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The results are in and Britain once again finds itself with a hung parliament. As uncertainty spreads like wildfire as to what this will mean, speculation runs rife regarding how it will affect the construction sector.

Regardless of whether we end up with a coalition government led by Theresa May or a minority government fronted by Jeremy Corbyn, there are bigger fish to fry in the long run! Buildingspecifier investigates:

Brexit

Brexit still looms over us as an industry, and whatever shape the new government takes, they will still need to ensure it happens as smoothly as possible. We need to continue to harness the potential for future infrastructure investment and economic growth, championing ourselves as bastions of innovation and construction prowess.

Although the snap General Election has added more uncertainty and speculation into British economy as a whole, as seen with fluctuations in the value of the pound, 2017 has been a tumultuous year politically. As a country and as an industry we have shown resilience to these challenges and risen to meet them. Let’s keep up the good work!

The election campaigns of all parties have focussed heavily on upcoming Brexit negotiations, and for the construction sector in particular a major priority has been to make sure we still have access to the wealth of skilled labour afforded to us by close ties with Europe.

From an economic perspective, market surveys across both residential and commercial sectors now reveal an overall acceptance of Brexit and people are now looking beyond and seeing the bigger picture. However, there is still ongoing concern about deferral of major investment and recruitment plans, which are understandable but likely to subside in coming weeks and months following on from the distraction of a dramatic election.

Skills

An inescapable truth is that there needs to be a drastic narrowing of the construction skills gap as soon as possible, and today’s result doesn’t negate this harsh fact. The new administration will undoubtedly continue to reinforce the importance of the construction industry to the country’s physical and economic wellbeing, and will need to continue implementing modern technologies such as offsite and modular into our projects nationwide, contributing to further growth of the UK economy by championing us an a lucrative opportunity for investors.

In summary

There is going to be a lot of confusion and insecurity following today’s result; it is vitally important that as an industry we do not lose sight of what we need to achieve as an industry. Today’s result doesn’t change this, it merely adds another dynamic that we will need to evolve and change in order to adapt to. We mustn’t allow procrastination, frustration or insecurity to unravel all of the good things we have achieved over the past few years. We must keep calm and carry on!

Constructive discussions between employers at Hinkley Point C and Unite the union have resulted in an interim agreement over the payment of bonuses during the construction of the power station.

All parties have agreed to take part in a collective differences panel that will seek to identify an agreeable long-term settlement of the bonus issue.
As part of the agreement, interim bonus payments will apply until the end of August 2017 and will be linked to safe and collaborative working on site. The total bonus to be paid on this basis is as follows: working supervisor and craft grades £4 an hour, skilled worker grades £3 per hour and general workers £2 an hour.

The interim payments were agreed by representatives of EDF Energy (the client), BYLOR (the Tier 1 contractor comprising Laing O’Rourke and Bouygues TP), the Kier-Bam joint venture (who are undertaking the enabling works) and Unite the union.

As part of the agreement, the previously approved Civil Engineering Sector Agreement (CESA) for the project, which governs pay and conditions, will be fully implemented with effect from 1 June 2017, including the interim bonus arrangements.

The collective differences panel, which will consist of a senior Unite full time official and a senior EDF Energy executive, will thoroughly examine the matter of bonuses.

The panel will seek to identify appropriate permanent bonus arrangements that are agreeable to all parties and is scheduled to deliver its recommendations on productivity/milestones bonus payments by August.

As part of the agreement, no industrial action will be considered while these interim arrangements are in place or until the collective differences procedure has been exhausted.

Nigel Cann, EDF Energy’s Programme and Construction Delivery Director for Hinkley Point C, said “We are proud about the ‘best in class’ nature of the overall package for the Hinkley Point C civil workforce.

“We have created great facilities, an opportunity to develop and a very competitive reward structure.

“We are pleased that these interim arrangements allow constructive dialogue to continue to finalise this important agreement.

“Unite the Union has been a constructive partner in the discussions to date and I look forward to this continuing throughout the construction of the Hinkley Point C power station.”

Unite acting national officer for construction Jerry Swain, said: “I am pleased that following consultation with our stewards and members that we along with the various parties have been able to agree a clear path forward and that the prospect of industrial action, which is always a last resort, can be taken off the agenda in order to allow the ‘Differences Panel’ to deliberate.

“The work undertaken by EDF Energy in ensuring that all parties signed up to the interim agreement has been crucial in providing a breathing space and creating the opportunity for a long-term solution being agreed to finally resolve this matter.”

Battersea Power Station’s four iconic chimneys have now been completely rebuilt, as part of the restoration programme that will see the Grade II* listed building brought back into use after more than 30 years.

