Building News is an information portal for all professional building specifiers. Here you can find all of the latest construction news from around the UK and the rest of the world.

Publication of Dame Margaret Hodge’s review into the Garden Bridge

Today the Mayor of London has published Dame Margaret Hodge MP’s report on the Garden Bridge.

The Mayor, Sadiq Khan, commissioned Dame Margaret to undertake the review in October 2016. The review did not seek to address whether the Garden Bridge is a good idea. It did assess whether value for money was being secured from the public sector contribution and it examined the policies, procedures adopted to implement the Garden Bridge Project and the conduct of those involved.

Some of the key conclusions of the report include:

  • Decisions on the Garden Bridge were driven more by electoral cycles than value for taxpayers’ money.
  • The costs have escalated from an early estimate of £60m to over £200m today
  • The risk to the taxpayer has intensified. The original ambition to fund the Garden Bridge through private finance has been abandoned. The Garden Bridge Trust has lost two major private donors and has pledges of £69million with no new pledges secured since August 2016. With a public sector contribution of £60 million, that leaves a gap in capital funding of at least £70 million. Furthermore, very little progress has been made on raising money to fund the ongoing maintenance of a completed bridge.
  • There was not an open, fair and competitive process around the two TfL procurements for the Garden Bridge Project. The two procurements revealed systemic failures and ineffective control systems at many levels.
  • The Garden Bridge Trust’s finances are in a precarious state and many outstanding risks remain unresolved.

Commenting on her report, Dame Margaret said “I did not seek to ask whether the concept of a garden bridge over the River Thames is a good idea. But my review has found that too many things went wrong in the development and implementation of the Garden Bridge Project.

“Value for money for the taxpayer has not been secured. It would be better for the taxpayer to accept the financial loss of cancelling the project than to risk the potential uncertain additional costs to the public purse if the project proceeds.

“In the present climate, with continuing pressures on public spending, it is difficult to justify further public investment in the Garden Bridge.

“I would urge the Mayor not to sign any guarantees until it is confirmed that the private capital and revenue monies have been secured by the Garden Bridge Trust.

“My report outlines some key lessons that can be learned from the Garden Bridge project across different public organisations and makes a number of recommendations. I thank the Mayor, Sadiq Khan, for giving me the opportunity to examine the project in detail.”

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Industry must take responsibility for making Brexit work

The recent triggering of Article 50 has set Britain on a course to exit the European Union. It is essential now that Government and industry work together to get the best deal possible and ensure our country’s future growth and prosperity — it is everyone’s responsibility to make Brexit work.

Britain must retain its front-line position on the international stage. Delivering the airport hubs, high-speed rail networks and energy systems needed to make our cities and industrial hubs global competitors will be critical to our future success. However, it is unrealistic to expect Government to deliver a successful Brexit without the full — if sometimes constructive — support of industry.
Unless the free movement of skilled labour is secured during negotiations, we believe that the UK’s predicted £500 billion infrastructure pipeline may be under threat. Our latest figures show that 8% of the UK’s construction workers are EU nationals, accounting for some 176,500 people. A loss of access to the European labour market has the potential to slowly bring some of the UK’s biggest infrastructure projects to a standstill.

Securing the domestic skills pipeline

Yet while it is the role of Government to secure the trade agreement, industry must also work to secure the domestic skills pipeline. As the industry’s professional body, we are working with Government and industry to develop that skills base, building vital initiatives, such as degree apprenticeships, in our sector to drive the talent pipeline forward. A recent RICS survey revealed worrying figures showing that almost a quarter of our construction professionals fail to recognise the benefits of apprenticeships in solving the skills crisis. It is vital that industry gets behind such schemes for Britain’s long-term good.

Last week Qatar pledged to invest £5 billion in British transport and construction projects. We believe that if the Government puts the right incentives in place, the UK’s energy, rail and road infrastructure will benefit from further billions of overseas investment.

Industry must play its part

But again, industry must also play its part. Currently infrastructure projects across the globe measure and forecast the costs of construction differently. So, the same high-speed rail project in say Spain, would have an entirely different projected cost if it were located in the UK even after accounting for currency differences or regional labour and material costs.

We are working with industry partners to introduce a new standardised global measurement known as International Construction Measurement Standard (ICMS) that will allow investors to compare like-with-like. We believe that this will help to put infrastructure firmly on the map as a global investment opportunity.

