Turning a Trying 2020 into a Thriving 2021

Ian Batchelor, Executive Director of Construction, and Simon Yung, Head of New Homes at ODS discuss their learnings from 2020 and what the future holds for the construction industry

2020 has been a challenging yet eye-opening year for the construction industry. We witnessed a record monthly output growth of 21.8% in June 2020 despite the impact of COVID-19, which then slowed to 3.0% in August.[1] The pandemic delayed £26 billion worth of projects in the UK at the start of the first lockdown in March, and more than 83,000 employees in the industry have lost their jobs. This has meant companies have needed to furlough employees, provide extra support and find new ways of working, including COVID-secure working practices.

A new way of thinking about construction is needed for 2021. The industry is one of the few permitted to continue working through lockdown, however it must adapt to the current situation and evolve it approach as the new year dawns. It has already started to make important changes, such as supplying workers with sufficient PPE, arranging bubbles and scheduling staggered break times, which are all steps in the right direction.

Whilst a new vaccine has just been approved for use in the UK, we can take what we have learnt this year and use it to improve. Changes made in the construction sector today will enable new efficiencies to be created tomorrow.

A brighter 2021

While 2020 has been difficult for everyone, we’ve all undoubtedly learnt a great deal from the challenges faced. We have also mastered how to work more efficiently and to become more creative in a predominantly on-site industry which, when everything is running smoothly, operates without pauses.

The pandemic will likely prompt several significant changes in 2021, benefitting the public, environment and construction industry professionals. These include: high-quality, energy efficient new builds and renovations, the proliferation of modular construction, and re-investment in apprenticeships.

Enhanced private and social housing

The pandemic has had an effect on housing in more ways than one. In addition to issues such as an increase in housing costs, mental and physical health have been greatly impacted by having to stay indoors for long periods of time. This means that, in 2021, there is likely to be a greater focus on more spacious, energy efficient housing, to avoid overcrowding as well as any negative effects caused by the outside environment. Further, working from home is creating demand for residences in more rural locations, as people escape to the suburbs for more space, scenic views and fresh air.[2]

Energy efficient housing can deliver healthy temperatures and humidity levels, reduced noise levels and improved air quality. As part of our commitment to help create a zero-carbon Oxford, we’re currently building zero-carbon social homes. Due to finish in spring 2021, an independent consultant has indicated the development is likely to achieve a 100 A or 99 A energy efficiency rating in their Energy Performance Certifications; the highest possible scores for energy efficiency. The homes will be suitable for the elderly and disabled, with hallways that are large enough for wheelchairs to pass through, entranceways with wheelchair charging points and wet room bathrooms.

More modular construction

Modular construction has been a hotly debated topic in the industry. But with MMC champion, Mark Farmer, calling on the government to build 75,000 modular homes a year, we will likely see greater adoption of this approach. With the world’s tallest modular building having been completed at the end of last year in London, and with more than £223 million of loans from the Home Building Fund agreed for projects using MMC, it’s clear  modular construction is the way forward.

ODS has already begun implementing MMC into its construction mix. Using the ‘Oxford model’, where the community is considered in all business decisions, of modular construction, we have largely built our zero-carbon homes off site before installation. This approach allows projects to be completed up to 50% faster than those built traditionally, and also allows us to be kinder to the community by reducing the amount of noise, dirt and pollution produced by large construction vehicles and machines. We also recently erected sports changing facilities and a community space for a local football club using modular construction. This minimised the impact on local residents and the site itself, and kept build times to a minimum.

Apprenticeships

Existing apprenticeships have been paused in the construction industry, and a number of businesses have found the Government’s current apprenticeship scheme to be confusing. This has posed a major problem for the industry’s future, particularly due to the effect Brexit may soon have on the number of EU nationals working in construction in the UK.[3]

The good news is the Construction Industry Training Board (CITB) has confirmed, under its new proposals recently submitted to the Government, thousands of construction SMEs will not have to pay a levy for 2021-22 and will still be able to claim CITB grants for their training and skills development.[4]

This will hopefully allow companies to re-focus on recruiting school leavers and other young people to the construction industry, and help them to get back on their feet in the new year. At ODS, we plan to continue offering work placements in joinery and construction apprenticeships.