Since the rebuilding began on May 14th 2015, nearly 25,000 wheelbarrow loads of concrete have been hand-poured into special “jump form” shutters to recreate the chimneys which each stand 51 metres above the building. Rather than use hoses to pour the concrete, it was decided to replicate the original construction methods: some 680 tonnes of concrete have been lifted in hoists, transferred into wheelbarrows and then poured into the structures.

The rings that can be seen around the new chimneys, and could also be seen around the originals, are a result of the “jump form” method in which shutters are erected at the top of the growing chimney. They are then filled with concrete which is allowed to dry before the shutters move up again to create the next layer. In modern buildings the shutters would typically move up continuously to create a smooth exterior, but this technique was not in use when the Power Station was built. Overall, the hoists have travelled the equivalent of 21 miles, lifting concrete to the workers waiting on boards high above the ground.

The original chimneys – two were built in the 1930s and the second pair in the 1950s – had to be taken down: they had become dangerously unstable as a result of their many years of funnelling corrosive gases, and in part because salty Thames water was used to mix their concrete.

The dismantling and rebuilding of the chimneys, which was especially difficult due to the need to preserve the building beneath and the special methods which had to be used, won a prestigious award at the London Civil Engineering Awards last month.

The northeast and southwest chimneys will return to service as exhaust stacks, albeit much cleaner ones than in the old days: they will release the water vapour generated by the new clean, green Energy Centres which will provide heat, cooling and electricity to the new Battersea Power Station and potentially other buildings in the neighbourhood as well.

The northwest chimney is the last to be finished.

Rob Tincknell, CEO of the Battersea Power Station Development Company, said “Battersea Power Station’s chimneys have been the backdrop for films, music videos and album covers and really are world famous. On behalf of our shareholders, I would like to say it has been an honour to restore this iconic symbol to the London skyline so that it can be enjoyed by generations to come.”

The Malaysian shareholders of the Battersea Power Station project are committed to giving back to the communities in which they operate. They recognise the importance of creating shared value and this is embedded in all their undertakings to ensure that they contribute towards a harmonious and considerate community.

Despite worries surrounding Brexit, tighter margins and labour supply to name a few, optimism across Britain’s construction sector is relatively high in regards to potential growth and future profits, according to the 2017 Construction Sentiment Survey.

Causeway Technologies and Barbour ABI’s survey of the construction sector – measuring various levels of optimism, growth & obstacles within the industry, found that of those surveyed 71 per cent believe that their company’s revenue is expected to grow in 2017 compared to last year and 63 per cent foresee a growth in profits.

The survey also found that the three biggest issues facing the construction industry are stronger competitors, labour supply and customer demand.

Construction

A large proportion of construction companies (67 per cent) are already implementing cost-reduction measures, however they are more prevalent in larger companies (82 per cent) compared to smaller companies (58 per cent). However, the survey also showed evidence of initiatives for growth, with almost 70 per cent believing that their company is implementing initiatives to fuel growth in 2017.

Colin Smith, Chief Executive Officer at Causeway Technologies commented “The UK construction industry is facing considerable change in the coming years and needs to be well prepared for what lies ahead.”

“Whilst it is clear from the survey that construction professionals remain reasonably optimistic about 2017 with the industry growing steadily since 2013, they are also aware that they face an array of challenges, with a significant number of companies already looking at how they can cut costs and improve efficiency.”

“Identifying the issues is clearly the first step in tackling them, the next stage is for construction companies to introduce the solutions that will help them perform better in the face of the challenges they expect to encounter in 2017.”

Commenting on the figures, Michael Dall, Lead Economist at Barbour ABI, said “Construction firms are looking to “future proof” and expand markets to meet the economic challenges that inevitably lie ahead.”

“The industry appears to be learning its lessons from the years of subdued performance between 2009 and 2012 with many considering closely its initiatives for growth, issues facing their businesses but also ensuring the systems are in place to ensure they can weather any future downturn.”

The first modular homes to be built by housing association Midland Heart have landed in Coventry.

The four, three-bedroom properties on ‘Modular Mews’ in Foleshill are part of a pilot scheme delivered in partnership with developers Central Site and Coventry City Council.

Work on the scheme started toward the end of 2016 and during one weekend in February all four homes were craned in after being built off-site at a factory in Nuneaton. Construction of the development was completed within six weeks.

Midland Heart’s Director for Development, Chris Miller said “It’s been an incredibly interesting journey as we prepared the site and watched all four homes being built in just a couple of days.

“Modular homes are just one of the options we are exploring to deal with the effects of the housing crisis and are part of our commitment to build 2000 new homes across the Midlands over the next five years.”

The properties have been built to an incredibly high standard of both design and environmental sustainability making them cost-effective to run and maintain.

Each property includes amongst other amenities an externally fitted electric car charging port and walls that can be removed so properties can be easily adapted.

Brian Maunder at Central Site said “It was a pleasure to work with Midland Heart on delivering the first modular homes in Coventry, the first of many.”

