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.

Willmott Dixon unveils modular prison suite concept

Bigger ‘all in one’ premises developed following recent custody suites we’ve built in Newcastle, Sheffield, Birmingham and South Wales.

Willmott Dixon is launching a range of pre-designed custodial facilities that give police forces more options as they look to roll out a new generation of larger custody suites to replace outdated facilities.

Police forces are investing millions in moving to larger custody suites to create better working environments for staff and detainees and provide more efficient use of property that will save millions in running costs each year. This includes Willmott Dixon recently delivering 50+ cell custody suites for police forces in South Yorkshire, South Wales, Newcastle and West Midlands.
In the case of South Yorkshire, the police force expects its new purpose-built 50 cell centre in Sheffield to replace inefficient custody suites in Rotherham and Sheffield and save £1.2 million a year in running costs. Likewise, West Midlands Police expects its new 60 cell Central Custody Suite in Perry Bar to save the force £1.3 million per year.

To support the move to a new generation of modern, energy efficient custody suites, Willmott Dixon has developed a standardised offering called CODE with a range of pre-designed custody suites to suit different police force budgets and requirements. CODE models have been designed in partnership with NORR Architects, our supply chain partners, the Home Office and over 20 different police forces to tackle issues such as minimising the risk of detainee injury, increasing security of evidence and providing a better working environment that is more efficient and sustainable.

CODE has three models; Alpha providing up to 28 cells, Bravo up to 36 cells and Charlie for forces that require more than 36 cells; police forces can also completely customise their suite to ensure it meets their individual needs. All CODE projects are delivered with a fixed cost, timescale, quality and minimum risk; they also provide significant social value and community engagement commitments, a defining factor of Willmott Dixon projects.

It follows the success of the Sunesis standardised school concept developed with Scape Group that has seen over 25 primary schools built in three years across the country providing over 9,000 new places for a fixed cost and time scale.

CODE custody suites can also be procured through the Scape National Major Works framework, an OJEU-compliant procurement route that allows customers to engage directly with Willmott Dixon and reduce the time and resources spent on a lengthy tender process.

Anthony Dillon, managing director at Willmott Dixon Construction: “CODE has been developed with expert partners NORR architects, the UKs most experienced custody design practice and also in conjunction with the Home Office to produce standardised designs we are truly proud of. There are many pressures facing our police forces today and we are delighted to be able to play our part in supporting them by providing the most advanced modern facilities that are also economically efficient.”

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Housebuilders say Government New Housing Figures are unrealistic

74 per cent of housebuilders think the government’s aim of building a million homes during the current parliament is unachievable – so the latest survey run by the Build Show, as part of UK Construction Week, and Housebuilder magazine reveals.

Targeted solely at housebuilders, the survey has highlighted a number of strong opinions, concerns and predictions held within the industry about the future of this critical sector. Following the question on the government’s targets, housebuilders were asked what they thought were the main constraints to increasing the UK housing supply – the top two answers given were problems with the planning system and the availability of enough skilled labour.

As one of the first canvases of the sector since the EU referendum, the survey has provided a valuable insight into how the industry feels about the affects it might have. Over half of those surveyed said that Brexit would make meeting the UK’s new housing needs more difficult and only 11 per cent saying it would make it easier.

Equally, those surveyed were cynical of government initiatives such as the Starter Home scheme with two thirds saying it will not boost supply or that they’re unsure. Similarly, only 40 per cent believed that government initiatives would increase the number of affordable homes being built.

When asked about the possible solutions to the UK’s housing needs, 64 per cent of housebuilders felt that SMEs were the key. Also identified was offsite construction with over two thirds of respondents saying it would play a major role in new home supply as was new investment models with over 75 per cent highlighting the contribution they could make.

Nathan Garnett, Event Director for the Build Show, commented: “The survey has provided valuable honest insight into the housebuilding sector and clearly indicates that there is a lot of uncertainty. In this regard, the show in October will offer a much needed opportunity to develop strategy and build stronger business relationships with key customers, peers and associations. Excitingly, the sector also sees a lot of potential in SME builders and we do too. There will be a wide variety of content suited to both national and SME housebuilders at the show to help them overcome the hurdles they currently face.”

