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.

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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£45 million funding boost to support councils unlock land for thousands of homes

A £45 million cash injection into key community projects will help kick-start the building of thousands of new homes, Housing Minister Dominic Raab has announced.

As part of government’s drive to get Britain building homes again, a total of 79 projects from Newcastle to Plymouth will receive funding to support building up to 7,280 homes on council owned land.

To support local councils to meet their ambition to unlock enough of land they own for at least 160,000 homes by 2020, they will be able to use the Land Release Fund money to combat barriers which would otherwise make land unusable for development.

The projects – which aim to support building strong communities – include a range of necessary works such as asbestos removal and bat alleviation, as well as schemes that will significantly improve quality of life such as essential relocating of a pelican crossing.

This move comes 2 weeks after the projects set to benefit from the first wave of funding from the £5 billion Housing Infrastructure Fund were announced, helping to get up to 200,000 homes off the ground through investment in local housing projects. This is part of the government’s comprehensive strategy of planning reform and targeted investment to build 300,000 homes a year.

Housing and Planning Minister Dominic Raab said “We are investing £45 million to build roads and provide utilities, so councils can release the land to get up to 7,280 new homes built.

“It’s part of our strategy to build the homes Britain needs, and carry local communities with us.

“We’re determined to make buying or renting more affordable for young families and those on low or middle incomes.”

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Construction set for growth despite Brexit uncertainty

Over 150,000 construction jobs are set to be created over the next five years despite Brexit uncertainty and Carillion’s collapse, a new forecast from the Construction Industry Training Board (CITB) reveals.

  • Infrastructure and housing best performing sectors
  • Carpenters, process managers and professional staff all in demand
  • Commercial sector could be hit by Brexit nervousness

Download the Construction Skills Network UK report for 2018 – 2022 (PDF 1.69 MB)

A massive 15,350 carpenters and 9,350 labourers will be needed as homebuilding ramps up, according to this year’s Construction Skills Network report, the UK’s most comprehensive and up-to-date sector forecast.

However, the strongest job growth will be in a range of professional and managerial roles as the industry seeks to boost its productivity, which will grow by 7.8% and 5.6% over the next five years.

The CSN forecasts average output growth of 1.3%, with 158,000 jobs created. Infrastructure remains the strongest performer with an annual growth of 3.1%. However, housing output, both public and private, is also expected to expand, by 2.8% and 2.2%, respectively. In contrast, the commercial sector is not predicted to grow at all over the next five years, as investors potentially hold back decisions due to Brexit uncertainty.

CSN figures show employment is projected to grow for the fourth consecutive year at 0.5% a year on average to 2022. This would take employment in the industry to 2.77 million in 2022, only 3% below the 2008 peak.

CITB Policy Director Steve Radley said “Despite all the gloom around Carillion and uncertainty from Brexit, our report’s message is that construction will continue to grow and create more jobs.

“Though growth is slightly down on 2017, it’s looking more balanced with housing and infrastructure both expanding significantly. And the range of job opportunities is growing. While we need to bring in lots of people in the trades, the fastest growth will be for professionals at 7.8% and for managers and supervisors at 5.6%.

“By 2022, employment will be in touching distance of the heady 2008 peak so we face a massive recruitment and training challenge, which is likely to get harder after Brexit. So while we can take some comfort from weathering the recent storms, it’s vital that we make the investment in skills today that will shape our own destiny for tomorrow.”

Nations and regions

The report reveals a mixed picture across the devolved nations and English regions. Like last year, Wales continues to perform best with output growth estimated at 4.6% per year. Scotland is likely to remain largely static at 0.1%, with housing growth mitigating a decline in infrastructure from record highs.

Wales’ forecast growth is largely attributable to major infrastructure projects including Wylfa nuclear power stations as well as a series of major road improvements such as the M4 upgrade.

In Northern Ireland, annual growth is down from last year’s 1.6% forecast to 0.5% – this is largely attributable to a slackening of the commercial sector.

In England, the North West and South West lead the growth rankings, both with 2% growth anticipated. The West Midlands is also expected to perform well with an overall average output of 1.8% over the five years. For the remainder of the English regions growth is predicted to range between 1.5% in Greater London to -0.8% in the North East.

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February freeze causing dangerous conditions for construction workers

  • Weather warning for construction sites in the UK – February freeze on its way
  • 382 deaths in the last 10 years in construction – 89 of those occurred in winter
  • Freezing weather conditions can make construction sites dangerous
  • 48% of winter construction deaths occurred as a result of falling from height
  • 24% of injuries occurred as a result of slips and trips
  • Coldest temperature ever recorded in the UK – 27.2 C

The Met office warns of a February Freeze with 90% of the UK to expect snow and plummeting temperatures. Winter weather has the potential to hit the UK hard, and can cause hazards for construction workers and others working outdoors. Whilst cold stress can have a serious impact on one’s health; wind, freezing rain and ice can make construction sites dangerous and cause an increase in site accidents and injuries.

