Construction Industry Needs to Stop Hiding Behind “Unforeseen Delays”

Richard Robertson is Development Director at Cadline, which provides technology and services to improve business performance in design, analysis, data management, and collaboration across the architecture, engineering and construction industries. Here, Richard discusses the issue of unforeseen delays and what proactive measures can be taken to solve them.

Recent research published by the Department for Business, Innovation and Skills (BIS) suggests that three out of five construction projects are completed late. Considering this is more than 50% of building sites, we need to establish what causes this ongoing issue and look for ways to change. After all, it does no good for construction to be among a handful of industries that are known to never finish on time or within budget. Every new announcement of a construction site experiencing issues and delays costs contractors and firms a good share of public trust.

While construction projects are complex due to the many stakeholders and processes involved, it seems that the collective industry creates a smokescreen about delays – a mentality that is seriously harming trust in the sector.

Some of the UK’s biggest hero construction projects, such as Crossrail and HS2, are notably delayed and considerably over budget, causing frustration for contractors. More often than not, delays are caused by a lack of information or access to data in the planning stages, but these challenges can be easily avoided in future.

Risk mitigation

A major issue contributing to delays within the industry is communication silos. For example, an architect may be unaware of the latest construction timeline while the contractor chases for supplies. Deadlines set without the most up to date information are inevitably missed, and so the domino effect falls. By breaking down communication silos we’re able to set evidence-based project timelines that are far more likely to be met. We should approach risk management in the planning stage with practical eyes, work around any issues and allow time for changes before the project starts.

Large projects require the ability for teams to access and update data in real time throughout the construction lifecycle, such as order changes, redesigns, progress and job costs. This not only reduces the likelihood of error but saves time and resources by improving communication and streamlining workflow for the entire workforce. Often this information is only available to senior stakeholders, but everyone engaged in the project should have easy access to the most accurate information, via a secure platform, to work most efficiently.

Being able to convey information to colleagues in a timely manner is essential in every project, even more so in the current environment where information is changing rapidly, globally. Manual updates and paper or email trails can often become lost or create a backlog, causing essential time to be wasted on searching for information.

Productivity

The pandemic has proven that the industry needs to be set up for modern ways of working in order to avoid delays, having thrown us into the deep end as teams adapted to working remotely. However, it has also helped us to realise that with the right tools, remote operations can be far more productive. For example, waiting for in-person site visits and manual reports to be completed can slow down progress, especially where firms are limited to the number of staff allowed on site at one time. But utilising cloud-based technology enables firms to view a site from anywhere in the world in real time, streamlining productivity, freeing up admin time and minimising delays.

These platforms allow companies to share live progress of projects with their field teams, stakeholders and clients, so all parties are aware of any potential issues and can ensure tasks run on time. It is in the interest of all construction companies to set their staff up for better ways of working and to embrace new methods and technology early – ahead of possible challenges arising.

Creating a construction plan based on estimated data is ineffective, even if the “ideal” results seem more attractive. Utilising technology enables businesses to plan based on accurate, up-to-date data with intelligent and cohesive timelines to offer a more realistic deadline. This avoids any risk of over-optimism and helps team plan for all scenarios, enabling them to be better equipped to make key decisions throughout the project timeline. As a key contributor to the UK economy, the industry is under immense pressure to meet project deadlines and delays cannot be afforded. With more businesses facing public scrutiny and being under the spotlight, it is ultimately how they respond to delays that can truly make or break a project.

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Winvic to Deliver Net Zero Scheme

Firethorn Trust, a commercial real estate investor and developer, has appointed Winvic Construction Ltd to deliver its landmark 25.5 acre site, Ascent Logistics Park in Leighton Buzzard, Bedfordshire.

With a focus on promoting sustainability, the contract was awarded to Winvic on the basis of its ability to deliver Firethorn’s requirements of a net-zero carbon scheme. The site design includes LED lighting to offices, electric vehicle charging points and solar power generation. Ascent Logistics Park will feature generous outdoor amenity spaces with expansive landscaping, along with dedicated cycle and pedestrian routes as well as modern welfare facilities, which will look to encourage a healthy working lifestyle.

Permission to start construction at the site was granted by Central Bedfordshire Council in January, with work due to commence imminently and the first units due to be delivered by Q4 2021.

