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.

Improved access to material markets needed now to aid building

In a quarter characterised by political uncertainty, the Construction Products Association’s Construction Trade Survey shows that despite a strong Q2 the industry’s supply chain are more pessimistic for the year ahead.

The survey of main contractors, SME builders, civil engineering firms, product manufacturers and specialist contractors found that all reported increases in sales, output and workloads in the quarter driven by increased demand. Notably however, order books were sustained by private housing and R&M work, but fell in sectors such as commercial and industrial. This was echoed throughout the supply chain, with net balances weakening for enquiries, orders and expected sales among SMEs, civil engineering contractors and product manufacturers compared to Q1.

After Sterling’s depreciation since the EU Referendum, the strongest cost pressures for the construction industry have been rising prices for imported materials. On balance, 88% of main contractors, 87% of heavy side manufacturers and all light side manufacturers reported raw materials costs rose in Q2. In spite of this, almost half of main contractors and specialist contractors opted to keep tender prices unchanged, leading to a fall in margins.

Commenting on the survey, Rebecca Larkin, Senior Economist at the CPA, said “This was the 17th consecutive quarter of growth for the construction industry, but a cautious stance over future expectations is not surprising. Another quarter of slow GDP growth, rising costs and a near-term outlook clouded by Brexit uncertainty have led to a fall in orders in privately-financed sectors such as commercial and industrial, and this pessimism has also spilled over into infrastructure.

“Perhaps more conspicuous in the survey data is the squeeze on margins for main contractors and specialist contractors. Strained margins had already been acute for some time given skills shortages pushing up construction wages. Now there’s the added pressure of contractors trying to avoid or delay passing on the full cost of higher raw materials prices to clients when tendering for upcoming construction projects.”

Brian Berry, Chief Executive of the Federation of Master Builders, said “Despite rising material prices and a period of political uncertainty, it is encouraging to see the SME construction sector continuing to grow. The industry is demonstrating significant resilience, especially when we consider difficulties in recruiting key trades such as bricklayers and carpenters, and shortages in other trades, such as plumbers and plasterers. Furthermore, there are real challenges ahead for the sector. The possibility of Brexit exacerbating already severe skills shortages and the continuing upward pressure on wages and salaries this brings, means construction SMEs will be cautious in their optimism”.

Richard Beresford, Chief Executive of the National Federation of Builders said “Although SMEs have found more work, project viability seems to be increasingly stifled by spiralling material costs. Construction SMEs are reporting a tightening of profit margins, which may impact productivity in the coming twelve months. The NFB’s house building members appear more confident about their immediate future, despite not having an assured work pipeline. The Government must enable constructors – particularity SMEs – to establish a pipeline of work either through more streamlined procurement or by reforming the planning process. However, the weakening pound shows that, in the long term, constructors either need improved access to material markets or short-term financing for project completions. The Government must deal with the impact of a weaker exchange rate and Brexit more urgently. It must work with industry to understand and navigate more unpredictable and potentially difficult times.”

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Construction bounces back after a recent stall in growth

After a torrid month in May for construction, figures began to move in the right direction across June, with contract awards increasing by twelve per-cent, as a number of high profile projects were given the green light.

The latest edition of the Economic & Construction Market Review from industry analysts Barbour ABI, highlights the levels of construction contract values awarded in June across all regions of Great Britain, which totalled £5.5 billion based on a three-month rolling average, an increase on the £4.9bn from May.

London led all regions with 26 per cent of the total construction contract value for June. This was greatly helped by the North Quay Poplar development contract award, worth £800 million, the
largest project across all of construction on the month.

Across the various construction sectors, it was Residential building that produced the highest value on the month, reaching £2.5 billion, bouncing back admirably after a dip in May when it decreased to £1.7 billion. Furthermore, four of the top ten biggest projects in June came from the Residential sector. There were also monthly increases in Industrial, Commercial & Retail and Medical & Healthcare. The largest decrease came from Infrastructure, which lacked a high value project on the month to help increase its figures.