Looking ahead

Construction performance has not been uniform this year, and companies across the country need to mobilise to ensure the problems which arose in 2020 are addressed, giving the industry an opportunity to thrive.

With new, greener methods of construction becoming increasingly popular and renewed hope for younger generations entering the sector, 2021 has the chance to become a year of recovery, change, and especially, innovation.

At ODS, ‘doing good business’ is our core purpose and this will shape our construction strategy looking ahead, with a major focus on sustainable social housing and carbon-efficient construction techniques. As always, every decision will be made with our employees, customers, suppliers, community and the environment in mind. Hopefully, the lessons learned from 2020, and ongoing support while adjusting to a ‘new normal’ will make things easier for our teams, and the construction industry as a whole in the coming months.

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[1] https://ift.tt/3pAjuLQ

[2] https://ift.tt/2HUjypI

[3] https://ift.tt/34ZTUIh

[4] https://ift.tt/3o8Qo68

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Construction Predictions for 2021

Amira Khan is a partner at Gateley Legal and handles both contentious and non-contentious matters. In this feature, she takes a look at what 2021 could hold for the UK construction industry.

No one could have predicted the events of 2020, and so predictions for 2021 are filled with some trepidation.  There are of course a number of statutory changes that have been postponed due to COVID-19 and have been waiting in the wings for some time. Nevertheless, there is still likely to be some fluidity in construction due to the market’s recovery from COVID-19, the settlement of the final Brexit negotiations, and the development of new laws particularly arising from the Grenfell enquiry.

The VAT Reverse Charge is finally expected to come into effect, which will shift responsibility for accounting to HMRC for VAT from the supplier to the recipient of VAT chargeable services.  This will affect contracts from 1 March 2021 (regardless of when the contract was entered into) and so many businesses have already been making preparatory steps in anticipation of these changes.  This includes establishing what supplies are affected by this change and whether any exceptions apply in their procurement.  Most contracts should be amended so that it is clear who has responsibility for paying VAT and whether or not the VAT reverse charge will apply to the transaction.

The International Federation of Consulting Engineers (FIDIC) is due to publish new materials on their contract suite during early 2021.  A revised edition of the Green Book (FIDIC’s short form contract) is anticipated, as well as a test edition of a new Bronze Book, which is an ODBO (Operate-Design-Build-Operate) contract intended for use on brownfield sites.  FIDIC does not currently have an ODBO contract and it is suspected that this will be of interest to those involved in upgrading existing facilities.  In addition, FIDIC will be issuing guidance notes for the 2017 editions of their Red, Yellow and Silver books with the intention that this will encourage further use and application.

The draft Building Safety Bill will no doubt continue to gather momentum in 2021. This Bill proposes a new safety regime, particularly for higher risk buildings, which is likely to have the most impact upon multi-occupied residential buildings.  The Bill focuses on the role of the Health and Safety Executive (HSE) as the Building Safety Regulator who will be responsible for overseeing the safety and performance of all buildings.  This will involve raising standards of competency among professionals (most notably architects) and taking enforcement action against non-compliance with Building Regulations, issuing compliance and stop notices, and prosecuting those who fail to obey.  In addition, there is likely to be a new “duty holder” regime in the design and construction of higher risk buildings.  This revolves around two new roles.  Firstly, there will be an Accountable Person who must assess the building safety risks relating to the building and take reasonable steps to prevent their occurrence on an ongoing basis.  Secondly, there will be a Building Safety Manager, appointed by the Accountable Person to support them in the day to day management of fire and structural safety in the building.  These proposals are in consultation with the industry at the moment and there is a great interest in putting these additional safety measures in place following the aftermath of the Grenfell report.

