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.

Investigation into the preparation and approval of Carillion financial statements

The Financial Reporting Council (FRC) has commenced an investigation into the conduct of Mr Richard Adam and Mr Zafar Khan, former Group Finance Directors of Carillion plc and members of the ICAEW, in relation to the preparation and approval of the financial statements of Carillion plc for the years ended 31 December 2014, 2015 and 2016, and the six months ended 30 June 2017, and the preparation and reporting of other financial information during the period 2014-2017 . The investigation will be conducted under the Accountancy Scheme. The FRC announced an investigation under the Audit Enforcement Procedure into the audit of the financial statements of Carillion by KPMG on 29 January 2018.

The investigations will be undertaken by the FRC’s Executive Counsel and Enforcement Division as quickly and thoroughly as possible.

The FRC is liaising closely with the Official Receiver, the Financial Conduct Authority, the Insolvency Service and The Pensions Regulator to ensure that there is a joined-up approach to the investigation of all matters arising from the collapse of Carillion.

This latest probe is in addition to an investigation under the audit enforcement procedure into the audit of the financial statements of Carillion by KPMG on 29 January 2018.

 

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Sexism in construction

Nearly half of construction workers think the sector’s pay gap between men and women will be lower than the national average within a year.

  • 46% of construction workers think the gender pay gap will be less than 15% by April 2018.
  • More needs to be done to achieve equality and tackle sexism in the sector; 35% of workers believe men are better suited for the skill set needed in construction.
  • Nearly a third (30%) of women cite fears of sexism as holding them back from pursuing senior roles in construction.
  • Workers want organisations to do more, with nearly 39% believing companies are not doing enough to attract females into the sector.

OnePoll survey findings

A OnePoll survey commissioned by the RICS found that despite an optimistic outlook about the gender pay gap figures across the construction sector, with nearly half (46%) of construction workers predicting the gap will be less than 15% by April 2018, businesses need to do more to tackle gender inequality and sexism in the industry.

The future for women in the construction industry

With the national average pay gap recorded at 18.1% in 2016, today’s findings suggest the construction sector could lead the way in closing the gap, if the employees’ predictions are correct. Indeed, more than one in ten respondents (12%) think that there will be no gender pay gap at all by April 2018, which marks the end of the UK Government’s mandatory gender pay reporting period. However, this positive sentiment is markedly absent in the nation’s capital, with Londoners in the construction sector predicting an average pay gap of 21%.

A man’s world?

Despite a positive outlook towards the pay gap, today’s findings reveal the construction sector has significant steps to take if it is to achieve parity. Nearly a third (30%) of women surveyed think sexism holds them back from pursuing senior roles in construction, while 38% of men believe their skills are better suited to the sector than women.

Nearly half (42%) of those surveyed believe companies need to invest more in training their existing female employees. Equally, those in the sector want to see businesses investing in the future pipeline of talent to build a diverse workforce, with 40% recognising that companies need to invest more in encouraging young girls to pursue a career in construction, so that more women enter the profession.

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Soaring material prices hampering small building firms

A third of small building firms say that soaring material prices are squeezing their margins and almost a quarter have had to pass these price increases onto consumers, according research by the Federation of Master Builders (FMB).

Construction SMEs have reported a range of material price increases since the depreciation of sterling following the EU referendum in June 2016. Small building firms were asked which materials have increased the most and the results were as follows:

  • Timber
  • Insulation
  • Bricks
  • Blocks
  • Windows
  • Plasterboard / Slate (joint sixth)
  • Boilers and radiators
  • Porcelain products

The impact of these material price increases includes:

  • 85% of builders think material price rises could drive consumers to hire rogue traders in an effort to save money on their building projects
  • One third of construction SMEs (32%) have had their margins squeezed
  • Almost one quarter (22%) have been forced to pass material price increases onto their clients, making projects more expensive for consumers
  • More than one-in-ten builders report making losses on their building projects due to material price increases

Brian Berry, Chief Executive of the FMB, said “Material price increases have left builders under severe pressure. This research shows that following the fall in the exchange rate, timber is the material that the majority of builders say has increased most in price but the problem doesn’t end there – everything from insulation to windows to bricks and blocks are soaring in price. A third of builders report that these price increases are eating into their already razor-thin margins – and this on top of increased wages and salaries stemming from long-term construction skills shortages. Furthermore, one-in-ten builders say that they’ve actually made losses on projects due to material price increases – this is most likely to happen when a particular product or material jumps up in price mid-project when then builder has already quoted for the work. Perhaps unwisely, some builders are absorbing these extra costs as opposed to re-quoting for the project.”