Looking at construction in June across the UK regions outside of London, the dominance continued across southern England with the South East in second place for construction contract value with £713 million awarded, followed by the South West in joint third place with the North West, each tied at £627 million.

Commenting on the figures, Lead Economist at Barbour ABI Michael Dall said “The construction sector bounced back after an election-focused month in May, as the residential sector once again performed strongly, continuing the trend of it holding the construction sector steady. However with declines in value from Hotel, Leisure & Sport and in particular Infrastructure, there is continuous pressure on Residential to achieve high values every month.”

“With the Governments increasing focus on raising the levels of major infrastructure projects, it’s surprising to see a lack of development in this sector across June. The anticipation however, is that we will see larger public sector contracts come to the forefront, such as offshore wind farms, energy plants and motorway upgrades as we continue into 2017.”

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Big Ben to fall silent while essential refurbishment takes place

On Monday 21 August at noon, Big Ben’s famous bongs will sound for the last time before major conservation works are carried out. The Elizabeth Tower, home to the Great Clock and Big Ben, is currently undergoing a complex programme of renovation work that will safeguard it for future generations. While this vital work takes place, the Great Bell’s world famous striking will be paused until 2021 to ensure the safety of those working in the Tower.

Steve Jaggs, Keeper of the Great Clock, said “Big Ben falling silent is a significant milestone in this crucial conservation project. As Keeper of the Great Clock I have the great honour of ensuring this beautiful piece of Victorian engineering is in top condition on a daily basis. This essential programme of works will safeguard the clock on a long term basis, as well as protecting and preserving its home – the Elizabeth Tower. Members of the public are welcome to mark this important moment by gathering in Parliament Square to hear Big Ben’s final bongs until they return in 2021.”

The Great Bell, popularly called Big Ben, weighs 13.7 tonnes and strikes every hour to the note of E. It is accompanied by four quarter bells, which chime every 15 minutes. Big Ben has marked the hour with almost unbroken service for the past 157 years. The bongs last fell silent for maintenance in 2007, and prior to that between 1983-5 as part of a previous large scale refurbishment programme.

The Great Clock is operated by a custom built Victorian clockwork mechanism, which relies on gravity to trigger the renowned bongs. To stop the bells the striking hammers will be locked and the bell disconnected from the clock mechanism, allowing the Great Clock to continue telling the time silently. Parliament’s specialist clock makers will ensure that Big Ben can still bong for important national events such as New Year’s Eve and Remembrance Sunday. The bells will resume their regular time keeping duties in the course of 2021.

Conservation works

Standing at 96 metres tall, the Elizabeth Tower is a focal point of the Grade I listed Palace of Westminster, which forms a part of a UNESCO World Heritage site. Not only is it a world famous landmark, it is also the most photographed building in the UK. Conservation is required to:

  • Repair problems identified with the Elizabeth Tower and the Great Clock, which cannot be rectified whilst the clock is in action
  • Conserve significant elements of the Tower, as designed by architects Charles Barry and Augustus Welby Pugin
  • Repair and redecorate the interior, renew the building services and make improvements to health and safety and fire protection systems
  • Improve energy efficiency to reduce the Tower’s environmental impact

The project started earlier this year, with the start of scaffolding works. Once this scaffolding reaches the necessary height, work will begin at the very top of the Tower with the renovation of the Ayrton Light (which shines to show that Parliament is sitting) and the refurbishment of the cast iron roofing.

The team will then work their way down the building, removing scaffolding as they go, and tackling a wide range of the complex issues created by the height and heritage of this unique landmark.

The Great Clock

As part of this intricate series of works, the Great Clock itself will be dismantled piece by piece with each cog examined and restored. The four dials will be carefully cleaned, the glass repaired, the cast iron framework renewed, and the hands will be removed and refurbished. Whilst the Great Clock and the dials are undergoing conservation, it will be necessary to cover the faces for some time. However, to ensure that the public are still able to set their watches by this most important of time pieces, one working clock face will remain visible at all times throughout the works. As the clock mechanism itself will be temporarily out of action, a modern electric motor will drive the clock hands until the Great Clock is reinstated.

