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.

Alarm bells sound for construction as output plummets

Rising costs and uncertainty relating to Brexit are to blame for the sharp drop in output growth in January 2019, the Federation of Master Builders (FMB) has said in response to the latest PMI data.

The January 2019 PMI data revealed a fall from 52.8 in December to 50.6 in January, against the neutral reading of 50.0. January data pointed to a loss of momentum for the UK construction sector, with business activity growth grinding to its weakest for ten months.

Commenting on the results, Brian Berry Chief Executive of the FMB, said “The latest PMI data shows a slowdown in growth in construction with business activity growth easing to its weakest for ten months. The ongoing political uncertainty is partly to blame for this set-back. Political uncertainty is the enemy of construction firms that rely on the spending power of homeowners to commission home improvement projects. The UK is set to leave the EU next month, and yet we are still none the wiser about what the future holds. Given these intense headwinds, it should not be surprising that the sector suffered such a sharp decline.”

“Alongside the political uncertainty, the cost of doing business is also rising for construction firms up and down the country. Material prices have been rising steadily since the depreciation of sterling following the EU referendum. Looking ahead, material prices are expected to continue to cause a headache for the construction industry with recent research from the FMB showing that 87% of builders believe that material prices will rise in the next six months. What’s more the construction skills crisis means that key trades are extremely difficult to recruit and the upshot of this is rising wages in construction. Tradespeople know they can command higher salaries than they did preciously as workers are scarce, and this means a squeeze in margins for firms. This will only worsen if the post-Brexit immigration system that the Government has planned goes ahead. If the sector isn’t able to draw upon crucial EU workers of all skill levels, who have so far served to mitigate this shortage, the slowdown of growth will continue.”

/0 Comments/by

Construction firms lose £1.8bn in invoice fraud

According to the research published by Tungsten, construction firms lose £1.8bn in invoice fraud Cyber-crime costing average construction business £1,948 per year. This amounts to £1,948 per construction business.

Concern about the scale of the fraud is greater in the construction industry than any other sector, with a staggering 71% of business owners troubled by its increase, compared to a national average of 54%. They view it as the single biggest threat facing their business – more so than losing a major contract, a member of staff or competitor activities.

Of the construction companies surveyed, 60% have received a fraudulent or suspicious invoice  – this is significantly more than any other sector and the national average of 47%. Tactics have included: viruses embedded in attachments; unknown invoices attached to an email or sent by post; false changes to bank details and sending duplicate invoices.

Tungsten’s research exposes the need to crack down on fraud in the UK and is backed up by the Government, who in response launched a taskforce in 2016 to combat fraud of all types. The Joint Fraud Taskforce consists of representatives from the City of London Police, National Crime Agency, Financial Fraud Action UK, the Bank of England, and chief executives of the major banks.

Worryingly, not every company is aware of the high stakes – 11% of construction businesses would take no action if they received a suspicious invoice and 6% wouldn’t know what to do. Only around half (54%) would contact the police or a reporting service like Action Fraud, showing that there is still an education job to do in terms of knowing how to handle cyber-crime.

Richard Hurwitz, CEO at Tungsten, said “Construction firms face all manner of challenges, and it’s telling that cyber crime looms as one of the biggest. It seems particularly prevalent within the construction industry possibly because many contractors have minimal back office support and therefore it is easier for fraudsters to get away with their tactics. What’s most troubling is that it needn’t be like this as there are steps companies can take to protect themselves.

“Technology such as electronic invoicing can help construction companies battle invoice fraud as only confirmed suppliers can upload their invoices and then these are validated before they are paid, potentially saving firms thousands of pounds. Tungsten currently handles more than 15 million invoices a year, with firms in 192 countries around the world transacting across the network.”

Pauline Smith, Head of Action Fraud, the UK’s national centre for reporting fraud and internet crime, said: “It is important that employees are made aware of invoice scams and are ready to recognise the signs of fraud. Incidents of invoice fraud are underreported and therefore it is difficult to know the true scale of this fraud type. However what we do know is that this type of fraud prevails across all types of business and no one type of industry is immune. Those organisations that are worried they may fallen victim to fraudsters should always report to Action Fraud.”

