Challenging Conventional Construction

Credit: iCube Programme

Work has commenced at 2 pilot sites in Barcelona and Brussels as part of the European project RECONSTRUCT. The two resulting buildings will challenge conventional construction by integrating circularity throughout their lifecycle phases: design, material selection, assembly, and deconstruction.

The European co-funded Horizon project RECONSTRUCT will see the construction of two demonstration buildings in Barcelona and Brussels. The demos will highlight the real-world impact and economic viability of the project’s innovative construction approaches; they will implement a full cycle of construction, transformation and deconstruction, while reusing or recycling excess components.

The Barcelona demo: an alternative model for concrete in collective housing

In Barcelona, a 41 m2 one-story modular building will be installed outside Santa Perpètua de Mogoda Castle, on the outskirts of the city. Envisioned as a model for collective housing, this demo will demonstrate alternative solutions for cast-in-place concrete construction. As part of the experiment, the building will be deconstructed in early 2027, hosting group visits and open labs throughout its lifespan.

Both the building’s rectangular foundation slab and vertical structure will be made of an on-site mix of Alkali Activated Cement-Based Concrete (AACC) and recycled aggregates. Façades will feature easy-to-disassemble precast AACC concrete panels reinforced with biobased composite bars (rather than steel), and the exterior will have dry laid paving stones, made of AACC and over 90% recycled aggregates. The in-situ components will be recycled in local industries, while the industrialised elements will be reused in other constructions.

“When designing a building, we must start considering its whole life cycle from the very beginning, from maintenance techniques to unexpected environmental costs. Only in this way will we be able to deconstruct it, and to reuse or recycle its materials, thereby fostering the decarbonisation and circularity of the whole construction sector”

explains Laura Reus, Senior Environmental Consultant at Societat Orgànica, the sustainable building consultancy responsible for pilot design.

The Brussels demo: from demolition and recycling to prefabrication and reuse.

The Brussels demo, a two-storey 60 m2 building, will be located on the innovation campus of Green Energy Park in Zellik, a key meeting point for researchers and industry professionals. This will help combine energy-saving strategies and circular economy solutions.

The building will feature a bioclimatic design to reduce energy use, employ fossil-free building services, and use prefabricated elements made from low-carbon AAC concrete, easy to adapt and reuse elsewhere. In the first phase of construction, manufacturer Holland Composites will provide prefabricated elements with a recycled PET foam core and a bio-resin shell to construct the building envelope. For the second phase, Vrije Universiteit Brussel (VUB) will develop an alkali-activated concrete panel with textile-reinforced concrete shells to replace the storey floor. No waste will be created during the replacement.

“In construction, concrete is a material with countless applications. However, it comes at a high environmental cost. As we move towards a circular construction sector, we will have to carefully consider how we build with this material. From now on, building with concrete should be as precious as building with gold”

remarks Jeroen Poppe, Project Researcher at VUB Architectural Engineering.

RECONSTRUCT is an EU co-funded Horizon project running from June 2023 to May 2027. It involves 14 partners from 5 EU countries and the UK. RECONSTRUCT demo buildings aim to employ 50% virgin content; 80% reusable/recyclable content; nearly 100% locally available content; 0% construction and demolition waste to landfill, and a better material-to-surface ratio than conventional buildings.

 

Source: Sciencex

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Huge Cash Boost for Liverpool School

St Margaret’s Church of England Academy in Aigburth(Image: Google Street View)

 

Almost £4m is to be pumped into a Liverpool school to help ease the pressure on the city’s educational place challenges. In response to an increasing need for school places, Liverpool Council funds the construction and refurbishment of school buildings using the Basic Need capital grant provided by the Department for Education (DfE). With work already done to provide needed spaces at a city girls school, finances are being made available to create 30 new places for boys in Aigburth.

The local authority’s cabinet is poised to sign off on £3.9m to be drawn down from the capital grant to All Saints Multi-Academy Trust to fund construction and refurbishment of school buildings at St Margaret’s Church of England Academy.

All Saints Multi-Academy Trust were approached to increase their Planned Admission Number – the amount of pupils per year group – from 160 to 180 for September 2024, increasing to 190 from September 2025 onwards. The school met the DfE requirements for the creation of additional places based on the planning area it serves, physical capacity to extend and is well placed in terms of governance and performance.

