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.

Retail construction sees a decline in value but contract numbers hold steady

Even though the internet continues to eat into the share of retail spending (15% market share in October 2016), this has not detracted the industry from building in 2016, albeit showing a widespread trend towards smaller project contracts.

According to the ‘Does retail offer real opportunity?’ report from construction industry analysts Barbour ABI, the key change in work coming from the sector is that construction projects are smaller, fitting in with the emphasis that is being placed, especially by larger retailers, towards an nincrease in smaller, more local retail units.

Retail construction accounts for £4.7 billion pounds a year, down from the £8 billion pre-recession peak. The report also describes how physical stores are still pivotal to the strategies of most retailers, as major opportunities look to be available over the next few years, particularly for architects who can rethink retail space and develop nexus between the physical and digital shopping experience.

Across 2016, the twenty largest retail projects accounted for a value of more than £570 million, with £421 million coming from the South of England which is 74 per cent of the total. However, interestingly it was the North West of England that led all regions with the highest overall number of contracts in the retail sector over the 12 months to September (see fig 1.1).

The two largest projects by value in retail construction last year were the Charter Place shopping Arcade in Watford valued at £178 million and the £75 million O2 retail village outlet in London.

Commenting on the figures, Michael Dall, Lead Economist at Barbour ABI, said “Ultimately today’s retailer is looking to improve the experience of their customers. That has been reflected in how they design and use the buildings they occupy, which has ultimately resulted in smaller, more frequent projects, making up for the declining overall value of retail work over the past five years for the construction sector.”

“The value of work may have shrunk, but the number of projects being let by retail clients is holding steady, providing similar numbers of opportunities to impress clients.”

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70% of builders report material price hikes, report FMB

70% of UK builders have seen an increase in material prices due to the depreciation of the pound, new research from the Federation of Master Builders (FMB) has revealed.

Sarah McMonagle, Director of External Affairs at the FMB, said “thousands of smaller building firms are grappling with the rising cost of materials caused by the depreciation of sterling since the EU referendum. More than 70% of smaller building firms have experienced increased costs as a result of the weakened currency, with additional increases of 10 to 15% expected as the new year unfolds. Anecdotally, construction SMEs are already reporting an increase of 22% in Spanish slate and 20% increase in timber. A quarter of all materials used by the UK construction industry are imported – this is significant and underlines the vulnerability of the industry to sudden fluctuations in the strength of our currency. The combined pressure of higher material prices and the rising cost of skilled labour represents a serious challenge to builders.”

“What this means is that home owners could start to see the cost of their building projects increase. It also means that consumer choice may be reduced as some home owners face having to compromise on aspects of their project due to the fact that certain materials have become too expensive. There is also an added headache for the builder, as material price rises can come at short notice and if they are mid-project, the original costing is no longer accurate. This makes pricing jobs problematic and leads to construction SMEs having to cover themselves against sudden price swings. Some builders are attempting to mitigate this by introducing larger contingency funds when pricing for a job, or by stipulating in the contract that the overall contract price will change in the case of material price hikes, making client budgeting more tricky.”

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New Construction Minister appointed

The government has appointed Lord David Prior of Brampton as new construction minister this week. His wide-ranging brief will include infrastructure and construction policy, alongside industrial strategy and the EU single market.

Prior to the appointment, the conservative peer was a junior health minister – but was shuffled into the Department for Business, Energy and Industrial Strategy late last year.

Industry response seems to be largely positive. Brian Berry, Chief Executive of the Federation of Master Builders, commented “We welcome the appointment of Lord Prior, whose combination of political and professional experience should leave him well placed to forge the strong, collaborative relationship that is needed between industry and government.

“It’s undoubtedly an exciting time for the construction sector as we respond to the opportunities and challenges which stem from the recommendations made by the recent Farmer and Bonfield reviews. We are also in the midst of the government’s review of CITB [Construction Industry Training Board], the outcome of which will decide the future of our industry training board.

“We look forward to working with the new minister and ensuring that he understands fully the perspective of the small and micro construction firms which make up the vast bulk of our industry.”

