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.

Euroclad Group is delighted to announce the appointment of Aiveen Kearney as Managing Director. Aiveen will replace Simon Thomas who has elected to leave the company after 30 plus years.

Paul O’Gorman commented ‘On behalf of the Kingspan Group, I want to thank Simon for his considerable input and leadership into the business during the past 30 plus years and, in particular, since the acquisition by the Kingspan Group some 3 years ago. In addition, I want to wish Simon every success in his future career path over the coming years’

Aiveen will commence her role as Managing Director effective from 7th May, 2019. She joined the Joris Division some 15 months ago, prior to this worked in a range of senior roles for Holcim, a global building materials and aggregates company, in both Australia and USA.

We would like to wish Aiveen every success in her new role.

For further information please contact:
Euroclad Group
+44 (0) 2920 776677
feedback@eurocladgroup.com
www.eurocladgroup.com

Industry experts The Federation of Master Builders (FMB) are calling for the Government to cut the VAT on home improvement work following official data from the ONS. The information shows that whilst there a rise in output has been observed over the first quarter of 2019, construction output actually decreased month-on-month by 1.9% and the repair and maintenance series fell to its lowest level since December 2018, experiencing a fall of 3.1% compared to the previous month.

Speaking about this, Brian Berry, Chief Executive of the Federation of Master Builders, said “It’s not at all surprising that construction output has dropped at the end of the first quarter of this year, given the unprecedented political uncertainty we’ve been facing. To get us through these turbulent times, the Government must be bold in its thinking when it comes to supporting the economy bucking any downward turn. One course of action would be to cut VAT on work in the home improvement and private domestic sectors from 20% to 5%”

“A cut in VAT would help stimulate demand from homeowners resulting in more work for the thousands of small to medium-sized construction companies which would help support local economies and increase training opportunities. This is all the more important given that the FMB’s own State of Trade Survey for Q1 2019 saw the first dip in workloads for small builders in six years.”

“Cutting VAT would also be an important step to help encourage more retrofits of our existing buildings to make them more energy efficient and deliver a cut in carbon emissions.”

Japan’s biggest housebuilder will move into the UK housing market with immediate effect after striking a multi-million pound deal that will see it work with Homes England and Urban Splash to deliver thousands of new homes across England.

Sekisui House, one of the world’s leading housebuilders, are pioneers of modern methods of construction, where homes are built in factories and then shipped out to sites.

The £90m deal, which has been facilitated by lead real estate and financial advisor JLL, comprises a total new investment of £55m into regeneration company Urban Splash’s ‘House’ development business. It provides a significant boost to the UK’s modular housing industry and will help to speed up production of much-needed new homes.

Sekisui House have invested £22m of new equity, with £30m of equity and debt funding coming from the Government’s Home Building Fund, administered through Homes England.

Experienced entrepreneur Noel McKee, founder of We Buy Any Car, has also made a sizeable investment in the new partnership and will take an incremental c 5% stake.

Yoshihiro Nakai, President and Representative Director of Sekisui House Ltd said “We are extremely pleased to be able to work together with Homes England and Urban Splash to establish our operations and help to create outstanding communities in the UK.

“Using modern methods of construction to build high quality homes with short build times is one of our company’s great strengths. Our technology and know-how can help resolve pressing social issues in the UK, and I want to see us play our part effective immediately. These operations can also help bring vitality to UK regions, and we will work to make the strongest connections with the local communities.”

‘House’ is expected to deliver thousands of homes across England using modern methods of construction.

Minister of State for Housing, Kit Malthouse MP, added “Sekisui House bring with them a proven track record in harnessing the modern methods of construction that are transforming home building.

“Backed by Government investment, this announcement will support our urgent mission to deliver more, better and faster home construction to ensure a new generation can realise the dream of home ownership.”

Homes England, the government’s housing accelerator, has been instrumental in providing significant financial support and expertise to the new partnership as well as providing assurance to the investors.

Sir Edward Lister, Chair of Homes England, commented “When Homes England launched last year we said we’d disrupt the housing market to increase the pace of construction. By helping bring one of the world’s largest and most innovative housebuilders to UK shores, we’re putting our money where our mouth is.

“By creating a more diverse landscape – where smaller builders such as Urban Splash get a stronger foothold – we’re rebuilding the building industry; driving up quality and improving consumer choice.”