Together, Government and industry must work together to deliver a construction industry that is robust enough to withstand any future political and economic uncertainty.

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£290 million boost for clean energy in Britain

Renewable energy developers will compete for £290m worth of contracts to support the growth of clean energy in Britain, as the second Contracts for Difference auction launches.

Contracts for Difference are won through a competitive process which drives down energy costs for consumers and guarantees companies a certain price for the low-carbon electricity they produce over 15 years. This gives them the support and certainty they need to attract investment and get projects off the ground.

The contracts made available today represent the first part of the Government’s commitment to provide up to £730m of annual support for renewable electricity projects over the course of this parliament. They support a key pillar of the Industrial Strategy by ensuring a cleaner, more flexible energy supply.

Energy Minister Jesse Norman said “This auction underlines that Britain is open for business to companies seeking to invest in low carbon energy.

“It is designed to deliver clean power to a million homes, create jobs in the energy industry and provide new supply chain opportunities, while reducing carbon emissions by some 2.5 million tonnes per year.”

The scheme is funded through a levy which forms a part of energy bills and only projects that offer the best value for money will win contracts. There is no cost on energy bills until projects are up and running and generating low-carbon energy.

The auction process started yesterday (3rd April) and will continue over the coming months. It is expected to draw to a close by the autumn, when the winners of the auction and final clearing prices will be announced.

There has been £52bn of investment in renewable energy in the UK since 2010, and for the first time ever exactly half of the UK’s electricity came from low carbon sources in the third quarter of 2016. The latest contracts will help the UK build on this success.

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Innovative moveable weirs now in place

The first phase of the Leeds Flood Alleviation Scheme has reached a major milestone as all three moveable weir gates have now been successfully put in place at Knostrop Weir on the River Aire.

Costing in the region of £50million, the scheme is being led by Leeds City Council in partnership with the Environment Agency.

The final stages of the work at Knostrop include the removal of the remaining cofferdam ahead of it becoming a fully operational flood defence later in May.

The three gates have been constructed as part of an innovative approach using moveable weirs, which can be lowered in flood conditions to reduce river levels and the threat of flooding. This is the first time that moveable weirs are being used in the UK for a flood defence.

The weirs can be lowered, and raised, by deflating and inflating ‘bladders’ fabricated from a bullet proof neoprene material under each gate, which act like giant air filled pillows.

The first of the weir gates at Knostrop Weir has already been tested. Later this month the cofferdam structure, which was installed to allow a dry working area in the river for the construction of the weir gate, will be flooded with water and the sheet piles then removed.

New fish and eel passes are also being constructed at Knostrop. The structures consist of a number of shallow trays which the fish and eels can swim and jump up, allowing them to migrate upstream. The previous stone weir was approximately three metres high and a barrier to fish and eels moving up the River Aire.

Moveable weirs are also being constructed further upstream at Crown Point in the city centre, where the installation of the first of two weir gates has been completed. Last month, reinforced concrete works were finished which meant the bladders and gates could be fixed in place prior to testing.

Now this gate has been installed and tested, the cofferdam has been flooded and the sheet piles are being removed to allow for work to begin on the final weir gate adjacent to Fearns’ Island.

The Leader of Leeds City Council, Cllr Judith Blake, recently visited both sites to see first hand how the weirs will be reducing the risk of flooding to the city.

Leader of Leeds City Council Councillor Judith Blake said “It was fascinating to see the new flood scheme up close and especially to see the amazing technology and engineering involved in putting these moveable weirs in place to control the flow of the River Aire.

“It is such a simple idea but it is fantastic to see Leeds at the cutting-edge of the field using the latest technology in this way.

“The value of the Leeds Flood Alleviation Scheme in terms of the reassurance it will offer residents and businesses over the coming years and decades is incalculable, so we very much look forward to seeing phase one complete later this year while we continue to make the strongest possible case for further significant measures to help protect all our communities threatened by flood-risk across the city as soon as possible.”

Work on flood defence walls in the Holbeck area are also still underway. Temporary traffic management remains in place and will do so until September 2017. The traffic management has been coordinated with the Bridgewater Place wind baffle scheme in an effort to minimise disruption.

The site works for Phase 1 of the Leeds Flood Alleviation scheme commenced in January 2015 and are due to be completed this summer. It is one of the largest river flood defences in the country. When complete, it will provide an increased level of protection from flooding from the River Aire and Hol Beck for residents and businesses in the city centre. The scheme also includes defences at Woodlesford.

