Martes, Nobyembre 2, 2021

On-Site Sustainability & Innovation Hub Revealed

Following on from the launch of the on-site ‘Future of Construction’ Training Centre at Mercia Park, Winvic Construction and its client, IM Properties (IMP), have unveiled a Sustainability and Innovation Hub (SIH) at the same location.

The Leader of North West Leicestershire District Council (NWLDC), Richard Blunt; Deputy Leader, Richard Ashman; and Chief Executive, Bev Smith, visited the site to see first hand the progress of the 238-acre employment park and experience some of the training taking place as part of the scheme’s employment and skills commitments.

Their visit also included an opportunity to see the impressive civils and infrastructure works which Winvic has delivered at the site, including the recently handed-over 550,000 sq ft facility for DV, and the progress of Jaguar Land Rover’s 2.94 million sq ft global parts and logistics centre. Along with this, the visitors got to see Winvic and IMP’s commitment to sustainability and innovation which has culminated in the opening of the first satellite Sustainability and Innovation Hub.

The Hub comprises three zones – Sustainability, Innovation and Learning – which provide areas to showcase Mercia Park’s sustainability credentials, demonstrate Winvic’s digital advancements, train Winvic’s staff and supply chain more creatively than ever, and inspire young people through educational visits. Its proximity to the ‘Future of Construction’ Training Centre also means both facilities can be used for linked training activities. One key feature of the SIH is a 360-degree BIM CAVE area, which will aid the BIM design process in a real-time scenario by facilitating design team meetings and workshops and help develop VR imagery for health and safety training. Unlike the BIM CAVE located at Winvic’s Centre for Innovative Construction, it is a 360-degree resource where Virtual Reality (VR) 3D design models can be viewed as an immersive room experience, without a headset.

Also found within the SIH, Winvic’s Technical Director, Tim Reeve, who sits on the company’s Sustainability Leadership Team, commented: “The Sustainability and Innovation Hub – the second facility we have launched with IM Properties at Mercia Park in a matter of weeks – is testament to both company’s commitment to the future of construction, which has sustainability and innovation at its very heart. We can’t thank IM Properties – and our suppliers – enough for their willingness to drive this initiative in partnership with us.

“Mercia Park’s green and state-of-the-art digital credentials make it the ideal location for the facility. It’s not only an operational digital design centre for Winvic, IM Properties, consultants and suppliers to utilise, but also showcases the scheme and our team’s innovative initiatives and acts as an education and training centre for young people in the community. The value of such a facility was clearly seen by the visitors from North West Leicestershire District Council who were enthused all day, and we’re now looking forward to welcoming schools, college and universities, as well as more companies in our supply chain, to the Hub.”

David Smith, Planning Director for IM Properties, added: “It is great to see the commitments we made at the planning stage of the project being turned into reality. It has been an incredibly difficult period in which to mobilise these activities; however, our creative thinking, partnership approach, persistence and passion to maximise the employment and skills outcomes associated with the project is beginning to yield some very positive outcomes.

“Winvic is particularly proactive and we are delighted to be able to host their first Sustainability and Innovation Hub to showcase our joint ambitions to deliver net zero in construction on-site as part of our overall commitments as a business to achieve new targets for improving our carbon footprint over the next decade.”

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£32.7M for Link Road in Central Bedfordshire

Central Bedfordshire is to benefit from £32.7 million in Government funding to help provide a vital new link road which will enhance accessibility and ease congestion in North Luton, as announced by Roads Minister Baroness Vere last month.

The project, which is supported by the Department for Transport (DfT) and is being led by Central Bedfordshire Council and South East Midlands Local Enterprise Partnership (SEMLEP), will see the construction of a new 2.75-mile road link between Junction 11a of the M11 and the A6, forming a north-western bypass for Luton.

The new road will connect the east and west of North Luton, thereby opening the area up to economic growth and easing the transport of goods between the M1 and Midlands. It will also support the development of up to 3,600 new homes and around 2,800 new jobs.

The new scheme will also reduce congestion in North Luton communities, improving journey times, air quality and road safety.

Roads Minister Baroness Vere said: “Residents in Bedfordshire deserve quicker and easier journeys and I know many have been frustrated by poor east-west connections north of Luton.

“That’s why I’m pleased to be backing the new link road, which will support the construction of new homes and jobs, drastically improve accessibility and make the area more attractive to new business.”