The house building industry has set out a blueprint for how it believes the next Government can build on recent increases in supply and go even further to deliver more new homes in the next parliament.

Whilst supply has increased by over 50% in the past three years, if the industry is to deliver the increases all parties now agree are required, the next Government will need to continue to develop the policy agenda to allow existing builders to expand output even further and faster, and also support new entrants and struggling smaller firms. HBF’s proposals include:

  • Promoting policies that enable more builders to build – in particular SMEs – such that they can play their part in increasing output further
  • Providing certainty about the future of the Help to Buy scheme which has been absolutely key in the increases in supply to date
  • Delivering further improvements to the planning system. The time consuming and bureaucratic nature of system remains a constraint on increasing supply. Delays and costs deter new entrants and prevent construction work starting
  • Developing policies that encourage more specialist homes to be built to meet the needs of our ageing population
  • Encouraging better collaboration between infrastructure planners and house building. Builders pay millions each year towards improved infrastructure and more effective coordination would deliver considerable benefits for communities while accelerating delivery.

‘Blueprint 2017: A plan to deliver even more new homes’ sets out in detail what the new Government needs to do in each of these areas to increase supply to the level the country needs.

Stewart Baseley, executive chairman of the Home Builders Federation said “Housing supply has increased significantly over the past three years, but if we are to raise our sights still further and better match supply to demand, Government needs to play its part.

“House builders already have a strong desire to continuing boosting supply, as evidenced by the huge investments being made by the country’s largest builders in the land and workforce needed to deliver additional homes. Ensuring a policy environment that promotes development will allow this investment to be sustained.

“Over decades building homes has become increasingly costly and risky as developers have been bogged down in red tape and inevitable delays. That has driven out small firms and prevented new entrants from contributing. Encouraging greater entrepreneurialism in the sector could help boost housing supply by tens of thousands a year.

“The social implications of our housing shortage are becoming ever more apparent with today’s young people struggling to own a home, high rental payments preventing them from saving for a mortgage deposit and ever more people in sub-standard or temporary accommodation and on local authority waiting lists. Building homes helps address social issues, whilst creating jobs both directly and in the supply chain and delivering investment in existing communities.

“Delivering more desperately needed high quality homes will both help strengthen our society and give our economy a boost in the uncertain years ahead.”

In order to improve policy making and provide a better understanding of the construction industry’s contribution to society, the Chartered Institute of Building (CIOB) has outlined five interlinked policy proposals for prospective parliamentary candidates and the next Government to consider ahead of the General Election.

Chris Blythe OBE, Chief Executive of the CIOB said “The quality of our built environment affects every member of society. Construction creates and maintains the places that people live, work and play, the infrastructure that supports them and the services that sustain them. And it is vital that those elected to represent their constituents in Parliament understand this.

“Our manifesto showcases how construction can act as a solution to major policy issues. Our proposals are interlinked, showcasing the need for a collaborative approach to productivity, skills, quality, investment and Brexit.

“It is crucial that policy makers appreciate the contribution of the construction sector: the decisions made today will be felt for decades and generations.”

The five aims outlined in the CIOB’s Building the Case for Construction manifesto are as follows:

  1. Continue support for the Industrial Strategy and recognise construction’s role in improving productivity
  2. Work alongside the construction industry to support a robust system for training and skills development
  3. Recognise and address both the opportunities and risks that Brexit will bring
  4. Ensure quality is at the heart of the nation’s construction programme
  5. Focus on regional investment in construction to rebalance the UK economy

The CIOB will be communicating with prospective parliamentary candidates, urging them to consider the importance of the built environment both at a local and national level. The CIOB has also published a series of articles under the ‘Building the Case for Construction’ banner. It contains a number of resources including the manifesto, an overview of the timetables for the 2017 election and a series of questions for CIOB members and non-members to ask prospective parliamentary candidates.

The full manifesto can be accessed here.

The next Government must build new communities across the country and keep secure the UK’s position as the global leader in architecture and design innovation says the Royal Institute of British Architects (RIBA) in its General Election manifesto published today (Thursday 25 May).

RIBA’s ‘Building a Global Britain’ manifesto says the UK must:

  • Grow as a global trading nation –ensuring the existing mutual professional recognition agreement with the EU is maintained as part of the Brexit negotiations and that new mutual recognition agreements are developed with other key trading nations including the United States, Canada, Australia and New Zealand.
  • Put local people at the heart of the planning system – delivering powers on housing and planning to regional and Metro Mayors so cities and regions can deliver more.
  • Deliver many more good quality homes that meet the needs of society – perusing development of new high-quality, affordable homes that alleviate the housing crisis and unstick some of the UK’s productivity problems.
  • Build schools that are better spaces for learning –ensuring better design of public buildings like schools, museums and hospitals to inspire communities and make the best use of scarce public money.
  • Show greater leadership in resilient infrastructure – Supporting innovation in flood defences to catalyse the UK’s export potential in new technologies.