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Government’s rail improvements tops list of infrastructure-driven property development opportunities

  • 86% of UK property developers say investors are increasingly looking to capitalise on government’s £23 billion infrastructure spend
  • Rail, tram and underground schemes will provide the most attractive opportunities led by Crossrail and Crossrail 2
  • Amicus Property Finance has provided more than £1 billion of short term property loans

Nearly two-thirds (63%) of property investors rated new and upgraded rail and tram links as providing the most attractive real estate development opportunities from the government’s £23 billion infrastructure scheme over the next five years, according to a new study1 commissioned by Amicus Property Finance, the specialist short term property lender.

Improved road transport links (55%), local authority-sponsored urban regeneration schemes (48%) and airport upgrades (43%) were ranked second, third and fourth respectively among property investors in terms of the potential offered by developing adjacent sites.

Analysis of the government-backed projects on an individual basis shows that three-quarters (77%) of property developers ranked Crossrail and Crossrail 2 as offering the most potential for residential schemes, ahead of High Speed 2 (51%), Thameslink (47%) and superfast broadband (14%).2

According to the study, an overwhelming majority (86%) of UK property developers believe that their peers are increasingly looking to capitalise on opportunities generated by the new £23 billion government-backed infrastructure programme over the next five years.

Keith Aldridge, Founder & Managing Director at Amicus Property Finance, said “The government’s decision to invest in building new infrastructure and upgrading existing assets provides a tremendous opportunity for residential and commercial property developers and we can expect this to continue for many years to come.

“The longer term impact of this infrastructure programme on regenerating existing residential communities and creating new ones cannot be underestimated, particularly when combined with the government’s renewed commitment to addressing the country’s housing gap. We have already seen growing demand among developers seeking short term finance to fund infrastructure-related residential and commercial schemes.”

Amicus Property Finance’s research also revealed that Crossrail and Crossrail 2 as the highest ranked government infrastructure schemes for commercial property development (71%) followed by High Speed 2 (51%), Thameslink (47%) and Manchester Airport (24%).

Amicus Property Finance, part of Amicus Finance plc, the leading specialist financial services group, has seen a strong start to 2017 having provided more than £1 billion of short term property loans last year as it further expanded its customer base among brokers, professional landlords and developers seeking finance for residential and commercial real estate assets.

As part of its growth journey, Amicus Finance plc, which expects to receive its banking licence this year, opened an office in Manchester last year to significantly expand its presence across the North. The new Manchester office provides a regional hub for SME lending, working capital solutions and short term property loans.

Amicus has seen consistently strong funding from the Omni Secured Lending (OSL) Funds. Vintages I, II and III have provided more than £500m of institutional third-party funding to the business. During January and February 2017 alone Vintage III raised more than £200m of new institutional capital, which is being actively deployed to fund new lending activity.

From the list below of the ten largest government-backed infrastructure projects in the UK, which you believe will create the best property development and investment opportunities?
 The best residential property development and investment opportunities (%)The best commercial property development and investment opportunities (%)
Crossrail and Crossrail 2 (South East England, £16.8 billion investment)77%71%
High Speed 2 (London, Birmingham, the East Midlands, Leeds, Sheffield and Manchester, £2.75 billion investment)59%51%
Thameslink – Network Rail (South East England, £6 billion investment)47%47%
Superfast broadband rollout (Nationwide, £1 billion investment)14%10%
Manchester Airport Investment (Greater Manchester, £1 billion investment)10%24%
M1 improvements (Chesterfield to Leeds, £1.3 billion investment)10%10%
M42 improvements (The Midlands, £1.8 billion investment)10%10%
River Forth replacement crossing (Edinburgh to Fife, £1.3 billion investment)4%4%
Hinkley Point C (Somerset, Chinese investment of £6 billion investment)4%10%
Smart Meters implementation programme (Nationwide, £11 billion investment)0%4%

Amicus Property Finance’s property loan portfolio is currently made up of 85% residential properties and 15% commercial properties, with 70% located in London or the South East. Its loans are repaid, on average, in eight months and it typically lends between £50,000 and £7 million.

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Spring in step for Construction Starts in March

The value of work starting on site in the three months to March was 2% higher than during the same period a year ago, according to the latest Glenigan Index. On a seasonally adjusted basis, starts were also 2% up on final three months of 2016.