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First cladding system to pass government fire tests

A cladding system using stonewall insulation has become the first to pass new fire safety tests ordered by the government since the Grenfell tragedy in June.

The fourth in the government’s series of large-scale fire safety tests, that will allow experts to better understand how different types of cladding panels behave with different types of insulation in a fire, has been completed by the Building Research Establishment (BRE).

This fourth test was of a wall cladding system consisting of Aluminium Composite Material (ACM) cladding with a fire resistant polyethylene filler (category 2 in screening tests) and stone wool insulation (a form of mineral wool). This combination of materials has passed the test.

The government’s Expert Panel advise that the results show that this combination of materials can be compliant with current Building Regulations when installed and maintained properly. It could therefore offer a possible solution for some buildings with other cladding systems which have been identified as a hazard.

However the Expert Panel note that cladding and insulation materials can vary between manufacturers and can have different calorific values. The way materials have been fitted and maintained can also affect the safety of the cladding system.

Therefore the clear advice from the Expert Panel is that building owners need to continue to take professional advice as to whether any remedial work is necessary to ensure the safety of their building. The test results will help inform this work but they must also take into account the specific circumstances of their building.

13 buildings over 18 metres tall in England are known to have this combination of ACM with a fire resistant polyethylene filler (category 2) and stone wool insulation. Following initial screening tests, government issued advice to building owners detailing immediate interim safety measures that needed to be undertaken. These measures have been completed for all 13 of these buildings.

The Department for Communities and Local Government concluded “The clear advice from the Expert Panel is that building owners need to continue to take professional advice as to whether any remedial work is necessary to ensure the safety of their building.”

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UK timber shortage risk – industry response

Window Solutions response to an article we published last month entitled “Industry risks running out of timber soon if we don’t become more sustainable” posing the question: is PVC-U a more natural choice for windows as the sustainability of timber is called into question, or can the industry rebound?

Dear Editor,

On 11 July, you ran an article entitled ‘Industry risks running out of timber soon if we don’t become more sustainable’, which talked about the findings of a report from the WWF and the need for businesses to commit to sustainable timber sourcing to guarantee supplies for the future and keep timber prices stable. For the windows industry – and those specialising in wooden doors and frames – the report heralds an important warning which must not be ignored.

The world’s raw materials supply is being outstripped by growing global demand, and businesses everywhere must commit to using less. In the past, PVC too has faced similar challenges in supply and demand and we had to adapt quickly to survive.

We started small, recycling trade off-cuts more than 15 years ago. It’s relatively simple to recycle PVC and when used with new polymer, it can be given a new lease of life. Some reports suggest that PVC can be recycled up to 10 times in its lifetime, so future new polymer use could be significantly less if we recycle and reuse it more.

Our commitment to sustainability and using our resources more carefully has since expanded over the years – not because of the threat of another material supply crisis but because we needed to futureproof our business. We have invested more than €50m in new technology and facilities to ensure that more than half of our products will be made using recycled materials by 2020. Our ultimate goal is to use up to 100 per cent post-consumer waste in the core of our profiles.

At this year’s Fit Show, we launched our new co-extrusion profile, which uses new and recycled PVC together. For the replacement of first generation PVC-U windows, co-extruded profiles offer a closed loop process as the windows being taken out of a property can be recycled and reincarnated as new windows.

Our past resource crisis actually made us a better business committed to sustainability, and I hope that our timber counterparts in the windows industry will react and rebound in a similar way. After all, necessity is the mother of invention. Perhaps in the future we will see new wooden frame designs, which use less raw materials or take advantage of recycled material. This will be good for the progression of the market, new product development and this all benefits our customers.

The windows industry may yet come out of this timber crisis stronger, leaner and greener.

Yours sincerely,

Gareth Jones,
Marketing & Technical Director – Window Solutions at REHAU

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Is energy affordable for households and businesses?

