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.

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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Contracts signed to deliver tunnels, bridges and earthworks for HS2

HS2 has taken a major step forward, with the formal signing of contracts to deliver the tunnels, bridges and earthworks that will carry the first phase of the UK’s new high speed railway from London to Birmingham in 2026.

High Speed Two (HS2) Ltd Chief Executive, Mark Thurston, was joined by representatives from SCS JV, Align JV, CEK JV and Balfour Beatty VINCI, in a signing ceremony at the company’s Birmingham head office. The winning companies, whose names were released by the Department for Transport last month (17 July 2017), will go on to support 16,000 jobs across the UK-wide supply chain as they deliver what will be the biggest investment in UK’s transport infrastructure since the building of the motorways.

High Speed Two (HS2) Ltd Chief Executive, Mark Thurston, was joined by representatives from SCS JV, Align JV, CEK JV and Balfour Beatty VINCI, in a signing ceremony at the company’s Birmingham head office. The winning companies, whose names were released by the Department for Transport last month (17 July 2017), will go on to support 16,000 jobs across the UK-wide supply chain as they deliver what will be the biggest investment in UK’s transport infrastructure since the building of the motorways.

Welcoming the milestone for the project, HS2 Chief Executive Mark Thurston said “HS2 is more than just a railway. The contracts will provide much needed extra capacity and connectivity between our major cities, but it will also unlock huge opportunities for new jobs, homes and economic development and start to rebalance our economy.

“We are determined to deliver the project to new levels of safety and efficiency, with respect for communities, protection for the environment and value for money at the core of everything we do. The contracts we signed today will support 16,000 jobs and generate thousands of contract opportunities within the wider supply chain, spreading the benefits of this investment across the whole country.”

A team made up of Skanska, Costain and STRABAG (SCS JV) will build the first section of the route which is in a tunnel between Euston and Old Oak Common and onwards to Northolt. Welcoming the contract award, Peter Jones, Executive Director and SCS JV board member said “We are delighted to have been awarded these major contracts by HS2 which follow on from the South Enabling Works Contract awarded last year.

The awards are further testimony to the SCS collaborative approach and our strong track record in applying technology-based innovative solutions in the delivery of large-scale projects.

Align JV, a team made up of Bouygues, VolkerFitzpatrick and Sir Robert McAlpine will build the next stage, including the Colne Valley Viaduct and Chilterns Tunnel. Welcoming the contract award, Jérôme Furgé, Align Project Director said “I have worked on many major projects around the world, and find it a special privilege to be working on HS2. This project will require a unique level of collaboration between all of us and the highest industry standards, expected by HS2, will be implemented in order to obtain the very best outcome. My Align colleagues and I are delighted to be part of the challenge to deliver a world-class asset to the UK.

The largely rural stages between the Chilterns Tunnel and Long Itchington will be built by a team made up of Carillion, Eiffage and Kier (CEK JV). Welcoming the contract award, Sean Jeffery, Executive Director and Chairman of CEK JV Board said “We are delighted to have been selected to help deliver this major infrastructure project and look forward to working in partnership with HS2. Our involvement in this project will enable us to create many new jobs and training opportunities as well as working with a diverse range of supply chain businesses from across the UK.”

A team made up of Balfour Beatty and VINCI will complete the route, taking the line north past Birmingham Airport and into the new Curzon Street station in the centre of Birmingham, as well as onward to a connection with the existing West Coast Mainline at Handsacre. Welcoming the contract award, Mark Cutler, Balfour Beatty VINCI HS2 Managing Director, said “I am proud that our long-standing joint venture has been chosen to deliver these two important and complex sections of HS2.

“This iconic rail infrastructure project will create significant opportunities for the UK construction industry and enable long term benefits in skills, jobs and regional prosperity. We look forward to building on our successful track record of major infrastructure projects, and playing our part in the delivery of HS2.”

The contracts are two-stage, with the contractors spending the first 16 months working collaboratively with HS2 Ltd on the detailed design before construction begins around 2018/19. Preparatory work has already begun on the project with geological investigation underway across the route and ecological and archaeological work due to begin soon.

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Bogus self-employment in construction out of control, warns Unite

Unite, the UK’s largest construction union, is calling for root and branch reforms of employment rights after new figures demonstrated bogus self-employment in construction is out of control.