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Key challenges for the construction industry to overcome in 2017

Staff shortages, a weak pound and a potential technological uprising are just some of the issues the construction industry is set to face in 2017, according to construction & rail recruitment specialist One Way.

An analysis by the leading construction and rail recruitment consultancy has outlined some of the major issues that the building industry is set to face over the next 12 months. This comes at a time when productivity has reached its highest point in nine months and a number of major construction initiatives, including the development of a new series of garden cities, have been given the green light.

We are in a very strong position coming out of 2016 and will be able to overcome these obstacles if we plan for them correctly.

Managing Director of One Way, Paul Payne, outlined the issues for buildingspecifier:

Staff shortages

“From our perspective this will be the big one. The number of skilled professionals operating in the industry dropped dramatically during the recession and now around 22% of the workforce are in their 50s or 60s. Quite simply, there are too many people retiring and not enough entering construction to replace them. With more projects being given the go ahead we need to see greater focus on promoting careers to youngsters and professionals looking for a change of career before we hit a point where productivity is being affected. This needs to happen sooner rather than later.”

A weak pound

“The strength of the domestic economy will naturally impact almost every field, but it could have a particularly damaging effect in construction. A weaker pound means that import prices rise and with so many of our raw materials being brought in from overseas, this could add significant amounts to the bottom lines of builders across the country. Currently, material costs are at their highest point in five-and-a-half-years and ultimately this could lead to them squeezing costs elsewhere, for example in staffing, or even having to pass on certain projects.”

Brexit

“As has been incredibly well documented, no one really has any idea about what Brexit could entail or what sort of deal we’ll be left with once Article 50 has been triggered. However, if as expected, there are some changes to Freedom of Movement across the EU, then the likes of the construction industry which often relies on the skills of overseas workers, could be impacted by even worse skills shortages. Therefore increasing the numbers of people in the industry before this happens is more important than ever before.”

The rise of the robots

“The growth of AI has been more widely documented in fields like technology and financial services, but it is also having an impact on construction. Over the past 12 months or so we’ve begun to see the use of drones and other tech like 3D concrete printers become more widely adopted and it will be interesting to see the role they play by this time next year. Many have suggested that their growth could lead to jobs being cut, but realistically anything like this happening is way off in the distance. For the time being, technology promises to make many of our jobs easier, rather than taking them away.”

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Going retro: A shrewd solution to the UK’s housing crisis

Home is a vitally important place for everyone. So it is a sad state of affairs to think that at the moment more than 6 million people in the UK will never be able to buy their own home. And with a massive 1.2 million people currently hanging around on housing waiting lists, something must be done.

The UK’s housing crisis is a stark, cold reality for many Britons who simply cannot afford to buy their own home. Since 1996 real house prices have increased by a whopping 151%, while real earnings have only gone up by a quarter of that figure, according to the Redfern Review. And as a result of unaffordable housing, rising prices and sheer lack of adequate accommodation, many families are finding themselves placed in temporary lodging.

So what can be done?

Addressed in the last Autumn Statement, the government plans to invest £3.7bn into building a further 140,000 homes by 2020, in order to ease the housing issue.

However, this is a tall order to achieve within the space of four short years. So how is the government planning to tackle this and meet its promise?

A blast from the past

In order to build the huge quantity of homes targeted by the close of the decade and at the budget set aside, ministers plan to roll out a new wave of prefabs.

As the first prefabs were the solution to the UK’s housing shortage following the devastation of war in the 1940s, a second wave could be the solution to our current crisis. With over 100,000 prefabricated homes planned across the country, it looks like construction is set to go retro.

Unfortunately, prefabricated housing carries negative connotations for some, who associate it with cheap, temporary and ugly. However, modern modular design has developed considerably over the past 70 years and today’s prefab homes are high quality, contemporary and built to last. Prefabs can be posh.

Modern modular buildings have many other enviable benefits over a traditional brick and block build, such as being more energy efficient, eco-friendly and affordable.

Faster construction, reduced cost

With the cost of construction having dramatically increased over the last five years, the building of brick and block homes carries ever increasing expenses. However, as prefabricated buildings are constructed off-site, costs can be more accurately predicted.