Because of this, experts at Heat Traders have analysed data to find out how dangerous construction sites can be in the winter months and provide advice of what you can do to prevent injuries or ill health.

According to HSE data, construction is the deadliest industry to work in with 382 deaths in the last 10 years and 64,000 non-fatal injuries to workers each year.

When breaking this down by seasons 89 of those occurred within the winter months raising concerns for employee safety. Of those that died whilst working in construction in the winter months, a huge 48% (the majority) died as a result of falling from a height and 24% injured themselves as a result of slips and trips.

So how can we prevent this from happening and what are the laws regarding working outdoors in the cold?

What is the minimum legal temperature for outdoor workers?

The Workplace (Health, Safety & Welfare) Regulations 1992 and accompanying Approved Code of Practice set out the required temperatures for working. Indoor workplaces must be at least 16C or 13C where rigorous physical effort is required. However, the rules don’t apply “where it would be impractical to maintain those temperatures”. In other words, there is no legal minimum temperature for working outside.

The regulations recognise it can be very difficult controlling the environment or separating workers from the cold – cranking up the thermostat is not usually an option outdoors!
However, employers do have a duty of care to make sure no one works in unsafe or unhealthy conditions, including cold weather.

What is the coldest temperature ever recorded in the UK?

  1. 10-Jan-82 Braemar East Scotland -27.2 °C
  2. 30-Dec-95 Altnaharra No 2 North Scotland -27.2 °C
  3. 13-Dec-81 Shawbury Midlands -25.2 °C
  4. 13-Jan-79 Carnwath West Scotland -24.6 °C
  5. 20-Jan-84 Grantown-On-Spey East Scotland -23.6 °C
  6. 27-Jan-85 Lagganlia North Scotland -23.4 °C
  7. 13-Jan-87 Caldecott P Sta Midlands -23.3 °C
  8. 08-Jan-10 Altnaharra No 2 North Scotland -22.3 °C
  9. 18-Feb-60 Grantown-On-Spey East Scotland -22.2 °C
  10. 30-Dec-61 Cannich North Scotland -22.2 °C
  11. 18-Jan-63 Braemar East Scotland -22.2 °C

How can winter weather affect my working conditions in Construction?

Cold stress
Cold stress occurs when skin temperature plummets, causing heat to leave the body much faster than normal, and eventually reducing the internal body temperature. When the body is unable to warm itself, serious cold-related illnesses and injuries may occur, and permanent tissue damage and death may result. Trench foot, frostbite and hypothermia are potential hazards if workers are not properly protected from the elements when working outside.

Falls
Falls are one of the most common construction site accidents and they can happen all year round. However, winter weather increases the risk of falls due to ice and wet, slippery surfaces if not treated correctly.

Winter driving accidents
Being on a construction site, it is easy to forget that winter driving rules for the road still apply. Construction vehicles aren’t usually as agile as cars because of their size and weight.

How to prevent accidents on the construction site?

Experts at Heat Traders advise you to follow these measures:

  • Educate your employees about how to work safely when the bad weather hits and what to do to prevent any accidents
  • Shield any areas that could be worst hit by the weather
  • Treat all surfaces to prevent slips and falls
  • Create warm break areas so construction workers can warm up
  • Schedule outside work to be carried out in shorter durations, ensuring employees do not have to face the elements for long periods of time
  • Layer up and use the correct gear (provided by the employer). Ensure no skin is exposed and the body is full insulated
  • Check the site regularly for any new hazards that could have been caused by the bad weather

How to prevent cold stress?

Despite their being no legal minimum temperature in the UK, employers do have a duty of care to make sure no one works in unsafe or unhealthy conditions.

Employers should follow these helpful control measures:

  • Employers should train their workers on how to recognize the environmental and workplace conditions that can lead to cold stress
  • Train employees on how to spot symptoms of cold stress and how to help those who are affected
  • Train employees on how to select proper clothing for cold, wet, and windy conditions
  • Employers must monitor workers physical condition
  • Schedule frequent short breaks in warm dry areas, to allow the body to warm up
  • Schedule work during the warmest part of the day
  • Use the buddy system (work in pairs)
  • Provide warm, sweet beverages. Avoid drinks with alcohol
  • Provide engineering controls such as radiant heaters

A spokesperson at Heat Traders said “Working outside any time of the year can be extremely dangerous. Always make sure employees are safe, helping to reduce onsite injuries or fatalities.”

