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.

Hinkley Point C UPDATE

EDF have handed a £99m construction deal which includes design, supply and installation of transmission facilities to Swiss-based firm ABB. The overall project is expected to cost a total of £18bn.

ABB will be responsible for the construction of the substations that will feed 3,200 MW of power to the grid, the installation of six Megavolt transformers, and transmission feeds to transfer power from the plant to the grid.

The deal takes the value of Hinkley contracts let by client EDF so far to £9bn.

Major deals to date include the £2bn civils contract for BYLOR, a joint venture between Bouygues TP and Laing O’Rourke, and the £208m earthworks deal won by a Kier and Bam Nuttall joint venture.

First concrete at the plant was poured in March this year as part of the construction of 7 km of gallery tunnels that carry the plant’s cables and pipes.

However, last week it was revealed that parts of these tunnels had to be demolished and replaced after issues were found with the concrete that had been laid.

Commenting on the infrastructure deal, Hinkley Point C managing director Stuart Crooks said “This major contract marks another significant step forward for the project.

“Hinkley Point C is bringing together companies and expertise from the UK, France and the world. Construction is fully under way and we remain firmly focused on what we need to deliver in the year ahead and beyond.”

From the beginning, Hinkley has been marred in controversy. According to leading protest group Stop Hinkley discharges from the proposed Hinkley Point C nuclear Power station could cause around 200 deaths across the globe over its 60-year lifetime.

The radioactivity of spent fuel from Hinkley Point C would amount to around 80% of the radioactivity of waste already produced in the UK.

Also, with the delivery cost being so high, questions have been raised regarding the true value of Hinkley for Britain. Studies suggest that energy efficient improvements could reduce the energy consumed in UK households each year the equivalent to the output of six nuclear power stations the size of Hinkley Point C.

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£2.5 million cash boost for garden towns

A £2.5 million cash boost to speed up the delivery of over 155,000 new homes across England, has been announced by the Communities Secretary Sajid Javid this month.

Nine locally-led garden town developments, from Bicester to Taunton, will each receive new funding to fast track the build out of these large housing projects.

The new funding will support local authorities and communities in delivering ambitious proposals, speeding up the progress of developments through additional dedicated resources and expertise.

Garden towns being supported by government are committed to delivering high quality, well-planed and well-designed new communities that will stand out as exemplars of good development in years to come.

The funding will support the development of 9 new locally-led garden towns at Bicester, Didcot, Basingstoke, Otterpool Park in Kent, Aylesbury, Taunton, Harlow-Gilston, North Northamptonshire and North Essex.

Communities Secretary Sajid Javid said “Locally-led garden towns have enormous potential to deliver the homes that communities need. This new funding will help support the construction of more than 155,000 homes in 9 places across the country.

“New communities not only deliver homes, but also bring new jobs and facilities and a big boost to local economies.”

The government’s Housing White Paper sets out bold new plans to ensure the housing market works for everyone, so that more people can have the security of a decent place to live.

Across England, government is supporting the locally-led development of 10 garden towns and cities, as well as 14 garden villages – with the combined potential to deliver 220,000 new homes across England.

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£15bn road upgrade plan updated to minimise congestion

Highways England has today updated its £15 billion road improvement programme to reduce the impact of roadworks on motorists and minimise congestion while improvements take place.

Plans for twenty-six road upgrades have been revised to reduce roadworks taking place in the same area of the network or on popular journey routes at the same time. This will mean less congestion for motorists as Highways England embarks on the biggest road upgrade plan for a generation.

The Supplementary Delivery Plan published today will see Highways England rescheduling its programme for the schemes between three and 24 months – meaning a number of schemes will be completed earlier than planned. All are still set for delivery as part of the Government’s first road investment strategy.

Jim O’Sullivan, Highways England Chief Executive said “Our update today is a sensible and responsible way to deliver major national investment in road infrastructure. It will keep our roads moving, deliver a lasting legacy for the country and ensure best value for money for the taxpayer.”

Now, more than two years into delivery of a £15 billion Government investment in motorways and major A roads, Highways England has already completed 18 major schemes, adding more than 190 lane miles of much-needed capacity to the nation’s roads.