An independent review into the cost of energy led by Professor Dieter Helm CBE will recommend ways to keep energy prices as low as possible.

The review will consider the whole electricity supply chain – generation, transmission, distribution and supply.

An independent review into the cost of energy led by Professor Dieter Helm CBE will recommend ways to keep energy prices as low as possible as part of the Industrial Strategy, Business and Energy Secretary Greg Clark announced today.

Professor Dieter Helm, one of Britain’s leading energy experts, will look specifically at how the energy industry, government and regulators can keep the cost of electricity as low as possible, while ensuring the UK meets its domestic and international climate targets.

This ambitious review builds on the commitment made in the Industrial Strategy green paper and will consider the whole electricity supply chain – generation, transmission, distribution and supply. It will look for opportunities to reduce costs in each element and consider the implications of the changing demand for electricity, including the role of innovative technologies such as electric vehicles, storage, robotics and artificial intelligence.

The ambition is for the UK to have the lowest energy costs in Europe, for both households and businesses.

Business and Energy Secretary Greg Clark said “All homes and businesses rely on an affordable and secure energy supply and the government is upgrading our energy system to make it fit for the future. We want to ensure we continue to find the opportunities to keep energy costs as low as possible, while meeting our climate change targets, as part of the Industrial Strategy.

“The review will consider how we can take advantage of changes to our power system and new technologies to ensure clean, secure and affordable supplies over the coming decades. Professor Helm will bring invaluable expertise to the review, and I look forward to seeing his recommendations.

Professor Helm is one of Britain’s leading energy experts, a Professor of Economic Policy at the University of Oxford and a Fellow in Economics at New College Oxford, and a former member of the Council of Science and Technology, advising the UK Prime Minister from 2004 to 2007.

Professor Dieter Helm CBE added “I am delighted to take on this Review. The cost of energy always matters to households and companies, and especially now in these exceptional times, with huge investment requirements to meet the decarbonisation and security challenges ahead over the next decade and beyond. Digitalisation, electric transport and smart and decentralised systems offer great opportunities. It is imperative to do all this efficiently, to minimise the burdens. Making people and companies pay excessively for policy and market inefficiencies risks undermining the objectives themselves.

“My review will be independent and sort out the facts from the myths about the cost of energy, and make recommendations about how to more effectively achieve the overall objectives.”

The government is already taking action, and has asked the regulator to come forward with proposals to extend the price protection currently in place for some vulnerable energy consumers to more people on the poorest value tariffs. This builds on action taken to cap the price for 4 million pre-payment meter customers which came into force on 1 April 2017.

There are also a number of schemes in place to reduce energy bills by improving energy efficiency, such as the Energy Company Obligation which will upgrade 200,000 homes each year and help tackle fuel poverty. For business, the package of relief for energy intensive industries was worth £260 million last year and there are financial incentives to switch to cleaner fuels and processes.

This review will consider the electricity system as a whole and make recommendations on how to deliver affordable energy over the coming decades. It follows the plan set out in July by government and Ofgem for a smarter energy system and the commitment to ensure Britain’s energy costs are as low as possible.

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Work underway on new £2.6bn offshore windfarm

Historical maritime buildings in the harbour of Wick in Caithness, Scotland, will be brought back into operation when renovated to act as the hub for one of the largest new offshore wind farms in the UK.

Work is well underway to build the £2.6 billion, 84 turbine offshore wind farm in the outer Moray Firth. Designed by world famous Scottish engineer Thomas Telford in 1807, the conservation of the onshore maritime buildings will play a key part in generating 588MW of sustainable energy from the wind farm to go into the grid.

Leading independent management, design and construction consultancy Pick Everard, based in Inverness and Glasgow, is part of the team who will be delivering the onshore aspects of the project alongside HRI/Munro Architects.

