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  • Overwhelming response as 121 sites from across Britain bid to become a Heathrow logistics hub and help build Britain’s new runway
  • Heathrow’s logistics hubs set to revolutionise UK construction – pioneer off-site manufacturing to reduce overall cost of expansion, cut local emissions and create a new industry for the UK
  • Key plank of Heathrow’s plans to use £16bn expansion project to boost growth in every corner of Britain

Over 120 sites from across Britain have applied to help build an expanded Heathrow, an overwhelming show of support for the nation’s most critical infrastructure project.

In April, Heathrow invited communities across Britain to showcase how their area could help build expansion by hosting one of four UK logistics hubs. The hubs are a key part of Heathrow’s plans to promote SMEs and ensure every corner of Britain benefits from the building of an expanded Heathrow by decentralising the supply chain.

Heathrow

Expanding Heathrow will be Europe’s largest privately-funded infrastructure project. By promoting the up-take of off-site manufacturing on such a high-profile project, Heathrow is aiming to drive a step-change in Britain’s construction industry and give Britain a leading-edge in an untapped new sector that can then be leveraged to support other major projects around the world. Communities across Britain are keen to take up the challenge with such an overwhelming number of sites bidding for the chance to upskill their communities with a world-class construction legacy for decades to come.

Heathrow will be the first major infrastructure project in the UK to pioneer the large-scale use of logistics hubs – aiming to build as much of the project off-site as possible. The hubs will work by pre-assembling components off-site before transporting them in consolidated loads to Heathrow just as they are needed. This method will boost the project’s efficiency and cut emissions by transporting components to site in fewer lorries. Research by WPI Economics earlier this year revealed that integrating an offsite manufacturing supply chain into a major project has the potential to reduce the overall cost of the project by as much as 25% whilst speeding up delivery by up to 30%.

Heathrow CEO John Holland-Kaye said “Expanding Heathrow is a once-in-a-lifetime chance to really boost growth across Britain – and not just with more capacity at the nation’s hub airport, but from building it. Over 100 communities across Britain have put themselves forward to host one of our pioneering logistics hubs and we couldn’t be more impressed by the applicants. Together we’ll build an expanded Heathrow – boosting growth outside London, leaving a world-class construction legacy for the UK and delivering expansion faster, cheaper and with less impact on our local communities.”

All applications will be considered by Heathrow and a list of potential sites is expected to be announced later this year. Suitable locations will demonstrate the logistics hub will have a positive economic impact in their area as well as having good connectivity, access to a relevant supply chain, strong local skills, support in their region and adequate facilities. In a Memorandum of Understanding with the Scottish Government, Heathrow agreed that one logistics hub will be based in Scotland.

The owner of block of flats was prosecuted after a Health and Safety Executive (HSE) inspection identified serious safety breaches while it was being demolished.

Westminster Magistrates’ Court heard that a member of the public raised concerns about the conditions at the site at 60 Pitcairn Road, Mitcham. Selliah Sivaneswaran was the owner of the property, but had failed to make appropriate appointments for the development project. The site had been inspected by HSE in October 2016 and the work halted due to the workers being exposed to a range of risks including exposure to asbestos, falling from height, and fire.

HSE revisited the site on 4 January 2017 and found the work had restarted while the site was still unsafe, despite enforcement notices being served and advice being provided. The demolition continued to be carried out by hand with workers climbing onto the unguarded roof and throwing the debris down. Workers were at risk of falling up to four metres through holes in the floors and partly demolished staircase. No welfare facilities had been provided and there was a significant risk of fire with the workers not being able to escape. The Court heard that two days before the sentencing hearing, HSE had to return to the site and take further action.

The project involved the demolition of the old flats and the construction of four one-bedroom flats and two two-bedroom flats on a site bought for £115,000 in 2001. The Court heard that despite the foreseeably large financial return from the project, Mr. Sivaneswaran put profit before safety and paid cash in hand to untrained workers, did not engage a site manager, and provided none of the legally-required site documentation.

Selliah Sivguru Sivaneswaran of Harlyn Drive, Pinner pleaded guilty to breaching Regulation 13(1) and 4(1) of the Construction (Design and Management) Regulations 2015 (CDM) and was fined £200,000 and ordered to pay £1,421.20 in costs.