/0 Comments/by

New research shows how used tyres can help protect bridges

In UK alone, 50 million tyres are discarded each year. With an ever increasing volume of vehicles in the world, the disposal of spent tyres is a serious issue. Often dumped in landfill, these tyres pose untold risk to health, safety and the wellbeing of our environment. However, used tyres do have their uses. For example, one such material that is made from discarded tyres could double the resilience of structures in disaster prone regions, ensuring safe and sturdy infrastructure whilst simultaneously reducing waste.

New research published in the Journal Earthquake Engineering and Structural Dynamics has described a new method of protecting bridge infrastructure in disaster-prone regions using used tyres that may otherwise be sent to landfill.

Academics from the Universities of Surrey and Thessaloniki (Greece) looked at how bridges, in particular Integral Abutment Bridges (IABs) react to stress and how simple measures could be taken to protect this vital infrastructure from wear-and-tear, as well as in the event of extreme dynamic impacts such as earthquakes.

Lead author, Dr Stergios Mitoulis of the University of Surrey explained, “Bridges are important infrastructure assets, which are costly to construct and maintain. Their maintenance is a major challenge in most developing countries and significant investment is required to ensure they remain safe and usable, especially in disaster situations.”

“In developing countries especially, there is a need to build bridges using simple and inexpensive methods. This had led to a type of bridge known as an integral bridge becoming increasingly popular which is a simple frame structure with no extra parts such as bearings or expansion joints, it is maintenance-free but has limitations meaning that they can only be used over short lengths. Where the bridge meets the land the soil moves and shifts and in times of stress this can lead to extended damages or collapse. The longer the bridge, the greater the risk of collapse.”

The challenge for the researchers was to find an inexpensive and effective material to bolster bridges, providing support but also providing a buffer able to withstand the force of earthquake situations regardless of the length of the bridge. The team turned to conventional tyres, of which 50 million are discarded in the UK alone each year, and which were banned from the UK’s landfills in 2009. The waste tyres will be used to create a new product, called the isolator, namely a flexible and elastic layer of reused tyres. This flexible layer will be used to absorb movements, reducing costs of repair.

“As with many of the challenges we face in engineering, the answer came from an unexpectedly simple source,” explained Dr Mitoulis. “We were looking for a readily available, cheap and effective material that would keep its cool under pressure. That’s when we thought about the possibility of recycling common tyres and putting to good use a material destined for landfill. We use old tyres to create an aggregate that effectively provides double the performance of conventional designs when movements due to earthquakes or temperature changes are simulated.”

The new design will eventually allow for safer and sturdier bridges in areas that do not have the means to erect expensive structures that require extensive maintenance. The team will now look for new market opportunities in diverse infrastructure assets that are expected to be benefitted by these recycled isolators, including quay and retaining walls and building foundations.

/0 Comments/by

Robots to fix underground pipes and help cut roadworks

£26.6 million investment to build micro robots that can help repair the UK’s vast underground pipe network preventing disruptive roadworks and using robotics in hazardous work environments to avoid workplace injury.

New micro robots will be built to repair the UK’s huge underground pipe network, significantly cutting the disruption caused by the 1.5 million road excavations that take place every year.

Scientists from 4 British universities will use £7 million government investment to develop 1 cm-long robotic devices that use sensors and navigation systems to find and mend cracks in pipes. The traffic closures and disruption to businesses of these roadworks is estimated to amount to more than £5 billion. A further 14 projects backed by £19.6 million government investment, through the Industrial Strategy Challenge Fund (ISCF), will see robots sent to hazardous work places such as offshore wind-farms and nuclear decommissioning facilities. Researchers will test new technologies, such as the use of artificial intelligence (AI) software on satellites in orbit to detect when repairs are needed, and drones for oil pipeline monitoring.