The impact of Bresco Electrical Services (in liquidation) v Michael J Lonsdale [2020] UKSC 25 will continue to be felt throughout 2021 and beyond.  This case permitted an adjudication to be commenced by a company in liquidation.  Since then there have been further cases determining when a                                                  decision in favour of an insolvent company will be enforced.  In Meadowside Buildings Development Ltd v 12-18 Hill Street Management Co Ltd [2019] EWHC 2651 (TCC), the TCC considered what requirements must be met to permit enforcement, which included if the adjudication determined the final net position between the parties; whether satisfactory security was provided and whether the losing party could recover the sum if it was overturned on final determination.  This was further developed in John Doyle Construction Ltd v Erith Contractors Ltd [2020] EWHC 2451, in which standard principles were developed to determine the circumstances in which summary enforcement for a decision will be permitted.  Due to ongoing demands on cashflow for contractors and sub-contractors, there is likely to be more cases arising in 2021 where such principles will be utilised to facilitate the recovery of payments through adjudication.

2021 may also see an increase in potential claims arising from Brexit and the continuing implications of COVID-19.  These changes are likely to put additional burden on the usual pressures of time and money within construction projects.  It is expected that Brexit may lead to longer lead in times or shortages in acquiring materials, due to the added border checks that are anticipated.  The combination of COVID-19 and Brexit may have already started to lead to labour shortages and difficulties in meeting programmes.  The potential for disputes can be mitigated now, by either negotiating specific remedies within contracts for projects yet to start, or by keeping appropriate record keeping during the works and promptly notifying any difficulties in accordance with the terms of the contract.

Many will be pleased to say goodbye to 2020.  Here’s to the year ahead and let’s hope it will lead to positive news for construction. In preparation for any unexpected events that may arise in the next year, it is always advisable to have a robust contract in place to deal with any risk areas and to adhere to this in your working practices so that you are best placed in the event of any potential claims.

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What Opportunities Await Contractors

Each year brings fresh challenges to the construction industry, and it is fair to say that 2020 was no exception. And while many sectors were encouraged to work from home, those employed in construction were some of the unsung key workers who remained committed to delivering projects. On growing opportunity for the construction industry is with the data centre sector, as demand continues to increase across the world. The Nordics region in particular offers fantastic prospects for UK and Irish contractors, as Billy Durie, Global Sector Head for Data Centres at Aggreko, explains.

Looking towards the Fjords

While doubt was cast on the survival of a number of industries, one which continued to boom during 2020 was the data centre sector. As working from home became the norm during the lockdown months, reliance on data usage and servers increased.

One area which is currently seeing a surge in new facilities is the Nordics region. Sweden, Norway, Finland and Denmark have all seen significant investments in data centres, including co-location and edge facilities, and it is believed that 200 data centres have been established in this region over the past decade. Countries in the Nordics have a number of benefits to investors, such as naturally lower temperatures offering greater free cooling capacity and availability of renewable energy.

So, then, how does this impact UK and Irish contractors? One of the major challenges for the Nordic region is a shortage of skilled teams and resource to deliver projects at the pace required. In fact, many data centre projects in the Nordics are managed by contractors based in the UK and Ireland. Understanding this region’s challenges is therefore key for contractors if they are to take advantage of this growing opportunity in 2021.

Temperature challenges

Temperature poses one of the biggest challenges in the Nordics region, dropping as low as -30^oC over the winter months. Throughout the construction phase, it is imperative that facilities remain operational for workers. The impact of Covid-19 has seen delays to projects in the Nordics, with travel bans restricting contractors from crossing the North Sea.

As such, planned construction phases, like excavation, which is usually carried out before the ground freezes, may have been pushed back. At this point, contractors must ensure that temporary heating is installed to help thaw the frozen ground to allow for construction to continue.

For facilities further on through the construction phase, rooms may need to be heated to certain temperature for contractors carrying out installations to meet local legislation and aid safe and productive work. Providing temporary heat may also be vital to ensuring ambient conditions are kept stable, so the installation of electrical and mechanical infrastructure can help contractors conform to manufacturer guidelines. However, the use of heaters could inadvertently cause issues further down the line, if used incorrectly.