Commenting on Winvic’s appointment, Chris Webb, Partner at Firethorn said: “As one of the leading contractors within the industrial and logistics market, we were particularly impressed by Winvic’s extensive project experience and ability to deliver our vision for a net-zero carbon scheme.

“Winvic’s commitment to sustainability is strongly aligned with our own, and the delivery of Ascent Logistics Park will be a milestone moment for Firethorn and our vision to drive positive, sustainable change for the region, local businesses and the environment.”

Danny Nelson, Winvic’s Director of Industrial, Distribution & Logistics, added: “It’s a rewarding time for Winvic, as the company’s reputation for delivering quality industrial schemes is evidently being bolstered by our ability to deliver our clients’ net zero ambitions. Additionally, it’s fantastic to be working with a new client and our partnership work to date with Firethorn has illustrated that we share the same vision for the Net Zero Ascent Logistics Park in Leighton Buzzard. We’re very much looking forward to getting started on site and exceeding expectations at every step.”

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New Accommodation Pods Installed at HMP Ford

Thanks to collaboration with Her Majesty’s Prison and Probation Service (HMPPS) and its external suppliers, the £2.6 million project to install new accommodation pods at HMP Ford is being delivered and is set to exceed customer expectations.

The work began in December 2020 to upgrade the residents’ living conditions at HMP Ford by installing 80 new self-contained units, or pods. Since then, they have been completed and offer more comfort and privacy, with each pod having a living area, desk, bed, WC, and shower unit.

A team of 10 workers expertly winched the 2.5 tonne pods into place on a newly levelled field at Ford. Here they replaced 20 smaller billets, mostly prefabricated, which were then demolished, meaning the new pods will be ready for occupancy by April 2021.

Project Manager Terry Coston explained: “This is a vast improvement on the previous accommodation. The residents will have much better living conditions, with more comfort, decency, and privacy. For example, each resident will have their own door key and use of a nearby kitchenette, pin phone room with 5 lines, and laundry.”

About HMP Ford: some background

HMP Ford is located near Arundel in West Sussex, on a former airfield. It played a highly strategic role as a squadron base during WW1 and later became RAF Ford Airfield, again playing major military roles in the D-Day landings.

Today, HMP Ford is an open prison committed to providing a safe and educational environment. Ford residents all have under 2 years left to serve on their sentence, so the focus is on resettlement and on men learning new skills to help them on release.

All residents are expected to work as they would out in the community. Work opportunities inside prison include painting and decorating, carpentry, engineering, cleaning and call centre work. Some residents enjoy work in nearby nurseries growing flowers and vegetables which are sold in the Ford farm shop (reopening to public shortly).

Work outside the prison is either supported through community service placements, work experience or paid work. Education provision includes a range of courses offered by Chichester College.

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British Bridges Built by Innovation

It’s easy to forget how far we’ve come with regards to bridge engineering. Our favourite bridges become a part of our natural environment. They are monuments no less than they are essential infrastructure.

But even new bridges appear ageless despite their novelty. This emphasises the prowess of engineers to integrate these giant structures into towns and cities. However, this can prevent us from appreciating the technological marvels that stand before us.

While size and span are already impressive, design and functionality should be recognised. In fact, bridge design has forced innovation in the construction sector. Some bridges are the largest moving structures. Unsurprisingly, bridges push technology to its limits.

Whether modern or historic, many bridges are defined by innovation. Here, we look at the bridges where technology has fronted innovative design.

The Infinity Bridge, Stockton

Not many bridges are shaped by their users, but the Infinity Bridge in Stockton uses innovative technology to react to pedestrians crossing the River Tees. The design of the bridge is striking itself. The dual tied arch design means that, when reflected in the water below, the image of a looping infinity symbol can be seen. However, it’s at night when the design really comes to life.

The bridge is illuminated with custom-designed LEDs, shining blue and white lights on the bridge’s handrail, footbath, and across the arches. While most modern bridges are illuminated in such a way, the innovation of motion sensors sets this crossing apart. When pedestrians use the bridge, motion sensors will detect the user and change the lights from blue to white on the handrail and footpath. Walking across the bridge will slowly return to a blue colour, leaving the impression of a comet tail in your presence. At night, walkers can enjoy dancing across the bridge to create unique light shows for themselves. Inaugurated in 2009, the bridge is expected to last 120 years. While this isn’t quite an infinite amount of time, the innovate design will certainly leave a lasting impression.