A prefabricated house could cost as much as 40% less than the same building built of brick.

Modular homes are also considerably quicker to construct. An off-site build is not only more cost-effective, but much more efficient. A prefabricated building is less susceptible to potential delays, due to bad weather or shortage of labour, and has more chance of meeting deadlines.

Once manufactured, a modular home can be erected on-site in just 24 hours.

And it is the speed from design to completion that is crucial; it is this that will save the government both time and money.

Cost savings are key

But it’s not only the government who needs to make time and cost savings in order to meet tight deadlines and stick to budgets. It is vital for all businesses and organisations, no matter their size, to maintain a healthy bottom line. And finding ways to save time and money in all areas will build a better, stronger business.

So how can your company be more efficient and cost-effective?

There are many things you can do to become more efficient as a business and still make savings. One only needs to think outside the box. For example, by having a tracking system fitted in your company vehicles you will not only reduce your insurance premium and help to deter theft, but you will save money on your fuel bills and reduce repair costs too. With 24-hour GPS monitoring and a system such as Phantom Insight, you can make sure your drivers do not waste fuel or employ bad driving habits that will cause excess wear and tear on parts.

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UK house prices to increase by 3% in 2017

House prices in the UK will see an average increase of 3% over the course of next year as the number of transactions stabilises, according to the RICS housing forecast for 2017.

Forecast in brief

  • Transactions set to stabilise in line with recent trend, but fall short of full year 2016 outturn
    Supply shortfall to continue pushing prices higher with prices to increase by 3%
    Rents likely to increase by 2-3% across the UK in 2017

Need for more properties

Following on from the 2016 forecast, the supply pipeline or lack of it is at the forefront of the analysis and dominates the residential market. While there is an improvement, the legacy of building on an insufficient scale has left the average inventory on estate agents books close to a historic low.

What’s in store for 2017?

Looking forward, transaction activity will stabilise and is likely to come in between 1.15 and 1.2 million, a little below the 1.25 million likely to be recorded for the whole of 2016. The prediction for 2017 reflects the trend over recent months.

House prices are predicted to rise across the whole of the UK in 2017 with an average increase of 3%. East Anglia is likely to continue its trend during 2016 and alongside the North West and West Midlands is likely to record gains higher than the national average. Meanwhile, prices in Central London look set to stabilise after recent declines, with support provided by the weaker exchange rate encouraging foreign buyers.

Simon Rubinsohn, RICS Chief Economist said “Although recent announcements by the government on housing are very welcome, the ongoing shortfall of stock across much of the sales and lettings markets is set to continue to underpin prices and rents. As a result, the affordability challenge will remain very much to the fore for many. Meanwhile the lack of existing inventory in the market is impacting the ability of households to move and will contribute toward transaction activity over the whole of 2017 being a little lower that in the year just ending.”

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VIDEO: A visual tour around the House of the Year

The Royal Institute of British Architects (RIBA) is announced last week that Murphy House in Edinburgh by Richard Murphy Architects is the 2016 RIBA House of the Year, sponsored by Hiscox Home Insurance. Take a look round with Buildingspecifier:

This five-level house is a surprising addition to an otherwise conservative sandstone terraced street in Edinburgh’s UNESCO-listed New Town. Built on an awkward plot at the end of a terrace, Richard Murphy has designed for himself a deeply personal space filled with tricks, surprises and references to his own design heroes. From a hidden bath in the master bedroom and a folding corner wall, to sliding bookshelf ladders that glide around the subterranean library, this house is filled with a unique and spirited charm. Murphy, inspired by the work of the late Carlo Scarpa, a 20th century Italian architect has created a house full of pure, beautiful craftsmanship.

RIBA President Jane Duncan said “The Murphy House is this year’s best example of how to overcome challenging constraints – from planning restrictions and an awkward site in an urban location – to build a stunning house. Plus the architect overcame one of the biggest obstacles: a demanding client – himself!

