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.

Theresa May’s industrial strategy “must address Brexit skills impact”

When Theresa May became Prime Minister, she announced that the UK government would develop an ‘industrial strategy’ to deliver a modern, innovative and competitive economy. Leading international infrastructure group Balfour Beatty are warning the government that projects such as HS2 run the risk of losing valued foreign workers post-Brexit unless tackling the skills shortage is made high priority within the strategy.

In Balfour Beatty’s latest publication entitled “Industrial Strategy: A Vision for Growth,” they highlighted that that around 2.2 million EU nationals working within the UK have helped make up a skilled workforce that the UK would be unable to source alone, should the free movement of labour be compromised.

The paper suggests that the heightened uncertainty surrounding EU labour in a post-referendum Britain risks causing severe recruitment and staffing difficulties. This in turn could lead to increased costs where demand for labour outstrips supply, resulting in long delays – especially on big projects such as HS2 and Hinkley Point.

The report says “An early and integrated policy response to both retain the skills of those who have migrated here and to ensure that the UK remains an attractive place for talented people to reside should be a key element of Government’s industrial strategy.”

Homegrown talent

Balfour Beatty has also stressed the importance of attracting and retaining new talent from inside the UK if we are to successfully thrive in a UK outside of the EU.

“The Government’s industrial strategy should also seek to address the skills shortage in the UK directly, by continuing to support the upskilling of our own workforce. If we want a successful industrial strategy then we must invest in the people who will deliver it, so skills, the investment in human capital, must be a priority in the industrial strategy. In this vein, we welcome Government’s plans to increase the number of apprentices by 3 million and introduce the Apprenticeship Levy.”

“However, we do not believe that the apprenticeship levy alone will be enough to meet the shortfall in skilled workers the infrastructure industry needs. To effectively resolve these skilling issues, we believe it’s necessary that for a collegiate approach to agree a clearly defined programme, designed through close interaction and genuine dialogue between government, industry and representative bodies, such as the Construction Leadership Council. Most importantly, the strategy should be adhered to over the long-term as we see in other countries such as Germany.”

Read the full report here.
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“Modernise or die”, warns Government-commissioned review

Britain’s construction industry faces “inexorable decline” unless radical steps are taken to address its longstanding problems, according to an independent review commissioned by two Government departments.

The Farmer Review of the UK Construction Labour Model highlights construction’s dysfunctional training model, its lack of innovation and collaboration as well as it’s non-existent research and development (R&D) culture. Low productivity continues to hamper the sector, while recent high levels of cost inflation, driven by a shortage of workers, has stalled numerous housing schemes as they have become too expensive to build.

Led by Mark Farmer, chief executive of Cast, a real estate and construction consultancy, the hard-hitting report says we need to better align the needs of construction firms and the businesses who hire them.

“If you buy a new car, you expect it to have been built in a factory to exacting standards, to be delivered on time, to an agreed price and to a predetermined quality” said Farmer. “This needs to happen more in construction, so that the investors, developers or building owners hiring construction firms increasingly dictate the use of modern methods of delivery and invest appropriately in the skills agenda to grow this part of the industry. There are more similarities between manufacturing and construction than many people are led to believe and this perception needs to change, starting in the housing market.”

One recommendation set out for the medium term is a “carrier bag charge” style behavioural deterrent scheme. This would levy a tax on businesses who buy construction work in a way that doesn’t support industry innovation or skills development. Clients could face paying a suggested levy equal to 0.5 percent of a scheme’s construction cost but would have the ability to avoid paying this tax completely by commissioning construction in a more responsible way.

Farmer, a 25-year veteran of the industry, and former partner at EC Harris, said the industry needs to be far more joined-up with its clients in how it approaches R&D and skills. He also wants ministers to directly intervene in certain areas to ensure many of the issues identified are rectified.