A report issued to cabinet members ahead of their meeting next week set out how pupil place planning considers the predicted long-term needs for new school places arising from population growth. As a commissioner of school places, Liverpool Council undertakes an annual audit of school capacity and uses data to allow accurate and robust forecasting for school places at both primary and secondary level, including data on school capacity, live birth data, pupil numbers, housing development yields and in-year transfers to project the number of school places which will be needed.

The council then works to provide additional places through the expansion of existing schools. For a number of years, the city has faced a challenging time in providing sufficient secondary school places, particularly in good or outstanding schools.

Using planning area forecasts, significant work has already been undertaken to create places within existing provision in areas of demand. This has included the creation of 70 new places in all girls’ schools.

In order to secure a balance of provision by providing additional boys places within this planning area, discussions have taken place with St Margarets Church of England Academy to permanently increase their planned admission number by 20 places per year group from 2024, increasing to 30 from September 2025. The cash boost is expected to be approved when cabinet meets on Tuesday November 12.

 

Source: Liverpool Echo

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High-quality and affordable housing for older people using MMC

Leeds-based offsite construction manufacturer Remagin, part of Etex Group, is playing a pivotal role in the development of a new affordable retirement community in Oldham, Greater Manchester.

Using Remagin’s innovative Light Gauge Steel Frame (LGSF) Modern Methods of Construction (MMC) technology, Sydney Grange is being developed by McCarthy Stone and will deliver 51 affordable homes for older people in the region.

All the panels for the Sydney Grange development were manufactured at Remagin’s factory in Leeds and assembled on-site, supporting local employment and helping to speed up the construction process and reduce costs. The project is the first of its kind to use Remagin’s MMC solutions in full alongside the Older Persons Shared Ownership (OPSO) scheme, with apartments available for just £95,000 based on 50% ownership*.

Shahi Islam, Director of Affordable Housing at Homes England, recently visited the retirement community which will open later this year as well as Remagin’s factory in Leeds. He said

“McCarthy Stone’s Failsworth development is an excellent example of high-quality and affordable housing for older people. We are pleased to support it through our older persons shared ownership scheme which forms a key part of Homes England’s efforts to provide suitable housing and build strong communities.

“Expanding the use of MMC is also a priority for the programme so it’s great to see the success of the partnership with Remagin. We look forward to supporting this model and seeing it progress.”

Remagin’s involvement highlights the importance of local manufacturing in the delivery of large-scale affordable housing projects. By producing LGSF panels locally, the company has been able to support the Yorkshire economy while ensuring high-quality construction at reduced costs.

Patrick Balemans, Head of Division at Etex New Ways and Remagin, said:

“This project demonstrates how Modern Methods of Construction can be used to meet the increasing demand for affordable, energy efficient and high-quality housing. By manufacturing the panels at our Leeds facility, we’ve not only reduced build times but also contributed to the local economy and created jobs in the regional supply chain. We look forward to continuing our work on similar projects that combine speed, value and cost-efficiency.”

(L-R) Martin Brown, MD Special Projects, McCarthy Stone; Declan Fishwick, Business Development Manager, McCarthy Stone; Ruth Ryan, Assistant Director, Affordable Homes Programme, Homes England; Shahi Islam, Director, Affordable Homes Programme, Homes England; Rowena Clements, Associate Director, OPSO Programme, McCarthy Stone; John Tonkiss, CEO, McCarthy Stone

 

Sydney Grange is the first in a series of projects that McCarthy Stone and Remagin plan to deliver across the Midlands and the North, with a focus on addressing the growing need for affordable homes for older people. The use of MMC is expected to reduce construction timelines by up to 50%, while also offering sustainable, energy-efficient homes that lower ongoing costs for residents.

 

Source: Yorkshire Times

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BRIGGSAMASCO’S ‘MULTI-DISCIPLINE’ ROOFING PROJECT EARNS TOP HONOUR AT REVERED INDUSTRY AWARDS

BriggsAmasco has triumphed at this year’s NFRC Scottish Roofing Contractor of the Year Awards. Its teams’ outstanding delivery of a challenging waterproofing programme as part of the Central Quay residential development in Glasgow earned victory in the ‘Multi-Discipline Project over £250,000’ category.

BriggsAmasco’s success was announced at an NFRC finalists’ event held at The Grand Central Hotel, Glasgow awards on Friday 25th October. A record 270 contractors, suppliers and merchants from across the Scottish region attended the event, which was hosted by TV and radio personality Tam Cowan.