Some of the other notable findings from the survey include:

  • One third of housebuilders believe the government should do more to encourage more people into the industry
  • More than 60 per cent of those surveyed do not believe the private sector is capable of building enough homes to tackle the lack of UK supply
  • According to housebuilders, access to finance is the biggest barrier for SMEs, followed by the planning system
  • Almost two thirds of housebuilders believe that manufacturer innovation will play a key role in new home supply
  • When asked what would be the one thing that would help them build more houses, the top five answers from those surveyed were: improvements to the planning system, more investment and access to funding, more skilled labour, increase in land supply and innovation such as offsite construction methods

Taking place at the Birmingham NEC from 18 – 20 October, UK Construction Week combines nine shows in one location. With over 24,000 trade visitors last year – a figure expected to double at this year’s event – the show boasts over 650 exhibitors. Visitors are able to attend Timber Expo, the Build Show, Civils Expo, the Surface and Materials Show, Energy 2016, Plant & Machinery Live, HVAC 2016, Smart Buildings 2016 and Grand Designs Live.

For more information, booking enquiries or to register for free to attend, please visit www.buildshow.co.uk or follow @BuildShow on Twitter.
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Without skilled migrant workers the UK faces construction crisis, warns experts

Secure post-Brexit access to a skilled workforce or risk a construction crisis, professional bodies warn Government Brexit Minister, David Davis has been warned that the UK’s construction skills crisis could severely worsen, if the Government does not take steps to ensure access to a skilled workforce during its post-referendum negotiations.

The warning comes from a coalition of professional bodies representing the construction and built environment sectors. The Royal Institution of Chartered Surveyors (RICS), the Royal Institute of British Architects (RIBA), the Chartered Institute of Building (CIOB) and the Royal Town Planning Institute (RTPI) have written to the Secretary of State for Exiting the European Union, outlining their concerns around skills, as well as five other priorities that the UK Government should focus on in light of the UK’s Brexit vote.

The six priorities are:

Access to skills

The greatest strength of our sector is the skill of our workforce. The free movement of labour within the EU has been vital to the growth and flexibility)of the construction sector. Access to a skilled workforce of the highest quality and a focus on developing the next generation of home-grown talent are critical to ensure we can build the homes businesses and infrastructure we need to compete globally. We therefore urge the Government to explore options and approaches to ensure that this access is not impeded to the detriment of the built environment.

Common standards

We believe that the UK has much to gain from pursuing an approach that makes it easier to do business with trading partners new and old. Access to markets in the EU and around the world has transformed the UK construction sector. The mutual recognition of qualifications and the development of common technical standards have reduced the barriers our members face working abroad. Reducing tariffs and harmonising standards have helped UK firms of all sizes expand to Europe and beyond. These common approaches have also meant that UK businesses can support best-practice in environmental and product standards, supporting efforts on global issues such as climate change. It is imperative that governments in the UK protect and promote the UK’s role as a leader in environmental and consumer protection standards.

Research excellence

Our members have benefitted from the collaborative research that the EU has enabled and promoted. Our future success depends on maintaining these relationships, while forging new ties with research organisations around the world. In addition the continued success of our world class university courses training our young people in the built environment is essential to the underpinning of research and the continued supply of labour for construction and allied activities.

Infrastructure investment

The UK’s global competitiveness will be hampered unless we do more to tackle the major infrastructure challenges we face. With a housing crisis, and growing concerns around energy, telecoms, road, rail and airport capacity, the Governments in the UK must seek and entice prospective investors to consider infrastructure of all kinds. Providing confidence to the construction industry through infrastructure funding and development will provide stability during a period of uncertainty and ensure that the UK is well-placed to take advantage of growth opportunities in the future.

Devolution commitment

The referendum has brought divide between the different parts of the UK into sharp focus. Our organisations welcome the recent commitment to continuing the Northern Powerhouse and we believe that further devolution from Whitehall should be a key priority for the UK government as powers move from the European Commission. Devolution will enable a rebalancing of the economy so that all parts of the UK can benefit from any new opportunities arising from the UK’s new relationship with the European Union, and is an effective way of ensuring infrastructure spending is efficient, timely, coordinated and accountable.

Community development

Through the extensive skills and experience of our members we are best-placed to advise on how the built environment can unlock new opportunities and combat existing challenges, as well as provide places for people to live, work and play. Leaving the EU could present a great opportunity for the UK, but it should not be associated with a drive to the bottom in the environmental and building standards which future generations will live with.