The Forth Bridge, Edinburgh

When thinking about innovation, looking beyond the past 100 years may seem questionable. However, Victorian engineering technology is still at the forefront of modern design. It continues to shape how the industry continues to grow.

The Forth Bridge, west of central Edinburgh, was completed in 1889. The bridge was innovative due to its construction material—steel. Previously, structures of this size were made from wrought iron. The Eiffel tower is a contemporary example of this.

Technological innovation allowed for the progression to harder and stronger metal alloys. The Bessemer process was the first inexpensive industrial process for the mass production of steel. This invention allowed the 53,000-tonne bridge to become the first prominent steel structure in Britain.

The longevity of structural steelwork means that it’s still used today as the foundation for many bridge designs. Despite over 100 years of technological innovation, and the changing process to produce steel, the material remains favourable in the industry.

Humber Bridge, Hessle

When the Humber Bridge opened in 1981, it was the longest single-span suspension bridge in the world. With a total length of 2,220 metres, it held its record until 1998.

The bridge was innovative for several reasons. Most importantly, the bridge’s spans were constructed from hollow reinforced concrete towers. This was the first time concrete had been used in this way. Previous long-span suspensions bridges had to use steel to sustain the weight of the bridge and heavy traffic.

Since then, research has revealed the effectiveness of this technique, showing how hollowed concrete is particularly suited for suspension bridges. One paper compared the strength of solid concrete beams and hollowed concrete beams. The researchers designated their comparative strengths in various scenarios. The study concludes: “when torsion is dominant, it is advisable to construct the beam as hollow”.

Torsion is a prominent movement in suspension bridges. It involves the twisting of an object when it meets an applied force. This force may be wind or traffic. Many suspension bridges have failed through aerodynamic instability. Preventing torsion reduces the risk of collapse in this situation. The maintenance of steel wires and bridge supports is essential for longevity, and innovation continues to make bridge engineering easier.

The future of bridge engineering relies on increasing innovation. Reinventing common materials and finding new ways to impress bridge users has been a staple of British engineering for generations. Moving forward, technology will play a bigger role in engineering designs and solutions. Pushing construction to its limits it the best way to move the industry into the future.

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Sources

https://www.gateshead.gov.uk/article/4596/Gateshead-Millennium-Bridge-facts

https://www.whatdotheyknow.com/request/gateshead_millennium_bridge_tilt

https://www.networkrail.co.uk/who-we-are/our-history/iconic-infrastructure/the-history-of-the-forth-bridge-fife/

https://www.researchgate.net/publication/225417520_Comparison_between_solid_and_hollow_reinforced_concrete_beams

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How Government are Supporting Self Employed

We’ve now past the one-year point since the first UK lockdown was announced and the impact of COVID-19 began affecting workers all over the nation. The self-employed have been amongst the hardest hit by the pandemic, with the economy grinding to a shuddering halt during 2020 as people were forced to stay home. From construction to catering, the knock-on effect saw contracts cancelled, projects paused and many people found themselves without work.

The introduction of the Self Employment Income Support Scheme (SEISS) by the government was a saving grace for many self-employed workers, whose business and income had been hugely affected by the pandemic. SEISS followed the announcement of the Government’s furlough scheme, the Coronavirus Job Retention Scheme (CJRS), and allowed the self-employed to claim money from the Government while the ramifications of COVID were being felt across the UK.

To date there have been three separate SEISS grants with millions of claims and billions of pounds given out. A government report last year showed that the sector with the highest number of potentially eligible individuals and the highest proportion of claims was the construction industry¹. By 31 July 2020, construction workers had made 884,000 claims for SEISS, totalling £3.1 billion, and the sector has continued to be a key driver of claims into 2021.

Applications for the scheme’s third grant closed on January 29, 2021, but Chancellor Rishi Sunak used his Spring Budget at the start of March to announce there would be fourth and fifth grants made available. Self-employed workers that continue to need financial support should be aware of the detail surrounding these schemes, to ensure they make a claim where necessary and at the right time.

The fourth SEISS grant

From late April, a fourth SEISS grant will be available and those who are eligible can apply directly through the government’s website. It is thought that claims will be open until 31 May 2021, but this grant will cover the period running between February, March and April 2021.

Those who meet the criteria can claim 80 per cent of average monthly profits capped at £2,500, which is in keeping with previous SEISS grants. The grant will be paid out in a single instalment, so will therefore be capped at £7,500.