“Nearly a decade in the making, this house is a true labour of love for Richard. Part jigsaw puzzle, with its hidden and unexpected spaces, and part Wallace and Gromit with its moving pieces and disappearing walls, this is a model house of pure perfection and a worthy winner of the RIBA House of the Year 2016.”

Architect Richard Murphy commented: “We celebrated our 25th birthday last month and to receive this award is a wonderful present with such astonishing levels of public interest. It’s our 21st RIBA award, and takes its place in a long line of awards for buildings small and large and for whole variety of types including domestic, educational, health, arts and a new British Embassy. It emphasises yet again that the practice demonstrates both great versatility and consistently high quality in all its work current and past. It’s been a huge pleasure to develop a lifetime’s themes and now it gives me great pleasure to live there.”

House of the Year judge, Philip Thorn from Hiscox described his reasons for picking Murphy house as this year’s winner, saying “Murphy House was a real box of tricks with a unique, playful character. Although a small property, it was deceivingly large inside due to the clever use of space. Every room contained a surprise and the attention to detail was exceptional. The roof terrace was a real oasis of calm and I loved the long list of environmentally friendly touches. A true pleasure to visit and I would imagine a lot of fun to live in.”

Take the tour below:

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Activists blockade UK’s most polluting power station

Image taken by Peter Brabham

Climate change campaign group ‘Reclaim the Power’ have blockaded Welsh coal-fired power station, Aberthaw, in protest of the record number of local air pollution deaths reported in the area.

To prevent vehicles from entering and exiting the power station, campaigners created a blockade with tripods and banners which read “Climate Change has a Death Toll” and “Fossil Fuels – Time to Quit” – the centrepiece being a symbolic giant ashtray.

Aberthaw power station is undoubtedly the dirtiest power station in the EU, having recently been accused of emitting more than double the legal amount of toxic nitrogen oxides for the last seven years. This is estimated to kill approximately 400 people a year in the Cardiff, South Wales and Bristol areas – as well as contributing to the ongoing problem of climate change. The UK Government recently lost a European Court of Justice ruling which found Aberthaw in breach of European air quality laws.

The blockade was set up yesterday, precisely a year after the historic climate deal in Paris was signed. The protest comes as the government holds its consultation on the planned phase-out of unabated coal by 2025, a target many feel is far too slow to meet climate goals before it is too late.

Sarah Joliffe from campaign group Reclaim the Power, said “Exactly a year on from the historic climate agreement in Paris, and the UK government is still undermining its own commitments by subsidising fossil fuels instead of keeping them in the ground. Climate change touches all of us – whether it’s the effect on our farmers, flooding in our cities or the insurance on our homes – and it’s already killing hundreds of thousands of people around the world. We must act quickly to protect our communities, our economy and our shared environment. We need decisive action to shut down these dirty power stations and invest in clean, secure energy systems that benefit us all. Anything less is a failure from our government to act in the best interest of the country. Please consider this blockade our submission to your consultation.”

Grace Wild from Reclaim the Power in Cardiff, added “The toxic fumes from the power station are killing 400 people a year, and still the government is failing to act. Our community deserves air they can breathe. Instead of supporting clean energy, the government is choosing to waste public money on dangerous, outdated power stations like Aberthaw. These power stations need to be closed, and resources put into developing the growing renewables economy in the area. Aberthaw is kept alive – despite breaking the rules – on the myth of supporting the Welsh economy. But it’s our communities that are dying from air pollution, and our farming, tourism and coastal towns that will be devastated by climate change. If the government wanted to support the welsh economy, they should be supporting a thriving, jobs rich renewables sector.”

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Historic engineering feat achieved as Chernobyl arch slides into place

Last week marked a key milestone in the international project to transform site of 1986 accident. A ceremony in Chernobyl today marked the successful conclusion of the sliding operation, a key milestone before the finalisation of the international programme to transform Chernobyl into an environmentally safe and secure state by November 2017.

Thirty years after the nuclear disaster in Chernobyl, the radioactive remains of the power plant’s destroyed reactor 4 have been safely enclosed following one of the world’s most ambitious engineering projects.

