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.

Bosses at Crossrail and some of the UK’s biggest construction firms are being warned against engaging in a ‘scam’ which is aimed at dodging new tax rules introduced by HM Revenue and Customs to close tax loop holes and clamp down on ‘umbrella’ employment models.

The warning in a letter to bosses from Britain’s largest union, Unite comes after the union obtained documentation of employment business service providers continuing to offer construction firms an alternative to direct employment to reduce national insurance and employment costs by more than 25 per cent.

Unite is also calling on HMRC to investigate the scam which sees employment business service providers offering ways to side step the new supervision, direction and control test (see notes), which came into force on 6 April, by engaging skilled workers on a self-employed and ‘tax efficient’, basis.

The new ‘test’ was introduced by HMRC in part to prevent employment business service providers or ‘intermediaries’ from engaging workers through a ‘tax efficient’ ‘umbrella’ employment model.

The loophole allowed employment business service providers and employment agencies to minimise employer national insurance contributions and drive down wages by getting workers to claim tax relief on travel and subsistence to supplement their low pay.

In a presentation seen by Unite, one employment business service provider boasts of consulting with ‘highly skilled legal and financial advisors’. The firm goes on to offer a ‘status check’ on whether any skilled workers can be employed without supervision, direction or control. A move not only designed to reduce employment costs and be ‘tax efficient’, but one which Unite says could undermine health and safety and erode industry standards.

Unite national officer, Bernard McAulay said “Everything we’ve seen and heard points to a brazen attempt by employment business service providers to side step a tax loophole which was closed just last week.

“We’ve already had reports from construction workers being pressured to declare themselves self-employed and sign contracts agreeing to accept liability for any unpaid tax and national insurance should the tax man come knocking as a result of this scam.

“The reason HMRC closed this tax loophole in the first place was because employment business service providers were exploiting temporary workers by getting them to claim tax relief on travel and subsistence to top up low wages at the same as minimising employment and national insurance costs.

“This latest mutation of bogus self-employment would effectively see workers, who should be directly employed, being stripped of holiday pay and their automatic enrolment pension contributions, while allowing employers to pay no national insurance and circumvent nationally agreed rates of pay.

“We know that this ‘scam’ has been circulated throughout the construction industry and to companies on major projects, such as Crossrail by of at least one business service provider.

“Unite urges HMRC to investigate and calls on the construction industry to turn its back on ‘shady’ employment practices which are designed to bust nationally agreed rates of pay at the expense of the taxpayer.”

Do you ever dream of living off-grid? We all daydream of that elusive log cabin in the mountains, a beautiful beach hut on a remote island, or a quiet cottage in a sleepy country village. Unfortunately, the initial outlay involved in getting a property like this and then adapting it for off-grid sustainability can be staggering. As such it often remains all but a pipedream for many.

Ecocapsule believe they have a solution for those on a smaller budget, offering a very real opportunity for them to finally getaway and enjoy an authentic, low-carbon life in nature.

What is the Ecocapsule?

According to their website, “the Ecocapsule is a compact mobile home which can enable off-grid living under specific conditions and in specific environments.

The Ecocapsule is an opportunity for an eco-life. It does not need to be plugged into the traditional power and water supply as it is self-sustaining and can generate both resources from the surrounding environment.”

Check it out for yourself in the video below:

Could you live in an Ecocapsule? Let us know in the comments below!

Family firms across the UK are setting their sights on expansion following another hugely successful year for the sector.

New research by Oxford Economics for the Institute for Family Business (IFB) Research Foundation reveals the vast contribution family firms make to the UK economy – employing over 11.9 million people and making up 87 percent of all private sector firms in the UK.

There are now more than 800,000 family firms in the construction sector, making up almost one in five of all businesses in the industry. Family businesses also account for 94 per cent of all private sector firms in the construction sector – one of the highest concentrations in the UK.

Kate Woods, a spokeswoman from construction family business, Osborne, added: “Osborne echos the amazing and timely achievements of family businesses and this year we are excited to celebrate our 50th anniversary. We rebranded to a vibrant magenta in 2014 and we are committed to finding customer led solutions, listening to our customers and working in collaboration with their needs.”