HSE inspector Andrew Verrall-Withers commented after the hearing: “Mr. Sivaneswaran was a commercial client as he was carrying out work as part of a business. When he failed to appoint a principal contractor, their duties fell on him.

“Thanks to a member of the public reporting the dangerous conditions HSE was able to take action. It was just good fortune that no one had been killed at the site”.

“Instead of taking the support and advice provided by HSE, Mr. Sivaneswaran continued to let the workers operate in appalling conditions where they were at risk of being killed. He did not even provide them with a WC or washing facilities”.

Local taxpayers will be forced to spend £1 billion covering the cost of planning applications by 2022, the Local Government Association warns today.

Planning fees are set nationally, which means councils are prevented from recovering the full cost of processing the 486,500 planning applications they receive on average each year.

Since 2012 – the last time the national fees were increased – communities have footed the bill for as much as a third of all planning applications. This represents desperately-needed resources being diverted away from other vital local services.

Analysis by the LGA reveals the bill for local taxpayers to cover the cost of planning applications is growing at a rate of around £200 million a year and will reach £1 billion by 2022. This is the equivalent of:

  • Repairing 4.35 million potholes – potholes cost £46 to repair, on average.
  • Providing grant funding to help councils and housing associations provide 8,507 new affordable homes. The Homes and Communities Agency, on the last round of funding allocation through the Affordable Homes Programme, issued an average grant per home of £23,510.
  • Creating more than 828 miles of public pavements, almost 4 times the length of the M6 – footways are estimated to cost around £150 per meter.

The LGA is warning this ongoing fees shortfall is hampering planning departments’ ability to stimulate housing growth in communities.

With councils facing an overall £5.8 billion funding gap by 2020, the LGA is calling on government to urgently bring forward its Housing White Paper commitment, to allow councils to increase planning fees, and also commit to testing a fair and transparent scheme of local fee setting, to allow councils to recover actual costs.

Cllr Martin Tett, LGA Housing spokesman, said “It is wrong for communities to keep being forced to spend hundreds of millions each year to cover the cost of all planning applications.
“Councils are working flat-out to approve almost nine in ten planning applications, with the majority processed quickly.

“But the shortfall in the amount of fees councils can charge and the cost of processing applications is heaping further pressure on the stretched planning departments which are so crucial to building the homes and roads that local communities need.

“Councils need to be able to recover the actual cost of applications and end such a needless waste of taxpayers’ money.

“Locally-set fees would also allow councils to prevent increased costs being passed on to residents, while developers could contribute more to maintain high-quality planning decisions, and improve the ability of councils to speed up the planning process.”

The latest data released by the Builders Merchants Building Index (BMBI) confirms a continuing positive trend for UK builders’ merchants with Q2 sales increasing by 5.3% (when adjusted for two fewer trading days in period) compared to Q2 2016. Unadjusted Q2 year on year sales figure is still positive at +1.9%. Year to date sales figures to June are 3.8% higher than for 2016, the same number of trading days.

The BMBI tracks builders’ merchants’ sales to builders and contractors using GfK’s Builders’ Merchant Point of Sale Tracking Data. The BMBI includes actual sales over 80% of the value of the builders’ merchants’ market.

The Q2 results appear to tell a different story to the trend reported by the Office of National Statistics earlier this month, in which they report actual sales representing overall construction output fell by -1.3% in the three months to June compared with Q1, and rose by just +0.4% on the same period last year. This may reflect the predominance of housebuilding and domestic repair, maintenance and improvement work carried out by builders’ merchants’ customer base.

Commenting on the results, John Newcomb CEO of the BMF said “The majority of trade indicators are finding that order books are being sustained by private housing and Repair Maintenance and Improvement (RMI) work while commercial sectors are falling behind. Even the ONS reported a year on year increase in house building of +9.4% for the quarter.

“The merchant sector is showing resilience at the moment, but it would be foolish not to consider the possibility of tougher trading conditions as we move into 2018.”

The number of new build homes that have started to be built has surged to the highest level since 2008, as shown by government figures.

The latest housebuilding data shows that 164,960 new homes were started in the year to June 2017, up 13% on the previous year, and have increased by more than three-quarters since the low in 2009.