The 10 schemes being brought forward are:

  • A19 Testos
  • A19 Downhill Lane
  • M56 junctions 6-8 smart motorway
  • M6 junctions 21a – 26 smart motorway
  • M6 junction 22 upgrade
  • A500 Etruria
  • M6 junction 10
  • M4 Heathrow Slips
  • A47 Acle Straight -small scale improvement
  • A47 and A12 junction enhancement

The 16 schemes being re-scheduled to smooth the timing and frequency of roadworks are:

  • A5 Dodwells to Longshoot widening
  • M3 junction 9 improvement
  • A31 Ringwood
  • M27 junctions 4-11
  • A47 North Tuddenham to Easton
  • A47 Blofield to North Burlingham dualling
  • M25 junction 25 improvement
  • M25 junction 28 improvement
  • A1 Birtley to Coal House
  • M60 junctions 24-27 and junction 1-4 smart motorway
  • A47/A11 Thickthorn
  • A47 Wansford to Sutton
  • A47 Guyhirn Junction
  • A12 Chelmsford to A120 widening
  • M25 junction 10/A3 Wisley interchange
  • M25 junctions 10-16

Highways England is obliged to ensure that investment in the road network delivers good value for money. Following a full review the Road Investment Strategy (RIS) programme some schemes require further development to achieve an acceptable return on investment. As a result, in addition to the 26 schemes above, 6 schemes have been paused for further review and consideration as part of future RIS planning process.

These schemes are:

  • A1 & A19 Technology enhancements
  • M11 junctions 8 to 14 technology upgrade
  • A12 whole-route technology upgrade
  • M53 junctions 5-11 smart motorway
  • A14 Junction 10a
  • M62/ M606 Chain Bar

Two further schemes required rework to achieve value for money; however, changes in local development plans mean that these schemes can be progressed, albeit in the early stages of Road Period 2. These are:

  • M5 Bridgwater junction improvements
  • A50 Uttoxeter Project B growth corridor project
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Sensational bounce back for infrastructure activity

Infrastructure bounced back sensationally in September with six major HS2 contracts awarded on the month worth a total of £7.2 billion. However, the same can’t be said for the remaining sectors in construction, including housing which saw new orders decrease for the first time in six months.

The latest edition of the Economic & Construction Market Review from industry analysts Barbour ABI, highlights the levels of construction contract values awarded in September across all regions of Great Britain. The overall contract value for September was £6.9 billion based on a three month rolling average, the highest monthly figure for almost two years. The strong total was largely based on the commissioning of the large HS2 contracts, which made up six of the top ten biggest projects in the month, whilst also masking the pitfalls across other sectors of construction.

Barbour

Across the industry, project numbers were down in September by 28.5% when compared to August, which was spread right across the various sectors of construction. Housing saw the biggest drop in contract values, decreasing to £1.8 billion, a 33 per cent drop on the month after consistently high growth since May and has up to now been construction’s most reliable source of high contract values over the course of 2017. Outside of Infrastructure, the only two other sectors that saw growth were Hotel, Leisure and Sport with minimal growth of 0.9% compared to August, and Medical & Health which increased by 10.4%.

Outside of the six HS2 projects, the £300 million Old War Office Building residential development in Westminster was the highest value project for September. This is followed by a new Amazon distribution centre in Bristol with a construction cost of more than £200 million – four times higher than the value of any other industrial project on the month.

Regionally, the West Midlands was the leading region for construction contract value with 35 per cent of the total, followed by London and the East Midlands with 28 and 15 per cent respectively, the three regions with HS2 contracts. The remaining regions counted for 1-4 per cent individual share of the monthly total contract value.

Commenting on the figures, Michael Dall, Lead Economist at Barbour ABI, said “It was an unusual month for construction in September due to the £7.2 billion HS2 contracts, drastically boosting construction figures and depicting a strong, healthy industry, whereas without the six major contracts it was a poor month for contract values, highlighted by the housing sectors uncharacteristic decrease.”