Leader of Central Bedfordshire Council, Cllr Richard Wenham, commented: “We are delighted to have secured funding from the Department for Transport for this key link road, which will deliver improved east-west connectivity across Central Bedfordshire and the wider area and facilitate the delivery of up to 3,600 new homes and a Rail Freight Interchange, which are important in meeting a wider housing need and strengthening our economic offer.”

The announcement comes as the Government continues its drive to build back better from the pandemic and level up transport links to boost regional economies right across the country.

Construction on the road is due to start in January 2022, with a completion date of January 2024.

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Peterborough Energy Plans to Cut Emissions

Plans for Peterborough to adopt a smart energy system have reached their halfway point. The Mayor of Peterborough, Cllr Stephen Lane and the City Council leader, Cllr Wayne Fitzgerald were among the local leaders who celebrated this milestone last month, welcoming an electric double-decker bus into the city.

The Peterborough Integrated Renewables Infrastructure project (PIRI) estimates that it will cut 80-90% of CO2 emissions over 40 years, whilst also reducing energy bills by up to a quarter by 2030.

PIRI project partners gathered to welcome the electric bus on its nationwide tour of the UK’s most innovative clean energy projects ahead of the COP26 summit in Glasgow. Attendees included Cllr Nigel Simons, Cabinet Member for Waste, Street Scene and the Environment; and David Brend, Director of Business Development at SSE Energy Solutions.

Nathan Sanders, Managing Director at SSE Energy Solutions, said: “PIRI is a perfect example of the type of innovation and collaboration we need to get local communities to net zero. The project combines a next generation heat network, electricity network and EV infrastructure under one holistic scheme, taking a ‘whole systems’ approach that will optimise carbon reduction and cost savings.

“At SSE Energy Solutions we are very proud to be part of this pioneering initiative that will serve as a blueprint to decarbonise UK cities, and which we are celebrating today on our ‘Road to Renewables’ journey to COP26.”

“In response to Peterborough’s rapidly growing economy, PIRI is focused on developing ‘enabling infrastructure’, preparing the city for an electrified future and opening the door for other technologies such as green hydrogen. The low carbon, smart energy system will enable Peterborough to expand whilst reducing its carbon footprint and energy costs.”

Dr Tanja Groth, Director of Urban Resilience at Sweco UK and PIRI partner commented: “This pace of change is unheard of in the energy sector. PIRI is delivering a design for an integrated energy system within three years, incorporating low carbon electricity, heating and transport. In comparison, designing a district heating system alone would typically take between five and six years.

“Peterborough is proving that it is possible to complete a smart city design at pace and at scale, laying the groundwork for other cities to follow.”

PIRI is the largest smart city energy regeneration scheme in the UK, aiming to deliver a significant drop in CO2 emissions by 2030. Results from a study into the feasibility of the ambitious plans identified 80GWh of annual electricity needs and 25GWh of heat demand that can be connected to a low carbon power network by 2030.

Councillor Wayne Fitzgerald, Leader of Peterborough City Council, commented: “By working closely with our partners, we have been able to design a system that is changing what was believed to be possible when creating a fully integrated, clean energy system at scale. We hope our findings can be rolled out in cities across the UK and are pleased to be demonstrating our progress today on the nationwide ‘Road to Renewables’ tour.”

Unlike other large-scale energy projects, PIRI is planning to embed thermal and electric storage and flexibility into the initial design. This means it will be possible to mix and match available supply to demand across heating, electricity and transport, rather than keeping complex energy requirements in silos. By taking this agile, integrated approach, it will be easier to incorporate new renewable energy resources as they become viable in future years. This will allow the city to respond to changes in demand such as a rapid uptake of electric vehicles and growing population.

PIRI is being led by Peterborough City Council, working with partners that include SSE Energy Solutions, Element Energy, Cranfield University, Smarter Grid Solutions and Sweco UK. The two-year project has been granted funding from UK Research and Innovation alongside corporate investment to design a low-carbon, smart energy system for the city.

SSE is a major partner at COP26, and alongside the Go-Ahead Group, Alexander Dennis, BYD and SWARCO Smart Charging is using the electric bus tour to showcase examples of the national effort already under way to decarbonise energy. The bus, which is a BYD ADL Enviro400EV electric double-decker, was built in Britain by Alexander Dennis and BYD.

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Moving Towards 100% HVO from Red Diesel

James Maclean, CEO of wet civil engineering firm Land & Water, has positioned himself as a spokesperson for the civil engineering and construction industries discussing what the sectors need to have in place to be able to make the switch from red diesel, including a process to be able to drain and re-fuel machinery. Here he writes about red diesel and what the UK Government needs to do to provide support organisations making the switch.