More than 153,000 new homes have been completed during the same period, showing an increase of 11% compared with the year before.

Housing and Planning Minister Alok Sharma said “Building more homes is an absolute priority for this government. Today’s figures are proof that we are getting Britain building again, with new housing starts reaching record levels since 2009.

“It’s vital we maintain this momentum to deliver more quality homes in the places that people want to live. Our housing white paper set out an ambitious package of long-term reforms to do just that.”

The figures demonstrate strong growth in housebuilding right across the country, with Gloucestershire, South Derbyshire and South Norfolk amongst the strongest areas in delivering high levels of starts.

The government’s housing white paper sets out bold new plans to fix the broken housing market and build more homes across England.

At Autumn Statement, an additional £1.4 billion investment was announced for the government’s affordable housing programme, increasing the total budget to £7.1 billion. Since 2010, almost 333,000 affordable homes have been delivered, including 240,000 affordable homes for rent.

Building fires occur at an alarmingly high frequency and have an impact that goes way beyond that of the owners and its immediate occupiers. The fire safety guidance of the Building Regulations (provided by Approved Document B – ADB) is based on a consideration of life safety impacts. However, the true impact of a fire is much more than life safety as a fire has economic, social and environmental implications. So why is property protection not given greater consideration?

In the last month or so we have seen fires at Weybridge Community Hospital, Smoby Toys in Bradford and Camden Market and none more devastating that Grenfell Tower. The buildings are a mix of 70’s high rise residential, industrial warehousing, modern health and a historic market. Whilst they appear to have little in common they do share a number of similarities in that none of them had sprinkler systems and all of them have implications that will affect many, many people.

Grenfell Tower has rightly occupied the headlines due to tragic loss of life and its repercussions continue to make headlines. Whilst there is general consensus that regulations need to be urgently reviewed there are a number of other issues that need to be addressed. The issue of rehousing the survivors of Grenfell Tower highlighted the issue of continuity. Trying to find homes for the families has been an extremely difficult task. It is similar for the retailers at Camden Market, North Surrey Clinical Commissioning Group and Smoby Toys. They all have businesses to run that have now been left with no premises.

This loss of premises is not just a construction issue it is also an economic issue. To put it into perspective, Home Office figures have shown that in the last three years, there have been 22,800 fires in industrial and commercial premises. If you take into account research by the Centre for Economics and Business Research (Cebr), which states fires in warehouses (which account for 15% of industrial and commercial building stock) result in a direct financial loss to business of £230 million per year a bigger picture starts to emerge.

These warehouse fires create a loss of £190 million per year in GDP through lost productivity and supply chain impacts. They also lose the treasury £32 million in tax receipts and are the responsible for 1,000 job losses. And remember this is just warehouse fires. Imagine what the figure is when we consider fires in industrial buildings, health, leisure and workplaces.

One solution to address the issue of property protection is the incorporation of automatic sprinkler systems. Having sprinklers fitted protects businesses in the long run. They safeguard against potentially disastrous losses and also aid with life safety. By preventing large fires, sprinklers also protect the environment by avoiding CO2 emissions, reducing excess water use by the fire brigade and eliminating water supply contamination. Above all, they maintain business continuity. In the event of a fire, many businesses with sprinkler systems find they are back up and running in a matter of hours.

We are still feeling the knock on effects of the recent spate of fires in the UK. Hopefully with a review of ADB and an extension of the locus to include more of a focus on property protection and due consideration towards sprinklers, we can start to reduce this and provide businesses with the protection they need and deserve.

For more information about the Business Sprinkler Alliance visit www.business-sprinkler-alliance.org

By Iain Cox, Chairman of the BSA

A construction company has been fined after a worker suffered life changing injuries after falling from scaffolding.

Bristol Magistrates’ Court heard how an employee of R J Scaffolding (Bristol) Limited was in an induced coma for two weeks after falling more than six metres from the scaffolding. The worker suffered several serious injuries including losing the sight in his right eye and five fractures to the skull.

An investigation by the Health and Safety Executive (HSE) into the incident which occurred on 2 June 2016 found the employee was untrained, the supervisor was unfamiliar with the current expected safety techniques and the appropriate equipment had not been provided to the worker to conduct this work safely.