“Nevertheless the HS2 projects will be a major boost to the workforces in the three located regions, providing thousands of jobs and sub-contracting opportunities.”

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Theresa’s £2bn announcement – in figures

To the critical acclaim of the construction industry, the government confirmed plans for a new generation of council and housing association homes yesterday. Funding for affordable homes will be increased by a further £2 billion to more than £9 billion. But how exactly will this money be used to boost housing? Buildingspecifier investigates:

The numbers of homes will be determined on type and location of housing, and bids received for funding. With a typical £80,000 subsidy, this £2 billion investment can supply around 25,000 more homes at rents affordable for local people.

Ministers also confirmed plans to create a stable financial environment by setting a long term rent deal for councils and housing associations in England from 2020.

The funding will further support councils and housing associations in areas of acute affordability pressure, and where working families are struggling with the costs of rent and some are at risk of homelessness.

This complements recent announcements on supporting tenants in the private rented sector and on extending Help to Buy.

The government’s Affordable Homes Programme will increase from £7.1 billion of public funding to £9.1 billion, and the £2 billion additional funding for affordable housing could lever in total investment by housing associations and councils of up to £5 billion.

Since April 2010, around 333,000 affordable homes have been delivered, including 240,000 for rent. More than twice as much council housing has been built since 2010 than in the previous 13 years.

As set out in the Housing White Paper, to help encourage more investment in social housing, government will create a stable financial environment by setting a long term rent deal for councils and housing associations in England.

Under the proposal set out this week, increases to social housing rents will be limited to the Consumer Price Index (CPI) plus 1% for 5 years from 2020. This will give social tenants, councils and housing associations the security and certainty they need.

Previously, the government’s affordable housing policy primarily supported ‘affordable rent’ – rents of up to 80% of local market level – and low-cost home ownership. This announcement now extends support for ‘social rent’ – which are lower rents, set according to national guidelines.

These latest measures reinforce this government’s approach to back housing of all tenures – with more social housing; extra security for those in the private rented sector; and helping people get onto the housing ladder.

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Theresa May speech – the view from construction

At an eventful Conservative Conference today PM Theresa May has announced an extra £2bn will be allocated to aid delivery of affordable housing in areas “where need is greatest.” She also confirmed an energy cap in a bid to alleviate fuel poverty. Buildingspecifier reports:

Affordable housing

At an eventful Conservative Conference today PM Theresa May has announced an extra £2bn will be allocated to aid delivery of affordable housing in areas “where need is greatest.”

“We simply haven’t built enough homes,” admitted May said, although she reassures that “help is on the way.”

“It won’t be quick or easy – but as Prime Minister’s I’m going to make this my mission.”

The Prime Minister highlighted that there will now be “almost £9bn” available for affordable housing which both councils and housing associations can bid for.

“We will invest an additional £2bn in affordable housing, taking the government’s affordable housing budget to £9bn. We will encourage councils as well as housing associations and provide certainty over future rent levels.

“In those parts of the country where need is greatest we will allow social rented housing to be built, at well below market levels, getting the government back into the business of building houses.”

Energy cap

The Prime Minister also revealed that caps on energy prices would be imposed under planned legislation. She gave a stark warning to energy firms that they faced a price cap on their “rip-off” bills under her new plans.

Draft legislation for the measure will be published next week, Mrs May revealed, as she accused firms of punishing loyal customers.

May commented “While we are in favour of free markets we will always take action to fix them when they are broken. We will always take on monopolies and vested interests when they are holding people back. One of the greatest examples in Britain today is the broken energy market. The energy market punishes loyalty with higher prices and the most loyal customers are often those with lower incomes, the elderly, people with lower qualifications and people who rent their homes.”

Industry reaction

Chief Executive of the National Housing Federation, David Orr said “In the aftermath of the tragic fire at Grenfell Tower, the prime minister said that we as a nation have not paid enough attention to social housing. Today, she is right to make a bold break with the past and commit to building the homes we need most – genuinely affordable homes for those on the lowest incomes.