“Material price spikes aren’t just a problem for builders – they’re also a problem for the home owner, with almost one quarter of builders saying that they have had to pass on price increases to their clients. This means that building projects now cost significantly more than they did this time last year. What with stagnant wages and price inflation across the economy, consumers are feeling the pinch and it might be that they decide not to commission that loft conversion or extension after all. Or worse still, 85% of builders believe that home owners will be tempted to hire rogue traders who are quoting a lower price than a professional building firm such as those that belong to the FMB. If that’s the case, material price rises could lead to a flurry of botched jobs and distressed consumers. We’re calling on home owners to hold their nerve – they’re better off commissioning a more modest project from a professional builder than a high spec project from a cowboy. Don’t take the risk.”

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International Women’s Day: A third of home owners would prefer a female tradesperson

A third of UK home owners would rather hire a female builder, as opposed to a male builder, according to new research by the Federation of Master Builders (FMB).

Key results from the FMB’s research into opinions on female builders and tradespeople include:

  • Almost one third (30%) of home owners would feel more positive about hiring a female builder or tradesperson to complete a task in their home, as opposed to a male builder or tradesperson
  • Women feel particularly positive about hiring female builders with 35% saying they would feel more positive about hiring a female builder or tradesperson to complete a task in their home

Of those who felt more positive about hiring a female builder, the reasons were as follows:

  • 51% think female tradespeople might be more respectful of their home
  • 46% would like to support more women working in non-traditional job roles
  • 42% might feel more at ease with a female tradesperson
  • 37% think female tradespeople might be more trustworthy
  • 35% think female tradespeople might be friendlier
  • 30% think women often have better attention to detail than men
  • 20% prefer the company of women
  • 18% relate better to other women
  • 16% would be a novelty and a welcome change to hire a female builder

Despite feeling more positive about hiring a female tradesperson, 30% fewer people would encourage their daughter to pursue a career in construction than their sons.

Nearly two-thirds of the general public are ‘gender blind’ when choosing their builder or tradesperson and wouldn’t care whether they were a man or a woman.

Commenting on the research, Brian Berry, Chief Executive of the FMB, said “There’s a clear appetite among consumers for more women to enter the building industry with one third of home owners saying they would rather hire a female builder. There are numerous reasons for this and chief among them is that these home owners feel that female tradespeople might be more respectful of their home. Consumers are also keen to support more women working in non-traditional job roles which is a breath of fresh air. However, there’s a serious gap in the market here as currently only two percent of tradespeople are women.”

“The construction industry is in the midst of a skills shortage and until we appeal to women – who obviously make up fifty per cent of the population – we’re unlikely to dig ourselves out of this skills hole. Despite feeling more positive about hiring a female tradesperson, 30% fewer people would encourage their daughter to pursue a career in construction than their sons. In 2018, this attitude is outdated and denies thousands of women a potentially rewarding career. Today is International Women’s Day and we’re calling on all parents, teachers and careers advisers to talk to young women about a career in construction. The construction sector can appeal to anyone who takes pleasure in the built environment and wants to avoid being trapped behind a desk all day. This can and should apply to both men and women equally.”

Debi Sporn, from Sporn Construction Ltd, who has worked in construction for more than 16 years, said “The public perception of the construction industry is changing but not quickly enough. As a woman working in construction, I’m able to bring a different perspective to our firm and how it operates. Not only that, clients to seem respond well to the fact that our company employs both men and women. Construction is an exciting sector to work in and I would absolutely recommend pursuing a career in our industry.”