The end of the red diesel rebate in April 2022 has been the source of much discussion since it was first announced. However as the deadline for subsidised fuel gets closer and closer there is still much to resolve about this particular aspect of the Government’s plan to become net carbon neutral by 2030. As with all changes there are hurdles that not just the construction industry, but other sectors of the UK economy, must overcome whilst taking the opportunity for improvement and innovation.

Red diesel, which accounts for 15% of the UK’s total diesel consumption, producing 14 million tonnes of CO2 annually has become part and parcel of the UK construction sector. Whilst the civil engineering and construction industries welcome the move towards cleaner fuels with open arms, there needs to be guidance on how to manage the switch from diesel to other fuels such as HVO. Our aim at Land & Water is to move quickly towards using only HVO on our projects. This straightforward swap could help reduce CO2 emissions by up to 90% when compared to traditional diesel. So why is it being taxed so heavily if the Government is striving to become net carbon neutral?

As it stands the rebate on red diesel will end in April 2022 and despite the rationale for this being to encourage the decarbonisation of the sector, more environmentally sound biofuels are also having their subsidies removed.

For many of the SMEs working within our sector this will simply add pressure to an industry that has experienced unprecedented price hikes and material shortages since the beginning of the pandemic. The lack of clear direction on how to manage the switch to lower carbon alternatives, coupled with the absence of financial incentive, creates the possibility that businesses already feeling the pinch will simply make price driven decisions.

It is estimated that ending the rebate could cost the construction sector between £280m and £490m per year, with a recent members survey carried out by the Civil Engineering Contractors Association (CECA) highlighting that SMEs will face a cost of between £250,000 and £600,000 annually. However, as recently illustrated by the HS2 project, finding extra budget to cover this cost appears unlikely. Despite contractors no longer being able to claim a rebate on the fuel used for large infrastructure projects, such as HS2, no additional budget is being made available to cover these costs.

The squeeze that this creates on businesses within our sector should not be underestimated. On the one hand they can no longer use subsidised fuel from April 2022, yet some of those paying for projects, the Government included, seem not to value the importance of decarbonisation and will not set aside additional budget. If extra budget cannot be found for the increased cost of switching to biofuel alternatives then the viability of projects will be called into question. Put simply, this means that the SMEs on which the construction sector relies will be left with little choice but to absorb the costs.

What we need is a solution that puts decarbonisation front and centre, that makes clear its importance and therefore value to future generations whilst ensuring additional costs that might be incurred are accepted or even welcomed by those paying.

There are numerous ways in which this might be achieved.

In the short term the Government could look to migrate the current fuel rebate from red diesel to more environmentally friendly bio diesels such as HVO. This will ensure that there is a fuel option which meets the industry’s current pricing expectations. This approach could also serve to highlight that bio fuels have come a long way, they are reliable, efficient and can be used in modern machinery without any modifications in the case of HVO.

The Government has introduced a competition to drive innovation into environmentally friendly fuels. The fund, valued at £40m, comes as a result of the Government recognising that private investment into white diesel alternatives will not reach the level needed to meet its net carbon neutral goal by 2030. Whilst this is a start, many industries that currently use red diesel, including waste management, have been excluded from accessing the competition.

Driving down carbon must be a collective effort. From household recycling to those at the forefront of fuel innovation, we must ensure that as many people as possible can play their part. Excluding sectors from accessing the competition will exclude some of the best minds in our country working collectively on this vital endeavour.

By our very nature the SMEs within the construction sector are innovators. Our size is advantageous, allowing us to be nimble. With this in mind I feel strongly that the SME sector must lead the charge to normalise the use of fuels such as HVO. If greener alternatives are going to be taxed at the same level as traditional fuels, we should embrace them whole heartedly, pricing and delivering work using biofuels as standard. By normalising biofuels we can demonstrate their effectiveness, increase their use and reduce the CO2 from our industry.

At Land & Water we aim to deliver, maintain and sustain the UK’s natural capital. We are involved in numerous projects, trials and innovations aimed at decarbonising our industry. We have demonstrated the success of more environmentally friendly fuel options through our use of HVO fuel and now our aim is to play an active role in normalising such alternatives.

As result we are excited to announce that we will be switching to using HVO on all our sites from the first of November 2021. What we would encourage now is a government subsidy to encourage HVO to become the norm throughout our industry.

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Blockchain Technology & Smart Contracts in Construction Part 1: What is blockchain?