“The additional £2bn will make a real difference to those let down by a broken housing market. Building homes for social rent will make work pay and help bring down the housing benefit bill in the long run by moving people out of costly private lets.”

Brian Berry, Chief Executive of the FMB, said “Despite the Prime Minister’s precarious political position since the General Election, Theresa May has today managed to take a braver and bolder stance on house building than any Prime Minister of recent years. The private sector will continue to expand the number of new homes it builds, particularly so if the Government succeeds in its aim of removing barriers that hold back small scale house builders. However, in the house building heyday of the 1950/60s, a healthy private sector was always complemented by significant levels of social house building. Indeed, we have only ever built at the level we need to keep pace with demand when both the private and public house building sectors have been firing on all fronts. In the 1960s, for example, we were building around 400,000 homes per year and half of those were social housing.”

“The Prime Minister’s plan is also an opportunity to help shape a stronger local house building industry. If councils can start to engage with smaller, local builders to deliver this new generation of council housing, it could further help to diversify the industry. This would also boost the capacity of the private sector through the provision of more public sector work. Indeed, the increased use of small and medium-sized building firms will limit the problem of land banking, as this is something small builders simply don’t do.

“There do remain however, some significant roadblocks to the Prime Minister’s vision. Following Brexit, the serious shortage of skilled labour the construction industry is already dealing with will be exacerbated if it becomes much more difficult for EU tradespeople, who have come to play a crucial part in plugging the industry’s chronic skills gap, to move to and work in the UK. Although the industry must seek to overcome this crisis by recruiting and training many more young people than we currently do, the Government must also be mindful and realistic about the continuing need there will be for skilled EU workers as it puts in place its post-Brexit immigration policy. Otherwise it will risk jeopardising the delivery of the bold new house building ambitions the Prime Minister outline today.”

Andy Sommerville, Director of Search Acumen, commented “Our country needs to embark on the greatest housing boom the UK has witnessed in a century. For decades, UK governments have neglected the critical issue of our nation’s housing shortfall and as a result we estimate by 2022 the UK will be short of a million homes.

“Theresa May’s pledge to invest an extra £2bn in affordable housing is the first building block to making up for years of under supply and we can only hope that this is not simply another empty promise to fix our broken housing market. Now that our leaders share the industry’s sense of urgency, we must act to build more homes and we must act quickly. The gulf between supply and demand is widening each day. For the property and construction industry, this is the cue for Britain to start building.”

Chartered Institute of Housing chief executive Terrie Alafat CBE said “We have been calling on the government to invest more in genuinely affordable homes for rent so the Prime Minister’s announcement of an extra £2 billion for affordable housing is very welcome.

“As we have been saying for some time, social rents, which are significantly cheaper than market rents, are the only truly affordable option for many people on lower incomes, so the recognition that we need more of these homes is a vital step forward.

“It’s also encouraging to hear that Theresa May agrees councils have a central role to play in building the homes we need at prices people can afford.

“The details of exactly how these new homes will be funded and just how many will be for the lowest social rents will be crucial. The number of homes for social rent funded by the government collapsed from 36,000 to just over 1,000 between 2010/11 and 2016/17. Reversing this trend will be a significant task – how much of this new funding will be dedicated to building these kinds of homes?

“There is much to welcome in these announcements and they are certainly an important step in the right direction, but we still need to do more if we are to finally build the number of truly affordable homes we need.”

 

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Rumours circulate that Theresa May will build substantial number of council houses

The Conservative Conference 2017 and rumours are rife across the industry this morning that Theresa May will unveil plans for a major council housebuilding programme. If correct, this is a very exciting time for house builders and anybody with a professional interest in the housing sector.

Both The Sun and the BBC have made this a headline story, adding more weight to the argument.

If sources are to be believed, it would be the first time in decades that a prime minister has announced a major council housing boom. Could this be the beginning of the end of the housing crisis?

Buildingspecifier will be reporting. Don’t miss out!

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HSE launches second phase of construction inspection campaign

Construction projects across Britain are being urged to act now to ensure the health and safety of their workers is protected as the second phase of a targeted inspection initiative gets underway this week.

