Industry reacts positively about Government apprenticeships plans

UK Construction Media finds that industry is happy with law changes for the term ‘apprenticeship’.

Yesterday was a significant day in the history of apprenticeships because the Government announced that through their Enterprise Bill, the law will recognise the term ‘apprenticeship’.

This is significant because it is designed to solidify its importance as a career path and means that the term of apprenticeship will not be able to be used when advertising courses that are of lesser quality.

The Government is committed to creating a further 3 million apprenticeships in the next five years so yesterday’s announcement is an important step in guaranteeing that an apprenticeship will be seen in equal standing to higher education while also improving the reputation of these courses.

Following this announcement, UK Construction Media has canvassed the opinion of people within the industry to find out if they see this move as a positive one.

Allan Meek who is the Managing Director of SCS Group, believes making apprenticeships as credible as possible is crucial and makes the important point that people within the industry started off this way.

He said: “Anything that Government can do to protect and reinforce the reputation of apprenticeships has to be a good thing. The simple reason is: the more credible apprenticeships look, the more people will look to them as a way to progress their career.

“Apprenticeships are vital to the construction business – and to our company where many senior managers/directors started out that way – so we all have to help support them.

“That’s why we contributed to the #loveLIVES campaign and that’s why we’ll continue to open our door to apprentices.”

The example pointed out by Allan is not uncommon in the industry. Many people in senior roles have worked their way up, starting at apprenticeship level, and as such, the move to change to recognise the term of apprenticeship is important.

It is a sentiment that was echoed by Pro Steel Engineering’s Director, Richard Selby, who said: “I welcome the change to the way in which apprenticeships are represented.

“I know from my own experience of working with those who embark on apprenticeships in the construction sector, that they can lead to extremely rewarding, long-term careers.

“Giving on-the-job training equal status with other qualifications will only enhance our sector’s expertise and importantly it will help to plug the skills gap we are still experiencing.”

Jim Verity is the HR Director at Hope Construction Materials and he described the Government’s plans as a “positive step.”

He said: “We firmly believe we get huge value from providing good quality training through our Apprentice Academy. As such we support any Government plans that would encourage employers to adopt high standards of training for these young people which can only benefit UK manufacturing.

“The Government’s announcement to elevate the status of apprenticeships to that of university degrees is also a positive step and we believe setting firm targets for introducing more young people into the industry over the next five years is something which should be welcomed.”

Mezzanine International Group, UK & Europe, designs, manufactures and installs performance structures and mezzanine floors for an international client base and Scott Chambers, Managing Director, described the Enterprise Bill as “a shining light” and spoke of his own experience, which show the value of apprenticeships.

“By recognising apprenticeships as an equally valuable contributor to the UK economy, the Government’s Enterprise Bill is a shining light on the benefits of attaining relevant, practical skills and knowledge that can be used day-to-day in business,” he said.

“It was an apprenticeship that gave me the insight and confidence to take my training as a draughtsman and turn that into an engineering solution that launched an award-winning firm with offices across the UK and Europe.

“Now, many years later, I’m inspired to give back, bringing people into my business to gain hands-on training in a variety of roles.”

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Government says affordable housing delivery is up by 63%

Figures mean Affordable Homes Programme targets were exceeded.

New figures released today by the Government has shown a 63% increase in the delivery of affordable homes in the last year.

The new data, which shows that almost 60,000 homes were delivered in the last year, means that the Government has exceeded its original targets set out in the Affordable Homes Programme 2011-2015.

Since April 2010, figures from the Government show that the number of affordable homes delivered has passed 263,000 and close to 186,000 from April 2011 onwards.

In the Affordable Homes Programme, the target was to deliver 170,000 from April 2011. This means that the Government has overseen the delivery of a further 16,000 affordable homes in that time.

Including affordable rented homes, affordable homeownership schemes and social rented homes, the Affordable Homes Programme has benefited councils from all over the country.

Although almost a third of affordable homes delivered last year are located in London, the figures show that actually, councils across the whole country have seen affordable homes delivered.

Those with the largest numbers in the last five years are diverse in geography. Cornwall has 3,750 affordable homes, with Birmingham benefiting from slightly less in 3,460.

