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.

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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Parliament calls for greater sustainability in transport infrastructure

Parliament’s Environmental Audit Committee has published a report calling for greater sustainability from the Department for Transport in future infrastructure projects.

According to the report (which can be read here), The Department for Transport needs a clear strategy to increase the use of ultra-low emission vehicles, reduce air pollution and deal with the VW cheat device scandal so that it can meet decarbonisation and air quality targets.

The Environmental Audit Committee highlights that the Department for Transport has planning and investment responsibilities for the UK’s road, rail, maritime, aviation and bus service sectors. The Department’s total spending is set to increase during this Parliament: although its resource spending is due to go down, its capital budgets will rise, with £73.4 billion of transport-related capital investment between 2015–16 and 2020–21, including £34.5 billion for Network Rail and £15.2 billion for its Roads Investment Strategy. In 2014–15 the Department allocated 50% of its gross expenditure to its roads, traffic and local responsibilities; almost 40% to its rail executive responsibilities; and 3% to its international, security and environment responsibilities.

Whilst Parliament acknowledge that many positive steps have been made towards better sustainability within the transport sector, the report focuses on those areas where the Department for Transport might go further to tackle climate change.

This has been welcomed by Campaign for Better Transport who will be writing to the Department demanding further reduction of their carbon footprint.

Sustainable Transport Campaigner, Bridget Fox commented: “The report shows that the Government is not doing enough to decarbonise transport and avoid building damaging infrastructure projects. Stronger action to clean up polluting vehicles is welcome but ultimately the answer lies in reducing car dependency, getting more freight onto rail and investing in good quality public transport alternatives. The call today from Team GB’s Olympic cycling champions for investment in everyday cycling is part of this solution. We’ll be writing to the Department for Transport Permanent Secretary demanding action on this report.”

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Are we putting buildings before people?

Sustainability has been at the top of the agenda for many years but I have an ever-increasing feeling that much of the industry is missing the next step. Over recent years we have been placing our emphasis on the environmental and economic parts of sustainability, but we shouldn’t forget the fact that we are creating buildings for people and the well-being of these people should be the priority. So the question is: Are we putting buildings before people? Is it now time to place greater emphasis on people?

When you look at costs in relation to buildings, we freely talk about energy savings but our biggest cost is the people within them and this figure is an astonishing 90% of that overall cost. In addition it has been claimed that we spend over 90% of our time indoors and in an office environment. So why has the focus been put firmly on creating better buildings when, in fact, we should be creating buildings to make the occupants feel better, and in turn, happier and more productive? Imagine what we could achieve if we were able to increase productivity in an office by just 1% simply through creating a better working environment? Well, I have a feeling this is all about to change.

A couple of months ago it was alluded to in an article in Building magazine that the WELL Building Standard could soon be aligned with global sustainability standard BREEAM. The WELL Standard, created by US-based consultants Delos, measures human health and wellness using evidence-based medical and scientific research to help inform better design of buildings. To quote Delos founder Paul Scialla and Building magazine: “Delos are in talks with BRE about pairing the WELL Standard with BREEAM.” This could be a major step forward to aligning the performance of buildings with the wellness of its occupants as reinforced by Scialla who stated that he realised 7 years ago there was a “huge gap in regard to not enough understanding of how the built environment really is impacting biological sustainability as opposed to just environmental.”

BREEAM has long been the ‘go to’ standard to help deliver sustainable buildings. Used in more than 70 countries and with 24,000 projects around the world, and more than 2.2 million buildings and communities registered for certification, it is clear to understand the value that the built environment places on BREEAM. Whilst BREEAM does encourage occupier and building owners to continually monitor performance, it doesn’t go as far as looking and measuring occupier behaviours and well-being. Surely this is the next natural step? And, as if on cue, we have WELL.