The Health and Safety Executive (HSE) says 43 workers were fatally injured in 2015/16, and an estimated ten times that number died from construction related ill-health, with a further 65,000 self-reported non-fatal injuries.

HSE is now asking every construction contractor, client and designer to ensure they are not adding to this unacceptable toll of harm by failing to manage well-known risks.

In addition to things such as falls from height, the campaign will focus on control of harmful dusts including respirable silica from concrete, brick and stone, asbestos and wood dust, as well as work at height, structural safety, materials handling, good order and welfare provision.

HSE points to the mis-conception that health issues cannot be controlled in construction. It says harmful dust, whether silica or wood, is a serious issue and can be managed effectively with the right design, equipment and training. Health effects may not be immediate, but the ultimate impact on workers and their families can be devastating.

HSE carried out over 2000 inspections during the first phase of the initiative earlier this year with action being taken to address these issues in almost half of visits.

HSE’s Chief Inspector of Construction and Director of Construction Division Peter Baker commented “In phase 1 of this campaign HSE’s inspectors found lots of good examples of small sites working safely and protecting workers health from exposure to harmful dusts, proving it can be done. My message to smaller businesses is don’t wait for an accident or a visit from an HSE inspector – learn from the success of others and act now.

“Nearly half of construction fatal accidents and injuries reported to HSE involved refurbishment work.

“Some small refurbishment sites continue to cut corners and not properly protect their workers resulting in an unacceptable number of deaths and injuries each year.”

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Small construction firms crying out for lifelines

Responding to the fall in the Construction Purchasing Mangers’ Index (PMI) to 48.1 in September, the first drop below the 50.0 no-change threshold in 13 months, Mike Cherry, Federation of Small Businesses (FSB) National Chairman, said:

“Policy-makers have serious questions to answer about the decline in construction output highlighted by today’s PMI. Our latest research shows that changes to tax reliefs, levies and employer obligations have caused costs for small firms in the construction sector to rise at a faster rate than in any other industry. These policy-linked costs have increased by 34 per cent for construction firms compared to a cumulative CPI figure of 7.7 per cent for the five years to 2016.

“Being a labour-intensive industry, changes to minimum wage rates, pension auto-enrolment and increasing employer National Insurance Contributions have all had their part to play. We’ve heard those in power talk for years about the need to tackle the housing crisis. Yet they’ve simultaneously heaped additional costs on the very business owners who can help increase our supply of homes.

“Confidence among small construction firms has plummeted over the last year. Businesses across the sector will be looking to the Communities Secretary’s speech later this week, as well as the Autumn Budget, for urgently needed lifelines in an uncertain climate characterised by year on year increases in operating costs.”

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Sadiq Khan cracking down on pollution from construction sites

The Mayor of London, Sadiq Khan, has today called on the Government to grant him additional powers so that he can effectively tackle non-road pollution sources in the capital.

Only half of the capital’s air pollution is caused by on-road vehicles and Sadiq believes London needs more powers so that it can combat pollution from the River Thames, emissions from machinery used on construction sites and pollution from the domestic burning of solid fuels.

Since becoming Mayor, Sadiq has more than doubled investment in tackling air quality to £875 million over the next five years. He has also introduced the boldest plans to tackle air pollution in the world, including a £10 Toxicity-Charge (T-Charge) which will start in October this year, the introduction of the world’s first Ultra Low Emission Zone (ULEZ) in 2019 (subject to consultation), and the cleaning up of London’s public transport fleets such as buses and taxis so that they lead the way in ultra-low emission technology.

Sadiq has now written to Michael Gove, the Secretary of State for Environment, Food and Rural Affairs, setting out the additional powers that he believes are required.

The Mayor of London, Sadiq Khan, said “Non-transport sources contribute half of the deadly emissions in London so we need a hard-hitting plan of action to combat them similar to moves I am taking to reduce pollution from road vehicles.

“With more than 400 schools located in areas exceeding legal pollution levels, and such significant health impacts on our most vulnerable communities, we cannot wait any longer and I am calling on Government to provide the capital with the necessary powers to effectively tackle harmful emissions from a variety of sources.”