RIBA President Jane Duncan said “People across the country will be keen to see how political parties respond to the challenges and opportunities of these changing times. Our political leaders recognise the need to improve quality of life across the country; they can start by supporting a better built environment. The RIBA’s manifesto outlines how the next UK Government can ensure that our communities have great high quality, sustainable places in which to live, work and play.
“The UK has a thriving architecture sector delivering inspiring buildings and places across our great nation and around the world. Our multibillion pound contribution to the UK economy and to the country’s reputation abroad is highly prized, and our universities train and equip the architects of the future.

“Whomever forms the next UK Government must recognise the strength and importance of our global cultural links and influence, and continue to support us by safeguarding our ability to attract the brightest and best talent from around the world, as well as ensuring post Brexit that architects practising in the UK are in an environment where they can thrive.”

In their election manifesto, the Conservative Party has pledged to 500,000 extra homes by 2022, as well as reaffirming their previous 2015 commitment to deliver a million homes by the end of 2020. As part of this, Theresa May must put SME house builders at the heart of her ambitious plans for housing, according to the Federation of Master Builders (FMB).

In response to last week’s release of the Conservative Party’s manifesto, Sarah McMonagle, Director of External Affairs at the FMB, said “The importance of addressing the country’s chronic shortage of homes is as great as ever, and the Conservative Party’s manifesto seems to appreciate the scale of the challenge ahead of us. A revised house building target of 1.5 million homes from 2015 to 2022 ups the ante on housing delivery again, but these ambitions can only be delivered with an accompanying focus on creating a more diverse and innovative house building sector. The decline in the number and output of smaller local house builders over the past few decades has led to the industry’s capacity haemorrhaging. To deliver the PM’s vision we will need to reverse this. The Manifesto’s explicit pledge to diversify the delivery of new homes is therefore extremely welcome. Key to doing this will be being able to build on some of the sensible reforms outlined in the recent Housing White Paper, which we hope to see implemented.”

“The Conservative Party’s manifesto sets out an ambition not only to build more, but to build better. There is a welcome emphasis on balancing the pressure for increasing the delivery of new properties with the need to deliver those homes to a high standard. As is widely recognised, smaller scale house builders have a strong focus on quality. By supporting greater diversity in terms of the companies building our new homes, a Conservative Government would be killing two birds with one stone. This is a vision that SMEs can build on.”

One of London’s most prominent brutalist residential blocks, Trellick Tower, is set for a major £7.2m restoration programme with the appointment of leading social housing maintenance provider, Wates Living Space, to deliver extensive external works.

Carried out on behalf of Kensington & Chelsea Tenant Management Organisation (KCTMO), the work marks a major investment in the preservation of the historic tower in Kensal New Town.

Following extensive planning and liaison, work on the programme is scheduled to commence immediately and will include the repair, renovation and replacement of the Grade II* listed building’s concrete, cladding and approximately 1,000 windows.

Trellick Tower was designed by Hungarian Modernist architect, Ernö Goldfinger, and was built in 1972 as part of the Brutalist architecture movement that arose from the 1950s to the mid 1970s. The tower became the inspiration for JG Ballard’s novel ‘High Rise’, which was made into a film starring Tom Hiddlestone in 2015.

Wates will first commence work on the six-storey Block B, which will be followed by the external refurbishment of the 31-storey Block A in June this year. Overall completion is expected by summer 2018.

As part of the mobilisation of its team, Wates is currently making arrangements for a range of community initiatives that will be delivered throughout the programme. This will include a series of training and employment opportunities for local people as well as engagement with local social enterprises.

The project follows from a framework agreement between KCTMO and Wates, which began in 2015, for Wates to carry out internal and external works in the north of the borough.

David Morgan, Managing Director of Wates Living Space, said “It is a huge honour to be entrusted with the refurbishment of such a historically significant London tower block. This project will involve a meticulous balance of ensuring we preserve the building’s iconic status while, most importantly, delivering the vital work with minimal disruption to Trellick Tower residents. We very much look forward to continuing our work with KCTMO and to getting under the skin of what is a landmark piece of post-war architecture.”

Robert Black, KCTMO Chief Executive, added “We’re very pleased to be working with Wates on such an important project. Both ourselves and Wates are working closely with residents to ensure that they’re fully informed and we’re committed to supporting them throughout the project. This iconic building is a favourite to many and this work will help ensure it stays that way.”

In addition to its importance as a Grade II listed residential building, Trellick Tower has featured heavily in popular culture since its construction. This includes its appearance in a series of music videos throughout the past two decades.

Standing at 98m high, the building’s unique shape and structure was also the inspiration for Channel 4’s famous reinforced concrete ‘4’ that is used to link between its programming.