A Freedom of Information request by Unite has revealed that in 2016/17 at least 1.076 million construction workers were paid via the Construction Industry Scheme (CIS), an eight per cent increase on the figure of 12 months ago when 992,973 were paid via CIS. In total 47 per cent of the entire construction workforce is now paid via CIS.

The sharp rise in workers operating via CIS demonstrates that the government’s hopes of reducing construction bogus self-employment has failed. In 2014 the government introduced measures that barred construction workers operating via engagers (employment agencies and payroll companies) from being self-employed.

CIS is the stand alone tax system for construction workers. Workers paid via the scheme are normally officially classified as self-employed although the nature of their engagement means that the vast majority are bogusly self-employed.

The bogusly self-employed have all the employment characteristics of an employee but are denied even the most basic employment rights such as holiday and sick pay and can be instantly dismissed without warning.

The principal beneficiaries of bogus self-employment are employers who do not pay employers’ national insurance contributions of 13.8 per cent and don’t have to pay employee benefits such as holiday pay.

Gail Cartmail, assistant general secretary, of Unite said “These figures demonstrate that bogus self-employment in construction is out of control. Employers are simply ignoring the rules in order to line their pockets and deny workers their rights.”

The government’s 2014 reforms led to a huge increase in workers being paid via umbrella companies, which results in the worker having to pay both employers’ and employees’ national insurance contributions as well as a plethora of other deductions from their wages. The government has previously conservatively estimated there are 430,000 workers being paid via umbrella companies, the majority of whom work in construction.

The government’s much heralded Taylor Review, while calling for it to be clearer to “distinguish” between workers and self-employed workers fails to address how existing Treasury policies are creating bogus self-employment and causing worker exploitation.

A recent survey by the Joint Industry Board (JIB), that sets the standards for employment, welfare, and apprentice training in the electrical contracting industry, revealed that 84 per cent of electricians want to be directly employed, rather than employed via an agency in order to receive full employment rights, paid holidays and benefits.

Gail Cartmail added “We have huge numbers of construction workers being routinely exploited via the government’s own tax scheme and via umbrella companies and yet the Taylor Review has ducked these issues.

“Taylor talks about his seven principles for fair and decent work which includes workplace training and the health and wellbeing of workers but while the real employer can continue to divest themselves of their workforce and have no responsibility for them, his principles are nothing but warm words.

“The only way that workers will be treated fairly and decently is by introducing clear rules which ensure that workers are either genuinely self-employed or paid by a standard PAYE method. Without such a reform productivity in construction will remain low, accidents and ill health will be high and the industry will fail to train sufficient numbers of apprentices.”

“The recent survey by the JIB destroys the myth that construction workers want the flexibility to operate via agencies or be self-employed. What workers want is to do know they are going to receive a steady wage and have the security of regular employment.”

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Fines totalling £1m for construction companies after workers exposed to asbestos

Three companies have been fined a total of more than £1m after workers were exposed to asbestos while refurbishing a school in Waltham Forest.

Southwark Crown Court heard that on 24 July 2012 a worker removed part of a suspended ceiling in one of the ground floor refurbished rooms at St Mary’s school and identified suspect asbestos containing materials. Asbestos fibres were subsequently found in numerous areas in the school.

The court heard that the London Borough of Waltham Forest had a contract with NPS London Limited to manage development and refurbishment of its estate. At the time of the incident the Principal Contractor for the work was Mansell Construction Services (aka Balfour Beatty) and the subcontractor was Squibb Group Limited.

A Health and Safety Executive (HSE) investigation found that although an asbestos survey was completed, there were multiple caveats and disclaimers which were not appropriately checked.

Balfour Beatty Regional Construction Limited (previously Mansell Construction Services Limited) of Canary Wharf, London was fined £500,000 and ordered to pay costs of £32,364.84 after pleading guilty to breaching Section 2(1) and 3(1) of the Health and Safety at Work Act 1974.

NPS London Limited, of Business Park Norwich, Norfolk was fined £370,000 and ordered to pay £32,364.84 in costs after pleading guilty to breaching Section 3(1) of the Health and Safety at Work Act 1974.

Squibb Group Limited, of Stanford Le Hope, Essex was fined £400,000 and ordered to pay costs of £175,000 after being found guilty after a trial of a breach of Section 2(1) of the Health and Safety at Work Act 1974.

Speaking after the hearing HSE inspector Sarah Robinson said “The principal contractor and contractors on site did not review the survey report in detail, and did not take into consideration the multitude of caveats.

