environment, there is a need for companies to communicate regularly and closely with their chosen supply partners.

It’s conceivable that solutions are readily available, once discussed. Companies have sometimes been reluctant to enter into contractual agreements, but price stability and continuation of supply far outweigh any potential risks or concerns.

How reviewing your packaging can improve your orders

A final tip for businesses importing containers into the UK would be to look at the packaging.

Protrade imports multiple containers of professional wood screws per year. By changing the box dimensions slightly, we have managed to fit another 18% worth of product inside a single container.

With a global shortage of shipping containers, this has not only eased pressure on the supply chain but has also helped mitigate the spiralling cost of shipping.

The world is changing and we need to be ready for it

Another issue actually has nothing to do with the pandemic or Brexit at all. It surrounds how the world is changing.

Battery cells are a good example of this, the ones traditionally used in cordless power tools within our industry.

The demand for these products is now coming from all angles with manufacturers prioritising accordingly. With the rise of electric vehicles across the world, battery cell producers are selling in huge volumes to car manufacturers and that, in turn, is driving the price up for other industries.

The supply chain is being exhausted by how the world is changing and where the demand is coming from.

Pause projects where necessary

Let’s talk about freight for a moment.

We have been liaising with a business recently about producing our own brand for a particular product. However, the freight cost to be able to get the items shipped to us has multiplied by six. This resulted in a 41% increase on the cost of the product.

We have made a decision to kick the idea into the long grass for now, until freight costs settle down again. In the meantime, we will continue to purchase an alternative existing brand that has products available, further down the supply chain.

Final thoughts

The supply chain issues this year have caused havoc, yes, but it isn’t to the point that it can’t be navigated or managed.

However, it does require business leaders to show a degree of bravery and make decisions and changes that have never had to be made before. Take the bull by the horns, so to speak. By throwing caution to the wind with purchasing, forecasting ahead, and increasing stockholding, we have been able to mitigate – not overcome – the series of issues that have reared their heads during 2021.

The situations we’re facing are not going to be here forever, but product and material is king, as is managing those supplier relationships that have been in place for a long time.

If a balance can be struck, both in terms of short and long-term capital thinking, businesses can still continue to thrive and release some of the heavy pressure that is weighing down on the shoulders of buyers up and down the country.

Written by Craig Sanders, Managing Director at Protrade

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City & Guilds Partners with EAL

To help with the skills gaps in the construction industry, City & Guilds has struck a partnership with EAL. Since the start of September, the first learners in England have begun studying two newly launched T Levels.

They are:

1. T Level Technical Qualification in Building Services Engineering for Construction
2. T Level Technical Qualification in Onsite Construction

The new T Levels will give employers an important opportunity to offer learners placements as part of their qualification, which will help those who enrol to develop a blend of academic and practical experience to progress their careers.

These new qualifications will help streamline and simplify the current system of more than 400 qualifications, ensuring that routes for progression and career development are clear.

With major infrastructure projects such as HS2 under way, along with a predicted increase in private homebuilding in the near future, the UK will need an additional 216,800 construction workers by 2025, according to a recent report from the Construction Skills Network. Brexit is also set to limit the ability to source skilled construction professionals from overseas; large numbers of people will need to be trained with the skills required to meet this demand.

City & Guilds has also announced that the new Level 2 qualifications on Construction and Building Services Engineering are now available in Wales.

The following qualifications are now available:

• Foundation in Construction and Building Services Engineering (Level 2)
• Core in Construction and Building Services Engineering (Level 2)
• Progression in Construction (Level 2)
• Progression in Building Services Engineering (Level 2)

David Phillips, Managing Director, City & Guilds, said: “City & Guilds has a long history of offering qualifications in the construction sector and we are delighted to have the opportunity to bring this expertise to the recently launched T Level Technical Qualification in Building Services Engineering for Construction and T Level Technical Qualification in Onsite Construction in England.”

“With large-scale infrastructure and housing projects high up on the Government’s agenda, it is more important than ever to combat skills shortages in the construction sector by helping young people develop the expertise required.

“I would like to encourage employers to understand the requirements and expectations of the T Level courses to ensure that students get the most value from their placements – in turn meaning that employers can best utilise the skills those students will bring.