Whilst the WELL Standard has been in existence for some years now – most actively in the USA – it is relatively new to Europe. However, Studio Ben Allen Architects’ One Carter Lane project has just become the first European project to receive the accreditation. One Carter Lane, the new London headquarters of engineers Cundall, is a 15,400ft² Cat-A office fit-out. The fit-out provides new workspaces for up to 180 employees and attained a BREEAM Excellent rating and SKA Gold certification – in addition to a WELL Gold standard.

The WELL Building Standard defines a set of compliance requirements that cover seven key areas: air, water, nourishment, light, fitness, comfort and mind. It looks at driving change towards more personal criteria such as stating that 30% of staff must have space to eat lunch together; materials such as desks and storage must use natural materials; and that the volatile organic compound (VOC) rating of all materials must be between negligible and zero, thus ensuring that office fixtures, fittings and fabric do not expel harmful chemical or organic emissions.

So how does all this help to improve well-being and, whilst we can measure productivity, how do we actually measure emotions such as happiness and the direct effect this has on outputs? And the big question is: What cost does this add to a project? According to Cundall it has added around 3% to the project value which equates to just £200 per head.

There are elements of WELL that will need to be addressed if it is to become mainstream in the UK, in much the same way that BREEAM has. For example, in the UK and many other European countries, certain standards are higher than those within WELL. A comparative base line will need to be created so we are not rewarding for going backwards. Also the business case will be different. In the US there is no NHS, instead private healthcare is provided by employers. As such there is a clear reason for US employers to adopt WELL to increase productivity and reduce their healthcare costs. We may need to look at incentives for UK employers.

In the case of the success of One Carter Lane, time will tell, but the initial reports do indicate that a working environment that promotes happiness, well-being, positivity and improved productivity has been created. The challenge is how do we adopt wellness in the same way that we have embraced sustainability?

For me, wellbeing is a vital part of every building – whether it is a school, a hospital, an office or a home. Buildings that make us feel comfortable, happy and calm are essential. With so much of our time spent indoors, and with illness costing UK businesses on average £550 per employee per year (a total of about £30bn, according to the Chartered Institute of Professional Development) it’s something that we all need to embrace – after all we build buildings for people.

By Darren Evans, Managing Director, Darren Evans Assessments
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Costa Rica running on renewables for 121 days and counting!

Costa Rica is setting the precedent for other nations looking to utilise green energy and reduce their carbon footprint.

The small Central American nation has generated 100% of its electricity from renewable sources for the past 121 days, and the run isn’t over yet. The country, which draws clean energy from a variety of renewable sources, still has its sights on a full year without fossil fuels.

With a 121-day stretch of 100% renewable energy under its belt and several months left in the year, Costa Rica appears to be edging closer to its admirable target. Costa Rica could be on track to match the record set with its renewable energy production last year, which accounted for 99% of the country’s electricity. That included 285 days powered completely by renewable sources, according to the Costa Rican Electricity Institute.

Costa Rica is able to take advantage of a multitude of renewable energy sources because of its unique climate and terrain. Most of the nation’s renewable energy comes from hydropower, due to its large river system and heavy tropical rainfalls. Solar, wind, biomass, and geothermal energy also play key roles.

Green ambitions

Costa Rica have shown great ambition in the field of renewable energy over the past few years and according to the government they are aiming to be entirely free from fossil fuels by 2021. However, with large sums of money currently being invested in geothermal energy projects, it is anticipated that this impressive target could indeed be met much sooner than originally expected.

In comparison, some countries (ourselves included) could be perceived as simply not doing enough to tackle climate change and improve our energy habits. Costa Rica achieving 99% renewable energy usage this year sends a stark message to the rest of the world of what is possible when a country unites to make a concerted effort to fight global warming using sustainable energy sources and technologies already at our disposal.

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Hinkley: Plans to scale back nuclear cooperation with Chinese government emerge

A new plan regarding the future of Hinkley Point C is currently being considered following last month’s delay by Theresa May in approving the £18bn Hinkley Point project.

The government is currently considering a proposal to detach development of Hinkley Point C nuclear reactor from a previous agreement, whereby China is responsible for the delivery of the Essex-based power plant.