“Therefore the work undertaken did not adopt the high standards of control expected for working where there was the potential to expose workers to asbestos.”

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Growth continues in UK for construction SMEs

The SME construction sector grew in the second quarter of 2017, albeit at a slower rate in most parts of the UK than the first three months of the year, according to the Federation of Master Builders (FMB).

Key results from the FMB’s State of Trade Survey for Q2 2017, which is the only quarterly assessment of the UK-wide SME construction sector, include:

  • Q2 2017 was the 17th consecutive quarter of positive growth which means that the construction SME sector has been growing for more than four years (ie since Q2 2013)
  • Almost one in two construction SMEs predict rising workloads in the coming three months, with just 9% predicting a decrease in activity
  • 83% of builders believe that material prices will rise in the next six months
  • 60% of construction SMEs are struggling to hire bricklayers; 57% are struggling to hire carpenters and joiners; and 47% are struggling to hire plumbers
  • Almost two-thirds (62%) of construction SMEs expect salaries and wages to increase in the next six months

Brian Berry, Chief Executive of the FMB said “Rising material prices and salaries could be starting to dampen growth among construction SMEs. However, it is encouraging to see that the sector has continued to grow despite the recent snap General Election and the resulting hung Parliament. The construction SME sector is particularly vulnerable to any dips in consumer confidence that might come from periods of political uncertainty. It may be that a number of home owners decided to delay any big spending decisions on new extensions or loft conversions while the election campaign was underway – this would account for the slow-down in growth seen in the second quarter of 2017.”

“Looking ahead, almost two-thirds of construction firms expect wages and salaries to increase over the next six months and this is in contrast to stagnant wages elsewhere in the economy. Rising salaries are undoubtedly the result of the escalating construction skills shortage – construction workers know their worth and are demanding higher wages from their employers. The majority of construction SMEs are struggling to recruit key tradespeople such as bricklayers and carpenters and we’re seeing shortages in other trades, such as plumbers and plasterers, starting to creep up. With Brexit on the horizon and worrying talk of the so-called ‘Tier 2’ immigration system replacing the free movement of people, the construction industry urges Ministers to bear in mind their strategic house building and infrastructure targets before pulling up the drawbridge on EU migrant workers.”

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Multi-million funding to transform town centres and neighbourhoods

The Mayor of London and Transport for London (TfL) have today announced a new multi-million pound funding programme that will transform town centres and neighbourhoods into more attractive, accessible and people-friendly public spaces.

A new £85.9 million Liveable Neighbourhoods programme will give boroughs the opportunity to bid for funding for long-term schemes and construction that will encourage walking, cycling and the use of public transport, in line with the Mayor’s Healthy Streets approach.

The programme will provide grants of between £1 million and £10 million for a wide range of community-supported projects, potentially including the creation of green spaces, new cycling infrastructure, redesigned junctions and the widening of walking routes to improve access to local shops, businesses and public transport. By supporting projects which have local support, the funding will particularly target schemes that are shown to improve boroughs and reduce car trips – improving health and air quality.

The Liveable Neighbourhoods programme is a key part of the Mayor’s draft Transport Strategy, which last month detailed plans to create a fairer, greener, healthier and more prosperous city by making London’s streets more welcoming and encouraging active travel and public transport.

The Mayor of London, Sadiq Khan, said “I’ve set out bold plans to transform the way Londoners move around our city to improve our health, air quality and future prosperity. London’s boroughs are key partners in delivering this vision and through this new funding we can make a real difference by supporting the projects that local people want to see. This will ensure that the improvements really work for our local communities, transforming our town centres and successfully encouraging many more Londoners to walk, cycle or use public transport for the good of their health and our environment.”

Tompion Platt, Head of Policy, Living Streets said: “London is a successful city, but it can become a city with a far better quality of life. Moves have been made recently to make London more liveable, but its streets are still car-dominated. This discourages walking, causes poor air quality and undermines people’s health. The ambition to create healthier, more liveable neighbourhoods across London with walking at their heart is welcome step.”

 

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Developer fined after failing to safely carry out demolition work

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.

Peterlee 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 the 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.

The HSE revisited the site on 4 January 2017 and found the work had restarted and the site was still unsafe, despite enforcement Notices being served and advice being provided. The demolition was still being 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 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 £20,000 and ordered to pay £ 5928.28 in costs.

He was also ordered to pay a victim surcharge of £120.

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 the 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 the 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 and washing facilities.”

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