“Our raft of new Level 2 qualifications in Wales are another important milestone in providing a more straightforward approach to training for individuals working or intending to work in the industry, equipping them with the skills to develop their careers.

“We are excited to continue strengthening our partnership with EAL once again to deliver qualifications in the Construction and Building Services Engineering sector, building on our past success in delivering qualifications in this industry.”

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Retrofit Service to Train 3,500 Tradespeople

A retrofit service which helps people in Greater Manchester to eco-refurbish their homes is planning to train 3,500 builders, joiners, electricians and plumbers in green skills over the next five years thanks to money raised via a £550,000 community share offer.

People Powered Retrofit, a not-for-profit service, is seeking investment from individual investors so it can scale up its specialist eco-renovation training and help the city region hit its 2038 net-zero carbon target.

Even though there is a demand from homebuilders to green their properties, there is also a shortage of skilled, local contractors that can deliver the work. People Powered Retrofit is already a member of Mayor Andy Burnham’s Greater Manchester Retrofitting Task Force which aims to tackle this problem.

In addition to developing new green jobs and skills, People Powered Retrofit plans to use the money raised to make 1,150 homes in the region more energy efficient by 2026, saving 2,700 tonnes of carbon.

Funds raised through the community share offer will also help the not-for-profit service to recruit extra retrofit advisors, co-ordinators and assessors and reach thousands more householders, supporting them to improve the energy performance of their homes.

Jonathan Atkinson, People Powered Retrofit Programme Manager, said: “Our homes are responsible for about 20% of the UK’s carbon emissions, but to make properties more energy efficient, at scale, we need thousands more builders, installers and tradespeople with specialist green skills. Money raised through the community share offer will go towards skilling up this ‘green’ workforce.”

Floor insulation contractor Boris Afinogenov commented: “The training I got through People Powered Retrofit convinced me to turn my woodwork hobby into work. They gave me access to information and to people connected with floor insulation. I also learnt about whole-house insulation. They helped me to realise my ambitions, so I didn’t have to go back to my sales job.”

Ethex CEO Lisa Ashford noted: “We’re very pleased to welcome People Powered Retrofit to the Ethex platform. Our investors love to use their money to fund impactful organisations like this to scale and grow, and this organisation is a great example of grassroots action to tackle climate change.”

The People Powered Retrofit community share offer is open for investment until 30 November 2021. Investments start at £250 and go up to £55,000. Investments in the share offer target a 5% return. Visit https://www.ethex.org.uk/invest/people-powered-retrofit for more details.

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Housing Developers Team up for Regeneration

Hill Group and Notting Hill Genesis have announced that they have teamed up in partnership to develop 780 new homes in Hounslow.

Lampton Parkside, which has been designed by Allies and Morrison LLP, forms the second phase of the ten-year Lampton Road scheme which has begun rejuvenating Hounslow thanks to a brand-new carbon-neutral civic centre and 160 affordable homes.

The development is set to be split between 563 homes for private sale, with 217 afforable units, which will all feature high-quality finishes with fully integrated kitchens as well as fully fitted bathroom suites.

Lampton Parkside will feature studio, one and two-bedroom apartments along with three-bedroom duplexes and houses. Landscaped podium courtyards sit above undercroft car parking, with electric car charging points and secure bicycle storage included. Every home comes with private outdoor space in the form of a balcony or terrace, and residents will benefit from a private concierge.

Greg Hill, Deputy Chief Executive at Hill Group, said: “We are delighted to be working in partnership with Notting Hill Genesis to deliver much-needed, high-quality new homes for the Hounslow area. The new development is well located, next to Lampton Park and excellent transport links, giving it strong appeal for residents and offering a range of tenures to meet different housing needs.

“Working in partnership to deliver outstanding new places for people now and in the future is what we do best.”

John Hughes, Group Director of Housing for Notting Hill Genesis, commented: “Our first phase has already proven very popular and we’re excited to add more than 200 affordable homes in this second phase, as well as others for private sale. With high-quality homes, ample outdoor space inside the development and Lampton Park on its doorstep, we know it will be in demand among single professionals, couples and families alike.”

Lampton Parkside is set to reach full completion in 2029, with the first completion due by winter 2022.

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