Commissioned by the Department for Communities and Local Government and Department for Business, Energy and Industrial Strategy, Farmer has made 10 recommendations which include:

  • Using the residential development sector as a pilot programme to drive forward the large scale use of pre-manufactured construction, for example, through off-site built or modular housing.
  • A wholesale reform of the current Construction Industry Training Board (CITB) and its related levy system, including a new mandate to properly fund and drive forward both appropriate skills development and innovation to suit a modern progressive industry.
  • Government to use its education, fiscal, housing and planning policy measures to initiate change and create the right conditions that will support the construction sector’s modernisation.

With more people leaving the industry each year than joining, the construction workforce is shrinking, placing increasingly severe constraints on its capacity to build housing and infrastructure. Reliance on a fractured supply chain and self-employment also means there is little incentive for contractors to invest in long term training for the labour force.

The situation is exacerbated by the fact that many school leavers and graduates don’t view construction as an attractive career choice. A YouGov poll earlier this year found that two-thirds of Britons wouldn’t consider a career in construction. If Brexit results in reduced migrant labour, the situation could be made even worse.

Crucially, it hasn’t raised its productivity in decades so urgently needs to explore ways to make the work less labour intensive, such as through offsite construction. This, in turn, could make a career in the sector more attractive for young people by moving the work from building sites to digitally enabled working in factories.

Industry Minister Jesse Norman commented “This Government is determined to support more housebuilding, more quickly and in the places people want to live. Given the launch of the £3 billion Home Building Fund, Mark Farmer’s important review in this vital sector is very timely. It makes a strong case for change in the industry, identifies areas where it needs to improve, and sets out areas for action. We will now carefully consider his recommendations.”

Paul Stanworth, Managing Director of Legal & General Capital added “This review sets out a clear way for the construction sector to reinvent itself in order to meet the ever-growing demand for homes and infrastructure. With such a chronic shortage of homes in the UK, we see rapid evolution as a “must have” for the industry, not just a “nice to have”. Having identified such a requirement, Legal & General is helping to address this problem by investing in a modern factory to produce homes using manufacturing processes seen in the production of cars and other consumer goods. This construction method is safe, clean, and fast, providing a high level of consistency and durability. We sincerely hope that Farmer’s review galvanises the entire sector to invest in innovation and secure its future.”

Download the full report here.
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Birmingham’s New Street Station crowned UK’s Project of the Year after £1bn revamp

Following a major £1bn redevelopment, Birmingham’s New Street Station has been crowned UK Project of the Year at the 2016 RICS Awards Grand Final.

The national RICS Project of the Year accolade is presented to the scheme which demonstrates outstanding best practice and significant benefit to their local area and wider economy. The redevelopment of Birmingham’s New Street station and Grand Central triumphed over 90 of the UK’s most impressive property schemes to gain the top award.

The Birmingham Gateway & Grand Central project – delivered by a team including Mace, Network Rail, Birmingham City Council and Turner & Townsend – was described by our judging panel as the most significant investment in regenerating Birmingham in a generation.

The new Birmingham’s New Street station and its former Pallasades shopping centre opened as Birmingham Grand Central in September last year. The £1bn scheme has transformed it into a popular retail and leisure destination and world-class station – five times the size of the original station – with a striking soccer pitch-sized atrium. Meanwhile, the new shopping centre – above the station – is now home to the biggest John Lewis outside of London and a mix of premium high street brands and eateries.

As one of Britain’s largest and most important cities, Birmingham deserves a station and shopping and leisure destination of this remarkable calibre. This investment in the city has created around 10,000 jobs and is expected to deliver around £2bn in economic benefits.

David Tuffin FRICS of Tuffin Ferraby Taylor LLP said “It is the catalyst for further regeneration in other parts of the city centre, which will create even more jobs. The team behind Birmingham Gateway and Grand Central should be extremely proud. 180,000 passengers continued to use the station during the works, yet they still managed to create a visually striking, yet practical international gateway into Birmingham, on time, from which the city, its residents and visitors will prosper from enormously.