China became controversially involved in the project 12 months ago, offering to fund a third of the costs in a deal meant to ease financial pressure on French Energy firm EDF.

However, concerns were raised by Theresa May, who soon called for a project review shortly after becoming Prime Minister.

Putting the project in jeopardy

Experts suggest that any attempts to detract from the agreement whereby China build reactors in Britain risks endangering the whole deal; the primary reason for China’s involvement from their perspective was in order to showcase their nuclear technology in Europe. Otherwise, they would have little interest in being involved in such a project.

This news comes as another knock to overall confidence in the future of Hinkley Point C. Serious doubts plague the proposals regarding the financial and environmental cost of the project – it seems to be losing what little support it had in the first place. Last month, Stop Hinkley Spokesperson Allan Jeffery commented “Now even the financial press says Hinkley Point C has become a laughing stock.

“The cost keeps rising while the cost of renewables is falling rapidly, and the potential to make savings with energy efficiency is huge. We could replace Hinkley much more quickly and cheaply without the safety fears and without producing dangerous waste we don’t know what to do with.”

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Colleagues pay tribute to Hueck UK sales director, Robert Bright

It is with great sadness that HUECK UK is announcing the passing of its Sales Director, Robert Bright. Robbie died in an accident in France, during a charity cycle ride that was raising funds for PAPYRUS Prevention of Young Suicide, in memory of his beloved son, George.

He was part of the senior management and business development team for the UK arm of global supplier of aluminium building systems, HUECK, and an industry veteran with many years’ experience. His professional leadership and personal friendship will be dearly missed by all those who knew him.

The entire team at HUECK both in the UK, as well as Germany, has paid tribute to Robbie Bright. His colleagues have released a message to clients, business partners, and the industry at large about Robbie’s career at HUECK.

Leon Friend, HUECK UK Project Director, said: “Robbie has been pivotal in HUECK’s establishment in the UK. He has won, project-managed and successfully delivered some of HUECK’s most impressive projects in London and across the UK.

“He had nearly three decades of experience, and his knowledge, passion and dedication have been truly inspiring for all of us at HUECK since he joined the team, in June 2013. Aside from a great personality, he was an exceptional business man and had a strong ability to identify and maximise opportunities.”

Crispin Jedrzejewski, HUECK UK Technical Director, commented: “Robbie was much more than a colleague to me. His personality and friendliness quickly led me to consider him a good friend and confidant – his tragic loss will be acutely felt by all who knew him.”

Ralf Schrader from parent company in Germany said: “To me, Robbie was both the honest English gentleman and a trustworthy and reliable businessman, as well as a friend. It was my honour and privilege to support him and his family in the charity ride, organised in memory of George.

“To lose him under such tragic circumstances is unthinkable and very saddening. But although we will miss him very much, he will always be remembered by all who were fortunate enough to call him a friend.”

Adrian Price, Area Sales Manager at HUECK UK also paid tribute to his colleague: “Robbie Bright, this gentleman, exceptional work colleague and most of all one of my closest friends, will be sorely missed by all who knew him. Robbie was one of the nicest people I knew, who truly wore his heart on his sleeve, and gave his all in everything he did. I will miss the support he gave me, and also the conversations we used to have, but most of all I will miss my friend.”

Leon added: “He was a real team player and worked tirelessly to promote the company and its products in the UK construction market, while proactively sharing his knowledge and in-depth understanding of the sector with his fellow colleagues at HUECK. I owe him a great deal both professionally and personally, and he will be greatly missed by all.”

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The regeneration of London’s 2012 Olympic Stadium

Balfour Beatty, working with Populous, Buro Happold and the London Legacy Development Corporation, have repurposed the iconic London 2012 Olympic stadium, originally built to host London’s 2012 games. Their latest video (see below) talks us through the redesign, highlighting how they are championing sustainable practices throughout the project.