Wiltshire has seen 3,420 built since 2010, the figure for Leeds is 2,360 while Liverpool and Manchester have 2,270 and 2,160 respectively.

The Government’s drive to build more affordable homes is not only good news for people looking for residential spaces, but also for the construction industry because in the next five years, the Affordable Homes Programme is targeted to deliver another 275,000 homes through private and public investment to the tune of £38Bn.

This means that housebuilding projects will be available in the construction industry, following on from recent news that said new housing starts are now at their highest annual level for eight years.

Construction of houses has doubled when compared with the figures in 2009 and the number of new homes built since April 2010 has passed 570,000.

Housing Minister, Brandon Lewis, is delighted at these figures which are a “boost to families across the country,” and more work will be done.

He said: “Our affordable housing efforts are exceeding our ambitions and delivering more than 260,000 affordable homes. It’s a boost to families across the country, providing them with new quality homes that are available at an affordable rent or to buy through our shared ownership scheme.

“This is real progress but we know there is more to do. That’s why £38Bn of public and private investment will be made available over the next five years to deliver 275,000 extra affordable homes – the fastest rate of delivery for 20 years.”

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Kier awarded contracts through ProCure21+ framework

Framework a key component in providing new healthcare facilities.

Further contract awards through the ProCure21+ framework have been announced today.

This national framework encompasses an agreement with six Principal Supply Chain Partners (PSCPs) and their supply chains.

A suitable procurement approach for service planning, major work developments and refurbishments, minor work programmes, infrastructure upgrades and feasibility studies, ProCure21+ selects partners and supply chains by using an OJEU tender process for capital investment construction schemes.

It means that the framework can be used for construction works by NHS clients or joint ventures who do not have to undertake the OJEU process.

ProCure21+ is particularly useful for those who are working with the NHS to construct a building or other facility that will improve healthcare in the country.

Today has seen Kier – one of the six PSCPs appointed by the Department of Health – confirm contract updates worth almost £250M.

It includes securing preferred bidder status on the design and build of a new critical treatment hospital.

Starting in April 2016, this £160M development will also comprise a cancer treatment centre, and critical pathology laboratories.

The work, which strengthens the standing of Kier as a leading provider of healthcare provision in the UK, also includes three hospitals, based in Grantham, Lincoln and Boston on behalf of United Lincolnshire Hospitals NHS Trust (ULHT).

Construction has already started on these three hospital upgrades, which will be a key component in the support of new clinical practice models in the region.

A further contract worth £22M will see Dewsbury and District Hospital refurbished so all services can be brought closer together.

Kier’s Chief Executive, Haydn Mursell, hailed today’s news. He said: “Kier’s work under the ProCure21+ framework has extended our position as one of the UK’s leading building providers to the healthcare sector.

“These awards highlight the breadth of services we are able to offer our clients and confirm our progress with our Vision 2020 strategy.”

Kier has also been appointed as PSCP by two NHS Trusts as part of ProCure21+, with a contract to reconfigure Hereford County Hospital – costing £40M – and working with Nottinghamshire Healthcare NHS Foundation Trust to deliver care provisions across the whole spectrum, including a new children’s, young people & families development.

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Scottish Futures Trust confirm 78% rise in construction projects

Scotland-wide hub initiative has led to rise in value to £610M in six months.

The Scottish Futures Trust has today announced that the use of the Scotland-wide hub initiative has led to a huge surge in construction projects under construction.

In just six months since the start of the year, community buildings being constructed for public sector organisations has gone up in value from £342M to £610M.

This 78% increase encompasses a total of 40 projects; 15 for community facilities, 19 schools and six in the health sector. The breakdown in value shows the health projects totalling £111.2M, the school developments valued at £424.4M, and community facilities at £74.4M.

Led by the Scottish Futures Trust, the Scotland-wide hub initiative is an inclusive scheme that brings community planning partners and several other public bodies together with a private sector development partner to form a hubCo, which increases joint working to ultimately deliver the best new community facilities.