“Each of these schemes is of an exceptional calibre. I’d like to extend a huge well done to the teams behind them as these projects are all positively contributing to their local communities and our country’s economy.”

Category winners from each of the 12 regional RICS Award ceremonies – held earlier this year – competed to win the national accolade in their respective category, with host, Gethin Jones, Broadcaster and TV personality announcing the winners.

The Grand Final winners:

  • Building Conservation: Mount Stewart, Newtownard (Northern Ireland)
  • Commercial: Landrover BAR America’s Cup HQ, Portsmouth (South East)
  • Community Benefit: Alder Hey Children’s Hospital, Liverpool (North West)
  • Design through Innovation: Black Rock Quarry, Portishead (South West)
  • Infrastructure: Emergency Care Centre, Queen Elizabeth Hospital, Gateshead (North East)
  • Regeneration: Birmingham Gateway & Grand Central, Birmingham (West Midlands)
  • Residental: Romilly Quarter, Barry (Wales)
  • Tourism & Leisure: NT Future, South Bank (London)
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Radical concept for temporary floating Parliament unveiled

A new temporary Houses of Parliament located on the River Thames provides a solution for the long overdue refurbishment of the historic Palace of Westminster.

International architecture, design and planning firm Gensler has unveiled a radical concept that could reduce the cost and minimise the disruption of the comprehensive refurbishment of the Palace of Westminster.

The proposed modular structure located on the River Thames could provide a flexible and secure home that helps save the British taxpayer more than £1.8 billion, based on the House Committee’s own estimates, and allows the urgent repair works to proceed.

Gensler’s design accommodates all the principle components of the current Houses of Parliament within a new structure located alongside the existing Member’s terrace. The design maintains the relationship between both Chambers and their supporting Committee Rooms. The scheme includes a dedicated new entrance from the south side of the Palace of Westminster, adjacent to Victoria Tower Gardens, with an option to enable direct access to the existing Central Lobby if required.

An essential element of the refurbishment proposals for the House of Parliament requires total decantation of the building for an estimated six years. The challenge has been to find a suitable location within Whitehall that can accommodate Parliament in an efficient and cost effective manner. This concept offers a unique opportunity to co-locate the House of Commons and the House of Lords together with all their supporting committee rooms in a purpose built structure at the centre of the Whitehall estate.

By using the River Thames, Gensler’s design creates a completely new temporary Parliament under one roof in the same world famous location in the heart of Westminster avoiding the dispersion of core parliamentary activity to multiple locations. The concept overcomes some of the initial concerns about a river location by ensuring the structure does not interrupt the navigable channel along the centre of the river. It also incorporates a number of security measures that supplement the natural defence provided by the river itself.

The design takes inspiration from the magnificent hammer-beam roof of Westminster Hall, which was commissioned by Richard II in 1393 and is the largest medieval timber roof in Northern Europe. The 250-metre-long structure would be built on a series of steel platforms and the building above would be a dramatic, high-tech, wooden-framed structure covering 8,600 square metres, which would provide all the necessary environmental and acoustic containment. The new modular structure could be built in less than three years in shipyards across the UK and floated along the Thames to be secured and assembled on the river some 10 metres from the Palace of Westminster.

Ian Mulcahey, Managing Director at Gensler, said “The concept provides a simple solution to what is a very complex problem. The challenge has been to find a location that enables all the key components of Parliament to be located together in close proximity to the wider Government estate in Whitehall. The objective has been to minimise disruption and reduce the cost of the refurbishment to the taxpayer. The Palace of Westminster is one of the most important symbols of democracy in the world. This scheme provides a powerful expression of continuity and reinforces the UK’s world-leading creative expertise.”