In the vast literature that has built up around blockchain technology, it often appears easier to explain what blockchain does, or is capable of doing, rather than what it is. The pop technology book Blockchain Revolution falls into that category with only one brief attempt to describe the mechanics of the tech. The remainder of the book id dedicated to its history, social and economic contexts and potential future.

Then, there is the hype which helps to obscure the substance. Where is blockchain on the new technology hype cycle? Are we at the “peak of inflated expectations” or in the “trough of disillusionment? In recent years there have been some notably extravagant claims made about the technology, in both the popular press and “technical writings”. Blockchains could “create a perfect transactional environment and do away with the need for banks, lawyers and courts.” Blockchains have the potential to “constitute a profound paradigm shift regarding data collection, sharing and processing” which may create associated revisions of socio-economic and political arrangements. Other commentators have asserted that blockchains are “widely regarded as one of the most important technologies of the future because of the benefits they promise to deliver in cost-savings, security, and data reliability.”

The actual substance of the technology

What is it about the nature of blockchain that lends itself to a new paradigm for transacting, the “smart contract”?

Blockchains are a form of distributed ledger technology (DLT); distributed in the sense that the data on the ledger is not stored centrally, by a bank for example, but instead the whole of the data on the blockchain is stored on every “node” in the network. Each blockchain ledger is a record of transactions – a database, but with significant additional functionality – and so called because groups of transactions are gathered together into blocks as they occur, and as each block is turned out it is added to the chain of all transactions.

Each block can be thought of as a page in a ledger. The data blocks constitute a growing list of records and the blocks are linked using cryptography. The technology was originally adapted from an older application to store payment data relating to Bitcoin transactions (the Bitcoin blockchain is now just one of many); and first described as the supporting platform for Bitcoin by its pseudonymous creator(s), Satoshi Nakamoto, in their October 2008 paper Bitcoin: A Peer-to-Peer Electronic Cash System.

In the context of digital currencies, blockchain was created to solve the “double-spending” problem. Without a bank as intermediary, who is to say whether a digital “coin” (in the form of a piece of data) may be a copy of an original which has already been spent elsewhere? Blockchains are secured against fraudulent transactions in three main ways.

  1. Decentralisation

Each blockchain is a distributed ledger, accessible to all participants, storing data across its peer-to-peer network of “nodes” – the individual computers, servers or mobile phones used by the participants. Each node stores a localised but complete copy of the blockchain. Every participant in the blockchain can see every transaction. There is no need for a third party intermediary to verify and validate transactions with its approval – whether someone is attempting to spend a digital coin twice at the same time, for example, or whether a contractor is seeking payment for a steel element that has already been delivered to someone else’s site.

Every participant’s copy is the “official” copy; and because changes to the data in the blockchain can only be made by consensus, a party would need to control more than 50% of the nodes in the network in order to re-write the past to facilitate a fraudulent transaction. On a distributed network of any scale, such an event would be a virtual impossibility.

  1. Cryptography

The immutable nature of data on blockchains makes the technology more than just a database. Once data has been recorded inside the blockchain, it becomes extremely difficult to retrospectively alter. Data is grouped into blocks that, once they reach a certain size, are chained to the existing ledger through a hashing process; cryptographically linked through unique codes which individually identify and timestamp each block. Every block contains its own cryptographic hash, as well as the cryptographic hash of the previous block in the chain.

In this way, any attempt to alter the content of a block of data – for example to say that a previously acknowledged transaction did not take place – would also alter its hash and invalidate all subsequent blocks in the chain.

  1. Consensus

Transactions on a blockchain are authenticated by mass collaboration powered by collective self-interest. The way in which replicated data is accepted into the network and stored in blocks is synchronised through a consensus protocol. The protocol allows the nodes within the network to reach agreement as to the current valid content of the ledger. The most commonly used consensus protocol currently is “proof-of-work”.

Proof-of-work requires the party wishing to add to or alter the data on the blockchain to “work” – essentially spend money to invest in processing time to enable its own computer to solve a computational puzzle. To be effective, the proof-of-work must be asymmetrical; hard enough to require a significant investment in computing power to solve it (and establish the right to enter data on the blockchain by convincing more than 50% of the nodes to accept it), but simple for the other nodes to check and validate. The investment in electricity required to satisfy an asymmetric proof-of-work protocol is intended to make it pointlessly expensive for a malicious third party to take over control of a blockchain network.

Because of this architecture, which promotes incorruptibility of data, blockchain has moved from being an adjunct component of the Bitcoin model to become in itself the key focus of technological development initiatives in numerous sectors, including potentially the construction industry.