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Multi-million package of support for those affected by Carillion liquidation

A further package of support for the businesses and workers affected by Carillion’s liquidation has been welcomed by Business Secretary Greg Clark.

Through delivery partners that include all the major high street lenders, the British Business Bank will provide support to make available up to £100 million of lending to small businesses who may not have the security otherwise needed for conventional bank lending using its Enterprise Finance Guarantee programme.

This will be of benefit to small businesses, including the chain of subcontractors to Carillion, who may not have sufficient assets as security to access conventional loans. These guarantees can be used to support overdraft borrowing and refinancing of existing debt.

The UK’s leading banks have also furthered their commitment to provide support to those affected with UK Finance confirming additional support for personal banking customers concerned about overdraft, mortgage or credit card repayments, as well as further financial support for small businesses to provide short-term relief to help keep them afloat.

Business Secretary Greg Clark said “We want to signal very clearly to small and medium sized businesses who were owed money by Carillion that they will be supported to continue trading.

“The banks have responded to my request by agreeing to support businesses and individuals affected. This further guarantee will help those businesses who may not be able to provide the usual security for a loan.

“I will continue to work closely with business organisations, trade unions and banks to actively support those affected by Carillion’s insolvency.”

British Business Bank CEO Keith Morgan said “The Enterprise Finance Guarantee (EFG) is an important option for smaller businesses who need access to finance, but may not be able to meet a provider’s normal security requirements. To help in these exceptional circumstances, we have designed additional flexibility into EFG that could be particularly suitable for firms in the Carillion supply chain. We would encourage lenders to work with their customers to use these new flexibilities to meet their needs.”

UK Finance Managing Director, Commercial Finance Stephen Pegge said “UK banks are working with government to support customers and businesses who have been impacted by the Carillion liquidation. The enhancement of the Enterprise Finance Guarantee by the British Business Bank will help those facing temporary cash flow issues to access the finance they need to support their businesses through this period.”

This package is in addition to the more than £200 million already announced by Lloyds Banking Group, HSBC and RBS.

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Optimism for construction workloads in the UK

There is optimism for construction workloads in the UK, despite uncertainties around Brexit weighing on investment decisions, and various market constraints, according to the results of the Q4 2017 RICS Construction and Infrastructure Market Survey.

Survey highlights:

  • Only 12% of respondents expressed any confidence in Government strategy succeeding to hit housing target
  • Brexit uncertainties continue to weigh on investment decisions
  • Outlook for workloads and employment growth improves amid ongoing capacity constraints

View and download the survey

Workloads rise

In Q4 2017, 21% more chartered surveyors reported their workloads to have risen despite financial constraints, labour shortages and planning delays remaining key impediments to growth with 80%, 60% and 60% of surveyors reporting difficulties with each, respectively. Comments from some respondents suggest that stricter conditions being placed on firms by financial institutions are limiting growth, which most likely reflects increased caution given cyclical market conditions and Brexit considerations.

The lack of sufficiently skilled workers also remains an obstacle for many businesses, particularly with regard to professional services such as quantity surveying – only in 2007 had the share of contributors highlighting this as a concern been higher.

Also measured in the Q4 2017 survey was an assessment of how contributors feel about the wide range of policies included in the Autumn Budget and Housing White Paper to lift housing delivery to 300,000 units per year. Nationally, only 12% of respondents expressed any confidence in the overall strategy succeeding while the remainder were evenly divided between a lack of confidence or being unsure.

Policies

Looking at specific policies, a £1.1 billion fund to unlock strategic sites, including new settlements and urban regeneration schemes, was viewed by far as the most effective to boost housebuilding (37%). This was followed by lifting Housing Revenue Account borrowing caps for councils in high demand areas (18%) and adding £2.7bn to the Housing Infrastructure Fund (16%).

Despite the constraints that firms have been facing recently, chartered surveyors remain optimistic about the outlook for the year ahead. The RICS survey is forward looking in comparison to official data, and net balances of 48% and 35% of respondents expect workloads and employment levels, respectively, to continue to rise over the coming 12 months.

Pace of growth

Workloads are now reported to be increasing across all geographic regions, particularly in the Midlands and North. Over the past year or two, however, the pace of growth in the infrastructure sector has slowed noticeably in Scotland with surveyors now reporting the first decrease in activity since Q3 2016. This has been somewhat offset by an improvement in workloads in Northern Ireland.