Since 2013 family businesses have increased employment by six per cent and turnover has also seen a strong rise, increasing by two per cent to reach £1.3 trillion. In addition, family firms paid £125 billion in taxes and contributed over a quarter (26%) of the UK’s entire GDP.

Speaking about the new findings, Peter Armitage, Chairman of the IFB, said “The report sheds light on the sheer size and scale of the family business community. It’s an important reminder of how vital family-run firms are to the UK – serving as the backbone of our economy, with family firms making a phenomenal contribution across all sectors, industries and regions.

“Family businesses have always been at the very heart of the UK economy and based on the steady rise in their recruitment and turnover, it is clear they are here to stay. It’s encouraging to see family firms with such a buoyant attitude towards their future expansion – almost half of family SMEs expect to grow over the next two to three years.”

Growth and expansion is a top priority for many SME family firms with just under half (49%) stating they aim to grow over the next twelve months.

Looking to how they will turn this ambition into reality just under a half of firms (43%) say they will invest in improving the skills of their workforce to support growth, with a third (33%) planning to boost productivity through investing in new machinery and premises.

Looking beyond their traditional activities to diversify their business and customer base, 42% of family firms are planning to move into new markets and 37% are developing and launching new products and services.

Contracting, residential development and property support business Willmott Dixon intend to future-proof their residential construction business against a worsening skills shortage.

The company currently deliver 2,000 homes each year. Their latest announcement suggests that they plan for half of these to be constructed using offsite methods and materials going forward.

By signing 3 year strategic agreements with leading suppliers of timber frame (Robertson Timber Engineering) and light-gauge steel frame systems (Fusion Building Systems), Willmott Dixon hope to drastically reduce current reliance on traditional construction methods due to rising costs and lack of skills.

Residential construction chief operating officer, Charlie Scherer says “This is an important step in our strategy to provide a high quality product that utilises all the benefits of factory-made systems while also reducing our exposure to the labour price escalation we’ve seen in recent years. We aim to be building 1,000 homes a year by 2017 using systems provided by Robertson and Fusion, with the consistent quality also aiding our zero defects strategy.”

“These two deals are the cornerstone of our ‘Capacity Building’ strategy. This is our people, engineering and technology programme that is central to counterweight the resource challenges in industry, and deliver cost-effective, sustainable build solutions for our clients.”

Tim Carey, product director for Willmott Dixon, added “If we are to address the significant capacity gap that currently exists in the construction sector, we need to think strategically about our supply chain. The selection of Robertson and Fusion will help maximise efficiencies across our projects, enabling us to deliver as many high-quality homes in as short a time frame as possible whilst ensuring they are delivered to the quality our clients deserve.”

About Willmott Dixon:

Willmott Dixon has built nearly 50,000 homes since the 1974, and operates across the South, Midlands and North, building for developers, housing associations and local authorities. The mix includes affordable, care residential, retirement villages, housing for sale and private rent, plus student accommodation. Projects vary in scale, from a standalone 90 unit care homes to multi-phase ten year estate regenerations that create a new ‘destination’ for communities.

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For more information please visit www.futurism.com.

HS2 are planning to hold a competition for architects to submit their design ideas for some major stations along the route.

The four major stations that are offered in the competition include Euston and Curzon Street in the city of Birmingham.

Expected to cost in excess of £43 billion in total, HS2 has released the initial schedule for forthcoming expenditure, which in this case will go towards design work on Euston, Old Oak Common, Birmingham Interchange and Curzon Street stations.

The architect-led designs could see the plans for Euston taken back to the drawing board after the desgins by Grimshaw were widely criticised by both Camden council and the landowner of the Euston estate, Sydney & London Properties.

A spokesman for HS2 said “The first stages of the procurement process for the main stations contracts will begin towards the end of the year.”

“We are still at the early stages of agreeing the contract arrangements and it may be different for south and north stations due to programme/complexity.”