Science Minister Chris Skidmore said “while for now we can only dream of a world without roadworks disrupting our lives, these pipe-repairing robots herald the start of technology that could make that dream a reality in the future

“From deploying robots in our pipe network so cutting down traffic delays, to using robots in workplaces to keep people safer, this new technology could change the world we live in for the better. Experts in our top UK universities across the country are well-equipped to develop this innovative new technology.

“We have put research and development at the heart of our modern Industrial Strategy, with the biggest boost to funding in UK history to create high skill jobs and boost productivity across the country.”

UK Research and Innovation (UKRI) Chief Executive, Professor Sir Mark Walport added “The projects demonstrate how robots and artificial intelligence will revolutionise the way we carry out complex and dangerous tasks, from maintaining offshore wind farms to decommissioning nuclear power facilities.

“They also illustrate the leading role that the UK’s innovators are playing in developing these new technologies which will improve safety and boost productivity and efficiency.”

The £26.6 million government funding boost is part of the modern Industrial Strategy, investing in the technologies of tomorrow and creating high skilled jobs across the country. The UK already develops world-leading robotics technologies, and these projects delivered by UKRI will help make this a sector for UK businesses to grow and dominate international markets.

Health and Safety Executive Chair Martin Temple concluded “The key purpose of the Health and Safety Executive is to save lives and prevent workplace injury and ill health. To achieve this, we need businesses to work with us and to be innovative in their thinking around managing risk in the workplace. New and emerging technologies are shaping our working environment.

“As a regulator we want to encourage industry to think about how technologies such as robotics and AI can be used to manage risk in the workplace, safeguarding workers both now and in the future world of work.”

/0 Comments/by

Renewables break 100% threshold for electricity demand

Wind output in November broke through the 100% threshold for the first time, with 109% of total Scottish electricity demand being met from renewables, enough to power nearly 6 million homes.

Another milestone is that for 20 out of the 30 days, wind production outstripped demand.

Gina Hanrahan, Head of Policy at WWF Scotland said “Wind power breaking through the magic 100 per cent threshold is truly momentous. For months output has flirted around the 97 per cent mark, so it’s fantastic to reach this milestone.

“It’s also worth noting that 20 out of 30 days wind production outstripped demand.

“Most of this is onshore wind, which we know is popular, cheap and effective. But the UK Government needs to allow it to compete with other technologies, by unlocking market access for onshore wind if it’s to realise its full potential.”

  • National Grid demand for the month – 1,994,839 MWh. What % of this could have been provided by wind power – 109%
  • Best day – 28th November generation was 116,599MWh, 9.59m homes, 391% households. Demand that day was 60,492MWh – wind generation was 192% of that.
  • Worst day – 26th November 22,677 MWh, 1.86m homes, 75% of households
  • How many days generation was over 100% of household electricity requirement – 28
  • How many days generation exceeded overall electricity demand – 20

Alex Wilcox Brooke, Weather Energy Project Manager at Severn Wye Energy Agency said “Scottish wind power generation breaking the 100 per cent barrier in November is historic and serves as a timely reminder of the importance renewable energy now plays in the UK energy market.”

wind output

/0 Comments/by

A blow to the UK’s construction industry?

A potential exit from the European customs union and the single market without a transitional period could have a significant impact on supply chains say leading accounting, tax and advisory firm Blick Rothenberg.

Alex Altmann, Partner and head of the German desk at Blick Rothenberg, said “The construction industry in the UK is dependent on foreign investment, overseas suppliers and European workers.

“Over 60% of all building materials used in the UK are imported from the EU. If the UK ceases its membership of the customs union, the cost of bringing building materials, machinery and other goods from the European mainland would significantly increase due to lengthy import procedures, potential duties and the administration of import VAT to be paid.”

“Not being a member of the single market could see free movement of workers being compromised and a shortage of the workforce would be the result, leading to higher costs for companies hiring workers on UK construction sites. Nationwide, European nationals account for around 10% of the UK construction industry’s workforce. On building projects in London this figure stands at around 40%.”