Blockchain, good and bad

On the flipside of the hype, there are 3 persistent criticisms of blockchain technology:

  1. Utility

Does the technology have real world utility? Depending on your point of view, blockchain might just be a solution looking for a problem, or the key to the future. Where does the truth lie?

Of the many thousands of academic and practitioner-oriented blockchain articles published since the inception of cryptocurrencies in 2008, surprisingly few focus on discussing what the technology is not capable of doing, and as a result which industries do not require such technology. For some sectors the application of the technology even if it would have utility may be many years away.

  1. Energy

Aside from this perception, others have criticised blockchain technology as slow and energy hungry, a problem which if unresolved would create serious doubts around its scalability. It has been noted that the security necessity of proof-of-work, and the need for each node in any blockchain network to carry a complete copy of the blockchain, gives rise to potentially serious environmental concerns. It was estimated that in June 2017 Bitcoin alone was using more energy than 150 individual countries in the world. It seems conceivable that, even if no better security solution than asymmetric proof-of-work can be developed to fit the needs of blockchain, advances in computer technology may hold the answer to this issue. For example, it is possible that transition metal dichalcogenide monolayers (TMDCs) – atomically thin semiconductors – contain properties which could be exploited through forms of quantum manipulation known as valleytronics to vastly enhance computer power and efficiency. It has been claimed by researchers in this area at Georgia State University that TMDCs “possess optical properties that could be used to make computers run a million times faster and store information a million times more energy-efficiently” than at present.

  1. Anarchy

There would seem to be a clear dichotomy between the need for public blockchain networks to be permissionless – in order to remove the control of a gatekeeper whose vested interests may not reflect those of the participants in the network – and the need for regulatory authorities to maintain control over commercial transactions, and human interactions more broadly. The nature of blockchain is distributed and anonymous – almost anarchic. Is it possible to regulate blockchain? Law and lawmakers have found solutions before – law has perpetually been challenged by the emergence of new technologies, yet legal systems have never been undermined. But do the potential users of blockchain want it to be regulated if, by introducing a gatekeeper, the essential nature that made the technology so potentially exciting is lost?

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Project Demonstrates Private & Public Sector Collaboration

Winvic Construction Ltd, currently delivering the civils and infrastructure works at SEGRO Logistics Park Northampton (SLPN), is working in partnership with the Smart Motorways Project (SMP) team including Principal Contractor, Costain Galliford Try (CGT), to ensure the two major schemes are undertaken efficiently and in the true spirit of collaboration.

This close private and public sector relationship has been built over the last four years due to Winvic and CGT undertaking similar collaborative liaison via the construction of the SEGRO Logistics Park East Midlands Gateway (SLPEMG) and SMP M1 J23a to 26. Best practice interfaces and innovation communications have now resulted in the leading main contractor that specialises in the design and delivery of multi-sector construction and civil engineering projects donating 5000m3 of topsoil to SMP – equivalent in volume to two Olympic-sized swimming pools.

In the creation of the plateau for the 35-acre Strategic Rail Freight Interchange (SRFI), more soil excavation needed to be executed than was required to form the screening bunds around the site. Therefore, this topsoil would have otherwise been placed on adjacent land, but Winvic’s open and frequent collaboration means it will now be utilised by SMP to dress the new motorway verges and embankments from Junctions 15 to 16 of the M1.

Rob Cook, Winvic’s Director of Civils and Infrastructure, said: “Winvic is proud of its ability to build and maintain strong relationships with third-party organisations, whether that’s Highways England and its Smart Motorways Project Principal Contractor, utility companies, local authorities or community groups. Not only does our prioritisation of successful collaborations result in safer working practices and reduced disruption for people in surrounding communities, it also results in tangible efficiencies which can sometimes be found in unexpected places.

“With SEGRO Logistics Park East Midlands Gateway – where we shared a 1.5km boundary with SMP and really set the standard for complex partnership working of this nature – we shared traffic management and combined night works; and here in Northampton, through our frequent liaison, we’ve found a mutually beneficial solution for 5000m3 of excess soil. The SMP Principal Contractor, CGT, and Winvic site teams are once again working together to reduce disruption and do the right thing.”