R J Scaffolding (Bristol) Limited of Central Business Park, Hengrove, Bristol pleaded guilty to breaching Regulation 2 (1) of the Health and Safety at Work Act 1974. The company has been fined £26,000.00 and ordered to pay costs of £1657.76.

Speaking after the hearing HSE inspector Ian Whittles said “We want all workers to go home healthy and safe. Those in control of work have a responsibility to ensure safe methods of working are used and to inform, instruct and train their workers in their use.

“If industry recognised safe systems of erecting scaffold had been in place prior to the incident, the life changing injuries sustained by the employee could have been prevented.”

The latest in the government’s series of fire safety tests of cladding and insulation combinations has been completed by the Building Research Establishment (BRE).

These large scale tests will allow experts to better understand how different types of cladding panels behave with different types of insulation in a fire. The results of the first 5 tests have already been published.

This additional test was of a wall cladding system consisting of Aluminium Composite Material (ACM) cladding with a fire retardant polyethylene filler (category 2 in screening tests) with phenolic foam insulation.

The government’s expert panel advises that the results show that the combination of materials used in the test does not meet current Building Regulations guidance.

Initial screening tests have identified 22 buildings over 18 metres tall in England known to have a combination of ACM with a fire retardant polyethylene filler with phenolic foam insulation. Cladding samples from each of these buildings had already failed earlier combustibility tests conducted by BRE and their owners were sent government advice detailing the immediate interim safety measures that needed to be completed. Appropriate measures have been put in place for all 22 of these buildings.

Government has also provided these building owners with additional detailed advice setting out the actions they need to take to ensure the safety of residents going forward. Government is working closely with these building owners to ensure this advice is being followed.

The series of large-scale tests initially included 6 combinations of cladding systems. On 8 August 2017, the government announced that on the advice of the expert panel it would undertake a further large-scale test of ACM with fire retardant polyethylene filler (category 2 in screening tests) with phenolic foam insulation. This is to further build the evidence available for experts and building owners so they can make informed safety decisions.

Results of the final large-scale test (ACM with a limited combustibility filler with mineral wool insulation) – and consolidated advice to landlords based on all the 7 tests – will be published shortly.

The government announced an independent review of building regulations and fire safety on 28 July 2017. This forward looking review will examine the regulatory system around the design, construction and on-going management of buildings in relation to fire safety as well as related compliance and enforcement issues.

The Climate Change and Industry Minister, Claire Perry, confirmed today that the sale of the Green Investment Bank (GIB) to Macquarie Group Limited has now been completed.

New owner Macquarie has committed to the GIB’s target of leading £3 billion of investment in green energy projects over next 3 years.

The £2.3 billion deal ensures that all the taxpayer funding invested in GIB since its creation, including set-up costs, has been returned with a gain of approximately £186 million.

As well as fully meeting the government’s objectives, the deal secures the future of the GIB with an ambitious new owner committed to growing the business. The Edinburgh office will be home to a new revenue-generating business as well as providing services to the green energy portfolios of both Macquarie and GIB in the UK.

The government decided that moving it into the private sector now would free it from the constraints of public sector ownership allowing it to increase investment in our green infrastructure as we transition to a green economy. GIB’s independent Board supported the government’s decision to sell the business to Macquarie.

In order to build on the company’s success within the private sector, Macquarie and GIB have announced today that the company will now be known as the Green Investment Group (GIG) so that it will be able to make overseas investments.

Climate Change and Industry Minister Claire Perry said “We led the world in setting up the Green Investment Bank and it is now being copied by others. Now that it’s in the private sector, it will be able to operate on an international level to tackle the global challenge of climate change. It is also perfectly placed to help us finance green initiatives for our Clean Growth Plan and realise the commitments set out in the Paris Agreement.

The green ‘special share’ held by the Green Purposes Company Limited also comes into force now. Five independent trustees have the power to approve or reject any proposed changes to GIG’s green purposes in the future.

The government will continue to hold an interest in a portfolio of a small number of GIB’s existing green infrastructure investments. These assets will continue to be managed by GIB until they can be sold on in a way which returns best value for taxpayers’ money.