Duncan Swinhoe, Regional Managing Principal at Gensler, said “This not only provides a fitting short-term solution to the relocation issue it also provides some exciting long-term opportunities. Once the refurbishment of the Palace is complete, the modular structure could be relocated and adapted to provide a permanent legacy such as a Museum for Democracy or alternatively a new parliament for an emerging overseas democracy.”

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VIDEO: A fully-functioning steel hot mill model made from Lego

Tata Steel mechanical engineer Scott Harwood has singlehandedly built an entire steel hot mill model using Lego blocks. The full-functioning model rolls cardboard instead of steel but operates in exactly the same way as a full scale mill.

Check out the amazing model in the video below:

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Mayor commits to building more river crossings in London

The Mayor of London, Sadiq Khan, has outlined his commitment to providing greener and more public transport-focused river crossings in the East and South East of London.

The Mayor has set out a package of new river crossings to be built in the next five to 10 years that will vastly improve travel across the capital, while supporting new affordable homes and business opportunities in East London.

These include:

  • Plans for a new pedestrian and cycle bridge linking Rotherhithe & Canary Wharf to be accelerated
  • A series of enhancements to be made to the proposals for Silvertown Tunnel to make it greener and more public transport-focused, and exploring further benefits for local residents who use the tunnel
  • A DLR crossing at Gallions Reach, helping support the development of around 17,000 new homes across Newham and the Royal Borough of Greenwich
  • Further assessment work for a Barking Riverside-Abbey Wood London Overground crossing
  • Further assessment of a North Greenwich-Isle of Dogs ferry, supporting new development on the Greenwich Peninsula and the Isle of Dogs

Mayor of London, Sadiq Khan, said “It’s no secret that London has long needed more river crossings in the east. With new homes and economic growth across East London, it becomes even more important that we deliver new greener transport links that allow Londoners to cross the river quickly and more easily.

“But we don’t want these to have a damaging impact on our environment, and that’s why I’ve reviewed and improved plans for Silvertown Tunnel and why I’m pushing forward with crossings that encourage public transport, walking and cycling.

“As we continue to unlock the massive economic potential of East London, we must secure the very best transport infrastructure that improves the quality of life for everyone living and working in the area.”

Alex Williams, Acting Managing Director of Planning at TfL, added “London’s population continues to grow and it’s vital that we do everything we can to support this to ensure that everyone can continue to move around freely and easily. The Mayor’s new vision for river crossings in East London is firmly rooted in supporting growth and providing better public transport links for all. We will now work hard to develop the designs for these new crossings, as well as identify potential funding opportunities, to allow them to be constructed more quickly.”

David Leam, Infrastructure Director at London First, concluded “Better river crossings will help unlock the economic potential of East and South East London and connect thousands of new homes in Newham, Barking, Greenwich and elsewhere. We’re delighted the Mayor has sped up these plans, aiming to deliver new ways of getting across the river within the next five to ten years.”

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We must build 2,000+ schools by 2020 to meet demand

More than 2,000 new schools must be built within the next four years to accommodate the rising number of primary and secondary pupils in England, according to Scape Group’s latest ‘School Places Challenge’ report.

The research has revealed that local authorities are expecting an additional 729,000 pupils in education by 2020 – a rise of 8.6% in primary school pupils and 12% in secondary school pupils in England alone. To tackle this increase, the equivalent of two new schools must be created each working day.

London, the South East and East of England are experiencing the highest growth with more than 375,000 additional primary and secondary pupils expected to be added to the registers in four years’ time.

Of the total 2,122 new schools needed, the equivalent of 12,209 primary classrooms and 12,078 secondary classrooms, London requires 507 new schools. The London Borough of Barking and Dagenham will see the biggest increase in pupil numbers, requiring a total of 28 new schools, followed by Lambeth, Newham and Greenwich, which need 21, 37 and 25 new schools built, respectively.