The Mayor is requesting new powers in the following areas:

Non-Road Mobile Machinery

Non-Road Mobile Machinery (NRMM) such as diggers and bulldozers are currently the second largest source of ultra-fine particulate matter (PM2.5) emissions in London and the fifth largest source of oxides of Nitrogen (NOx). This is likely to grow as traffic related emissions decline and as construction increases across London.

Sadiq wants greater powers for the capital to enforce the standards of the Non-Road Mobile Machinery Low Emission Zone (NRMM LEZ) – a scheme that uses the Mayors planning powers to impose minimum emissions standards for machinery used on construction sites.

Sadiq does not believe this scheme is as rigorously applied by the boroughs as it could be, especially where they already have stretched resources.

He has already invested £400,000 so that local authorities can better enforce the zone. However, he is keen to ensure that boroughs, or GLA bodies have greater ability to apply the standards.

He also thinks it should be possible for the rules of the NRMM LEZ to be applied across the board to existing planning permissions and to other users of NRMM as the current regulations mean that more than 1,000 sites are not registered and activities such as roadworks and events are not covered at all.

Sadiq also wants either himself, or another appropriate authority, to have the power to set minimum emission and technical standards for all NRMM used in London. This could be done by amending the GLA Act so that the Mayor can use his powers to regulate NRMM in the same way as he can for road vehicles.

In order to support these powers, Sadiq wants the creation and maintenance of a DVLA-style national database for NRMM.

River and canal emissions

There are currently at least five different regulators that play a role in policing emissions. In addition, current emission regulations only apply to new vessels.

With ambitious plans in the growth of traffic on waterways, unless sufficient controls are introduced, the number of people exposed to this source of pollution will only grow.

Sadiq wants to see the regulations simplified so that there is a single regulator with the ability to charge and enforce and a single emissions control framework. The body would also be able to set minimum emission and other technical standards for specific classes or types of vessels. It would also provide clarity for local, national and international shipping accessing the Thames and canals.

In the meantime, Sadiq is leading by example with the vessels that are owned or run by Transport for London (TfL). The new Woolwich Ferries that will be entering in to service next year will be some of the cleanest vessels working on the river. TfL will also shortly be retro-fitting a Thames Clipper boat with emissions-reduction technology. If successful, this could provide an important example of how existing boats can reduce their pollution.

The Mayor currently does not have any formal powers to control emissions from vessels on the River Thames or the canal network but has recently set up a Thames and London Waterways Forum, which will bring together the regulators and other stakeholders to ensure that growth in the use of London’s waterways is co-ordinated and sustainable.

Wood and solid fuel burning

Current controls on emissions from domestic burning of solid fuels like wood and coal are obsolete, with the definitions barely revised from the original Clean Air Act of 1956. For example, terms like ‘dark smoke’ and ‘smokeless’ don’t reflect a modern understanding of pollution – which can be invisible.

The Mayor’s recently published Environment Strategy set out his ambition to reduce emissions from this source, but without reform of the existing Clean Air Act this is likely to be limited in impact.

The Mayor wants the Clean Air Act to be amended to allow for the creation of zones where the burning of solid fuel is not allowed. These would complement his existing plans to create transport zero emission zones in small areas from 2025 onwards. In addition, the Clean Air Act should be reformed, so the Mayor can set tighter emission limits for new domestic heating appliances like wood burning stoves for pollutants such as PM10 and PM2.5 that are invisible and are known to have a detrimental effect on health.

To ensure these new zones are effectively implemented, local authorities should be given enhanced powers to ensure compliance, including the ability to inspect and enforce, such as by issuing penalty charge notices. Similar powers could also be used to address emissions from larger and commercial premises.

The Stove Industry Alliance and Woodsure, the UK’s woodfuel accreditation scheme, have recently launched their voluntary “ecodesign ready” and “Ready to Burn” labels for stoves and fuels to help consumers make the right choice in London and other smoke control areas. The Mayor believes that more should be done to empower consumers to make the right choice, including better information at the point of sale and mandatory labelling of products that are legal to use in smoke control areas.

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