RICS President, Amanda Clack FRICS, said “Recent RICS figures have shown that we are in the grip of our worst construction skills crisis in almost 20 years. There is a real concern within our industry that if access to a skilled workforce is further restricted, Britain could stop building. My colleagues and I would urge Government to keep this at the front of their minds when they come to negotiate our withdrawal from the EU.

“We know that infrastructure and construction investment is key to Britain’s economic growth. The uncertainty that immediately followed the referendum outcome led to decline in economic growth, increased market volatility and a reduction in UK infrastructure investment.

“While the initial post-Brexit slump appears to have stabilised, it is important that the Government focuses on maintaining infrastructure and construction investment leading up to and after Brexit, ensuring the right conditions are in place to attract infrastructure investors in all sectors across the UK.

“As we approach an unprecedented period of uncertainty, it is fundamental the government prioritises infrastructure and it remains at the forefront of maintaining a strong economy.”

RIBA President Jane Duncan commented “UK architecture, surveying, town planning and construction are flexible and innovative professions. I’m confident our members can help deliver strong economic growth in the UK, providing the buildings and infrastructure that meet the needs of our communities.

“With the right actions taken from the Government to address our industries joint priorities, we can tackle the challenges and exploit the opportunities that Brexit will bring. But unless we fix the housing crisis and address the economic imbalances in our economy, the UK won’t be in a position to compete internationally.”

Stephen Wilkinson, Vice President of the Royal Town Planning Institute, concluded “The UK is a world leader in environmental and building standards and in the professions which are involved in them. UK’s town planning expertise and university courses are among the most sought after in the world. Leaving the EU could present a great opportunity for the UK, but it should not be associated with a drive to the bottom in the environmental and building standards which future generations will live with.”

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Government gives final confirmation on Hinkley Point C

Following a comprehensive review of the Hinkley Point C project, and a revised agreement with EDF, the Government has decided to proceed with the first new nuclear power station for a generation.

However, ministers will impose a new legal framework for future foreign investment in Britain’s critical infrastructure, which will include nuclear energy and apply after Hinkley.

The agreement in principle with EDF means that the Government will be able to prevent the sale of EDF’s controlling stake prior to the completion of construction, without the prior notification and agreement of ministers. This agreement will be confirmed in an exchange of letters between the Government and EDF. Existing legal powers, and the new legal framework, will mean that the Government is able to intervene in the sale of EDF’s stake once Hinkley is operational.

According to the government website, Hinkley Point C will provide seven per cent of Britain’s electricity needs for sixty years. UK-based businesses will benefit from more than 60% of the £18 billion value of the project, and 26,000 jobs and apprenticeships will be created.

Greg Clark, Secretary of State for Business, Energy and Industrial Strategy, said “Having thoroughly reviewed the proposal for Hinkley Point C, we will introduce a series of measures to enhance security and will ensure Hinkley cannot change hands without the Government’s agreement. Consequently, we have decided to proceed with the first new nuclear power station for a generation.”

A project with little support

This news will undoubtedly come as a shock to the many people in support of the Stop Hinkley campaign, who announced yesterday that they would be joining Greenpeace at 11am on Thursday 15th September to hand in a petition containing over 300,000 names at No.10 Downing Street (at 100,000 signatures a petition can be debated in Parliament).

A recent public opinion poll commissioned by Greenpeace which showed that support amongst the general public for Hinkley Point C has fallen to a new low of only 25%, whilst nearly half (44%) oppose it.

Stop Hinkley spokesperson Sue Aubrey said: “Virtually all major national newspapers and commentators have been calling for Hinkley to be cancelled for months. This petition and recent opinion polls show that the public agrees with them and supports Stop Hinkley’s view that there is no widespread support for new nuclear, particularly at Hinkley Point. Consumers can tell that the project may be unconstructable, requires vast subsidies and would generate electricity too expensive to use.”

One argument for the building of Hinkley is job generation within the county of Somerset. However, calculations suggest that the 900 direct permanent jobs which could be created at Hinkley Point C would cost electricity consumers an extra £800,000 per job per year compared to jobs in renewables in terms of increased costs of electricity. Renewable energy is a far better job-creator than nuclear, and already employs three times more people, according to Dr Ian Fairlie writing on The Ecologist website.