This news follows recent controversies regarding materials supply chains. Ministers have been loudly proclaiming that it is imperative that Whitehall departments specify British steel throughout the project in a desperate bid to help save struggling steelworks, however, it has recently been discovered that the office in charge of procurement does not hold a record of how much it currently purchases. A revelation that many feel is reckless and irresponsible, given the fact that the very future of the UK’s biggest steel plant hangs in the balance after Indian owner Tata Steel announced last week it wants to sell its loss-making UK operations.

The knock on effect of this also jeopardises the future security of the Port Talbot works in South Wales, with some estimates suggesting that over 40,000 jobs are at risk, including workers and staff at businesses reliant in the plant.

HS2 continues to power forward in an attempt to reunite the North and South in terms of wealth and health. However, how much damage will it do along the way?

Britain’s largest union, Unite, have today expressed increasing concern over the time it was taking to locate and recover the bodies of three missing men following the collapse of Didcot power station on 23 February.

Unite which represents workers in the construction and demolition industry said members across the industry had grown increasingly frustrated and were questioning whether the recovery team had enough resources to complete the recovery in a safe and timely manner.

Expressing its deepest sympathy and solidarity with the men’s families, the union’s national construction committee called on the authorities to ensure that construction workers’ families were never again put through the pain and heartbreak of weeks of uncertainty over the fate of their loved ones.

Commenting Unite national officer John Allott said “The thoughts and sympathies of Unite members are with the families of the three men who are still missing and who after six weeks are still seeking closure.

“Our construction and demolition members are well aware that it could be their families suffering a similar experience, which is why they are growing increasingly concerned over the time it’s taking to recover the missing men.

“They recognise that the recovery needs to be done in a safe manner, but would question the time it is taking and whether the recovery team has enough resources.

“Money should be no object, which is why Unite’s national construction committee is urging the relevant authorities to deploy all the necessary resources to ensure that the missing men are returned to their families as quickly as possible.

“The authorities must also learn the lessons to ensure these tragic events are not allowed to happen again.”

Guest post from Managing Director of TDM Recruitment, Tom Morris:

At its pre-recession peak in 2008, the UK’s construction workforce was 2.58 million; a staggering amount. However even more confounding is the fact that by the end of quarter four last year, this had dropped by nearly 13 per cent to 2.25 million. The big problem is that those that were forced to leave the industry at the start of the recession have left a gaping skills gap behind them which is continuing to cause issues.

Before the recession hit, a variety of industry graduate training programmes were being run by contractors and developers in the residential sector and money was in plentiful supply. It was common practice for us to be arranging around 15 first interviews a week which now seems somewhat ridiculous given the way the industry has changed. Salaries were high and construction job openings were plentiful.

When the credit crunch hit in 2008, and the banking sector went into freefall, graduate training programmes were cut as being ‘non-core.’ They really didn’t get going again until 2013, and the old ways of actively promoting to universities to attract the best talent wasn’t until 2014.

The result was a four-year gap after the last tranche of graduates came into the industry before the crunch, and many of those arriving in 2007 and 2008 were shown the door when the recession hit. Now we are faced with an industry where those experienced late twentysomething and early thirtysomething graduates needed to team lead on projects are missing, and junior guys with perhaps only two or three years’ experience are being over promoted to fill the gap.

The worst irony is that now there is a lot of work to do to deliver on demand, particularly in the residential sector, but the new professionals aren’t there to deliver it, and many don’t want to return to the industry having been through a traumatic time in the late 2000s. At the same time there are lot of senior people who now want to step up to board level, meaning there is a excess of applicants for each position, and an oversupply of freelancers who left the industry during the recession and now command high rates and benefit from flexibility. This perfect storm has only begun to dawn on people relatively recently, but what can be done?

The way that some firms have tried to deal with this shortage in management skills is to throw money at the problem. However, it is hard to justify a £20,000 jump in salary for the same Senior Surveyor position in 12 months when the rest of the economy hasn’t kept pace. This sort of inflation-busting rise isn’t sustainable because the rest of the team is likely to want something similar and be demotivated if it isn’t given.