Humidity’s rising

A second challenge that is facing construction industry is humidity. The Nordics are known for their cold, and often wet, weather. The issue of humidity is therefore a year-round concern and managing it is critical for the long-lasting performance of any facility being built.

Many contractors will solely rely on heaters to remove damp areas, but this can cause inefficiencies in the future. While on the surface, it may appear that heaters are an effective way to dry surfaces, there are many underlying damages that occur. That is because heaters simply move the moisture, rather than removing it from the atmosphere.

The damage moisture can cause is more long-lasting than people imagine. As well as causing premature deterioration of building materials, moisture can also find its way into the smallest areas and spaces, with electrical components particularly vulnerable to its effects. As such, it is imperative that moisture is managed effectively, given the reliance on data centres and damaging impact of any downtime.

If, during construction, extreme weather is experienced, it is strongly recommended that moisture is removed as part of the drying process. There are three stages required for the successful removal of moisture: moisture removal, heat and air movement.

Adding heat into the space excites water molecules, so they are drawn out of the building structure and into the expanded atmosphere. Fans should then be introduced to circulate the air, aiding the removal of moisture, while a dehumidifier should be the final step. Removing energised water molecules from the environment – and in turn reducing moisture levels – dehumidification eliminates water from the air completely, cooling the air below before condensing and draining away.

It is more important than ever that humidity is taken seriously on all construction sites. If volatile weather patterns are to become more consistent, then ensuring dehumidifiers are on-site is going to be essential to ensuring any facility’s long-term performance.

Preparing for the unpredictable

2020 taught us to expect the unexpected. For contractors which face pressures to meet ever-tightening deadlines, particularly within the data centre market, travel disruptions have caused supply chain issues around the world, highlighting the important role of critical equipment hire.

If the arrival of components and parts that are required during the construction or maintenance of a data centre is impeded in any way, operations could see significant delays. With data centre demand at a peak in order to facilitate remote working and medical data storage, and with a rise in demand for new infrastructure to facilitate emerging tech – such as 5G – downtime or delays are simply not an option.

Rental solutions, including dehumidifiers, heating equipment and generators, can ensure infrastructure projects can be carried out smoothly and completed on time. Allowing continuation of operations when there are delays in the delivery of critical equipment, temporary solutions are scalable and flexible and so can be implemented in any size of data centre for however long they may be required.

As the world’s largest hire company, Aggreko provides temporary power, battery storage, temperature control and testing around the globe, to meet the ever-growing demands of data centres. For more information, please visit www.aggreko.com/data-centres.

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2021: Construction industry predictions

2020 has proven that even that the best laid plans need to be flexible in order to survive. As one of the sectors hardest hit by both Brexit and the coronavirus pandemic, the construction industry has been forced to react, adapt, and innovate. But has this shaped the industry permanently and has it altered what’s on the cards for 2021? Kate Onions, head of construction disputes, and Adam Watson, construction lawyer, both at law firm Shakespeare Martineau, discuss their five predictions for the next year.

Putting the Brexit foot forward

The UK’s existing skills shortage is no secret. With EU talent currently making up eight percent of the construction industry workforce, there is a real concern that the skills gap may increase exponentially (a possible ‘skills gulf’) if EU workers are not permitted to remain in or enter into the UK.

Currently, EU nationals who live in the UK before 31 December 2020 are allowed to continue to do so until 30 June 2021, which is the deadline for applying for settled status. However, any EU nationals arriving after 31 December 2020 will require a visa or sponsorship in order to secure employment.

When it comes to the import and export of goods and materials, there is real uncertainty surrounding how tariffs may be impacted. A change in tariffs for imports, in particular, is likely to lead to the inflation of prices from EU suppliers providing goods and materials to the UK. This is a serious concern given that almost a quarter of construction products used in the UK are imported, with almost two thirds of such products coming from EU countries.