Tony Lawther, Managing Director at BriggsAmasco said:

“What a fantastic achievement. The NFRC Scottish Roofing Contractor of the Year Awards are incredibly well-regarded throughout the industry. To come out on top in a hotly contested roofing category is a real badge of honour for our waterproofing teams and the company as a whole.” 

The Central Quay programme comprised 35 roof areas across four steepling tower blocks totalling 3,323m2. The huge area was waterproofed by BriggsAmasco using the skillset of five different flat roofing activities: Bauder Bakor Hotmelt; Bauder Thermofol single-ply; Bauder Liquide, Bauder BTRS built-up felt roofing, and IKO Permascreed mastic asphalt levelling screed. It also included paving slab and ballast roof landscaping finishes, as well as a large podium deck 1870m2 over an underground car park.

Delivered to the highest standard with a zero-defect sign-off, the Central Quay project further showcased BriggsAmasco teams’ ability to overcome waterproof detail challenges and deliver a range of perfectly executed solutions using mastic asphalt.

Tony Lawther continued:

“I can’t speak highly enough of the incredible work carried out at Central Quay, one of the city’s newest and largest housing developments. Congratulations to all BriggsAmasco teams involved in the project.”

 

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If a Valencia Storm Rained on London, what would the impact be?

With Spain tackling its worst flooding disaster in modern history, several countries across Europe will be wondering – could we be next?

Scientists have long warned that climate change means extreme weather will become increasingly frequent and urged nations to be prepared.

So, how would London – home to almost nine million people and the economic centre of the UK – cope if a year’s worth of rain fell in a few hours, as it did in Valencia?

Although it’s difficult to know exactly how it would be impacted, experts have previously said the capital is far from ready for that kind of deluge and could suffer catastrophic consequences.

In January, for example, an independent climate research study, commissioned by London Mayor Sadiq Khan, deemed London seriously underprepared for severe flooding, as well as extreme heat.

The London Climate Resilience Review found a lack of planning will create a ‘lethal risk’ to the most vulnerable communities, the BBC reported.

And in 2021, the non-profit organisation Climate Central shared a worrying map showing which areas of London are particularly vulnerable to flooding and could be regularly underwater by 2030.

Areas of London expected to be regularly flooded by 2030 (Picture: Climate Central/Getty). Inset Valencia after the storm

The map allows users to explore coastal flood risk and sea level rise projections by decade for anywhere in the world.

Red is used to show areas that will likely be below water level by 2030 and don’t appear to be protected by dikes.

For Londoners, the picture looks bleak.

In West London, most of east Twickenham, Chiswick, Hammersmith and Fulham are covered in red by 2030 – as well asmuch of Kew’s Royal Botanic Gardens.

Almost all of East London could also find itself prone to flooding and sea-level rises, including Greenwich, Stratford, Rotherithe and East Ham.

Like the east and west, a lot of the land south of the river is low and flat.

Battersea, Deptford, Southwark, Camberwell and Peckham will all be vulnerable to flooding by 2030.

Areas in red in north London include Hackney Marshes and Walthamstow reservoirs around the River Lee.

The data is based on a scenario of moderate cuts to pollution, with even more areas covered in red if pollution goes unchecked.

The London Climate Resilience Review report said the capital’s main climate risks were rising sea levels, surface water flooding, heat, drought and wildfires.

Review chairwoman Emma Howard Boyd said at the time:

‘London has many good plans and programmes to prepare for climate hazards but we need to recognise that Londoners now face lethal risks, and a step change is needed.

‘Last year was the hottest on record and this is causing chaos and disruption all over the world.

‘London is not immune, as shown by the flash floods in 2021 and a 40C heatwave in 2022.

‘It’s time for the UK, led by its cities and regions, to take action and prioritise adaptation.’

In response Mr Khan said his latest budget proposed an additional £3m to ‘accelerate climate adaptation work’.

 

Source: Metro News

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Australia: Go Green or Miss Business Opportunity

Steel and concrete production collectively contribute to a staggering 15 per cent of global greenhouse gas emissions, a figure considered alarmingly high due to the sheer scale and ubiquity of these materials in modern construction.

The construction industry’s significant environmental impact has spurred a shift towards low-carbon alternatives, driven by increasing awareness of climate change and stricter environmental regulations.