Tom Bloxham MBE, Chairman of Urban Splash, concluded “We believe that there is a real opportunity in the UK housebuilding industry. We hope to leverage our 25 years of place-making experience and our recent investments into modular housing by bringing in new partners; having looked far and wide we chose Sekisui House from Japan because of the company’s unrivalled global experience in modular construction and shared values and philosophy that we are making homes not units, and a joint belief in the need for a green future.

“We are also proud to partner with Homes England – part of the UK Government – because of their commitment to modular and desire to grow capacity in the UK housing business.

“We are incredibly excited about the accelerated production of much-needed homes and evolving traditional practices as we embrace the benefits of innovative offsite construction. I hope it will establish us as the housing partner of choice for landowners – both public and private.”

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New, or majorly refurbished, large buildings used by the public must have Changing Places toilets for severely disabled people, under government proposals announced over the weekend.

The proposals are expected to add the toilets to more than 150 new buildings a year, including shopping centres, supermarkets, cinemas, stadiums and arts venues.

Changing Places toilets are larger accessible toilets for severely disabled people, with equipment such as hoists, curtains, adult-sized changing benches and enough space for carers.

There are over 1,300 Changing Places toilets in the UK, up from just 140 in 2007, but more are needed to support the more than a quarter of a million people who need them in the UK.

Without access to these toilets, it can be challenging for people to enjoy daily activities.

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Local Government Minister, Rishi Sunak MP, said “Everyone should have the freedom to enjoy days out in dignity and comfort. For severely disabled people, this is made very difficult because there are not enough Changing Places toilets.

“We’ve made some progress, but I’m determined to increase the number of these life-enhancing facilities, so people are given the dignity they deserve.

“I’m pleased so many people will be helped by this major change.”

Catherine Woodhead, Chief Executive of Muscular Dystrophy UK, which co-chairs the Changing Places Consortium, said “People living with disabilities go to work, visit shops and enjoy days out with friends just like everyone else. But a lack of Changing Places toilets make these seemingly simple tasks a challenge. Too often, we hear stories of people not leaving their homes, having to be changed on dirty toilet floors or even having surgery because there are not enough facilities.

“The government’s consultation on making Changing Places toilets mandatory in new, large public buildings is hugely encouraging. Along with our fantastic campaigners, we have long pushed for changes to legislation, and now we are one step closer to that being reality.

What is a Changing Places toilet? Click here to find out

“This is wonderful news for everyone who needs Changing Places toilets. We look forward to working with the government and campaigners in making society more inclusive.”

In the absence of Changing Places facilities, disabled people and/or carers face:

  • limiting what they drink to avoid needing the toilet when they are out – risking dehydration and urinary tract infections
  • sitting in soiled clothing or dirty nappies until a suitable toilet is found or they return home
  • having to change a loved one on a dirty toilet floor
  • manually lifting someone out of their wheelchair – risking safety
  • reducing their time out of the house – restricting their social lives

The government has launched a 10-week consultation, which proposes the required size and shape of Changing Places toilets as well as the range of equipment that must be included.

It also proposes thresholds at which the facilities will be made mandatory in new or largely refurbished buildings of different types, such as overall floor space or attendance capacity.

Last month, the Department for Transport, in partnership with Muscular Dystrophy UK (MDUK), launched a £2 million fund for Changing Places to be installed in existing motorway service stations, which is now open for applications.

The Department of Health and Social Care will also soon launch a £2 million fund for NHS Trusts to install new Changing Places in over 100 hospitals across England.

Examples of how Changing Places can help

Lauren West, from London, needs Changing Places toilets. She is MDUK’s Trailblazers Manager.

Lauren said “As a Changing Places user, I’m delighted to see the potential change to building regulations to include these life-changing facilities. Currently provision is very hit and miss with some areas having none at all. This means people like myself can’t visit these places or can’t stay as long as they’d like. This consultation is an encouraging step towards making the right facilities accessible to those that need them.

“With Changing Places, disabled people have the ability to travel, to work, to enjoy leisure activities and to spend valuable time with family and friends. It’s not only the right thing to do, but it also makes business sense. By providing these toilets, you’re giving disabled people the opportunity to visit your venue, to spend money and to spread the word about its inclusivity.”

Fiona Anderson, 30, from Bolton, is part of MDUK’s Trailblazers network, and needs Changing Places toilets.