Pick Everard is delivering mechanical and engineering services for the £10 million land base which will service the windfarm commissioned by BOWL (Beatrice Offshore Windfarm Ltd). Once complete, the wind farm will power approximately 450,000 homes (around three times the number of homes in the Moray and Highland regions).

Doug Soutar, director at Pick Everard, said “This is such an exciting project to work on and one that is key in helping us to continue to deliver sustainable energy for the future.

“The onshore element of the project comprises the conservation, re-planning and part reconstruction of two blocks of the historic Old Pulteneytown area of Wick.
“These buildings are more than 200 years old and have a longstanding history of being used for maritime purposes. We are pleased to be helping to bring them back into service again following planning permission from the Highland Council.”

Wick has provided a safe haven for fishing, commercial, and leisure vessels for the last 150 years or so with the harbour consisting of three basins. The Inner and Outer Harbours are the main fishing and leisure berths, and the River Harbour is the commercial area.

Steve Wilson, senior project manager for SSE, added “Renovation of the iconic Thomas Telford buildings in Wick is well underway and has been progressing well. These buildings will become our long term Operations and Maintenance base for Beatrice Windfarm.

“These Thomas Telford buildings are a symbol of Wick’s industrial and marine past so we are really pleased to be utilising them and in doing so help continue that legacy. We’ve been very pleased with the support there has been in the area.”

The Beatrice wind farm will be operational in 2019. It is one of the largest private investments ever made in Scottish infrastructure, bringing economic and community benefits to the area. Beatrice will also create opportunities with job creations across the region, skills training, investment in Scottish ports and harbours, supply chain opportunities and community benefit funding.

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Without focusing on recruitment building firms risk going out of business

A lack of focus on bolstering the workforce could push construction firms out of business, according to industry experts One Way.

An analysis by the specialist rail and construction recruitment consultancy found that firms are recruiting on a short term basis and are therefore forced to pay day rates that are well above the standard rate. Insolvency specialists, Begbies Traynor, recently published its latest ‘Red Flag’ report which found that over 40,000 construction companies were operating in a state of ‘significant’ financial distress at the end of June. A year ago the number stood at 33,222.

Paul Payne, managing director of One Way, said “Far too many construction firms don’t have a plan in place for finding skills when they need them on a short term basis and are forced into a situation where they have to pay excessively high day rates just to get the staff they need. You can see why they do it, but by planning ahead, firms can source the best skills in the market, at a fairer price and avoid any unnecessary headaches. This doesn’t just make their lives easier when it comes to staffing projects, but also removes some of the excessive costs. When construction firms look to become more efficient they often analyse their raw materials suppliers, however those savings are relatively small in comparison to those that could potentially be saved by developing robust talent pipelines into the industry. These statistics highlight that firms are being pushed to the brink and planning effectively and concentrating on recruitment could help to significantly lower costs.”

“The main issue preventing them from building these routes into the field is that there simply aren’t enough people in the industry and very few firms are doing anything about it. That means there’s a limited supply of skills in the market and the individuals in demand can essentially name their price as they’re so highly sought after. By building talent pipelines and communities you can avoid these additional costs as you’ll have a pool of available talent to fall back on if required. The skills shortages are only going to get worse once we leave the European Union, so it’s crucial that firms start planning before it’s too late. We’ve launched two campaigns to boost the number of women and youngsters entering the construction industry respectively. However initiatives like this are few and far between and we need to see more proactive work taking place, otherwise staffing costs will continue to rise and firms could ultimately be forced out of business.”

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Government injects £65 million to support UK’s largest Build to Rent site

The biggest development of homes built specifically for private rent in the UK is set to receive a £65 million boost from the government.

The deal will help to unlock over 7,600 new, high quality homes at the Wembley Park development in Brent, London – one of the largest strategic regeneration projects in the country. At least 6,800 of these homes will be for rent.