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How your 5p Tesco bag could help young people into a career in construction

The Construction Youth Trust is calling out for votes to take a share of Tesco’s £12.5M Bags of Help initiative.

Construction Youth Trust, a charity working with young people who are interested in a career in construction, is in the bidding to bag a significant cash boost from the Tesco Bags of Help initiative, which from the 5p bag levy, has raised grants of £12,000, £10,000 and £8,000.

Tesco have teamed up with Groundwork on the initiative, selecting three groups in each of its 416 regions. Shoppers are being encouraged to vote instore for who they think should take the top grant.

Construction Youth Trust works with young people ages 14-30, to help them overcome barriers and access employment opportunities within the construction industry. The trust works with individuals who may have challenging backgrounds such as care leavers, those who have been out of employment for a long time, and those who may not be aware of the opportunities available in the industry. It allows people to find out more information, meet employers in the industry and take part in informative and practical courses.

Jemma Bridgeman, Wales Manager at Construction Youth Trust commented: “We are so grateful to Tesco’s Bags of Help for funding our project – we are planning to build a sensory garden. Not only will young people learn construction to help them gain employment, they will learn about the disabilities some people face and how design can help people with disabilities such as sight loss enjoy a beautiful garden”.

This is the second round of the Bags of Help initiative, with the first round seeing eight million shoppers vote in stores all across the country.

Lindsey Crompton, Head of Community at Tesco, said: “The first round of the Bags of Help initiative was a fantastic success.

“In total 1,170 community groups were awarded £8,000, £10,000 or £12,000 – that’s a massive £11.7 million being invested into local projects.

“We are already seeing some great results from groups transforming their own environmental and greenspace areas.

“We are absolutely delighted to open the voting for round two. There are some fantastic projects on the shortlists and we can’t wait to see them come to life in hundreds of communities.”

Voting is open from 26 September – 9 October, with customers voting with a token given to them at the check-out in store each time they purchase a bag.

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Bringing stress to work can be fatal

A powerful new film launched by the British Safety Council shows how stress can lead to injury and fatalities at work. In any activity where concentration is vital for safety, such as working in construction, driving, or in health and social care, stress can be fatal.

Stress is often discussed in relation to sickness absence. However, it’s less reported how it can endanger lives. Some research shows that up to 80% of accidents are related to stress at work. Whether it is work-related stress or stress that people bring to work, stress can put at risk the safety of both employees and members of the public.

Matthew Holder, Head of Campaigns and Engagement at the British Safety Council, commented: “It is well documented that stress is a significant cause of sickness absence, undermining both productivity and profitability. What is less discussed is how stress can endanger lives. Evidence shows that stress significantly contributes to injuries in sectors such as construction, transport and agriculture. In the medical profession, stress is a major predictor of work-related accidents and there are strong links between fatigue and sharps injuries.

“We made ‘The Last Word’ to warn people that being tired, distracted and unable to fully concentrate can make simple tasks like climbing a ladder more dangerous. Aimed at employees, it contains a warning that being stressed can endanger their lives. However, the film is also directed at employers, showing how important it is that managers and supervisors identify the symptoms of stress and help their staff to deal with it. As the film says, life can be stressful but people need to be aware of the danger signs.”

Information accompanying the film reinforces this message. It describes common symptoms of stress and actions that employees can take to reduce stress. The film is part of the British Safety Council campaign Speak Up, Stay Safe, targeted at younger employees to raise their awareness of risks at work. It’s the first time the campaign has tackled stress.

There is a lot of statistical evidence demonstrating the consequences of stress at work:

  • In 2014/15, 440,000 people in the UK reported work-related stress at a level they believed was making them ill. That’s 40% of all work-related illness (source: HSE).
  • Stress is believed to be a major cause of accidents in the workplace, with evidence showing that 60-80% of accidents are related to workplace stress.
  • A survey of 2,500 doctors found that job stress was a major predictor of work-related accidents.
  • Fatigue, in particular, is associated with a threefold increased risk of sharps injuries in medical trainees compared with other healthcare workers.
Watch the film below:
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HS2 CEO Simon Kirby steps down from role

The CEO of HS2 project, Simon Kirby is leaving HS2 for a new job with Rolls-Royce as chief operating officer.