Fiona said “A lack of Changing Places toilets has led to me deciding to have surgery, which will give me more freedom to go to the toilet. If these facilities were in every large public building, I would no longer have to endure the pain of postponing going to the toilet all day and the ever present dark cloud of sepsis occurring would be lifted. Ultimately, I also wouldn’t need to have a catheter fitted, which would mean the world to me. I’m not incontinent – I simply can’t transfer to a toilet without a hoist.

“Changing Places toilets are a much-needed lifeline. But with so few of them available, people like me are forced to sacrifice our dignity and independence.”

According to the housing delivery test results released by the government, which shows that a third of local authorities are failing to address the housing crisis.

The results show that 108 local authorities delivered fewer than 95% of the homes they need. This means that they must set out action plans to explain why they missed their targets and how they will address that.

In addition, 87 of these local authorities failed to deliver 85% of the homes they need and will therefore be subject to a buffer, which requires them to add 20% more homes to their five year land supply.

No area delivered fewer than 25% of their housing need, which means none will face the ‘presumption in favour of sustainable development’ penalty. However, the presumption penalty threshold will increase to 45% from November 2019 and to 65% in November 2020.

If the Government had not given areas three years to meet the 65% threshold, 32 local authorities would have been subject to the penalty.

The National Federation of Builders (NFB) recognises the challenges local planning authorities face in meeting the demand for housing, but remains concerned that so many councils are missing their targets, leaving us a shortfall of more than 220,000 new homes.

As local developers, NFB members would have preferred local authorities be in control of their own housing destiny but, since many are failing in their duty to meet housing demand and underestimating housing need, we welcome the blunt instrument that the Government is wielding.

Richard Beresford, chief executive of the NFB, said “Since the carrot of meeting housing need themselves is not enticing enough for local planners, the Government’s stick of penalties and buffers is clearly required. We have a housing crisis and the Government is taking appropriate steps to fix it.”

Rico Wojtulewicz, head of housing and planning policy at the House Builders Association (HBA), concluded “Councils need to do a better job assessing housing need and identify where homes can be built more quickly. If they continue to underestimate demand and focus on large, controversial developments, we expect the housing crisis to worsen and the Government to take control from failing councils.”

Building industry charity, the UK Green Building Council (UKGBC) have unveiled an ambitious framework for the UK construction and property industry to help us transition new and existing buildings to become net zero carbon by 2050, in line with the ambitions of the Paris Climate Agreement.

The report follows six months of intense industry engagement, involving over 180 experts and stakeholders from across the built environment value chain, and is supported by 13 trade associations and industry bodies including BPF, RICS and RIBA. It provides an overarching framework of consistent principles and metrics that can be integrated into tools, policies and practices, and aims to build consensus in the industry on the approach to decarbonising buildings.

The new framework offers guidance for developers, owners and occupiers targeting net zero carbon buildings, setting out key principles to follow and outlining how such a claim should be measured and evidenced. Two approaches to net zero carbon are proposed by the framework which can be accurately measured:

  1. Net zero carbon – construction: the embodied emissions associated with products and construction should be measured, reduced and offset to achieve net zero carbon.
  2. Net zero carbon – operational energy: The energy used by the building in operation should be reduced and where possible any demand met through renewable energy. Any remaining emissions from operational energy use should be offset to achieve net zero carbon.

With the report presented as a starting point, the next ten years will see the scope and ambition of the framework increased to encourage greater action. In the short-term, additional requirements will be introduced to challenge the industry, including minimum energy efficiency targets and limits on the use of offsets. In the longer term, the two approaches for construction and operational energy will be integrated into a broader approach for net zero whole life carbon, covering all of the emissions associated with the construction, operation, maintenance and demolition of a building.

The work has been made possible thanks to the generous support of lead partner Redevco Foundation, and partners BAM, Berkeley Group, Grosvenor, JLL and Hoare Lea.

Richard Twinn, Senior Policy Advisor at UKGBC said “The urgency of tackling climate change means that businesses must work together to drive down emissions as fast as possible. But this requires a shared vision for what needs to be achieved and the action that needs to be taken. This framework is intended as a catalyst for the construction and property industry to build consensus on the transition to net zero carbon buildings and start to work towards consistent and ambitious outcomes. It is the first step on a journey towards ensuring all of our buildings are fit for the future.”