The measures include:

  • changing planning rules so councils proactively plan for more Build to Rent homes where there is need
  • making it easier for Build to Rent developers to offer affordable private rent in place of other types of affordable home
  • introducing longer tenancies which are more family friendly to provide better security for renters – government action in this area has already seen the offer of 3 year or longer tenancies being made available to 35,000 tenants across the country according to British Property Federation estimates.
  • Build to Rent homes are built at scale for the primary purpose of being rented long-term, they can boost choice and quality in the private rented sector.

Across England the sector is expanding, with 80,855 homes either completed or planned. The industry estimates investment in the private rented sector could grow to £70 billion by 2022. This could provide a further 15,000 homes each year – with the potential to reach at least 240,000 homes built specifically for private rent – by 2030.

Housing and Planning Minister Alok Sharma said “Whether renting or owning all families should have the security they need to be able to plan for the future.

“That’s why as part of our plan to fix the broken housing market we’ve been taking action to create a bigger and better private rental market, supporting new Build to Rent developments so that tenants can have greater choice.

“Developments like Wembley Park are a great example of doing just that, boosting the choice and quality of homes on the market – meeting the needs of renters in cities and towns across England.”

The Wembley Park development is backed by a loan from the government’s £3 billion Home Building Fund. It will bring over 8,000 jobs to the area and support infrastructure to free up land for development.

Delivered in phases over the next 7 years, the flats will include a mix of studios, 1, 2 or 3-bedroom properties, all located closely to the underground station. The site next to the National Stadium will also include up to 2,350 affordable homes.

Homes and Communities Agency (HCA) Chief Executive Nick Walkely said “This autumn, the HCA will relaunch as Homes England with the ambition of creating a better housing market. We’re determined to get more homes built now and increase the rate of future development.

“This development is a fantastic example of how we fund vital infrastructure to speed up the construction of much-needed quality homes for people to rent.”

Quintain Chief Executive, Angus Dodd said “This £65 million government loan will be match funded by Quintain to provide a £130 million infrastructure investment into Wembley Park to deliver new car and coach parking, an energy centre and the first phase of the new 7 acre public park. Not only will this funding allow these critical elements to be brought forward, it will also support the more rapid delivery of new homes.

“We are delighted to welcome the Housing Minister to Wembley Park today. The area is already home to a thriving community and will become the largest build to rent development anywhere in the UK.”

Work on the new homes at Wembley Park has already begun and is set to be completed in 2026.

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Three ways to tackle construction skills shortages

Increasing levels of gender diversity, widening talent pipelines and improving the wider public image of the sector will help to tackle the ongoing skills shortages plaguing the construction industry, according to One Way.

An analysis by the leading construction and rail consultancy has revealed that the skills shortages can only be tackled by employers being proactive and going above and beyond the call of duty. This comes at a time when estimates suggest that 27,000 projects will suffer from a lack of suitably skilled and qualified workers over the next five years.

Paul Payne, managing director of One Way, comments on the required approaches:

Improve gender diversity

“It’s downright negligent to almost rule out half of the workforce from working in the industry, but that’s essentially what is happening. We don’t need to go over-the-top, but considering how we could make the sector that bit more inclusive would make a huge difference. No other mainstream industry suffers from such a colossal lack of diversity and it’s certainly a major factor contributing to the skills shortages. We have launched our #GirlsAllowed programme and we’d urge more firms to consider similar approaches.”

Promote a better image of the industry to the public

“How many people outside of the field realistically know the potential that a construction career holds? In reality, it’s very few. The main stereotype is that a job in the sector means being cold and muddy and standing outside digging a ditch somewhere. That needs to change. The skills of quantity surveyors, for example, are similar to those of an accountant, and rather than being handcuffed to a desk for the rest of your career, they have the chance to work on major infrastructure or construction projects. Unfortunately, nowhere near enough people outside of the sector know about this.”

Widen talent pipelines into construction

“This can only be achieved by improving the wider image of the industry as, currently, few youngsters actively seek out a career in construction. To solve this, firms need to be proactive, get into schools and colleges and actually speak to children about the potential a career in the field holds. The alternative is to rest on our laurels and continue to do very little, which will only lead to the construction industry in this country falling apart.”

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