The construction industry had to make hard-headed commercial decisions as the recession bit into their profit margins, but some of those decisions are now coming home to roost in the form of the skills gap. Many staff were treated brutally, and some professionals with good experience are now reluctant to go back to work for the larger organisations which made large numbers of staff redundant, sometimes at very short notice.

The mind-set of candidates has changed and as a ‘sellers’ market’ employers need to be acutely aware of how. Before the recession they may have just looked at whoever was making the highest offer as salaries were very healthy, however graduates who have come into the industry since 2008 or perhaps knew people who went through a traumatic time have a different mind-set.

The experienced young candidates the sector desperately needs are much more focused on achieving genuine work-life balance and being part of an organisation with a strong set of values beyond simply making money. Recent graduates are from Generation Y and are asking employers ‘why would I want to work here?’ As the new graduate programmes will take some time to bed in, employers facing the challenge of delivering construction projects now need to be able to answer that question.

Famous ‘starchitect’ Dame Zaha Hadid has sadly passed away at the age of 65.

The Iraqi-born designer was the first woman to receive the Royal Institute of British Architects Gold Medal this year in recognition of her sometimes controversial but always avant-garde work.
Her designs can be found all around the world and include the London Olympic Aquatic Centre, the Riverside Museum in Scotland, Guangzhou Opera House in Guangzhou and MAXXI National Museum of the 21st Century Arts in Rome.

Official statements say that Zaha suffered a fatal heart attack on in a Miami hospital, where she was in the process of being treated for bronchitis.

We take a look back at the amazing, sometimes controversial work of an architect who has always been ahead of the curve:

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Dame Zaha Hadid was an inspirational woman, and the kind of architect one can only dream of being. – Riba president Jane Duncan

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For three decades now, she has ventured where few would dare. If Paul Klee took a line for a walk, then Zaha took the surfaces that were driven by that line out for a virtual dance. – Archigram founder Peter Cook

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She was an inspiration. Her global impact was profound and her legacy will be felt for many years to come because she shifted the culture of architecture and the way that we experience buildings. – Stirling prize winner Amanda Levete

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We are all familiar with the fairy tale of the three little pigs; a moral-laden fable about three pigs that construct three houses from different materials. The big bad wolf blows down the first two pigs’ houses, made of straw and sticks respectively, but is unable to destroy the third pig’s house, made of bricks. The story has been told and retold for hundreds of years. However, I think that things have changed…

There have been a multitude of innovations in modern construction techniques of late, so I have decided to take a second look at how affective the pigs’ methods actually were; would the straw and stick homes still fall to huffing and puffing today?

Straw house

With shortages of materials, lack of skills, an ever increasing population and subsequent carbon footprint, there is understandably an enormous demand for a housing solution that won’t cost the earth, both financially and environmentally.

Straw bale construction is one such material that could help achieve this goal. Indeed, a house built from straw goes one step further than helping to alleviate a housing crisis – it can even help the very occupants within that house keep the modern enemy of fuel poverty at bay. Straw bale buildings are so efficiently insulated that they require very little heating, even in the dead of winter.

Where timescales are an issue, straw bale building can also prove to be a worthwhile consideration. Last year saw the first ever straw bale houses hit the market in Bristol. The housing development consisted of seven homes that were erected on site in just nine days, thanks to their precision factory-made panels which slot together perfectly. This speedy turnaround adds to their affordability, of course.

Social Landlord Martin Connolly, responsible for the development, commented on the Bristol homes: “We got into straw bale housing to explore how we could make housing more affordable. What was behind it was concern about homelessness and the environment.”

“In the first instance, we wanted to achieve natural non-toxic house building which sequesters carbon. Hugely insulated and air-tight, the homes produce virtually all the energy they need to run. We are installing rain water harvesting to cut down water and sewage bills, and LED lights, solar panels and an air-source heat pump to reduce light and heating costs. Bath University research shows the running costs can be reduced by as much as 90%. And, as volume of sales increase, we can strive to make the house purchase price even more affordable.”