It is good practice, in any event, for contractors to ensure that the channels of communication with their supply chain are open. This will help ensure that when issues do arise there is likely to be good communication and dialogue in resolving the issues without causing pinch points and critical delays to projects.

The impact of Brexit on the planning process could influence development programmes, where consents must be obtained before construction works can even begin. It is therefore more important than ever for contractors to plan ahead and include a buffer zone (i.e., float) into any strategy. However, it is also key to avoid the tendency to try to cover all eventualities and focus on the most important suppliers and the most vital information in any supply chain mapping.

Ongoing impacts of the COVID-19

The biggest impact of the COVID-19 pandemic on the construction industry has arguably been financial. However, one of the most noticeable impacts on a day-to-day basis is the huge increase in on site safety, something which will continue to develop and increase during 2021 and beyond.

In order to mitigate the spread of the virus, the construction industry’s focus will be on the separation of workers, and enhanced equipment and cleanliness protocols. Separation is a particularly difficult thing to achieve on site, where close cooperation and teamwork are the norm. Therefore, it is likely that smaller teams will be used, with the potential for staggered shifts to limit numbers. With the likelihood that social distancing will continue to be a fixture in 2021 with those working on site required to wear masks, use sanitizer, and keep their distance where possible.

Make way for modular construction

Modern Methods of Construction (MMC) are increasingly being used in the construction industry. Certainly, we’ve seen an uptick in usage, particularly on the part of social housing providers. This no-doubt reflects the fact that recently, processes and materials have become more refined, and industry confidence in MMC is growing. In 2021, it is likely that there will be a huge boost in interest. In the post-pandemic era, both the manufacturing process itself and the results of modular construction are perfectly suited to the times.

Buildings constructed off-site are already built in a way that promotes low worker density. The manufacturing is often undertaken in big, airy buildings, with plenty of room for distancing. The equipment used is also specifically designed to let fewer workers move larger components, reducing proximity, as well as labour costs.

Once constructed, modular buildings lend themselves to growing and evolving businesses, for example, if a company needs individual offices with independent systems, a remote worker requires an office at home, or a hospital needs additional rooms. Prefabricated buildings have the dual advantage of being affordable and short-term or long term, as required. After all, in times of uncertainty, a temporary, flexible solution is often the best option.

Payment disputes

It’s well known that the construction industry often operates on very low profit margins. When project issues arise, cash-flow problems are inevitable. Since the start of the pandemic, the number of construction companies becoming insolvent has been on the rise and it is expected that this trend is set to continue.

With the main concern for many being getting paid and with construction projects rarely running entirely smoothly, if the issue of non-payment does arise, parties may be forced to either bring or defend a claim for non-payment.

In these cases, employers and main contractors alike need to ensure that the appropriate payment and pay less notices are issued in accordance with the terms of the contract. Failure to do so can lead to ‘smash and grab’ adjudications, where a party claims the whole amount of the payment applied for simply on the basis that no payment / pay less notice was issued.

The reality is that smash and grab adjudications are here to stay. Therefore, the key is that paying parties need to avoid leaving themselves open. By checking that they have the appropriate procedures in place across all projects, they can ensure that payment deadlines are met.

Sustainability innovations

The ‘Absolute Zero’ report, published at the end of last year by researchers from a group of UK-based universities, states that the construction industry uses half of all steel and cement produced globally and is responsible for 30 percent of its carbon emissions. If the UK is to stand a chance of achieving its target to achieve net-zero carbon emissions by 2050, this will need to be addressed by the industry as a whole.

From start-ups turning construction waste into bricks, to businesses engineering wood for optimum carbon storage, the world of sustainable building materials is growing at a rapid pace.

With the continued emphasis on using sustainable materials for the long term, and with clients more than ever requesting sustainability specifications, sustainability innovations are only going to continue to rise in 2021. However, for a sector used to tight operating margins, fiscal incentives may be needed to accelerate change, encouraging contractors to make use of the eco-friendly alternatives that now exist.