James Wimpenny, Chief Executive at BAM Construct UK added “Contractors, clients, supply chains need to work together – and quickly – to radically change the way we procure, design and deliver buildings. Smart use of renewable technologies and efficient use of low carbon materials are a priority. Reducing carbon makes financial sense over the lifecycle of buildings and that means we should not focus solely on capital costs when procuring a building.”

Rob Perrins, Chief Executive at Berkeley Group concluded “This framework is an important step towards defining net zero carbon buildings and helping the industry understand how they can be delivered. We want to help lead this work, which is so important to decarbonising the built environment and protecting our planet for future generations. Sustainability runs through everything we do at Berkeley Group. We have already become a carbon positive business and have committed to creating new homes that can operate at net zero carbon by 2030.”

  • Starts in the three months to April rose 7% against the preceding three months and were 4% higher than a year ago
  • Residential starts were 4% lower than a year ago and unchanged on the preceding three months
  • Non-residential project starts were 3% higher than a year ago, lifted by a rise in commercial work
  • Civil engineering starts rose 18% against the preceding three months and were 50% higher than a year ago

The value of work starting on site during the three months to April was 4% higher than a year earlier, according to the latest Glenigan Index. Starts were also 7% higher against the previous three months on a seasonally adjusted basis.

Glenigan

Commenting on this month’s figures, Allan Wilén, Glenigan’s Economics Director, said “An improved April performance has provided a spring time lift, with the residential, non-residential and civil engineering sectors all seeing a rise in projects starts. Private sector and infrastructure projects provided the upturn in project starts, while government funded areas such as health, education and social housing remained weak.

“Private residential starts steadied during the three months to April. Project starts had been weakening since last autumn against a backdrop of fewer property transactions and weaker house price inflation in the wider housing market. However private housing starts rose 3% during the three months to April against the preceding three months on a seasonally adjusted basis, although starts were 7% down on a year ago. Social housing starts fell 6% against the three months to January, but were 4% up on a year ago.

“Overall non-residential projects rose 3% against the preceding three months on a seasonally adjusted basis and were 11% higher than a year ago. Private sector starts picked up from their recent weak performance with office, retail and hotel & leisure work rising during the three months to April rising by 13%, 39% and 32% respectively against a year ago. In contrast government funded sectors remain weak, with education starts 20% down on a year ago, and health and community & amenity sectors dropping by 6% and 41% respectively.

“Civil engineering starts rose 18% against the three months to January on a seasonally adjusted basis and were 50% higher than on a year ago. The rise in project starts was driven by a 35% rise (seasonally adjusted) in infrastructure work against the previous three months, while utilities projects rose 4% during the same period.

There was a sharp variation in the industry’s performance across the UK. Regionally the sharpest falls were in the East of England and Scotland with declines of 18% and 22% respectively. Starts in the North East, North West, West Midlands and South West also declined. In contrast, the value of starts in London, Wales and Northern Ireland were 85%, 50% and 97% higher than a year ago, while the East of Midlands, South East and Yorkshire & the Humber all saw double digit growth.

Small house builders predict that skills shortages in the building industry will hamper housing delivery and will eventually overtake access to finance as a bigger barrier to building new homes, according to recent research conducted by industry experts, the Federation of Master Builders.

Key results from the FMB’s House Builders’ Survey, the only annual assessment of small and medium sized (SME) house builders in England, include:

  • A lack of available and viable land tops the list as the most commonly cited barrier (59%) to increasing housing delivery and almost two-thirds of SME house builders (62%) believe that the number of opportunities for small site development are actually decreasing (up from 54% in 2017)
  • The percentage of SME house builders saying that a shortage of skilled workers is a major barrier to their ability to build more new homes rose to 44% (up from 42% in 2017)
  • Nearly half of small house builders (46%) say access to finance is a major barrier to their ability to build more new homes
  • More than half (51%) of SME house builders view the planning system as a major constraint on their ability to grow and ‘inadequate resourcing of planning departments’ was again rated as the most significant cause of delay in the planning application process for the third year in a row
  • When asked to look ahead over the next three years, more firms cited skills shortages as a likely barrier to growth than access to finance

Brian Berry, Chief Executive of the FMB, said “Nearly half of builders believe the skills shortage is a major barrier to their ability to build new homes. The construction sector is heavily reliant on EU workers with just under one in ten workers in the sector born in the EU. Brexit, coupled with the end of free movement, threatens to further intensify the skills shortages we already face. Given that the UK will leave the EU in less than six months, house builders are understandably concerned that skills shortages could worsen and choke housing delivery. In order to combat this skills crisis, the construction industry needs to encourage more entrants into the industry and develop higher quality qualifications. It is critical therefore that the Government doesn’t pull the rug out from under the sector by introducing an inflexible and unresponsive immigration system.”