It is run by the Scottish Futures Trust which was established by the Scottish Government seven years ago to deliver value for money across public sector infrastructure investment.

The hub initiative is clearly working, with the number of projects being delivered, particularly in the construction sector.

Not only this, the initiative has been a huge benefit to SMEs who have been awarded 78% of the projects, while construction employment is also flourishing thanks to the scheme.

At present, more than 7,300 jobs are supported through the projects within the hub initiative. It does not end there though, because apprentices and graduates are also reaping the reward of these schemes.

There have been almost 150 new graduate places allocated and more than 200 apprenticeships and trainee places within the initiative.

David MacDonald is the hub Programme Director at Scottish Futures Trust and he hailed this “innovative” initiative, while also explaining why he expects the surge in construction projects to continue.

He said: “The hub programme is an innovative approach to develop and deliver best-value community facilities which provides public bodies with a quick and efficient way of getting their projects into construction.

“The benefits of using hub as the preferred delivery partner is reflected in the huge increase in projects under construction.

“With 78% of hub construction contracts being awarded to SMEs, many thousands of local jobs are being protected.

“We see this momentum continuing as there’s well over £900M of community projects still in the early stages of development which are due to start on site in the next 12 to 24 months through our ever growing pipeline of work.”

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Government to protect apprenticeships by law

Within the Enterprise Bill, this will see apprenticeships valued equally to higher education.

The Government has today confirmed that the law will recognise the term ‘apprenticeship’, so that its importance as a career path is recognised further.

With a commitment to create 3 million apprenticeships in the next five years, this is a particularly significant step which will be implemented through the Government’s Enterprise Bill.

What this means is that the term ‘apprenticeship’ will not be able to be used in an incorrect manner or to advertise courses that are lower on quality than apprenticeships are.

Let’s not forget that the idea of apprenticeships is to give an alternative career path to those who go on to higher education, yet one that is seen in an equal standing to this, which will in turn continue to improve the reputation of these courses.

It means that anybody who undertakes a successful apprenticeship will be recognised and employers will view these people as important to the growth of the particular industry they are skilled in.

Apprenticeships are seen as key to business, with seven out of every ten employers saying they have been useful to their business and for the people who start careers as apprentices, there is a structured career path awaiting them with proven evidence showing earnings are increased for those who undertake them.

The Government say that targets will be set for public bodies to take on more apprenticeships, and it is certainly something that the construction industry has a great track record of. Many in the industry have employed apprentices or ran apprenticeships schemes, giving young people the chance to work their way through the industry over the years and eventually into senior positions.

Skills Minister, Nick Boles, spoke about the thinking behind the move to legally protect the term ‘apprenticeship’.

He said: “If university graduates have their moment in the sun, so should people who undertake apprenticeships.

“Businesses know their value so it’s high time they were recognised both by the public and in law as being equal to degrees.

“We want far more employers to get involved in apprenticeships. This means making sure that we practise what we preach in Government, so we’re going to require all public sector bodies to employ apprentices.”

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ONS construction output: Industry reaction to latest figures

Industry reacts to figures released for construction output in April.

Friday saw the release of the latest construction output figures from the Office for National Statistics (ONS) which showed that although the rate of output in April decreased from March, the longer-term indicators painted a positive picture.

The rate from March to April 2015 has decreased by 0.8% but the year-on-year figure when compared with April 2014 has actually grown by 1.5% – the 23rd successive time that the monthly year-on-year construction output has shown growth.

Between March and April, new work went up and new housing fared particularly well with an increase of 5.4% recorded.

April was a good month for public and private housing, both of which performed well.

Similar to the monthly pattern, the quarterly results showed a slight decrease from the previous quarter, but again, when compared to January to March last year, the corresponding output in 2015 has increased by 8%.

UK Construction Media has got some reaction to these figures from people within the industry.

Stefan Friedhoff, Global Corporates Managing Director for construction at Lloyds Bank Commercial Banking, believes the results, and the PMI survey data recently released, along with “boardroom confidence rising,” shows that the industry is in decent shape.

He said: “This ONS data covers April and therefore pre-dates the May PMI survey, which suggested a more confident construction sector as a period of sustained uncertainty came to an end.