Kirby was announced as CEO of HS2 Ltd in January 2014, but controversially did not join HS2 Ltd until June 2014, meaning he could cash in on a £300,000 ‘loyalty bonus’ from Network Rail. Not long after he and Chairman Sir David Higgins joined from Network Rail, it became evident that many of the projects they had been responsible were over budget and behind schedule, leading to then Transport Secretary Patrick McLoughlin ‘pausing’ electrification projects pending review.

On joining HS2 Ltd, Kirby became the highest paid civil servant in the country, earning £750,000, five times the salary of the Prime Minister. he justified this saying he could get the project in on time and budget, but since then both the budget and the timescales have gone the wrong way.

Simon Kirby made it clear that he is not leaving due to a loss of confidence in the project, saying in a statement on the government website: “HS2 is not just a highly ambitious project, but also one which will leave a lasting legacy for Britain. It has been, therefore, a huge honour to have been its Chief Executive and to have been involved in creating a leadership team made up of the best talents from this country and elsewhere. I have absolute confidence in their ability to deliver the project and, in doing so, to help transform the way we do things in this country.”

This is being refuted by many, with Stop HS2 Campaign Manager Joe Rukin commenting “When Simon Kirby was at Network Rail, he presided over failing projects with inflating costs and delays, but got out before anyone noticed how bad it really was. With HS2 deadlines constantly put back, spiralling costs, secret reports and devastating analyses of the project from every independent body which has investigated it, you can’t help think he is doing the same thing again, getting out before the true scale of the mess he has presided over is realised.”

“The departure of Simon Kirby will be a serious blow to those who champion HS2, though many of us are at a complete loss to see just exactly what it is he has done to justify his three-quarter of a million pay packet.”

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Should we vote on the £4bn Houses of Parliament refurbishment?

Whitehall is currently abuzz with panicked chatter, deep anguish and parliamentarian discomfort. With general consensus now being that the palace of Westminster is in dire need of a retrofit, the taxpayer will ultimately be footing the bill. Seeing as we voters currently have the choice of who goes in and out of Parliament, shouldn’t we also have a say on its refurbishment? Building Specifier editor Joe Bradbury discusses.

A brief history

Completed in the 1860s, the Palace of Westminster is an iconic building that currently houses the British Parliament. It is a world famous and instantly recognisable structure and stands as a celebrated international symbol of our parliamentary democracy. Just as UK Parliament is constantly in a state of flux, so too has the building; adapting accordingly to suit its primary and functional purpose. Taking massive damage during the WWII blitz, the Houses of Parliament were repaired as a matter of utmost national priority post-1945. The project was seen as a real opportunity to create some much-needed new facilities that would be consistent with the original design.

From the 1960s onwards the requirement for individual Members of Parliament to have offices, coupled with the expansion of other parliamentary services led to the acquisition of additional buildings and the Palace became the core of a much larger Parliamentary Estate. In 1992 responsibility for maintaining the Palace ‘on behalf of the nation’ transferred from the Government to Parliament itself. How did this work out?

Fighting a losing battle

It appears that since 1992, every effort has been made to maintain what is ultimately an outdated and increasingly unsuitable infrastructure. Services such as heating, cooling, water, sewage, electricity and cabling have been kept semi-functioning, but have not been modernised. Astoundingly, there has been no real general renovation of the building and its services since the partial rebuild of 1945-50 – some of the services even predate the war. The original basements and vertical shafts that litter the building are now completely filled with pipes and cables, making further work difficult to carry out – which results in further expense.

Reports illustrate that asbestos features heavily throughout the palace and although asbestos remains safe if treated with great care in compliance with safety regulations, it makes any intervention so much more difficult. Another issue is that most of the work undertaken over the last 50 years is largely undocumented and since many areas are inaccessible, the state of dilapidation and subsequent risk is mostly uncharted. The building is completely at the mercy of fire, with little modern safety practices in place and fire compartmentation considered almost impossible.

The original roofs are no longer watertight and there are many areas plagued with penetrating damp, damaged by interior leaks and flooding.

Today, an influential committee is expected to recommend that MPs and peers should abandon the crumbling Houses of Parliament for six years so that drastic refit works can be carried out.

The cost

So now at the crux of the issue, how much does it cost to renovate a 150 year old Grade I listed building which is partly sinking, contains asbestos and has outdated cabling? The short answer is ‘a lot.’ The sheer amount of work and the sensitive nature of refurbishing a World Heritage Site results in a sky-high estimate of between £3.5bn and £5.7bn, with some suggesting the sum could rise to as much as £7.1bn.