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Virtual Meetings Key for Digital Transformation

Jocelyn Lomer, Chief Executive at  nuVa Enterprises explains how enhanced virtual meetings are a key element for digital transformation and Net Zero attainment in the construction industry as we move into 2021.

Powerful forces of change are sweeping the construction industry catalysed by Covid-19 and consequent changes in working practices allowed by digital technology. These fundamental changes are coupled with digital innovations and the drive to Net Zero that will further solidify shifts in working practice and dominate business activity over the next decade.

Business leaders should remain aware of the environmental factors at play and be able to manoeuvre their organisational design to meet the needs of the future. The Climate Change Act of 2008 committed the UK to an 80% reduction in carbon emissions by 2050. In June 2019, legislation increased that target to 100%. Although it is unclear precisely how these legal targets will be enforced, the UK Court of Appeal ruled the Heathrow Expansion as unlawful insofar as carbon reduction was inadequately considered.

Link between digital transformation, climate change and virtual meetings

Examination of the Greenhouse gas emissions proportions will set the overall environmental scene that organisations will operate under. This analysis coupled with the digital capabilities available will allow the organisation to manoeuvre effectively and position not just for efficient green operations, but for the ‘agile knowledge organisation’ of the future.

Research from the Department of Business, Energy & Industrial Strategy found that transport is currently the largest emitting category and must therefore be the principal target for carbon reduction. Examining this data, it’s evident that 78% of the carbon expended is from transport, energy supply, business and residential. The energy supply category is being targeted by wind and nuclear, plus carbon production from coal is in rapid decline, with residential not currently, (apart from home working) being business related. This means remote focus can be applied to transport and business carbon expenditure. This is where the biggest Net Zero contribution lies and it is currently more important than energy supply.

With transportation as the largest emitting category, it’s important to consider the detail contained within that vertical which is defined as road, railways, road transport, domestic aviation, shipping and fishing, which all accounts for 28% of the burn. According to BEIS/DEFRA, a car kilometre with one passenger is 171grams/km, whilst rail is 41grams/km. Clearly rail is nearly four times more efficient, however due to Covid-19 and social distancing, rail passenger miles are not forecast to recover for around four years. When the rail service returns to normal, we can expect similar figures to 2018. Notwithstanding rail business miles are a major contributor to carbon expenditure but four times more efficient than car miles.

What’s more, according to the Department of Transport data less than 50% of rail travel is for business purposes, that is commuting and pure business rail journeys. This is a huge figure and is ripe for major reduction, excluding international air travel, which is another major carbon source.

It has also been found that at the very least 35% of car journeys are about business travel. Car journeys constitute 90% of road traffic and in 2019, cars and taxis clocked 278.2 billion vehicle miles at 228.2 grams per mile, which is equal to 63,485,240 metric tonnes of carbon consumed. Therefore, using virtual meetings to reduce this load is a prime target for businesses.

Going virtual

Without further drilling down into precise figures, we can see that business travel is one of the major contributors to carbon and greenhouse gas emissions, with carbon representing 95%. In this case, how then can we reduce business travel and what is business travel actually about?

Fundamentally, business travel and commuting is about gathering in the office to share knowledge around the various projects that we are working on. It is about knowledge exchange and for reasons of face to face meetings with artifacts (documents and these days CAD) is preferred. A ‘natural meeting’ is preferred due to millions of years of evolution, meaning our bodies and minds have evolved to socially collaborate and these important human factors should not be underestimated for we interrelate in many subtle ways.

Current remote collaboration media does not emulate this required natural meeting and this is why we become uncomfortable and suffer from the so-called ‘ZOOM’ fatigue, for it is a strain upon our minds to meet in this unnatural way. It is called ‘cognitive reluctance’ and in plain language, it is a hassle and quite tiring.