However, these eco-friendly options come with higher production costs, primarily due to the need for specialised equipment, alternative raw materials, and innovative technologies such as carbon capture and storage.

Renewable energy plays a crucial role in producing green steel and concrete, but it often comes with higher initial costs. For instance, green steel produced using hydrogen-based direct reduced iron and electric arc furnaces (H2-DRI-EAF) can incur a ‘green premium’ of around US$225 per tonne when hydrogen is priced at US$5/kg.

Similarly, low-carbon cement using carbon capture and storage technology can be 75 per cent more expensive than conventional cement. However, it’s important to note that these increased material costs typically result in only modest price increases for end products, with estimates suggesting just a 1 per cent increase in the total cost of a house or car.

Despite the increased expenses, major consumers in the construction sector, including real estate developers, builders, architects, and other stakeholders, are increasingly willing to pay a premium for sustainable steel and concrete.

This stems from a combination of factors, including corporate social responsibility commitments, regulatory compliance, and the growing demand from environmentally conscious end-users who prioritise sustainable buildings and infrastructure.

A major report released at Climate Week NYC by Climate Group and Ramboll reveals a significant shift in the global business landscape towards sustainable construction materials. The study, which surveyed over 250 companies across 42 countries and 21 industries, found that nearly half of the respondents are willing to pay a premium for lower-emission steel and concrete. This ultimately signals a robust demand for sustainable options in these carbon-intensive industries.

The report also highlights that 78 per cent of surveyed companies anticipate these sustainable materials will become standard within the next decade, indicating a growing recognition of the importance of reducing carbon emissions in construction.

Despite the positive outlook, several barriers to widespread adoption remain — including cost, industry conservatism, and lack of knowledge. To accelerate the transition, businesses are calling for decisive government intervention through financial incentives, carbon pricing mechanisms, and minimum product standards.

Ramboll Director for Energy-Intensive Industries Anna Ekdahl noted that lowering steel- and concrete-related emissions requires more than massive investments in new production facilities alone, instead, it will require a realignment of the entire sustainable energy ecosystem.

“Grid owners will have to take on a more active role than ever before — government will have to shape financial incentives, designers will have to come up with new solutions, producers will have to make bold business decisions, and end users may need to accept a price premium until the market matures,” said Ekdahl.

Not making this transition to low-carbon steel and concrete poses significant environmental risks. Continued reliance on traditional production methods for these materials heavily contributes to global greenhouse gas emissions, exacerbating climate change and its associated impacts.

This inaction perpetuates the cycle of environmental degradation, including rising sea levels, more frequent extreme weather events, and biodiversity loss.

Conversely, embracing low-carbon alternatives offers substantial environmental benefits. By adopting innovative technologies and processes, companies can dramatically reduce their carbon footprint, potentially cutting emissions by up to 70 per cent in cement production alone. This shift not only mitigates climate change but also promotes resource efficiency, reduces air and water pollution, and preserves natural habitats. Moreover, the switch to low-carbon materials can promote broader industry changes, inspiring further innovations and setting new standards for sustainable construction practices.

Ultimately, the move to low-carbon steel and concrete represents a crucial step towards a more sustainable and resilient future, aligning industrial practices with global environmental goals — like the Paris Agreement.

Companies in the building sector that fail to embrace green steel or concrete risk significant competitive disadvantages in an increasingly environmentally conscious market. As sustainability becomes a key driver of consumer and investor decisions, firms that lag behind in adopting eco- friendly materials may find themselves excluded from lucrative projects and partnerships.

Government regulations and building standards are evolving to prioritise low-carbon construction, potentially leaving non-compliant companies ineligible for contracts. Furthermore, institutional investors are increasingly focusing on reducing emissions in their portfolios, which could impact funding opportunities for companies resistant to change.

The growing prevalence of green steel offtake agreements, particularly in Europe, demonstrates a shift in market dynamics that forward-thinking companies are capitalising on.

As the demand for sustainable building materials rises, those who fail to adapt may face higher costs due to carbon pricing mechanisms like the EU’s Carbon Border Adjustment Mechanism, further eroding their market position.

Ultimately, the transition to green steel and concrete represents not just an environmental imperative, but a critical business opportunity that companies cannot afford to ignore.