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Construction apprentices will earn more than uni students

Construction apprentices will go on to earn thousands of pounds more, every year, than many of their university-educated counterparts, according to the latest research by the Federation of Master Builders (FMB).

Small building firms across the UK were asked what they pay their tradespeople and the average annual salaries were as follows:

  1. Site managers earn £51,266
  2. Plumbers earn £48,675
  3. Supervisors earn £48,407
  4. Electricians earn £47,265
  5. Civil engineering operatives earn £44,253
  6. Steel fixers earn £44,174
  7. Roofers earn £42,303
  8. Bricklayers earn £42,034
  9. Carpenters and joiners earn £41,413
  10. Plasterers earn £41,045
  11. Scaffolders earn £40,942
  12. Floorers earn £39,131
  13. Plant operatives earn £38,409
  14. Painters and decorators earn £34,587
  15. General construction operatives earn £32,392

The highest reported annual salary for bricklayers in London was £90,000 a year. However, the UK’s university graduates earn the following average annual salaries:

  • Pharmacists earn £42,252
  • Dental practitioners earn £40,268
  • Architects earn £38,228
  • Teachers earn £37,805
  • Chartered and certified accountants earn £37,748
  • Midwives earn £36,188
  • Veterinarians earn £36,446
  • Physiotherapists earn £32,065
  • Nurses earn £31,867

Brian Berry, Chief Executive of the FMB, said “Money talks and when it comes to annual salaries, a career in construction trumps many university graduate roles. The average university graduate in England earns £32,000 a year whereas our latest research shows that your average bricky or roofer is earning £42,000 a year across the UK. In London, a bricklayer is commanding wages of up to £90,000 a year. Pursuing a career in construction is therefore becoming an increasingly savvy move. University students in England will graduate with an average £50,800 of debt, according to The Institute for Fiscal Studies, while apprentices pass the finish line completely debt-free. Not only that, apprentices earn while they learn, taking home around £17,000 a year. We are therefore calling on all parents, teachers and young people, who too-often favour academic education, to give a career in construction serious consideration.”

“The construction industry is in the midst of an acute skills crisis and we are in dire need of more young people, including women and ethnic minorities, to join us. Our latest research shows that more than two-thirds of construction SMEs are struggling to hire bricklayers and 63 per cent are having problems hiring carpenters. This is a stark reminder of how the Government’s housing targets could be scuppered by a lack of skilled workers. The FMB is committed to working with the Government to improve the quality and quantity of apprenticeships because the only way we will build a sustainable skills base is by training more young people, and to a high standard.”

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Snow causing havoc for construction sites across UK

A number of construction sites across the UK have ground to a halt due to heavy snow, according to the Federation of Master Builders (FMB).

With snow continuing to fall, weather warnings from the Met Office are in place in many parts of the country. Police are now alerting people across UK and Ireland to avoid all travel – including commuting – during blizzards and strong winds.

Sarah McMonagle, Director of External Affairs at the FMB, said “Heavy snow showers have led to many construction sites across the UK grinding to a halt. Some construction bosses have told their staff to take the rest of the week off and not return to work until Monday. But it’s not just the snow that’s playing havoc with construction projects – some firms are reporting that the freezing temperatures mean it’s too cold to lay bricks. The overall impact of bad weather on construction growth remains to be seen but this situation is concerning given that the FMB’s latest research shows that growth among construction SMEs slowed in the final three months of 2017. We hope that the cold weather we have seen this week is just a blip and that all workers will be able to get back on site in coming days.”

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The role of BIM in cities

The socioeconomic impact of our built environment on cities and communities has the potential throughout the asset lifecycle. Whilst providing the greatest challenge requiring the integration of systems and future proofing at an unprecedented scale and complexity.

In order to tackle these challenges, we have seen amazing advancements through the digitisation of services and systems in cities. More and more we hear or see the following acronyms CIM, SIM, BIM, CityGML, and know that data driven decision making is the way to go. These are not new concepts; many individual buildings are already considered “smart” and transport systems in many global cities are powered by big data with to ensure people and goods can move across cities as efficiently as possible and according to demand. Data about the built environment, assets and infrastructure, plays a key role in this process.