A new generation of virtual meetings is now available, that understands how we work and engages our minds in a most natural way. This and other emerging remote meeting media now allow us to share knowledge in this knowledge economy, immediately without travel, sharing the most complex documents and apps, such as complex BIM models.

Transforming the drawing board

Construction is obliged by the Climate Change ACT to halve their greenhouse gas emission, focussing on reducing carbon emissions by 95%. Advanced virtual meetings are one of the key areas for reducing CO2, for it is no longer necessary for key knowledge workers to assemble at the PMO and it is 100% possible to obtain project progress through shared applications all around the Programme without any travel at all. Knowledge can be ‘beamed in’ from anywhere. These benefits can be measured in reduced mileage and actually faster decision making. Similarly those rail journeys reduced by using virtual meetings can be used to free up railways to carry more freight, taking the freight traffic away from the roads with their high carbon spend.

Advance virtual meetings do not just reduce carbon, as their implementation is a vital stepping stone toward digital transformation, for it is the interface between the ‘world of digital apps and documents’ and the world of people. This is digital transformation in action, allowing immediate decision making from anywhere in the world, collaborating over visualised Big Data. In the terms of knowledge flow for innovation, the broader reach to external knowledge is simply revolutionary.

Digital champions and environmental leaders need to not only consider energy supply in their calculations, but also the major impact that advanced virtual meetings may have in meeting their Net Zero targets, as well as aiming to set the framework for the ‘agile organisation’.

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Willmott Dixon 2020 Construction Round Up

There is no doubt that 2020 has been a remarkable year which has brought with it numerous challenges – but also the opportunity to reflect and innovate as we look to move forwards and out of the COVID-19 pandemic. Nick Gibb from the national contractor Willmott Dixon discusses what we have learnt this year and considers what might come from 2021.

He said: “The construction industry is hugely important to the UK economy and, as such, we were one of the sectors that was encouraged to keep working, even when the rest of the country was forced into full lockdown back in March. That in itself brought with it numerous challenges that everyone operating within the sector was forced to adapt to very quickly.

“Almost overnight, swathes of people across the UK were told to stay at home – including significant numbers of those non-site-based workers within the construction industry. As a business we had already invested in our technology and training so the transition for our teams was easy but everyone was forced to adapt very quickly. On-site teams were also asked to understand and observe new health and safety guidance to help keep our teams, visitors and partners safe on site and stop the spread of the virus.

“This is one of the real positives to come my opinion; we are more agile as an industry than ever before and have been able to flex quickly and effectively to meet changing government guidelines whether that be on-site or our office-based teams. We have all learned a great deal during the last few months which will undoubtedly have a positive impact on the industry moving forwards.

“Surprisingly perhaps, as a business, we have seen productivity on site rise overall. We didn’t incur any major project delays and, in some cases, actually accelerated progress on-site, which is incredibly positive and a result of really careful planning and the need for a real focus on logistics.

“Throughout the Covid-19 pandemic, we have embedded the Government-backed Construction Leadership Council Site Operating Procedures at all of our sites across England and Wales.  Through implementing these safe working practices, as well as the endeavor of our site teams and embrace of technology, we have been able to keep 100% of our sites operational, supporting critical supply chains and the local economy at a time where it has been needed most.

“That being said, we have definitely noticed a shift for certain sectors with larger programmes particularly within the higher education and commercial sectors being paused by customers. Elsewhere, we have seen customer priorities changing in response to the pandemic and have needed to adapt quickly and focus on really being consultative and support customers. For example, we are now seeing increased emphasis being placed on offsite and modular construction products – which may create a challenge in itself as capacity becomes problematic.

“This focus on communication and collaboration is incredibly important. Communication is at the heart of success for any business and it is the cause of the most distress and disconnects, so it is hugely valuable to invest time into communicating effectively both internally and within a project team. Being open and objective is vital, interrogating what we are doing and prioritising accordingly.”

Moving into 2021

“We are expecting to see a relatively slow start to the year but as the pandemic hopefully eases with the roll out of a vaccine and things starting to return to something more like the world pre-COVID, we project some acceleration towards the back end of the year.