The grant will now be open to those who became self-employed during the tax year 2019 to 2020, and the rest of the eligibility criteria remains unchanged, as highlighted below.

SEISS eligibility criteria

• Applicants must have lost profits due to Coronavirus – you can be currently trading but have been impacted by reduced demand, or have been trading but are temporarily unable to do so due to coronavirus
• You must also declare that you intend to continue to trade, or that you believe there will be a significant reduction in trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus
• You must also have traded in both tax years – 2019 to 2020 and submitted your tax return by 2 March 2021; and the year 2020 to 2021.

Those with trading profits above £50,000 will not be eligible for the scheme. It’s also important to remember that any successful grant applications will be subject to tax. For those registered with the Construction Industry Scheme (CIS), this could impact any potential rebates that you may have been seen in previous years. It is likely that you will have a tax liability to pay and it’s important that you are retaining enough from the government grant to make payment of your tax when it falls due, you should speak to your accountant about this.

The newly self-employed

For the fourth grant, there will now be an extra 600,000 newly self-employed people who may be eligible to claim. A lot of pressure was put on the government to extend the support to help more self-employed workers, and the Chancellor used the Spring Budget to announce that those who submitted their tax returns for 2019 to 2020 by March 2 would be eligible for the fourth SEISS grant.

There was also an opportunity for the government to go further and consider other self-employed workers with a limited company set-up, who have essentially been overlooked in terms of support so far. There was a proposal on the table for a Directors Income Support Scheme (DISS) but to date the government has not announced anything that would include workers of this type, although there are continued calls for this to change.

The fifth SEISS grant

A fifth SEISS grant will open to claims from late July and cover the months of May, June, July, August and September. The government intends for this to be the final SEISS grant, however this will be kept under review.

The fifth grant amount will be determined by how much business turnover has reduced in the year April 2020 to April 2021. Claimants will either receive a 30 percent grant or an 80 percent grant, depending on their personal circumstances:

• 80% of 3 months’ average trading profits, capped at £7,500, for those with a turnover reduction of 30% or more
• 30% of 3 months’ average trading profits, capped at £2,850, for those with a turnover reduction of less than 30%

Further details will be provided on the fifth grant later this year.

How to apply for SEISS

If you are eligible to apply for the fourth and fifth SEISS schemes, HMRC has promised to contact you. For the fourth grant, this will happen in mid-April and people will be provided with a personal claim date, which is the date you can make your claim from.

To complete the application online, you will need all of the following:

• Self -assessment Unique Taxpayer Reference (UTR)
• National Insurance number
• Government Gateway user ID and password
• UK bank details including account number, sort code, name on the account and address linked to the account
• Bank account details where a Bacs payment can be processed

Article supplied by Joanne Harris, a Technical Commercial Manager at Nixon Williams, an accountancy firm that works with sole traders, freelancers and contractors.

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Why Have an Arbitration Clause?

In recent months, Conexus Law has written about using mediation and adjudication as dispute resolution tools. But let’s look at another option open to you, when you engage in your commercial contracts. Here we consider Arbitration, and what benefits it might have for you in resolving conflicts arising from your commercial contracts instead of using Court proceedings.

First, unless a party has agreed to arbitrate you cannot force them to do so. It is a private binding form of dispute resolution conducted before an impartial Arbitration body.

So why have an Arbitration clause in your commercial contracts to resolve disputes?

Well, litigation in England is a public proceeding before a Judge or Tribunal. It is not just public if the dispute eventually goes to trial. For example, many publications/journalists keep a watching brief at the High Court in London in respect of any Court claim issued. They can obtain copies of the pleadings (the Particulars of Claim, Defence and Reply) and often their attachments filed in any Court proceedings on payment of a small fee. This is without obtaining the Court’s permission to do so and without notice being given to any of the parties.

Arbitration is however private and confidential (unless you need to enforce an award but even then the minutiae of your dispute is likely to remain confidential). Using Arbitration, it is easier for the parties to avoid damaging publicity and to preserve sensitive commercial information from entering into the public domain.

It also gives the parties greater variety and flexibility in how they resolve any dispute. The parties are free to choose their own tribunal – usually one or three people from one of the leading Arbitration bodies such as the International Chamber of Commerce (ICC), London Court of International Arbitration (LCIA) or The International Centre for Dispute Resolution (ICDR). That provides focused expertise (factual and/or legal) and you get one panel dealing with all aspects of the dispute from the start to end of the process.