With around 600 metres of shared boundary adjacent to the northbound off-slip and southbound on-slip at Junction 15 of the M1, detailed synchronisation of programmes, traffic management (TM) and anything else arising that could affect each other’s project is crucial. Weekly coordination meetings look forward two weeks at a time to ensure road closure and associated TM minimally impact road users. For example, one lane must remain open on the A45 at all times meaning Winvic is accommodating any SMP motorway slip closures, ensuring vehicles can be diverted through the junction. Furthermore, additional daily or nightly meetings are held where any last-minute programme adjustments can be addressed, again to reduce disruption to local road users and communities.

Richard Bark, Winvic Project Manager at SLPN, commented: “Having started in July 2020 with advanced planning, preparation and enabling works, when the construction works commenced in January 2021 we were ready for the challenge. Having completed successful liaison with Highways England, local authorities, statutory authorities and local stakeholders we had created a strong ‘one team’ working approach.

“Having worked on a number of projects where collaboration has been crucial between all interested parties, there isn’t a challenge that can’t be overcome when everybody is focused on the end result and prioritises honest communication.”

Highways England programme manager Lynne Stinson added: “We work collaboratively with partners to ensure that we can keep disruption to a minimum for motorists, businesses and residents in the area. A key part of this work is the detailed and careful planning of roadworks and any lane closures between the two parties to ensure that we can keep traffic flowing.

“We’re grateful for the collaborative approach to our scheme and look forward to continuing to work with Winvic.”

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How Construction Companies Can Defend Against Ransomware Attacks

The threat, scope and impact of ransomware attacks is growing. Egnyte’s analysis of existing customers found that companies in the architecture, engineering and construction sector were more than twice as likely to fall victim to these attacks. Andrew Martin, Senior Sales & Marketing Director EMEA at Egnyte, explains how companies can defend against ransomware attacks.

Ransomware is a serious problem for the construction sector, and given firms are schedule-driven, any successful ransomware attack that impacts work has a higher probability of being paid off by the victim. This creates a target-rich environment for potential attackers, with 1 in 6 construction companies having reported a ransomware attack in the past year.

In practical terms, ransomware is a technique used by cybercriminals to prevent their victims from accessing their own computer systems. One of the ways this is achieved is by infecting them with malware that encrypts data on target networks and then threatening not to remove it until demands are met. In most cases, the ransom is financial, with payment demanded in cryptocurrency, such as Bitcoin. Depending on the type of ransomware infection, denial of access to business-critical files could be permanent if the ransom is not paid, and for some unfortunate victims, even when the ransom is paid.

In many cases, ransomware enters the target network from a download delivered via a phishing email or link (often from a trusted source) with an enticement to click it, which then activates an executable file that unleashes the attack. This method is used because it requires the least effort on the part of the attacker. Other popular attack points include inadvertent downloads of malware from an infected website – sometimes executed by clicking, at other times by simply landing on the site (including social media channels).

Why are construction companies at risk?

So, why are construction businesses being targeted? The first reason is the industry’s distributed workforce which, in turn, requires distributed technology. This increases potential cyber risk, not least because organisations find it hard to provide strong security across every point in their complex networks. Others simply don’t have the experience or resources to guard against the risk of ransomware. And, the global pandemic exacerbated the situation, as companies rushed to move their onsite workforces to Work from Home, often prioritising productivity, speed and convenience over cybersecurity concerns.

The second reason behind the growth of ransomware in the sector is its economic sensitivity to project delays. Attackers know and understand that “time is money” in the construction industry so it is easier to take advantage of firms that would suffer large losses if a project is delayed.  Thus, paying the ransom may be a more likely outcome.

The foundations of effective defence

Despite these challenges, construction firms can take a range of positive steps to avoid being hit by a ransomware attack – and in the event of a successful attack – quickly recover:

  1. Implement an Identity Management Solution – In the fight against ransomware, identity management is one of the leaders in helping to keep your data safe. A good solution will encompass various policies. Multi-factor authentication (MFA) prevents a single stolen username and password from enabling an attacker to gain access to an account. Single sign-on, which helps users gain access to company assets online, can block employees from accessing assets if a threat is detected. Effective identity management solutions also employ policies that govern behaviour to prevent attackers from impersonating legitimate users. While no security solution can guarantee to be 100% effective all of the time, a good identity management solution will encompass all of the above to ensure it is limiting the risk of ransomware.
  2. Restrict access to data – Once a cyber criminal has access to the target system their goal is to take control of as many files as possible on as many computers and servers as possible. However, the more files that are restricted via limited access, the more difficult and time-consuming it becomes for the attacker, giving the organisation more time to identify and control the breach before their systems are immobilised.
  3. Focus on ransomware recognition – This includes a range of automated techniques that can identify ransomware and mitigate its potential to do harm. Examples include unusual behaviour detection, as well as identifying the presence of a ransom note that sets out the threat to the system and the payment amount and procedures. Also important is ‘zero-day’ monitoring, which looks for a vulnerability that no one knows exists until it is exposed. Behaviour-based ransomware detection increasingly employs Artificial Intelligence (AI) to detect and remediate suspicious actions in near-real-time.