So, was the first little piggy really that foolish to choose straw over other available materials? Let’s consider the facts; just shy of 4m tonnes straw is produced as a by-product each year by British agriculture. It only takes around 7 tonnes of straw to build a three-bedroom house similar to the Bristol developments. This means that theoretically it would be possible to grow enough straw to build more than half a million new homes each year using straw grown exclusively in British fields. Perhaps not so foolish!?

Stick house

Was the second piggy wrong to build his house from wood? I think absolutely not. Perhaps, considering that the structure fell merely at the exhaling of a wolf, it is his construction skills (or lack thereof) that should be questioned rather than his choice of material. Timber frame buildings are inherently strong, durable and sustainable. Readily available and relatively low in cost, structural timber offers a competitive advantage over many other materials.

Studies suggest that by moving more towards offsite construction techniques, the reputation of the construction industry will improve in the eyes of the younger generation, who above all have a keen interest in innovation, technology and environmental issues. This means that a career within the sector would become a more viable and attractive option, which in turn will help to alleviate the chronic skills shortage currently blighting the industry. Even the second piggy could brush up on his abilities by enrolling in an apprenticeship scheme.

The government report, Construction 2025, highlighted that the poor public image of construction was having a detrimental effect on companies’ abilities to recruit and retain the best talent. The cleaner, safer and more professional setting of a modular construction factory could definitely help attract prospective apprentices and graduates into this relatively new and exciting area of our industry.

Timber is the perfect choice for specifiers who want a precision engineered material that is both cost effective AND sustainable. Structural timber is a low-carbon alternative that offers high structural strength, airtight construction and a traceable supply chain. Therefore it is the perfect choice of material for little piggies with a passion for sustainability and style.

Brick house

Although the hero of the fairy tale is the pig that chose brick above all other materials, the truth of the matter is that there are pro’s and con’s to every material and brick is no exception. Brick homes require very little maintenance and never require painting, caulking or staining. However, this does have a trade-off. Changing the appearance of a brick exterior can be somewhat difficult and expensive.

Homes made of brick are highly energy efficient and therefore remain cool in the summer and warm in the winter. Whilst this in itself is good for the environment, there are caveats and sadly the manufacturing process of bricks almost nullifies this benefit. The manufacturing processes used to create building materials such as cement and bricks are currently accountable for roughly 12% of all emissions of carbon dioxide in the world.

Brick manufacturing especially is very energy-intensive due to the kilns that are used requiring firing for up to three days in order for the bricks within to become hard and strong. Brick kilns operate at about 1100°C and are often kept hot even when not in use. This immense heat is generated using fossil fuels, which emit significant CO2 when combusted.

Houses constructed using brick are durable, energy efficient, highly fire-resistant and low maintenance. This means that they tend to have a higher resale value than their timber beam counterparts. Homeowner insurance is also a lot lower for these very reasons. So whilst savings can be made in the long term, the initial outlay will be much higher if using brick in your project.

Bricks are much more expensive as a building material than timber or straw. Also, whilst largely low maintenance for the most part, when repairs do need to be made they can be difficult, time consuming, highly invasive and expensive. This renders brick a non-cost-effective option for many home builders, regardless of savings that will be made at a later date.

Summary

It is clear to see that each method of construction has both benefits and draw backs. This means that no one method is a perfect solution to meet 21st century housebuilding demands. If the housing crisis, combined with materials shortages and the skills gap are the modern day “wolf at the door”, then it is only through a multifaceted approach that utilises all of the tools and knowledge in our arsenal that we can succeed and thrive as an industry. It’s impossible to tell which material will come up trumps in the end – but one thing we can all agree on is that modular technologies, offsite methods and alternative material usage will play increasingly larger roles in construction as we go forward as an industry. Expect to see a lot more on the topic!

So in summary, does a fairy tale that was first committed to print in the 1840’s still offer worthy advice to the wise and considerate specifier who wishes to keep the wolves at bay? I say “no, no, not by the hair on my chinny chin chin!”