Arbitration rules are flexible and streamlined and parties are not bound by national Court rules. Flexibility extends to the choice of law, venue for and language of resolving the dispute. So if your counterparty is based abroad and not keen on English law or the English Courts dealing with any dispute, you could as a compromise suggest that your contract have an Arbitration clause stating, say, that any dispute between the parties, be governed by English law but heard in Geneva[or any other locality you and they agree on], will be resolved pursuant to the ICC Rules with three arbitrators and the language of the Arbitration will be English. That gets around a party not wanting to submit to the jurisdiction of the other party’s local/national court.

The parties are also given autonomy to shape the form and scale of the Arbitration. Arbitrators can be selected by the parties for their familiarity with commercial and trade matters and may not necessarily be lawyers (although at least one on a three member Arbitration panel is likely to be). That circumvents the problem in some jurisdictions of judges not having relevant experience of  a particular area.

As a client, you can be represented by lawyers and/or technical experts at an Arbitration hearing and not just limited legal advocates having particular rights of audience in a particular jurisdiction.

An Arbitration award is normally final and binding. The grounds for challenging an award are limited. As such, an appeal of an Arbitration award is difficult and it potentially cuts down on years and years of litigation to different appellant courts.

In some countries, the national courts are over‐burdened and it can take up to 10 years for a matter to come to trial. Arbitrating a substantial dispute usually takes 14-18 months to get to a final hearing. So whilst roughly on a par with the current length of English High Court proceedings getting to trial, the speed of Arbitration can be an advantage when compared to litigating in some jurisdictions.

The New York Convention provides for the enforcement of Arbitration awards. As of March 2021, 168 countries are a party to it and agree to enforce Arbitration awards made in other countries in their country. So Arbitration awards are more widely and readily enforced than Court judgments.

In our experience, the major disadvantage of Arbitration is its cost. Each of the Arbitrators needs to be paid on a hourly rate basis plus the administrative expenses of the Arbitration body setting up the Arbitration and the hiring of a venue for hearings. This is usually opposed to a one off Court fee or relatively low Court fees paid during a Court action (up to and including a trial) and no Court venue charges.

It is also not particularly workable where you want to join third parties into disputes where your relationship with that third party is not governed by Arbitration or you have agreed to arbitrate with that third party using a different Arbitration body/clause to the one in which the primary claim against you is being made.

Arbitration will not be right for every commercial agreement and should be considered on a case by case basis. In respect of high value contracts with international elements (either in respect of one or both parties or the subject matter), it will be worth detailed consideration.

If you would like more advice on whether you should consider having an Arbitration clause in your contract, and the form of it, please contact Ian Timlin at Conexus Law.

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LSBU Donates £150k for New Apprenticeships

The London South Bank University (LSBU) is to donate £150k to ‘Reskilling the Recovery’ which is creating new apprenticeships for low-paid Londoners.

LSBU’s donation from unspent apprenticeship levy funds is to be used to cover tuition fees of apprentices in small businesses which have been hit hardest during the pandemic. The funding will help support the local economy in London and promote including within SMEs by supporting BAME and female apprentices into better paid, more productive jobs.

‘Reskilling the Recovery’ is being run by London Progression Collaboration (LPC) and over £4 million has been pledged by large employers from unspent levy funds paid by employers towards the cost of supporting degree apprenticeships, with the LPC estimating that around £470 million of the 2018/19 apprenticeship levy fund went unused by employers.

Sammy Shummo, LSBU Group Director of Apprenticeships, said: “LSBU is proud to be able to donate towards the London Progression Collaboration’s Reskilling the Recovery campaign. Our £150k donation will create new apprenticeships and support London’s small businesses who have been particularly hard hit by the pandemic.

“Now more than ever, we need to band together to support London’s economic recovery from damage inflicted by COVID-19. As we adapt, recover and rebuild, we must ensure that London’s economy works for all Londoners. More than ever we believe apprenticeships can support people into rewarding employment and help make businesses more resilient.”

Oscar Watkins, who leads LPC’s work with the built environment sector, said: “We’re delighted to be working with LSBU. The university has a powerful history of supporting Londoners to achieve their potential through applied education. These values also underpin everything we are striving to achieve through our Reskilling the Recovery Campaign. We hope that many more universities will follow LSBU’s good example, by pledging their unspent apprenticeship levy.”

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