A 2012 report warned that “major, irreversible damage” may be done to the building unless significant restoration work is carried out soon, making the refurbishment one of the most urgent and arguably important renovation projects in the UK today. Some feel that the whole thing is a needless expense to the taxpayer and a vanity project for British Parliament. Another previous report concluded that the maintenance costs alone are so astronomically high that if the Palace of Westminster was a commercial structure of no historical significance, it would be far more cost-effective and efficient to demolish it and rebuild using modern methods of construction, such as modular offsite building.

Whatever you stance, the Houses of Parliament are of national, historical and cultural importance and refurbishment will happen. It should therefore be imperative that efforts are made to soften the bludgeoning blow to the taxpayer’s pocket, shouldn’t it?

“Should I stay or should I go?” The parliament predicament

Assuming renovation does take place, the big decision to make will be whether Parliamentarians stay put throughout restoration works or whether there will be a need for them to temporarily relocate. Estimates predict that if the palace was vacated for just 6 years, the cost of works would total around £3bn. If MPs decide they want to stay whilst work is undertaken, the figure is doubled and renovation is expected to take up to 32 years. Needless to say, vacation of the building for six years is the cheapest, quickest and viable solution. One option would be to set up temporarily over the road, by moving to either the Methodist Central Hall or the Queen Elizabeth II Conference Centre. Some have suggested MPs could relocate as far away as Birmingham – or perhaps even hold a touring parliament. This option is unsurprisingly unpopular with many parliamentarians.

There are some interesting and difficult challenges ahead, some difficult decisions to take, but I would say to the House that instinctively I think it is important that this building remains consistently at the heart of our democracy and that we don’t end up being forced to move somewhere else. – Leader of the Commons Chris Grayling

Others feel that something must be done quickly and efficiently.

Doing nothing or muddling on are not options. – Lichfield Conservative MP Michael Fabricant

Who makes the decision?

A select committee of both the House of Commons and House of Lords is expected to be formed to consider the findings of the Independent Options Appraisal and make recommendations to members of both houses. In the meantime a joint committee of Commons and Lords will be set up with the task of recommending a way forward. A decision on which option to adopt is expected to be taken by MPs next year, with work to begin after the next election in 2020. However, is it really their decision to make?

Affectionately nicknamed the “Mother of Parliaments,” the British parliament is respected as the most ancient parliament in today’s world. Apart from a few brief interruptions, it has carried out its business on the same spot, the Palace of Westminster, since the year 1265.

The longevity and overwhelming presence of this building is a physical testament to our very democracy. Parliament was originally formed by the people, for the people. Therefore, under the very democracy that the building stands for, shouldn’t we have ultimate say over how our tax money is spent and renovation is undertaken? Meanwhile parliament continues to crumble around our legislature.

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Major Chinese deal to boost Birmingham housebuilding and economy

A deal has been signed between Birmingham City Council and the fifth largest property developer in China to focus on HS2 and deliver homes for Birmingham.

As part of the agreement, which is estimated to be worth up to £2bn to the local economy, the Hong Kong Stock Exchange-listed company Country Garden intend to explore large-scale investment opportunities in and around the city.

The news of this agreement follows this week’s China visit by Prime Minister Theresa May for the G20 summit. Following the referendum result, the government have being investigating the potential for Chinese investment in major UK construction projects..

Council leader Cllr John Clancy commented on the potential that China have to offer, saying “The landscape has inevitably changed post-Brexit and Birmingham is already out of the starting blocks. That’s why I’m here selling our city to many of China’s leading investors.

“This agreement is about bringing good jobs and quality homes to Birmingham. Country Garden have a proven track record of building homes at pace and scale. They have played a major role over the last 20 years, as housebuilders have met the massive demands of China’s rapidly expanding economy.

“Bringing this level of investment and experience to Birmingham would be a massive economic boost to the region’s businesses, skills base and families. It’s about bringing new, big capital spend to the city, quickly. This is about building houses, jobs and futures for young Brummies and families across the region.

“Country Garden understand the demands in Birmingham and are clearly excited at the prospect of investing in our young, growing city.”