Chernobyl’s giant New Safe Confinement (NSC) was moved over a distance of 327 metres from its assembly point to its final resting place, completely enclosing a previous makeshift shelter that was hastily assembled immediately after the 1986 accident.

Read more: Solar PV plant to be built in Chernobyl Exclusion Zone

The equipment in the New Safe Confinement will now be connected to the new technological building which will serve as a control room for future operations inside the arch. The New Safe Confinement will be sealed off from the environment hermetically. Finally, after intensive testing of all equipment and commissioning, handover of the New Safe Confinement to the Chernobyl Nuclear Power Plant administration is expected in November 2017.

Sir Suma Chakrabarti, EBRD President, commented: “We welcome this milestone in the process of the transformation of Chernobyl as a symbol of what we can achieve jointly with strong, determined and long-term commitment. We applaud our Ukrainian partners and the contractor and we thank all donors to the Chernobyl Shelter Fund whose contributions have made today’s success possible. The spirit of cooperation gives us confidence that the project will be completed on time and within budget a year from now.”

Novarka project director Nicolas Caille said: “We are very proud to have been able to actively contribute to meeting this one-of-a-kind technological challenge. The New Safe Confinement in Chernobyl is a feat of engineering that will ensure optimal safety conditions for the Ukrainian people for the next 100 years. I would like to take this opportunity to commend the achievement of the teams of the Novarka joint venture formed by major French groups VINCI Construction and Bouygues Construction.”

Igor Gramotkin, Director-General of the Chernobyl Nuclear Power Plant, said: “We were not building this arch for ourselves. We were building it for our children, for our grandchildren and for our great-grandchildren. This is our contribution to the future, in line with our responsibility for those who will come after us.”

On 26th April 1986, during a safety check, reactor 4 of the Chernobyl power plant experienced a meltdown that could not be contained. As a result, it is estimated that more than 100,000 people have died as either a direct result of fallout or from subsequent radiation-related illnesses. It is also estimated that over £111.7 billion worth of damage was caused by the disaster. These astounding figures prove that regardless of who is considered responsible for the accident, cleaning up Chernobyl is of worldwide concern. If another reactor had blown during the meltdown, Chernobyl could have rendered the whole of Europe uninhabitable.

The Chernobyl arch is the largest moveable land-based structure ever built, with a span of 257 metres, a length of 162 metres, a height of 108 metres and a total weight of 36,000 tonnes equipped. It will make the accident site safe and with a lifetime of 100 years allow for the eventual dismantling of the ageing makeshift shelter from 1986 and the management of the radioactive waste.

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Work begins on tallest religious structure in the world

Construction has begun on what will be the world’s tallest religious skyscraper – a 213 metre Hindu temple in Uttar Pradesh, India.

This article was originally published by The Spaces, a digital publication exploring new ways to live and work.

Once completed, the earthquake-proof structure (called ‘Vrindavan Chandrodaya Mandir’) will cover more ground than St Peter’s Basilica in Vatican City and will be taller than Ulm Minster in Germany, which is currently the tallest church on Earth at 162 metres.

The building, designed by Indian practice InGenious Studio and structural consultant Thornton Tomasetti , will also include a theme park within its walls. It will comprise 70 stories in tiered formation towards the top.

In an article published by ‘The Spaces’, a digital publication exploring new ways to live and work, Project Director of the temple Narasimha Das said “Attractions planned in the theme park would be like park rides, animatronics, light, sound and special effects as well as the Vraja Mandal parikrama shows and laser shows.”

A capsule elevator will take visitors up to a viewing deck, where they can admire the 30 acre of forest surrounding the temple. The lift will also double up as a tourist attraction in itself, serving to take people through the planetary systems of the universe in sound and light.

Vrindavan Chandrodaya Mandir will be dedicated to Hindu deity Lord Sri Krishna – who, according to scripture, is said to have grown up in Vrindavan.

Social and residential facilities will also be built as part of the project, which will be sold off in order to help fund construction, along with donations from religious devotees.

Work is currently concentrated on the building’s impressively deep 55 metre foundations.

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