The UK Government plans to invest significantly into infrastructure in the next 20 years, with projects such as HS2, Crossrail 2 and a new runway at Heathrow airport. The UK has also a dramatic housing shortage and as reported in the media England alone requires about 3 million new homes by 2040.

“The UK’s construction market is very competitive with major European construction and project management companies bidding for building work, with Germany being one of the strongest international market participants. An exit from the European customs union and the single market could have a challenging effect for the UK’s construction industry”

“Many building projects in the UK are European ventures. From clients, investors and design teams to main contractors and specialised craftspeople – the UK’s construction industry is largely based on the EU membership. Ultimately the loss off access to the single market could result in the UK being a less competitive player in the international construction industry.”

/0 Comments/by

It’s no mirage, the industry is changing fast……

Says Tony Gittings, managing director of Rinnai, a global leader in the manufacture of hot water heating units and systems. And it is the end user that is emerging as the determining force in making changes to suit today’s demands and expectations.

In the past several years we have seen some extraordinary changes in our little patch of the wide heating and plumbing arena. Gone are the established supply lines, gone too, is the dominance of the ‘traditional’ products in the supply of hot water in commercial and institutional sites.

Water is the stuff of life, simple as that. It is a very precious commodity that is the foundation of our entire quality of life. In 2013 the Energy Savings Trust completed and issued a major report titled ’At Home with Water’. The report detailed our domestic use of water. It came up with some stunning figures re: the amount of water used domestically – each person uses approx. 140 litres of water daily with the average household using almost 350 litres per day. Just think of a one litre bottle of water, then multiply it 350 times – it’s a huge amount and it is not decreasing.

One of the biggest water companies has a consumption guide on its website and it estimates that just one person will use almost 180 litres of water daily. A quick website also shows the per person consumption of hot water when they are away from home. When someone stays at a hotel or hospital, they consume 160 litres of hot water each day! Offices use a measly 22 litres in comparison!

So, there is no doubt that hot water consumption is rising and, given the rapid development of techniques building energy efficient homes which require less than 10kW heating, means that hot water provision is getting more and more driven by the end user.

At the moment, domestic hot water provision is provided via the boiler, usually a combi type, although those homes with renewables tend to use a water heating appliance as an auxiliary supplement. But the biggest development in the last few years has been the launch of installing companies which are wholly and totally based online. These typically give the consumer a quote, a date for installation and provide finance. The installer is given a date and time to do the installation – no buying of materials – the domestic heating marketing is now thinking inside the Box because of innovations like Boxt.

It really does look like the days of box-shifting are gone.

Commercial systems of hot water provision come mainly via the traditional style ‘stored’ system – or the Rinnai continuous flow method where hot water is delivered instantly, economically and efficiently in an engineering sense. But the consumer and the installer – domestic or commercial – are beginning to demand a complete service now. We have seen and even anticipated these changes.

Rinnai has made considerable financial investments in the two critical areas of any commercial enterprise – high quality of products and service excellence aimed solely at the installer and their end user. We espouse the concept of complete system efficiency in terms of hot water delivery and we practise that every single working day.

Our products are of the highest possible quality, offering long term, robust performance giving useable hot water on demand at the turn of a tap, all at an economic and energy efficient level. Coupled with that is our service – we have a dedicated salesforce dealing directly with installers, contractors, designers, consultants and facilities & estate managers.

We have very deliberately aimed the bulk of all marketing communications direct to these sectors offering instant technical support, design service, comprehensive training courses at either our own tailor-made facility or at a venue of a customer’s choice. We have also initiated five accredited CPD courses.

We believe that we are the best value-for-money units and systems of hot water delivery currently available to the UK commercial and residential market. And we have proof of that in two independent reports from AECOM which show continuous flow as being at least more economic than any other type of system or unit.

For more information on the RINNAI product range visit www.rinnaiuk.com
/0 Comments/by

Construction output rises despite Brexit uncertainty

The Government must not be complacent about the damage a ‘no deal’ Brexit would cause amid positive signs of growth in the UK construction industry, says the Federation of Master Builders (FMB).