“Housebuilding continues to be priority for government with a focus on ‘building back better’ and delivering much-needed homes across the UK. The National Infrastructure Strategy also places infrastructure at the heart of the recovery and levelling up agenda so that will also be a hugely important sector.

“I think we will also see science and tech projects and the health sector coming forwards as well as the education commitment outlined earlier in the year. But 2021 will be a year of re-stabilising; getting society back to some sort of normality and stimulating the economic recovery with a view to recording growth again into 2022.

“As an industry, we may well see fair pricing and competition become challenges. Challenging times can see over-optimistic pricing enter the marketplace which presents issues throughout the industry – especially as we are expecting to see economic growth in a relatively short space of time. It’s important that we don’t fall into the trap and create issues moving forwards.

“More than ever, it will be important to work in collaboration with our customers to understand their issues, opportunities and any new ways of working that have come into play over the last few months. At Willmott Dixon, we are passionate about acting as a consultant and trusted adviser for our customers, working alongside them to deliver the very best outcomes. This will drive innovation and improvements across the industry and will allow us to bring key schemes forwards, despite the obvious challenges we are facing.”

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Building an Innovative Future for Construction

Simon Robinson, MD of Red Diamond Executive Headhunters, looks at how technology is changing the way even the most traditional industries work – and will continue to do so into 2021.

When you think about sectors that have embraced technological innovation during 2020, the building industry is probably not the first that springs to mind. Cloud computing, A1, education, self-driven cars perhaps, but not construction. With the best will in the world, builders have never been renowned for either their speed or their grasp of the digital marketplace.

Yet the current pandemic is forcing even this most traditional of industries to rethink its way of working – and technology is threatening to disrupt processes that have been the norm for decades, while presenting opportunities to work both faster and smarter.

And that’s not just from a consumer point of view, where apps enable you to browse stock in real time and order products in store for immediate collection or next day delivery. Nor is about upgrading the building machinery itself – it’s more about the everyday solutions.

Software and mobile apps have been developed for use at various stages, from planning to field reporting. However, many are specialist in nature and can require a substantial initial investment. What’s really revolutionising the way the industry works are relatively everyday practices being used in practically every sector right now – such as video conferencing.

Take, for example, the role of the construction product salesman. Pre-Covid, a salesperson could be on the road from Monday to Friday, clocking up the miles with overnight hotel stays and sandwiches eaten hastily in the car.

Until March, it was the norm for reps for manufacturers of items such as valves or boilers to meet developers in person with a view to ensuring their products were chosen for a range of new builds.

If successful, and the products had been designed into the plans, the next step would be another meeting to establish specifics such as the number of bathrooms or kitchen size. Factor in another meeting with financiers – and the time taken for a salesman travelling to and from meetings and the almost inevitable traffic congestion and the process can easily become a relatively slow one.

While technology has certainly been incorporated into product development of late, with 3D printing and CAD becoming widely used, the process itself has changed very little – despite changing client expectations and the continuing evolution of video technology.

But along with the pandemic came the rise of videoconferencing technology and suddenly it became possible to have three meetings in one. All parties can be present at the one meeting while screen sharing enables the process to stay interactive, reducing the timescale by not just hours but weeks. Designers know what targets they need to hit and thanks to the latest generation of software, different products can be dropped in and their performance evaluated.

It’s unlikely that any of the players in the industry, be they designers, sales teams or the builders themselves, will remain untouched by technology, albeit at differing levels. Energy efficiency and IoT connectivity are huge considerations; BIM (building information modelling) – especially 5D planning and budget – is expected to bring improvements in cost, quality, reducing delays and security to the entire process, from design to sales.

While it’s not necessarily the case that video conferencing will replace face-to-face meetings entirely – after all, there’s nothing quite like a ‘proper’ get-together in person – ultimately, the technology exists to make all aspects of project management more time-efficient and as a result more cost-effective. And that has to be a win-win situation for all concerned.

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