Country Garden founder and chairman Mr Yang Guoqiang commented “I have been impressed with Birmingham’s ambition and huge potential and I am delighted to announce this investment commitment to support significant housing and infrastructure development in the city.

“We have a proven track record in delivering quality housing at a scale to match Birmingham’s ambitions and with major projects coming to the city, including the forthcoming High Speed two project, these are exciting times for Country Garden and Birmingham.”

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UK construction sector moves closer to stabilisation in August

UK construction companies indicated a sustained reduction in business activity during August, but the pace of decline was only marginal and much softer than the seven-year record seen during July. New order volumes also moved closer to stabilisation, with the latest reduction the least marked since May. This contributed to a renewed rise in staffing levels across the construction sector and a rebound in business expectations for the next 12 months. However, latest data indicated a further steep acceleration in input cost inflation.

Purchasing prices rose at the fastest pace for just over five years amid reports that exchange rate depreciation had acted as a catalyst for increased charges among suppliers of construction materials.

At 49.2 in August, the seasonally adjusted Markit/CIPS UK Construction Purchasing Managers’ Index® (PMI®) remained below the 50.0 no-change threshold for the third consecutive month. However, the index was up from July’s 85- month low (45.9), and the latest reading signalled the slowest pace of decline since the downturn began in June.

Sub-sector data pointed to much slower reductions in housing activity and commercial building than those recorded in July. In both cases, the rate of contraction in August was the slowest for three months. Meanwhile, civil engineering activity stabilised in August, following a reduction during the previous month.

Reports from survey respondents suggested that Brexit uncertainty continued to act as a brake on the construction sector during August, especially in terms of house building and commercial work. However, a number of firms noted that sales volumes had been more resilient than expected. Some panel members also commented on signs of a rebound in client confidence from the lows seen earlier this summer. Reflecting this, latest data highlighted that incoming new work decreased at the slowest pace since May.

Signs of a more stable trend for new business volumes resulted in a marginal expansion of staffing levels across the construction sector in Page 2 of 4 © IHS Markit 2016 August. However, subcontractor usage continued to decrease, and rates charged by sub-contractors rose at the second-slowest pace since June 2013.

Construction firms also cut back on their purchasing activity in August, which extended the current period of decline to three months. Softer demand for construction materials resulted in the least marked deterioration in supplier performance since April.

August data indicated that input cost inflation picked up for the third month running and reached its highest level since July 2011. Survey respondents overwhelmingly linked the latest rise in input prices to exchange rate depreciation.

Looking ahead, construction firms pointed to a rebound in business confidence from July’s 39- month low. Although the degree of positive sentiment was the highest since May, it remained close to the weakest recorded over the past three years.

Tim Moore, Senior Economist at Markit and author of the Markit/CIPS Construction PMI®, said “The downturn in UK construction activity has eased considerably since July, primarily helped by a much slower decline in commercial building. Construction firms cited a nascent recovery in client confidence since the EU referendum result and a relatively steady flow of invitations to tender in August.

“However, the latest survey indicates only a partial move towards stabilisation, rather than a return to business as usual across the construction sector. There were still widespread reports that Brexit uncertainty had dampened demand and slowed progress on planned developments, especially in relation to large projects. As a result, total new order volumes continued to fall during August, which stands in contrast to the three-year run of sustained growth seen prior to May 2016.

“Despite another month of reduced output, the latest figures can be viewed as welcome news overall after a challenging summer for the construction sector. The move towards stabilisation chimes with the more upbeat UK manufacturing PMI data for August, and provides hope that the near-term fallout from Brexit uncertainty will prove less severe than feared.”

David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, said “Purchasing costs went up at a rate not seen for half a decade, as the impact of the weak pound was felt by the construction sector. Firms reduced their purchasing volumes as a result, as new orders and activity continued to fall – though at a more moderate rate compared to last month. Costs for energy and raw materials such as steel and timber were highlighted as company margins were squeezed.

“Employment levels recovered to a modest degree, though at the second-slowest pace for three years. Some firms reported that they planned to increase staff numbers in hopeful anticipation of a surge in activity towards the end of the year. Business sentiment was moderately more positive than that seen in the immediate aftermath of the Brexit vote.

“After the shock of last month’s seven-year low in the overall index, the picture now is more about stabilisation than searing growth, as the sector remained in contraction. The housing sector continued its downward slide, but the drop in activity was much softer in August.”

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