Higher input costs and a shortage of labour continue to restrict growth in profit margins, with a net balance of +12% of respondents expecting a rise in margins over the coming year, unchanged from the previous quarter. This is likely to have impacted tender pricing as well, with 56% more respondents in both the building and civil engineering areas envisaging greater price pressures.

Jeffrey Matsu, RICS Senior Economist said “Activity in the construction and infrastructure sectors continues to expand despite uncertainties related to Brexit and recent market events. While expectations for the year ahead remain positive, surveyors express very limited faith in the government’s national strategy to deliver on its revised housing delivery target. Capacity constraints notwithstanding, the ability of the sector to contribute more sustainably to economic prosperity will depend largely on more coherent policies addressing issues ranging from workforce development to local planning and permissioning.”

Lewis Johnston, RICS Parliamentary Affairs Manager added “with only 12% of respondents confident that the Government’s overall housing strategy is sufficient to meet housebuilding targets, it’s clear more radical action is needed. As we said at the time of the Autumn Budget, the smorgasbord of policies set out by the Chancellor did not amount to the fundamental step-change we need to really shift the dial on housing.

“In practical terms, the Government should go further with the policies respondents felt will be most effective, such as the £1.1 billion fund to unlock strategic sites. In addition to the partial lifting of the Housing Revenue Account borrowing cap, councils should also be given the tools they need to build, including more access to funding and a pipeline of suitable land. The fact that 60% of survey respondents cited labour shortages as a serious constraint to growth underlines to need to tackle skills shortages in construction, and move the sector towards higher-tech, less labour intensive production methods.”

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MP’s vote to leave Parliament for £5.6bn refurbishment

MPs have voted to vacate the Palace of Westminster while a proposed multi-billion pound modernisation of the historic building ensues.

The Commons approved a motion calling for a “full and timely decant”, designed to allow essential repairs, by 236 votes to 220.

The move, part of a proposed £5.6bn refurbishment, is not expected to take effect until 2025 at the earliest.

A brief history

Completed in the 1860s, the Palace of Westminster is an iconic building that currently houses the British Parliament. It is a world famous and instantly recognisable structure and stands as a celebrated international symbol of our parliamentary democracy. Just as UK Parliament is constantly in a state of flux, so too has the building; adapting accordingly to suit its primary and functional purpose. Taking massive damage during the WWII blitz, the Houses of Parliament were repaired as a matter of utmost national priority post-1945. The project was seen as a real opportunity to create some much-needed new facilities that would be consistent with the original design.

From the 1960s onwards the requirement for individual Members of Parliament to have offices, coupled with the expansion of other parliamentary services led to the acquisition of additional buildings and the Palace became the core of a much larger Parliamentary Estate. In 1992 responsibility for maintaining the Palace ‘on behalf of the nation’ transferred from the Government to Parliament itself. How did this work out?

Fighting a losing battle

It appears that since 1992, every effort has been made to maintain what is ultimately an outdated and increasingly unsuitable infrastructure. Services such as heating, cooling, water, sewage, electricity and cabling have been kept semi-functioning, but have not been modernised. Astoundingly, there has been no real general renovation of the building and its services since the partial rebuild of 1945-50 – some of the services even predate the war. The original basements and vertical shafts that litter the building are now completely filled with pipes and cables, making further work difficult to carry out – which results in further expense.

Reports illustrate that asbestos features heavily throughout the palace and although asbestos remains safe if treated with great care in compliance with safety regulations, it makes any intervention so much more difficult. Another issue is that most of the work undertaken over the last 50 years is largely undocumented and since many areas are inaccessible, the state of dilapidation and subsequent risk is mostly uncharted. The building is completely at the mercy of fire, with little modern safety practices in place and fire compartmentation considered almost impossible.

The original roofs are no longer watertight and there are many areas plagued with penetrating damp, damaged by interior leaks and flooding.

      Read more: Radical concept for temporary floating parliament unveiled

Today, an influential committee is expected to recommend that MPs and peers should abandon the crumbling Houses of Parliament for six years so that drastic refit works can be carried out.

The cost

So now at the crux of the issue, how much does it cost to renovate a 150 year old Grade I listed building which is partly sinking, contains asbestos and has outdated cabling? The short answer is ‘a lot.’ The sheer amount of work and the sensitive nature of refurbishing a World Heritage Site results in a sky-high estimate of £5.6bn, with some suggesting the sum could rise to as much as £7.1bn.