“With the trading and investment environment now more stable, construction firms are looking to revive the buoyancy of previous months.

“Order books remain healthy and there is hope of a renewed focus on long-term infrastructure investment and that customers will respond to the increased certainty.

“Meanwhile, with boardroom confidence rising, consolidation in the sector is back on the radar. These tie-ups often provide useful synergies and the diversification that can offer the keys to future success.”

The latest ONS figures are significant because these are the first that have implemented an interim solution for the Construction Price and Cost Indices, replacing the existing deflators.

It is something that the Construction Products Association (CPA) is happy to see and Dr Noble Francis, Economics Director, attributed the slight monthly drop to General Election uncertainty, and pointed out that the growth in new orders should mean greater productivity.

“The CPA has previously highlighted issues regarding the ONS construction output data and we welcome the new construction output price deflators that the ONS has implemented in this data release,” he said.

“As the ONS states, the new price deflators are an interim solution; the CPA will be working with the ONS to ensure that the construction output figures will be as robust as possible in the medium-term.

“Total construction output fell slightly in April but this was expected due to the uncertainty prior to the General Election and its adverse impacts on consumer and business confidence.

“Overall, construction output was still 1.5% higher than one year earlier and, looking forward, the ONS new orders for construction point to further growth in activity over the next 12-18 months.”

While much of the reaction was positive, Roger Allsup, partner of Construction and Engineering practice at law firm SAS Daniels, told UK Construction Media that the skills shortage needs to be addressed so that construction output remains positive.

He said: “The shortage of contractors to do the work is also leading to a delay in producing outputs. Until more people enter the construction industry, there will be pent-up demand because the supply of contractors and resources has not yet caught up with demand.”

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Ealing Council approves Southall Station development as part of Crossrail

Crossrail trains will be accommodated thanks to longer platforms.

Plans for redevelopment as part of Crossrail at Southall Station have today been approved by Ealing Council.

It is yet another milestone on the Crossrail project which is developing at pace following last week’s completion of the 26 miles of tunnelling.

Described as ‘innovative and practical’, the design at Southall Station will include platform extensions that will be able to accommodate Crossrail trains, which will be 200 metres in length.

Crossrail Suface Director, Matthew White, explained how this ‘focal point’ will benefit commuters.

He said: “The Crossrail improvements will transform the station and deliver a larger building that will serve local people for many decades to come.

“The designs show a bright, spacious structure that will be easier for passengers to get around and will provide a focal point for the local area.”

When it is completed in 2019, Crossrail will increase London’s rail network by a tenth and will serve 40 stations.

Southall Station is one of these, and anybody commuting from here will enjoy faster commuting times, with estimates suggesting the journey to Canary Wharf will take just over 30 minutes and Bond Street will be the destination in 17 minutes.

This is because the station will be served by up to ten trains in each direction per hour and following the Crossrail project, passengers will have the new-found luxury of being able to travel through Central London without the use of a connecting train.

Councillor Julian Bell, who is leader of Ealing Council, outlined the added “significant improvement” to the surrounding town along with the stated benefit to passengers.

He said: “We have worked closely with Crossrail to ensure that the design of the station in Southall is innovative as well as being practical. The new design makes it as easy as possible for passengers to use, while making a significant improvement to the town centre in line with the regeneration work that is already well underway in the area.

“It is clear that the new station and the arrival of Crossrail will bring long lasting benefits not only for commuters but for the area as a whole.”

Other improvements to the station include a new footbridge complete with three lifts to provide easy access to platforms, while commuters will be able to use new customer information screens and help points.

A glass and steel structure will result in natural light and a welcoming environment, and a new forecourt is being constructed.

The improvements to the station are obvious but the wider benefits of this development cannot be overstated.

The fact that Crossrail is benefiting the area has led to investment and local jobs being created by way of other projects coming into the area as a direct result of the developments.

In the planning applications for projects within one kilometre of the five stations in Ealing, almost half have said the new railway project has provided justification for the work to take place.

Due to commence in the summer, work at Southall Station will be completed in the summer of 2017, after which Transport for London will run the station.

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