Outside of London, the Northern Powerhouse city of Manchester will see numbers rise to almost 19,000 extra primary and secondary pupils by 2020 – a 27% increase that will require the equivalent of 57 new schools. Rapid growth in the cities of Bristol, Peterborough, Milton Keynes, Leicester and Nottingham will also mean that new schools will become highly sought-after should the necessary amount not be built in time.

Mark Robinson, Scape Group Chief Executive comments: “As the growth of the primary school population gathers pace, the pressure on school places will soon transfer to the secondary population, requiring a new wave of advanced school building. The government’s preference for free schools has created uncertainty for local authorities, who are tasked with planning and building new schools, but will not be responsible for running them. Proposals for new grammar schools has further muddied the waters.”

Leaving the EU could have a profound effect on the UK population – we could see a short term surge in migration from Europe or a drop off in numbers if migrants are put off coming here. It is very difficult to predict what impact Brexit will ultimately have, putting even more pressure on local authorities who are planning how and where to prioritise school-building.

“In a post-Brexit economy, with all of the uncertainty this brings, the construction of new schools must be a top priority for government and local authorities must be given the tools and funding necessary to deliver extra places in time. Creative solutions including standardised design, classroom extensions and larger ‘super-schools’, as well as more effective use of land to deliver mixed-use developments, are all options we need to look at to deliver more new schools.”

Download the full report here.
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£5bn Government injection to help small builders

At the Conservative Party conference in Birmingham this week, Communities Secretary Sajid Javid and Chancellor Philip Hammond revealed that the government are planning to make new money available for builders in the UK.

This will consist of a £2bn Accelerated Construction scheme to make publicly-owned brownfield land available for quick development and the already announced £3bn Home Builders Fund, which seeks to help fund the development of 25,500 homes by 2020.

How it will work

The intention of the new funding is to provide short-term loans for small builders, which will be borrowed from the public sector. This will help them build quicker as public land will be made available with outline planning permission already available to them and money will enable them to undertake any required remediation work on the brownfield sites prior to construction starting.

The ministers are also urge builders to use modular technologies to meet housing demand, as it will shorten the delivery time.

Redevelopment

At the conference the ministers also confirmed that they are also pushing ahead with allowing office blocks to be repurposed or replaced entirely with residential developments. This alone has the potential to create 4,000 homes by the start of 2022.

Chancellor Philip Hammond commented: “There has been a housing shortage in this country for decades, and this Government is determined to take action to tackle it. “We’ll use all the tools at our disposal to accelerate housebuilding and ensure that, over time, housing becomes more affordable. That is why we are committing £2 billion of additional investment towards this.”

Sajid Javid concluded: “Tackling the housing shortfall isn’t about political expediency. It’s a moral duty. And it’s one that falls on all of us. Not just in Parliament, but in business, in local government and in our communities. So my message today is clear: it’s time to get building.”

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What’s changed within engineering and manufacturing? Reflecting on Brexit three months on

With three months having now passed since the outcome of the EU referendum, John Morris, CEO at JAM Recruitment takes a look at how the result has impacted the job market and production within the engineering and manufacturing industries.

Whilst the initial reaction to Brexit was one of concern, three months on, we’re yet to see a change to the market – we certainly haven’t seen the levels of disruption that were predicted. We’ve placed hundred’s of engineers across the likes of BAE Systems and GE over the last three months, and we actually started to see a growth in contract jobs in August – something that can be seen as a real positive for UK employment.

The overall impact

Despite initial warnings of job cuts, leading to increased skills shortages in engineering and manufacturing, the market hasn’t seen a great amount of change. Unemployment is still holding up at an 11-year low of 4.9%, which is incredibly promising. However, it’s too early to draw solid conclusions about the impact Brexit will have on employment rates, especially as Article 50 is yet to be triggered.

What does it mean for engineering and manufacturing?

Contrary to the initial predictions, recent reports have shown that British manufacturers have enjoyed rising output and a steady flow of new orders over the past three months, meaning Brexit didn’t deliver an immediate blow to businesses. Further to that, a recent REC report highlighted that engineering was the second most sought-after job category when it came to permanent staff, showing that any dip in confidence within the sector was short-lived.