A 2012 report warned that “major, irreversible damage” may be done to the building unless significant restoration work is carried out soon, making the refurbishment one of the most urgent and arguably important renovation projects in the UK today. Some feel that the whole thing is a needless expense to the taxpayer and a vanity project for British Parliament. Another previous report concluded that the maintenance costs alone are so astronomically high that if the Palace of Westminster was a commercial structure of no historical significance, it would be far more cost-effective and efficient to demolish it and rebuild using modern methods of construction, such as modular offsite building.

Whatever you stance, the Houses of Parliament are of national, historical and cultural importance and refurbishment will happen.

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Carillion projects worth a total of £5.7 billion

As the economy continues to come to terms with the collapse of Carillion, the latest figures suggest that on the day of liquidation, the industry giant was the main contractor on 57 construction projects worth a total of £5.7 billion, including a £1.3 billion HS2 contract.

This latest information comes from construction industry analysts Barbour ABI, who outlined that ten of the 57 projects were each individually worth more than £150 million, such as the Royal Liverpool hospital and an Army basing programme in Salisbury worth £450 million and £340 million respectively.

Carillion projects worth a total of £5.7 billion carillion live projects

Carillion were also involved in 16 framework contracts as part of a list of companies pre-selected or pre-qualified to undertake works for an organisation. These framework contracts are not included as part of the final 57 projects as there is no guarantee that they had won any work from the framework.

Commenting on these findings, Michael Dall, Lead Economist at Barbour ABI, said “Carillion were deeply embedded within the construction industry – they were the second biggest contractor in the UK by revenue. Our records show that they were the main contractor on almost 60 schemes worth a total value of £5.7 billion. That is not to mention the plethora of other contracts where they were carrying out other construction roles.”

      Read more: Carillion to be investigated for pension fraud

“The sector where Carillion had the largest presence was infrastructure – road and rail projects were a particular speciality for the firm. In addition, Carillion were in the process of delivering two new hospitals and were also responsible for various school improvement projects. What happens to these projects is a matter for conjecture. If the reason Carillion went bust was due to under-bidding then it stands to reason that the financial terms will have to be renegotiated. There is no doubt this will happen but will it happen quickly enough to save the many firms in the Carillion supply chain?”

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Carillion to be investigated for pension fraud

Following questioning by The Work and Pensions Committee regarding the way pension investments were managed at collapsed construction giant Carillion, The Financial Reporting Council (FRC) has decided to open an investigation under the Audit Enforcement Procedure in relation to KPMG’s audit of their financial statements, covering the years ended 31 December 2014, 2015 and 2016 – with additional audit work of 2017 to follow.

The investigation will be conducted by the FRC’s Enforcement Division, and will consider whether the auditor has breached any relevant requirements, in particular the ethical and technical standards for auditors. Several areas of KPMG’s work will be examined including the audit of the company’s use and disclosure of the going concern basis of accounting, estimates and recognition of revenue on significant contracts, and accounting for pensions.

The FRC have stated that they will “conduct the investigation as quickly and thoroughly as possible.”

They have also confirmed that they are progressing with urgent enquiries into the conduct of professional accountants within Carillion in connection with the preparation of the financial statements and other financial reporting obligations under the Accountancy Scheme, 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.

Frank Field, chairman of the Work and Pensions Committee said “It’s clear that Carillion has been trying to wriggle out of its obligations to its pensioners for the last 10 years.”

More to follow.
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Modular Vs. Traditional Construction

The traditional method of construction has for a long time, been the accepted norm.

A graduated approach, the process of building using the traditional method is steady progress. Foundations are laid, walls are built, roofs are added. And then the interior of the building is created. And finally, before being handed over to the customer, the snag list is completed – all those small issues and tasks that need altering.

And only then is the building complete.

Modular Building – The New Construction Method

Modular building changes everything about construction from halving the time it takes to construct a building, to changing attitudes.

Modular building techniques save time and money. As the foundations for a new building are laid, construction on the building itself, in a factory setting with skilled craftspeople, has already begun. This tandem working halves the time it takes to finish a building.

Before the building is delivered to site, the snag list is completed at the factory. Literally, the building in transported, fixed in place and the keys handed over.

Who Benefits?

Everyone. And the environment does too, with less waste and increase in the use of sustainable materials.

The pace of the turnaround means the customer has the extension or extra buildings they need quickly, but without compromising on quality. In terms of budget, there are no dead spots in the process either. No weeks on end without being able to use your buildings, while materials are waited for and so on.

Domestic and commercial customers are realising the benefits of modular construction. For some clients, the solutions on offer can’t come quick enough. For the medical industry, for example, modular construction means more room, and fast. It also means investing in additional space that can house specialised equipment and process too, without a hefty price tag.

Modular_Construction_vs_Traditional_Construction_v2-min

Courtesy of www.mtxcontracts.co.uk.

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