The transition to low-carbon steel and concrete is a critical step in the construction industry’s efforts against climate change, driven by increasing regulatory pressures and consumer demand for sustainable materials.

Companies that embrace this shift will not only contribute to significant emissions reductions but also gain competitive advantages in an increasingly sustainability-focused market.

 

Source: Build Australia

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£1bn Debt of ISG prompts more calls for Audit Reform

Construction giant ISG collapsed with debts over a billion pounds, newly published filings have shown, prompting fresh calls for audit reform.

ISG, which specialised in delivering government contracts projects like London’s velodrome, went bust in September after attempts to secure a rescue deal failed.

The demise of ISG was the largest and most significant collapse in the sector since the failure of Carillion, which went under in 2018 with arrears totalling £7bn.

Now, estimates made by company directors filed on Companies House show that ISG collapsed under debts of £981m. It also hadn’t fulfilled public sector contracts to build schools and prisons that were worth north of £1bn.

The revelations have given rise to fresh calls for reforms to be made to the UK’s accounting sector, after ISG was found not to have an internal auditing function in line with the Chartered Institute of Internal Auditors’ (CIIA) standards.

The CIIA has written to chair of the business select committee Liam Byrne and business secretary Jonathan Reynolds outlining its concerns about the structure and governance of ISG’s auditing process.

Labour MP Byrne told The Sunday Times that ISG’s collapse provided

“fresh evidence for why urgent reform of the British audit industry is now so essential”.

“Our committee will want to make sure the new Audit Reform and Corporate Governance Bill is fit for purpose, and that means learning the lessons from the shambles of ISG’s demise,” he added.

ISG was audited externally by MHA, and EY was appointed as its administrator.

EY was contacted for comment.

 

Source: CityAM

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Investment Boosts UK Energy Security

The U.S. has become recognised for rolling out the most far-reaching climate policy of any major world power to date. The Biden administration’s 2022 Inflation Reduction Act (IRA) introduced a wide range of financial incentives to support a green transition, which has helped attract billions in private investment in renewable energy and clean technologies. The EU and the U.K., which were expected to lead the green transition, have lagged behind the U.S. on climate policy over the last two years. However, the U.K.’s new Labour government is rapidly developing its green transition strategy, supported by strong climate policies, innovative energy initiatives, and financial incentives that could soon rival U.S. efforts.

The U.K.’s largest electricity supplier, Octopus Energy, has launched a new initiative to offer consumers a discount on their energy bills during times of favourable conditions for renewable energy production. So, when the wind is blowing more, the company offers consumers reduced-price electricity from its wind turbines. The company hopes this will encourage consumers to support wind turbine projects, as well as use energy in a more considered way. This is just one of the schemes being run by utilities and the government to demonstrate that a shift away from fossil fuels to renewable alternatives could help slash energy bills and have a better impact on the environment. 

One London-based start-up, Ripple Energy, is now inviting people to purchase a piece of a wind turbine in exchange for a discount on their electricity bills. Meanwhile, in Grimsby in the north of England, a local cooperative is investing in small-scale solar projects to help cut energy costs for charities in the area.

The U.K. has set ambitious climate targets but has been greatly criticised for not doing enough to meet these goals. The previous Conservative government pledged that all of the U.K.’s electricity would come from low carbon sources by 2035, as well as announced plans to increase offshore wind capacity five-fold by 2030, increase solar power capacity five-fold by 2035, and expand nuclear power. Yet, in February, U.K. ministers found themselves in court for a second time for failing to align the climate action plan with the government’s climate pledges, as well as filling the plan with ambiguities and loopholes.

However, since the Labour Party was voted into government in July, we have seen a significant shift in the country’s energy sector. In just over three months, Labour has launched a multibillion-dollar effort to reposition the U.K. as a global pacesetter for clean energy. In July, the government established a new publicly owned, clean-energy company –Great British Energy, which will own, manage, and operate clean power projects. In September, the U.K. government agreed to buy the electricity system operator from National Grid for around $816.8 million, further enhancing its role in the energy industry.

The government’s ambitious new energy initiatives are already helping to attract higher levels of funding from the private sector in renewable energy and clean tech. In September, Octopus Energy Generation announced plans to invest almost $2.6 billion in clean energy projects by 2030.