Focusing on recovery

While these strategies have proved to be extremely effective in reducing the chance of a ransomware attack being successful, all organisations remain at significant risk.

As a result, construction firms should always include a worse-case scenario in their ransomware strategy that allows them to quickly recover to business as usual – even when they have also invested in prevention. One of the most important capabilities is an effective business continuity plan that includes backup and recovery.

Granted, many companies already have a backup and recovery plan, but many also take an all-or-nothing approach, so even if only part of their file infrastructure  is compromised, they still need to recover and replace large sections of their data in order to restore it. This can take days if not longer to complete, meaning that even a small breach can significantly impact daily operations. Instead, the use of selective file restoration utilises backups that exist both on-premises and in the cloud for faster recovery and increased resilience.

With overall ransomware risks continuing to increase, construction companies that take decisive preventive and recovery measures will be well placed to avoid potential catastrophic disruption and cost. In a competitive environment, this is crucial to business performance, profitability and growth.

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Claiming Multiple Debts in One Adjudication

An important new decision from the English Technology and Construction Court (“TCC”) allows a quicker and more cost effective route to recover debts on construction contracts. The key issue in Quadro Services Limited v Creagh Concrete Products Limited¹, was whether a claim for three outstanding payment applications was “a dispute” under the Housing Grants, Construction and Regeneration Act 1996 (the “Construction Act”), or multiple disputes. The court’s decision means parties can avoid the cost and inconvenience of pursuing numerous adjudications where several payments are outstanding. The decision also demonstrates the court’s continued support for the adjudication process in the face of technical challenges.

Factual Background

The parties entered into an oral agreement for Quadro to provide construction labour to CCP (the “Contract”). As the Contract did not contain adjudication provisions, the Construction Act and the Scheme for Construction Contracts (England and Wales) Regulations 1998 applied.

During the Contract, Quadro made several payment applications and raised invoices for the amounts claimed. No pay less notices were issued by CCP in response to Quadro’s applications. CCP’s Quantity Surveyor had approved the first and second invoices but did not respond to Quadro’s request for approval of the third invoice.

CCP did not pay the amounts outstanding, so Quadro commenced an adjudication for payment of the three outstanding invoices. As it is well established that an adjudicator may only decide one dispute at a time, CCP challenged the adjudicator’s jurisdiction on grounds that Quadro had referred three payment applications to adjudication, meaning three separate disputes. Although the adjudicator rejected that challenge and proceeded to award Quadro the sum claimed, CCP did not pay. Quadro subsequently applied to the TCC to enforce the adjudicator’s decision.

Judgement and Legal Issues

A party to a relevant construction contract has a right to refer “a dispute” to adjudication at any time². The issue for the TCC to determine was whether Quadro had referred three disputes to adjudication, given the three separate invoices, or whether there was only one dispute. The TCC also had to decide whether CCP’s defence had any real prospect of success.

The TCC noted comments in Witney Town Council v Beam Construction (Cheltenham) Limited³ that “a sensible interpretation will be given to what the meaning of a dispute is” and “almost every construction contract is a commercial transaction and parties cannot broadly have contemplated that every issue between the parties would necessarily have to attract a separate reference to adjudication”. The TCC also referred to Prater Limited v John Sisk & Son (Holdings) Limited⁴ where it was held that “clearly a single dispute in the context of a construction contract may include several distinct issues… One needs to look at the facts of each case and to use some common sense”.

The adjudication involved three separate payment applications, each of which could be considered in isolation. However, CCP had not raised any issues regarding the validity of the payment applications, any substantive dispute as to its liability to pay the invoices or issued any pay less notices. CCP had simply failed to pay. That it was possible to determine whether each individual invoice was due, without determining whether the other invoices were due, did not mean those issues could not be sub-issues of the wider dispute of whether Quadro was entitled to the sum claimed under the Contract. The payment applications were cumulative, with each application being for the full value of the work done, less previous payments. Each payment built on the previous one and there was a clear link between them.