Commenting on the construction output figures for November 2018, published by the Office for National Statistics, Sarah McMonagle, Director of External Affairs at the FMB, said “The UK construction sector grew by 2.1 per cent during September to November 2018 compared with the previous three months. This is despite unparalleled levels of political uncertainty around the very real prospect of a ‘no deal’ scenario. However, we are urging the Government not to allow these results to create a false sense of security. Since November, political uncertainty has cranked up and is increasing every day. A growing and prosperous construction sector will be a distant memory if the Government allows the UK to crash out of the EU without a deal in place.”

“The construction industry is also extremely concerned about the Government’s proposed post-Brexit immigration system. In the Immigration White Paper, published at the end of last year, the Government revealed that they will make few allowances for low skilled workers to enter the UK post-Brexit. Most tradespeople will be defined as low skilled and therefore will not be permitted to enter the UK, regardless of whether they are from the EU or further afield. It is crucial that the Government introduces a post-Brexit immigration system that continues to allow us to draw on essential migrant workers or else their house building and infrastructure targets will be totally unachievable.”

/0 Comments/by

Intelligent systems will help UK transition to clean and affordable energy

New small-scale renewable electricity providers to be guaranteed payment for excess electricity supplied to the grid under government proposals unveiled this week – protecting consumers from unfair costs associated with current scheme.

Plans for Smart Export Guarantee could build a bridge to the smarter energy system of the future, which can help unlock technological innovations like home energy storage and more efficient electric vehicle charging.

Households and businesses installing new solar panels will be guaranteed payment for power provided back to the grid under government proposals set out this week to unlock the smart energy systems of the future- an important upgrade to the current Feed-in Tariffs scheme.

The proposed ‘Smart Export Guarantee’ (SEG) would replace the existing ‘Feed-in Tariff’ scheme (FIT), with electricity suppliers paying new small-scale energy producers for excess electricity from homes and businesses being put back into the energy grid. The new scheme could create a whole new market, encouraging suppliers to competitively bid for this electricity, giving exporters the best market price while providing the local grid with more clean, green energy, unlocking greater choice and control for solar households over buying and selling their electricity.

With the cost of solar falling by 80% since 2008, it’s the right time to review the way these payments are made- with the scheme currently costing consumers approximately £1.2 billion a year. The SEG would mean households and businesses installing new renewable energy generators would be paid transparently for the energy they produce- protecting consumers from cost burdens, by using established smart technology.

Currently under the FIT scheme, accredited households and businesses who install small scale electricity generation are assumed to export 50% of the electricity they produce and are paid for it-even when the electricity is not needed by the grid or they export less than 50%.

Energy and Clean Growth Minister Claire Perry said “This new scheme could help us to build a bridge to the smart energy system of the future, with consumers firmly at its heart – not only buying electricity but being guaranteed payments for excess electricity they can supply to the grid.

“It could also reduce strain on energy networks with a more decentralised and smarter local network delivering resilience much more cost effectively, unlocking innovative products for electric vehicles and home energy storage; a win-win for consumers and the environment and a key part of our modern Industrial Strategy.”

The proposals, combined with existing technologies like smart meters and battery storage could also help build a bridge to smarter more efficient energy systems of the future, with the potential to work together with electric vehicle and standalone batteries to store and sell electricity to the grid when demand is high; in turn cutting consumer bills, reducing strain on energy networks, and giving consumers more control of their energy use.

Government investment in clean energy is at the heart of its world-leading modern industrial strategy, with the Clean Growth Strategy pledging more than £2.5 billion investment in low carbon innovation by 2021. The FIT scheme, which closes to new applicants on 31 March 2019, has overachieved on its original objectives, outstripping installation predictions by nearly 100,000 with over 830,000 solar installations producing enough power for two million homes.

Some 560,000 households and business are currently generating electricity under the FIT scheme through a range of measures including anaerobic digestion (generating energy from waste products), wind power, biomass and hydro-electricity- but with the majority (99%) using solar panels fitted to rooftops.

/0 Comments/by