Zoisa North-Bond, the CEO of Octopus Energy, stated,

“The U.K. is on the verge of a green energy revolution.” North-Bond added, “This £2 billion investment in homegrown renewables will help boost our energy security and pave the way for a more affordable energy future… Solar and onshore wind are among the cheapest energy sources available. By building closer to demand, we can maximise green electricity when it’s abundant and lower bills for customers nationwide.”

In October, the government announced it had raised nearly $31.1 billion in private investment for pioneering energy projects. This came ahead of the International Investment Summit, which helped garner greater attention for sectoral growth in line with new government energy policies and climate pledges.

Following years of stagnation under the Conservative government, there have been significant strides in energy policy and clean energy incentives in recent months under the new Labour government. This is expected to attract high levels of private investment in the coming years and diversify clean energy investment beyond the U.S. market.

 

Source: OilPrice.com

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140 YEARS – Congratulations to George Barnsdale

 

GEORGE BARNSDALE CELEBRATES 140 YEARS OF CRAFTSMANSHIP AND COMMUNITY IMPACT

George Barnsdale, a highly respected manufacturer of premium timber windows and doors, is proud to announce its 140th anniversary.

Since its founding in 1884 by George Barnsdale, the family-run business has become a cornerstone of the Lincolnshire village of Donington, contributing to both the local community and the broader construction industry.

To commemorate this landmark anniversary, George Barnsdale is set to publish a special commemorative newspaper that details its rich history, milestones, and the significant impact it has had on both the local community and the timber industry.

A staff celebration will also take place, honouring the dedicated team whose hard work and craftsmanship have been vital to the company’s success.

The story so far

The journey began when a young George Barnsdale purchased a modest plot of land in Donington Market Place, establishing a small carpentry workshop that quickly garnered a reputation for quality craftsmanship.

Over the decades, the company, which offers a nationwide project management and installation service, has evolved significantly, transitioning from steam-powered machinery to advanced robotic technology, all while staying true to its roots and commitment to high quality timber products.

Impact on the local community

George Barnsdale has played an instrumental role in sustaining the local economy of Donington. By providing valuable, highly skilled jobs, the company has supported hundreds of families over the years.

The Barnsdale family’s involvement extends beyond employment; they actively contribute to local charities, educational initiatives, and community events, solidifying the company’s position as an integral part of

Innovative manufacturing practices

The company’s state-of-the-art factory is a testament to its dedication to quality, sustainability, and innovation. With a commitment to environmentally responsible practices, George Barnsdale takes pride in its proactive sourcing of timber from certified sustainable forests, ensuring that every piece of wood is traceable and responsibly harvested. The company also employs a multitude of energy-saving measures, including using recycled fuel made from timber waste to power its generator.

The factory is equipped with CNC-controlled machinery, humidity-controlled environments, and stringent glazing standards, ensuring that each product not only meets but exceeds industry expectations.

However, it is the significant investment of time and expertise in design and software setup that truly sets George Barnsdale apart. This commitment has enabled the company to efficiently adapt its range of products for precise customisation, allowing for the creation of unique, high-performance windows and doors tailored to individual client needs. Furthermore, George Barnsdale’s rigorous testing processes—including weather performance, security evaluations, and paint durability—ensure that its products deliver long-lasting performance with minimal maintenance.

A legacy of excellence

Throughout its 140-year history, George Barnsdale has embraced its role as a custodian of heritage buildings, ensuring their preservation for future generations. The company has been involved in numerous pan-European industry research projects, collaborating with organisations like the Building Research Establishment and the British Woodworking Federation to enhance the longevity and performance of timber fenestration.

Tom Wright, Managing Director of George Barnsdale, commented on the anniversary:

“As we celebrate this remarkable milestone, we reflect on our heritage and the strong ties we have with our community. Our legacy is not just about producing exceptional timber products; it’s about the people who make this company what it is. We are dedicated to maintaining our family values while continuously innovating to meet the needs of our customers. Our commitment to sustainability and excellence remains unwavering, and we look forward to another 140 years of success and community engagement.”

As the company looks to the future, it remains committed to its mission of uplifting communities and providing exceptional products that enhance the beauty and functionality of homes and businesses.