Our assets and infrastructure need to be more efficient, provide a greater output with the same input, and have increased impact. Like any business strategy, where cost drivers are assessed to devise the best plan for a positive bottom line, Cities have to make the best possible assessment of their assets: how they are specified, built and commissioned, maintained and operated, to deliver an optimised service for the citizens. All our buildings, roads, railways, homes, water systems, etc. are part of this challenge and in order to understand and measure their performance these need to exist in a digital format where sensed data can be associated to how they are used.

For this to happen we require a common data environment where building information integrates with geospatial information, sensed data about the performance of the asset and citizen and user data to providing information about the demand needs in a context aligned to the provider. One of the simplest but greatest differences I see is we will be asking the same questions of our built environment in a slightly different way, with different time horizons and driven by different incentives – impact, outcomes and performance. It will not only be about how we build to a certain specification, but whether we have delivered the ongoing performance required and how this performance affects and is affected by the activities taking place in and around it.

In the world of Level 3, we anticipate the supply chain changes and new opportunities open up to industries and disciplines not previously in the “business of assets and infrastructure”. We must think about data users operating assets and delivering critical services beyond the construction phase and the technologies that will integrate into the ecosystem of the asset to support performance monitoring. This information, will be a requirement to enable continuous improvement of service provision and the insights gained from the users will inform better briefing at the planning and design stages of new assets.

In the future, even now already, the collaborative practices, technologies, processes and tools that have been developed for the purpose of construction will expand its uses to include others across the asset lifecycle. New users mean new requirements, and ultimately new ways of communicating information about our assets. In the process, we will adapt and integrated with other industry practices to make BIM integral to city models used to plan, design and build better places to live, learn, play and work. The cultural shift is happening, we are in the business of the “smart built environment”, where user experience and feedback is mandatory and assessment of how efficient our assets and infrastructure are become essential to justify the performance and therefore value of our built environment.

We play a key role in how these industries and marketplace will develops over the coming years. Innovating in the way we do things, not only technically but commercially and culturally will be critical for our industry.

Written by Teresa Gonzalez Rico for www.ukconstructionweek.com.

BIM

Teresa is a Civil and Structural Engineer with several years of experience in the construction industry. Over the last 4 years she has worked in the Urban Innovation space, focusing on the impact that the built environment has in Cities and people and how the way we build and manage our infrastructure can make smart cities a reality.

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£40 million fund to transform UK’s coastal towns

Multi-million pound funding to transform the UK’s coastal communities through investment in jobs, skills and local businesses opened for bids this week announced Coastal Communities Minister, Jake Berry.

500 new businesses supporting 5,500+ plus jobs have been created thanks to the government’s Coastal Communities Fund.

The opening of the next £40 million round of applications was announced by Coastal Communities Minister, Jake Berry, while visiting Barrow-in-Furness to see first hand how the fund has delivered major economic benefits for the Cumbrian town and wider coastal area.

Coastal Communities Minister, Jake Berry, said “I’m delighted to announce that applications are now open for the next round of the Coastal Communities Fund.

“Coastal Communities up and down the country from Barrow-in-Furness to Brighton have been boosted by this funding which has spurred inward investment, sustainable growth, new jobs and exciting economic opportunities for local businesses.

“By 2020, we’ll have invested nearly a quarter of a billion pounds in our seaside areas, providing thousands of jobs, training places and opportunities along the Great British Coast.”

The Coastal Communities Fund (CCF) supports the economic transformation of UK coastal communities by giving funding to create sustainable economic growth and jobs.