What will the future bring?

The recent Engineering and Technology Skills and Demand in Industry report found that while demand for qualified engineers is increasing in the UK, the education system fails this industry by not producing engineers that are fully prepared and experienced enough. As a result, the best option for employment would see the UK Government ensuring that STEM subjects are given more of a push, which will better equip our future workforce.

To ensure that there remains access to skilled engineers in the UK, it’s crucial that the government doesn’t stifle access to the skilled candidates with its immigration policy. Whilst we do have an incredibly strong network of skilled professionals in the UK, the freedom of being able to recruit staff from Europe is still hugely beneficial, especially within the industries where there is a well-recognised skills shortage.

Whilst we wait for the activation of Article 50, it’s essential that we continue to work closely with clients to ensure that we’re taking preventative steps to minimise the impact Brexit may have. This will mean continuing to attract students to the UK industry, whilst also investing in up-skilling those already working within the sector.

Written by John Morris, CEO at JAM Recruitment

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For more information about JAM visit www.jamrecruitment.co.uk.
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What happens to European Standards in a post-Brexit Britain?

Europe has led the world in improving building standards with the UK having played a key role in their development. But after the momentous day that was June 23rd and the UK economy appearing now to have weathered that initial vote-to-leave shock, where does that leave the construction industry in terms of EU regulations?

The British Standards Institution (BSI) is one of 33 voting members of CEN (European Committee for Standardisation). However CEN rules state that you can only join CEN if you are a member of the EU or about to become a member. In the case of non-EU countries including Norway and Switzerland, their membership in the European Free Trade Association (EFTA) qualifies them as well. When the UK finally leaves the EU it will therefore be essential for the UK to rejoin EFTA otherwise the BSI will have to argue for a change in statutes of CEN so that they can continue their membership of this organisation. And in that scenario, there may well be a lot of political pressure to keep us out.

But then what does that mean for the UK and what is the scenario of the UK walking away from the EU standard table? Any product intended for sale in the EU must meet the relevant EU standard. Non-compliance will clearly restrict markets. One of the key things about EU standards is that they do ensure a level playing field and are considerably better than each country having a different standard and system of compliance.

To add to this, the Construction Products Regulation (CPR) has, since 2014, mandated that all products produced for sale in the EU provide a declaration of performance and visible CE mark. In their BREXIT negotiation, the UK Government would be able to ignore the CPR and revert to BS standards instead of BS EN standards. This scenario seems unlikely as this would complicate matters with the possibility of two-tier standards. And that might a have a knock-on effect for manufacturers with variable production runs and increased stock levels.

And how does an EU standard compare to BS? Some BS testing is outdated and not as relevant to real-life scenarios. We tend to cling to some out of ‘habit’ when more representative standards exist. One such example is the adherence/preference of the UK to BS476 testing regimes for curtain wall perimeter fire barriers, when a specific EN test standard EN1364 offers a far more representative test option. The BS 476 standard tests curtain wall perimeter fire barriers in a static assembly, whereas the EN1364 tests simulate the dynamic movement of the curtain wall façade, which we would contend is a far more sensible and robust option. Siderise is amongst a very few suppliers who have opted for the EN1364 test, as we see it as far more representative of “real life”.

At the moment the UK has a vote and we can influence EU standards, and on occasion we could in theory ‘block’ standards that we did not like or at least modify them. One scenario is that we can go to meetings post-BREXIT, provide technical input, but in the end not have a vote – unless of course we negotiate some arrangement whereby we are allowed to vote. But that would appear to be fraught with difficulties. Whatever the outcome, we must not fall out of step with Europe. The costs to industry of totally abandoning EU standards are so vast as to be too horrible to contemplate.

By Chris Hall, Commercial Development Office, Siderise 
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