“Our research also shows that the Government must continue to address the issue of access to finance for SME house builders. Although concerns over access to finance have eased slightly in recent years, in part thanks to the Government’s funding schemes such as the Home Building Fund, there is more that can be done. Our research suggests that it is the low percentages of project cost that builders are able to borrow that remain the greatest financial barrier to increasing their levels of house building. This latest research suggests that if firms were able to borrow 80 per cent, rather than the current 60 to 65 per cent of project cost, SME builders would be able to bring forward on average 40 per cent more new homes. Given the ambitious house building targets the Government is working towards, we cannot afford to ignore such a chance to significantly increase housing delivery.”

“A lack of available and viable small sites tops the list of frustrations for SME house builders for the fourth year in a row. Worse still, nearly two-thirds of these small builders believe that the number of opportunities for small site development are decreasing. However, the recent reforms to the National Planning Policy Framework, which specify that 10 per cent of a local authority’s housing delivery must be on sites no larger than one hectare, will help to address this problem. This will help to speed up the delivery of homes and lead to a more diverse and resilient housing supply.”

A megaproject can be defined as a long term project that involves huge economic investment, vast complexity and precipitates a long-lasting impact on the economy, society and environment of the region in which it is being constructed. For profiles of five of the most startlingly expensive megaprojects currently in progress, see below:

#5 – Dubailand, UAE – $64 billion

Dubailand

When it was announced in 2003, at $64 billion, Dubailand was far and away the most ambitious and expensive leisure development ever proposed. Set to open in 2025, Dubailand plans to house everything from theme parks to science attractions to gargantuan hotels – the largest of which is purported to have 6500 rooms. It has been scaled down since its initial announcement; the recession has caused the funding for Dubailand to dip from $64 billion to $55 billion.

#4 – California High Speed Rail, USA – $68.4 billion

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By bestowing Californians with the ability to travel between Los Angeles and San Francisco in a mere 2 hours and 48 minutes, the state has hopes of generating hundreds of thousands of jobs and billions in annual revenue. Estimates of funding for the construction of California’s very own bullet train have risen to as high as approximately $68.4 billion. This already enormous cost however, is likely to continue to increase. The Los Angeles Times have reported discrepancies between initial estimates and the actual cost of completing the project. For example, the construction of 119 miles of bullet train track in Central Valley was originally touted to cost $6 billion, but this number has since risen sharply to $10.6 billion.

#3 South – North Water Transfer Project, China – $78 billion

South–North_Water_Transfer_Project_Central_route_starting_point_taocha

The South-North Water Transfer Project is the one of the most ambitious feats of engineering ever undertaken. By circumventing water from the more abundant rivers of humid south and transporting it to the industrialised north, the government is aiming to prevent a water crisis from afflicting the country. However, the South-North Water Transfer Project has proved even more controversial than the Three Gorges Dam, which cost less than a third of the price of the former.

#2 Al Maktoum International Airport, Dubai, UAE – $82 billion

Al maktoum

Designed to bolster Dubai’s capacity to take passengers to 220 million, the Al Maktoum International Airport has been a costly investment for the Dubai government. If developments go as planned, it would make Al Maktoum the biggest airport in the world. As well as increasing the number of passengers the city is able to fly in and out, it also allows the airport to serve as a significant port – with over 12 million tonnes of freight being moved annually.

#1 International Space Station – $150 billion

International_Space_Station_after_undocking_of_STS-132

The International Space Station is indisputably the most expensive item ever constructed. While the project is framed as a collective effort between the world’s leading superpowers, the US/NASA bears the brunt of the exorbitant cost – contributing the lion’s share of $58 million towards the project over three decades. In 2010, the cost was estimated to be $150 billion, but it is expected to climb as staggeringly high as $1 trillion by 2020. The assembly of the ISS comprised over 40 individual missions, as each module joined the station one by one.

While megaprojects of this scale are rare in the UK, the construction of the HS2 railway, which is expected to cost close to £56 billion, began in 2017.