Since 2012, the government’s CCF has awarded grants to 295 projects across the UK, totalling over £174 million. Analysis shows this has been money well spent, with every £1 invested having the potential to create an up to £8 boost to our coastal economies. Successful projects have included:

  • Cornwall council receiving a £1.95 million grant in 2014 to repair and re-launch the Grade II Listed Art Deco ‘Jubilee Pool’ in Penzance to create an all year round visitor attraction sustaining existing jobs and creating new positions (including much needed apprenticeships in an area with higher than average youth unemployment).
  • In January 2015, Blackpool city council received a £2 million CCF grant towards the “Lightpool” project to deliver a radical transformation of the iconic Blackpool Illuminations, creating a compelling new visitor experience and a major boost to the local economy. The project is forecast to have increased visitor numbers by 2.6 million.
  • The Tate St Ives was awarded a £3.87 million grant in 2015 to refurbish and extend the Tate Gallery in St Ives. The new facilities include a new apse gallery connecting the existing gallery to the new extension; a new suite of learning and event spaces; increased capacity for visitors in the reception, cloakrooms, café, new exhibition space, staff accommodation and training space.
  • Amble – the seafood town – Northumberland. Northumberland county council was awarded a £1.8 million CCF grant in 2014 to improve the economy of Amble through infrastructure works to transform the town into a visitor destination promoting seafood, attracting new visitors and creating jobs. The project has provided two new restaurants, improved facilities incorporating a Harbour Village with retail space, and enhanced access along the shore.

Barrow-in-Furness has also benefitted from multiple rounds of coastal communities funding which has completely revolutionised business support in the coastal area from north of Millom across the Furness peninsula to Grange.

This has included:

  • £900,000 in CCF round 1 (2012) being granted to Furness Enterprise Limited to create an innovation network which seamlessly connects local businesses with each other to streamline their supply chains. The funds also supported marketing of key sites, formation of 70 new start-up businesses and help to SMEs in providing training opportunities for unemployed residents to gain the skills they need to find a permanent job.
  • £865,000 in CCF round 3 (2015) to Furness Enterprise Limited to accelerate regeneration in Barrow and the surrounding areas by strengthening supply chains and transforming skills as well as attracting inward investment and helping to provide specialist businesses support to local companies to up-skill and grow.
  • A pilot scale internship scheme placing young people in high tech firms. This led to the OGDEN Trust agreeing to fund 60 placements from 2018 to 2020.
  • Participation in the Manufacturing Forum and revolutionary proposals for a pan-Northern supply chain initiative connecting Northern businesses with manufacturers and service providers
  • A new Furness Energy Forum bringing local businesses together to capitalise on energy supplier opportunities
  • £444,000 in CCF round 4 (2017) to Barrow and Furness Coastal Communities Team to transform visitor facilities on Walney Island and covert an old, derelict built into a community run visitor hub.
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Government failing to properly protect Carillion workers

Unite, the UK’s largest union, has accused the government of failing to fully protect workers left in limbo following the collapse last month of Carillion.

This follows a Westminster Hall debate this week called by Eleanor Smith MP, into the TUPE (transfer of undertakings protection of employment regulations) provision for Carillion workers.

As the majority of the Carillion companies went into compulsory liquidation, the normal TUPE provisions which ensure that pay and conditions are protected, when workers are transferred between companies, do not apply.

However despite MPs from all sides of the House of Commons calling for workers, especially those on public sector contracts, to have their pay and conditions protected through a “voluntary TUPE arrangement,” Andrew Griffiths MP the junior minister at the Department for Business Energy and Industrial Strategy, declined to do so.

Instead Mr Griffiths merely said “wherever practical and possible” the working conditions of Carillion workers having their contracts transferred would not be on detrimental terms and conditions.

In winding up the debate Labour MP Eleanor Smith, said that with the jobs of 11,800 Carillion workers still hanging in the balance: “She was disappointed that the Government couldn’t assure me on TUPE protection.”

Unite assistant general secretary Gail Cartmail said “Thousands of Carillion workers remain in limbo and while there have been plenty of warm words from government ministers that public sector contracts will be protected, there are still no assurances that the terms and conditions of the workers will be protected.

“MPs from all parties called on the government to introduce voluntary TUPE procedures to ensure that workers who were entirely blameless in Carillion’s collapse have their pay and conditions protected.

“It is to the government’s discredit that they have refused to introduce this minor and simple measure which would provide some reassurance to these workers.”

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