The TCC said that if CCP’s arguments were successful, parties would incur the cost and inconvenience of pursuing numerous adjudications to recover a single sum under a single contract. There was no merit to CCP’s argument that because the third payment application had not been agreed, the three applications were distinguishable from each other and were not sub-issues of the wider dispute. No pay less notice was issued following the third application and none of the payment applications were disputed on substantive or procedural grounds.

The TCC held that the adjudicator was right to conclude that he had jurisdiction because Quadro had only referred one dispute to adjudication. CCP had no real prospect of successfully defending the claim on grounds that the adjudicator lacked jurisdiction and so gave summary judgment to Quadro enforcing the adjudicator’s award.

Practical Steps and Recommendations

Quadro provides a useful reminder of the meaning of “a dispute” under the Construction Act where adjudications concern multiple payment applications. Although the meaning of a dispute can frequently result in jurisdictional challenges, in this case the TCC adopted a common sense approach to its interpretation. Although the dispute between the parties concerned three unpaid payment applications, the wider issue was an entitlement to the total sum claimed under the Contract.

The judgment highlights the weight which the TCC gives to the notion of commercial common sense and the overarching objective of the adjudication process to promote efficient and cost-effective dispute resolution.

Parties owed monies from construction projects will be relieved by this decision. It avoids the time and cost that would otherwise be incurred in having to pursue separate adjudications for each unpaid application. That said, the issue of multiple disputes in adjudications remains an area fraught with difficulty. While Quadro provides some overdue clarification to ensure payment and to avoid a successful jurisdictional challenge, parties must present an adjudication claim as a single dispute even though it may comprise multiple sub-issues. If in doubt, take expert legal advice.

Trainee Maximilian O’Driscoll also contributed to this article.

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£157m Greener Homes Alliance Launched

Octopus Real Estate, part of Octopus Group, has partnered with Homes England to create the Greener Homes Alliance.

The new Alliance will commit £175 million by providing both loan finance and expert support to SME housebuilders, enabling them to build more high-quality, energy-efficient homes across England. As part of broader efforts to expand the supply of finance available to SMEs, Homes England will provide £46 million of the £175 million.

The Alliance will provide loans between £1 million and £20 million to help finance new SME development projects. Housing funded must achieve a minimum Energy Performance Certificate (EPC) rating of B and will benefit from increasing interest rate margin discounts as the energy efficiency of the homes increases (as measured using the Standard Assessment Procedure (SAP)). Homes achieving an EPC rating of A will benefit from interest rate margin discounts of 2%.

Before starting their developments, SMEs will also benefit from free of charge, expert advice from sustainability consultants McBains and Octopus Energy – the United Kingdom’s leading 100% renewable energy supplier and part of the Octopus Group.

McBains will provide design guidance and practical steps to achieve an improved EPC.

Octopus Real Estate offers flexibility and efficiency in its funding to developers, and this will remain a key element of the Greener Homes Alliance. Loans will be up to a maximum of 85% LTC or 70% LTGDV, to maximum loan sizes of £20 million.

The Alliance will support the construction of up to 750 new homes whilst also equipping SME housebuilders with knowledge and expertise around low carbon construction, allowing them to build to higher environmental standards, now and in the future.

Housing Minister Christopher Pincher said: “We are determined to ensure that our homes are fit for the future and improving energy efficiency is a key part of our ambitions to reach net zero emissions by 2050.

“Our Future Homes Standard will ensure that from 2025 new homes produce at least 75% lower CO2 emissions and will be future-proofed with low carbon heating.

“This partnership will help reach our targets for cleaner, greener homes for future generations.”

Peter Denton, Chief Executive at Homes England, commented: “This new partnership, the latest in a series of impactful lending alliances, will give smaller housebuilders both the funding and the knowledge needed to build more sustainable homes.

“The Greener Homes Alliance brings developers and lenders closer together, providing affordable finance, improving knowledge-sharing and creating new paths to net zero.”

Benjamin Davis, CEO of Octopus Real Estate, said: “Creating more energy efficient homes across the United Kingdom is vital if we’re to make progress towards net zero. Our joint venture with Homes England will help meet this increasingly urgent need to develop more sustainable homes.

“The Alliance will provide access to funding and expertise to help developers ‘go green’ when making decisions for their developments. Given the public are more in tune than ever before about how energy efficient their homes are, and in turn their own impact on the environment, the opportunity for developers building greener homes is huge.

“As a B Corp, Octopus Real Estate is committed to our impact goals and the opportunity to work with the real estate sector, alongside institutional investors, to create choice for developers to future-proof developments and drive the green acceleration of the property market.”

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