CLICK HERE

For more information about George Barnsdale and its 140th anniversary celebrations

 

 

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The Cost Drivers of Major Infrastructure Projects in the UK

The National Infrastructure Commission’s 2024 report, “Cost Drivers of Major Infrastructure Projects in the UK,” highlights a critical concern: infrastructure costs in the UK are significantly high. The report delves into the root causes of these costs and offers strategies to address them, thereby aligning with government ambitions for sustainable economic growth, competitiveness, quality of life and climate resilience. This article synthesises the report’s findings, focussing on the main issues affecting infrastructure projects to provide construction professionals, employers, contractors and project owners in the UK with a comprehensive understanding of the challenges and opportunities within the sector.

“Infrastructure projects in the UK have been plagued by high costs, with notable examples including High Speed Two (HS2), Hinkley Point C and the Elizabeth Line.”

Overview of Cost Challenges

For decades, infrastructure projects in the UK have been plagued by high costs, with notable examples including High Speed Two (HS2), Hinkley Point C and the Elizabeth Line. These projects have often been perceived as poor value for money, failing to meet budgetary and timeline expectations. The report highlights that whilst nuclear power stations, high-speed rail and rail electrification face particular cost challenges, these projects are not seen as performing well against international benchmarks. It is said that the UK has a “long tail” of poorly performing projects that can learn from more successful domestic and international examples.

Potential for Cost Reductions

Industry insights suggest that optimising design and adopting efficient construction methods could reduce project outturn costs by 20-40%. System-wide implementation of said opportunities could translate to cost reductions of 10-25% across a portfolio of enhancement projects. Given the increasing demand for infrastructure to support net-zero emissions, economic growth and climate resilience, the time to implement these cost-saving measures is now.

The NIC has, in its report, outlined four main stumbling blocks in the delivery of major infrastructure in the UK.

Lack of Clear Strategic Direction

One of the primary barriers to cost-effective project delivery is the lack of a clear strategic direction from the government. Successive administrations have failed to provide a stable, long-term infrastructure strategy with committed funding, undermining industry confidence and investment. The report highlights the need for a national infrastructure strategy that identifies long-term needs and prioritises projects with clear funding commitments. Such a strategy would enable stable investment environments and programmatic pipelines, allowing for continuous improvement and cost efficiencies.

Client and Sponsorship Challenges

“The UK’s construction sector is highly fragmented, with small firms facing productivity challenges.”

Infrastructure clients and sponsors play a critical role in project success. However, disjointed accountability and unclear roles between clients, sponsoring departments and HM Treasury have led to strategic incoherence, delays, and increased costs. The public sector faces challenges in retaining skilled client expertise and creating an environment conducive to learning and innovation. In contrast, it is said that private sector clients, with more autonomy and flexibility in recruitment, are generally better equipped to manage procurement and achieve desired project outcomes.

Inefficient Consenting and Compliance

The UK’s consenting and compliance processes are overly complex, leading to unnecessary costs and uncertainty. The average consenting time for major infrastructure projects has doubled over the past decade, with unclear standards and risk-averse behaviours driving up costs. The report calls for reforms to streamline the planning system, reduce delays, and improve clarity on standards to facilitate more efficient project delivery.

Constrained Supply Chain

The lack of strategic clarity and a coherent investment programme has hindered the construction sector’s capacity to invest in future capabilities. The UK’s construction sector is highly fragmented, with small firms facing productivity challenges. A clear strategic direction from the government is essential to enable the sector to invest in skills, innovation and productivity improvements.

Conclusion

The National Infrastructure Commission’s report offers a comprehensive analysis of the systemic issues driving high infrastructure costs in the UK. Addressing these challenges requires a coordinated effort between the government and industry, focussing on clear strategic direction, effective client and sponsor management, streamlined consenting processes and a proper and robust supply chain. By tackling these root causes, the UK can realise the potential for lower-cost and more efficiently delivered infrastructure, supporting the nation’s economic, environmental and social objectives.

The report notes, that efficiency can only be improved in the construction of infrastructure projects if other changes in the system are also made at the same time. Government must provide a clear strategic direction and long-term funding to enable investment. Leading from this, we should see continuous improvement and pipeline effects which will deliver visible efficiencies at construction stage. In addition, clients and sponsors must get better at managing the project risks and trade-offs up front, including avoiding setting a budget too early before ensuring that the desired outcome is deliverable within the desired budget. Finally, it has been discussed widely that procurement reforms (with the new Procurement Act 2023 coming into force on 24 February 2025) cannot come soon enough. If we continue to crush the industry with unrealistic pricing expectations, we will never achieve our long-term goals.

Source: Watson Farley & Williams

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