According to the video, the stadium, which is now home to West Ham United FC, will have a capacity of 54,000 people for football matches and 80,000 for athletics events and music concerts.

Sustainability and skills building

Sustainability has been at the very heart of the redesign. So far the work undertaken has included the reuse of 19,000 tonnes of recycled demolition materials, 6,000 m of cable, 3,800 lights and 1,000 mechanical and electrical components. This will undoubtedly help send a message out to the refurb and retrofit industry of what can be done to try and push the industry towards reducing the volume of waste to landfill. (According to a report by the Wates Group, the UK construction industry sends 36 million tons of waste to landfill sites each year.)

The regeneration project has also been doing its bit to tackle the skills shortage, with Balfour Beatty creating 50 local apprenticeships and over 300 training opportunities across the site.

Continuing a legacy

Stephen Tarr, Managing Director of Balfour Beatty’s Major Projects business said, “From the very beginning we were focused on continuing the legacy of this historic venue, transforming it from its original use of a single-purpose venue to a multi-functional world class venue providing numerous opportunities and uses for generations to come.

“We have utilised some of the most complex engineering techniques on this project, capitalising on our in-house capabilities and expertise to ensure the project was delivered safely to a high specification whilst boosting the local economy through employment opportunities; it’s a project we are all immensely proud of.”

Watch the video below:
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New figures show increased demand for bricks

New statistics released today by the Office of National Statistics (ONS) indicate good news for the building industry.

In the second quarter of 2016, brick deliveries were 10.4% higher than in the first quarter. Brick deliveries in June 2016 are also 7.4% higher than May, the previous month.

These changes are significant and point to the increased demand for bricks in the housing and construction.

The results correlate with recent positive news in the house building industry. 41,222 new homes were built in the UK in Q2, an increase on the same period in 2015 and the highest number of houses built since Q4 of 2007.

Andrew Eagles, CEO of the Brick Development Association (BDA) says “This is encouraging. Manufacturers have geared up supply to meet demand. It is heartening to see an increase in house numbers and increased deliveries of brick to help get those homes built with quality durable materials.

“We welcome the recent House of Lords report pointing to the need for more homes and greater diversity of mechanisms to get more homes built, and hope this leads to more action and further rises in home building.”

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Skills, not Brexit, the main threat to construction industry

Worsening skills shortages, rather than uncertainty over Brexit, are the main threat to the UK construction industry, according to leading recruitment company for the construction industry.

A number of commentators have suggested that the main threat to the industry is the knock on effects of Britain’s decision to leave the European Union. However, an analysis by the construction and rail recruitment specialist found that a lack of skills poses the biggest potential risk to future productivity.

Paul Payne, managing director of One Way, comments “While numerous people have suggested that Brexit presents challenges to the construction industry, the idea is actually a bit of a red herring and we’ve seen little change since the result except for some natural hesitation brought on by the ‘Armageddon scenarios’ being pumped into the market. We’re as busy now as we were before the referendum and the real issue – the crippling lack of skilled professionals in this country – is being overlooked because of all the noise around Brexit.

“Yes, the construction industry has benefited from being part of the EU as it has given the sector access to a lot of workers who have moved over and have filled lower skilled roles, however we’ve never seen any great influx of skilled professionals who can work as design managers or quantity surveyors, for example. These people are needed across the entire industry and in related fields like civil engineering and currently there are far, far too few of them. More robust and well prepared hiring firms like ourselves will always have the resources to be able to pluck individual experts from the EU regardless of changes to freedom of movement laws, but in reality there is no quick fix. The only solution is to focus on ‘growing our own’, for example, through targeting more apprentices and youngsters at school level as well as widening the scope of people who are potentially interested in working in the industry to include more women and professionals from diverse backgrounds. Even at the moment when there are a number of major projects being put on hold there simply aren’t enough people in the market to meet demand. Imagine what the situation will be like when the economy picks up and they’re given the green light. Ultimately, something needs to happen quickly as we’re rapidly approaching a breaking point where productivity will be affected.”

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