Commenting on this month’s figures, Allan Wilén, Glenigan’s Economics Director, said “A strong rise in project starts in March has offset earlier weakness and lifted the index for the first quarter of 2017. The increase is partly due to a bounce back in civils projects in March. In addition there have been encouraging increases in industrial, hotel & leisure, and health project starts.”

“Private residential starts for the three months to March were 6% higher than a year ago and 3% up on the previous quarter on a seasonally adjusted basis. This renewed strengthening in starts in encouraging and should help sustain sector activity during the current year. Looking further ahead higher inflation is set to squeeze household spending and to dampen activity in the wider housing market. Against this weaker market background we anticipate a softening in private housing project starts during the second half of 2017.

“Non-residential projects during the first quarter were 7% up on a year ago and 10% up on the previous three months on a seasonally adjusted basis. The recovery in non-residential starts has been driven by increases in industrial, hotel & leisure and health projects starts. The 27% rise in project start is especially positive and suggests that investors’ are now pressing ahead with projects that were initially reviewed after the EU referendum vote.

“There was also a market improvement in civil engineering project starts during March, with an increase in both infrastructure and utilities work. Unfortunately the increases were insufficient to fully offset weak project starts during January and February. Civil engineering starts during the first quarter were 17% down on a year ago and remained a drag on construction starts as a whole.

At a regional level, the South East, North East and East of England together with Wales enjoyed double digit growth, with project starts during the first quarter being 27%, 19%, 14% and 13% up respectively on a year earlier. There was also renewed growth in the Capital, while the value of starts in the North West of England also improved. The value of project starts slipped back elsewhere; at 20% the West Midlands saw the sharpest drop in project starts during the quarter.

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New York set to house the longest building in the world

Plans have been unveiled to construct the world’s first U-shaped skyscraper in New York, testing the very limits of architecture.

The project, entitled ‘The Big Bend’ is being carried out by world-renowned design team Oiio Studio and stands as a literal bending of the city’s strict zoning rules. On their website the design firm state: “There are many different ways that can make a building stand out, but in order to do so the building has to literary stand out.

“We have become familiar with building height measurements. We usually learn about the latest tallest building and we are always impressed by its price per square foot. It seems that a property’s height operates as a license for it to be expensive.

“New York city’s zoning laws have created a peculiar set of tricks trough which developers try to maximize their property’s height in order to infuse it with the prestige of a high rise structure. But what if we substituted height with length? What if our buildings were long instead of tall?

“If we manage to bend our structure instead of bending the zoning rules of New York we would be able to create one of the most prestigious buildings in Manhattan. The longest building in the world.

“The Big Bend can become a modest architectural solution to the height limitations of Manhattan. We can now provide our structures with the measurements that will make them stand out without worrying about the limits of the sky.”

The big curve

The sky (isn’t) the limit!

Once complete, ‘The Big Bend’ will be the longest building in the world, surpassing even Dubai’s Burj Khalifa in total length. Not only will the unique shape of the structure require a Wonka-esque elevator system that can travel in loops and curves, it will also undoubtedly earn it a place as an architectural icon among giants.

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Asia’s first vertical forest will be completed in 2018

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Nanjing Green Towers, promoted by Nanjing Yang Zi State-owned National Investment Group Co.ltd, will be the first Vertical Forest built in Asia.

Located in the Nanjing Pukou District (an area destined to lead the modernization of southern Jiangsu and the development of the Yangtze River economic area), the two towers are characterized by the interchange of green tanks and balconies, following the prototype of Milan’s Vertical Forest.

Along the facades, 600 tall trees, 500 medium-sized trees (for a total amount of 1,100 trees from 23 local species) and 2,500 cascading plants and shrubs will cover a 6,000 Sqm area. A real vertical forest, contributing to regenerate local biodiversity, that will provide a 25 tons of CO2 absorption each year and will produce about 60 kg of Oxygen per day.

The taller tower, 200 metres high, crowned on the top by a green lantern, will host offices – from the 8th floor to the 35th – and it will include a museum, a green architecture school and a private club on the rooftop. The second tower, 108 metres high, will provide a Hyatt hotel with 247 room of different sizes (from 35 sqm to 150 sqm) and a swimming pool on the rooftop. The 20 metres high podium, will  host commercial, recreational and educative functions, including multi-brands shops,a food market, restaurants, conference hall and exhibition spaces.

Nanjiing Vertical Forest project, which is scheduled to be finished in 2018, is the third prototype, after Milan and Lausanne, of a project about urban forestation and demineralisation that Stefano Boeri Architects will develop all over the world and in particular in other Chinese cities such as Shijiazhuang, Liuzhou, Guizhou, Shanghai and Chongqing.

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VIDEO: The first residential house has been printed!

Whilst plans were released last year, Apis Cor company have now successfully finished the residential house printing project (built in Stupino town, Moscow region) using mobile 3D printing technology.

In December 2016, the Apis Cor company in cooperation with PIK proceeded to print the building using a mobile 3D printer. Construction took place at the Apis Cor company’s test facility in the town of Stupino, on the territory of the Stupino aerated concrete factory. Printing of self-bearing walls, partitions and building envelope were done in less than a day: pure machine time of printing amounted to 24 hours.

After completing the wall structures, the printer was removed from the building with a crane-manipulator. The overall area area of the printed building is 38 m².

According to their website, construction is based on Apis Cor’s unique 3D printing technology. A distinctive feature of the printer is its design, which is reminiscent of the tower crane, allowing the printer to execute the printing process of constructing the building both inside and outside.

The printer is small in size, easily transportable and does not require long preparation before the commencement of the construction works because it has a built-in automatic horizon alignment and stabilization system.

The printing process itself is automated as much as possible to eliminate the risk of human error.

On the inside the printed house is no different from a conventionally built home — cozy and comfortable. The interior comprises a hall, a bathroom, a living room and a compact functional kitchen.

The construction cost of the printed house amounted to approximately £8100, which is around £220 per square meter. The cost of the building is surprisingly low, considering the unusual design of the building and the premium quality of the materials specified. Even more impressively, this cost also includes all the works that were done to make a complete house – such as work and materials for the construction of foundation, roof, exterior and interior finishing works, installation of heat insulation of walls, windows, floors and ceilings.

Watch the video below:

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Justice Secretary announces plans to build four new prisons

Plans underway for 4 new prisons in Yorkshire, Wigan, Rochester and Port Talbot.

  • New builds to create up to 2,000 construction jobs and generate millions of pounds to British economy
  • Builds on the government’s commitment to create up to 10,000 modern places, aimed at reducing overcrowding and creating the right conditions for reform.

Justice Secretary Elizabeth Truss has today unveiled plans for the building of 4 new prisons in England and Wales – creating 5,000 modern prison places and replacing old and overcrowded establishments with new, fit for purpose buildings.

Sites in Full Sutton in Yorkshire; Hindley in Wigan; Rochester in Kent and Port Talbot in South Wales have been earmarked for development as part of the government’s commitment to build up to 10,000 modern prison places by 2020, backed by £1.3 billion to transform the estate.

As well as creating modern establishments fit for the twenty-first century, the proposed new builds will also act as a boost to regional economies across the country – creating up to 2,000 jobs in the construction and manufacturing industries and new opportunities for local businesses.

Final decisions on the new prisons will be subject to planning approvals, as well as value for money and affordability.

Justice Secretary Elizabeth Truss said “We cannot hope to reduce reoffending until we build prisons that are places of reform where hard work and self-improvement flourish.

“Outdated prisons, with dark corridors and cramped conditions, will not help offenders turn their back on crime – nor do they provide our professional and dedicated prison officers with the right tools or environment to do their job effectively.

“This significant building programme will not only help create a modern prison estate where wholescale reform can truly take root, but will also provide a thriving, economic lifeline for the local community – creating hundreds of jobs for local people and maximising opportunities for businesses.”

Today’s announcement comes weeks after the opening of HMP Berwyn – the new, modern prison in north Wales which will hold over 2,000 prisoners. The construction of this new prison has already contributed over £100 million to the local economy and created around 150 jobs and apprenticeships before doors have even opened.

In creating a modern prison estate, old and inefficient prisons will be closed and replaced by the new accommodation. A programme of valuation work will now begin to help inform further decisions about the estate. Announcements on prison closures will be made later in the year.

Today’s announcement builds on ambitious reforms to improve safety in prisons, including an additional £100 million to bolster frontline staff by 2,500.

This wholescale, organisational reform will be supported by measures within the Prisons and Court Bill, which will set out a new framework and clear system of accountability for prisons, building on the wide-ranging reforms set out in the Prison Safety and Reform White Paper.

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