The latest NFRC State of the UK Roofing Industry survey, covering the first quarter of 2024, provides welcome positive news for the roofing sector. The results show overall roofing contractors’ workloads and enquiries continuing to increase in the first three months of the year, with further rises expected over the next 12 months. However, it also reveals that some long-term challenges persist with regards to late payment, recruitment and material costs.

 

The quarterly survey of National Federation of Roofing Contractors (NFRC) Members tracks key indicators such as workload, recruitment, material availability and costs across all regions of the UK. It also looks at trends within both new build and repair, maintenance and improvement (RM&I) across the public, commercial and residential sectors.

 

Work and enquiries continue to improve

One of the key findings of the latest survey is the continued growth in the demand for roofing services. Overall, a balance of 25 per cent of respondents to the survey reported improved workloads in the first quarter (41 per cent reporting an increase minus the 16 per cent reporting a decline). This marks a significant rise from the 15 per cent balance figure from the previous survey. Increased levels of enquiries for new work were reported by a similar proportion of respondents, with a balance of 27 per cent.

 

The RM&I sector of the industry had the greatest increases in work, with public, commercial and domestic RM&I all showing strongly positive balance figures of 34 per cent, 32 per cent and 29 per cent respectively. The Members’ outlook was also generally positive for the next 12 months, with 72 per cent foreseeing an increase in work over that period and only 8 per cent expecting a decrease.

 

The Yorkshire and North East region showed the strongest growth in workload, with 43 per cent overall reporting an increase. This was followed by the North West and Scotland regions with balance figures of 34 per cent and 33 per cent reporting increases respectively. However, the survey also highlighted areas of the UK with less positive market conditions. For example, among those in Wales, 50 per cent said they had experienced a decrease in workload with no respondents reporting an increase.

 

Challenges remain for the new build sector

The results of this latest survey highlight the continued low levels of activity in residential new build. Among the survey respondents that operate in this sector, 29 per cent reported that their workload had reduced from the previous quarter with just 17 per cent saying it had increased. This negative balance figure of -12 per cent, compared with -10 per cent in the previous quarter, indicates a worsening picture for this area of the industry. While performing slightly better, the public non-residential new build and commercial new build sectors showed only marginal increases in workload (3 per cent and 2 per cent on balance respectively) in the first quarter.

 

Skills shortages persist

While employment levels remain stable, a further finding of the State of the UK Roofing Industry survey was the reported problems in recruiting the required skilled people. In fact, 53 per cent of firms experienced greater difficulty employing in the first quarter. This is a sizeable increase from the 44 per cent in the fourth quarter of 2023. Roof Slater and Tiler was found to be the most challenging role to fill, with 40 per cent of businesses experiencing issues.

 

Late payment and rising costs

One of the biggest issues for NFRC Members remains the late payment of invoices. While improvement have been made, only 37 per cent of respondents that have 30-day payment terms with their clients were, on average, paid within that period. Similarly, of those with payment terms of 46 days or more, only 25 per cent reported this was the average time in which they received payment.

 

While Members indicated continued improvements in the availability of materials, many are experiencing significant material price inflation, with 58 per cent reporting increased prices in the first quarter of the year. A similar proportion (57 per cent) stated they had seen labour costs rise since the start of 2024.

 

Commenting on the results of the latest State of the UK Roofing Industry survey, James Talman, NFRC CEO said: “At NFRC, we are pleased to see the green shoots of recovery and growing demand in our industry. While some challenges remain, and not every sector is seeing the same boost in workload and enquiries, the continually improving market conditions in recent months shown by the survey findings is a cause for real optimism.

 

“With a general election set for the beginning of July, these findings also highlight the priorities for any future government wishing to support the vital work of the construction industry. This includes long term commitment to the public sector pipeline, expansion of the RM&I sector in tackling energy efficiency, as well as working closely with the industry to reinvigorate the residential new build sector alongside tighter legislation on prompt payment, which is so vital to SME and sole trader businesses.”

CLICK HERE FOR THE FULL REPORT

 

Image Network Rail

Using rail freight to move construction materials could boost Manchester’s economy and help the city region meet its environmental goals – that’s the message from a new industry report calling for support from the Government and Network Rail .

The Mineral Products Association (MPA) and the Rail Freight Group (RFG) want to encourage more use of rail rather than road to move materials such as aggregates and cement, used in construction.

Their new publication, Building Better with Rail Freight in Greater Manchester, says rail freight typically produces 76% less carbon dioxide than the equivalent road journeys, while a single aggregates train can carry as much as 125 lorries.

The MPA says its members supply around 200m tonnes of aggregates and 9m tonnes of cement each year to meet UK demand. But just 10% of those materials are transported by rail.

While that makes mineral products the second largest market segment on the rail network after containerised freight, both the MPA and the RFG say there is a

“huge opportunity” to deliver more of those materials by rail – cutting lorry miles, traffic congestion and carbon emissions.

The report sets out how local and national government, alongside Network Rail, can support those ambitions. It suggests measures including:

  • Putting freight at the heart of future rail policy
  • Commitment to a long-term programme of rail electrification to encourage private sector investment in electric rail freight
  • Prioritising timetabled slots for freight – and optimising timetables to allow for longer freight trains
  • Affordable track access charges
  • Protecting freight land, railheads and depots for future use
  • Safeguarding the operation of strategically important railheads and depots from
  • new housing developments nearby, securing the land for future use
  • Safeguarding rail-connected terminals and depots near city and town centres in future housing and regeneration plans, so building materials can still be delivered near to key construction sites

The report also includes case studies of local firms using rail freight, including the upgraded Cemex railhead at Salford which receives aggregates from Dove Hole quarry in Buxton. It also notes Tarmac’s three Greater Manchester railheads at Agecroft, Ashbury and Bredbury, which import hardstone and limestone aggregates from four Northern quarries.

Maggie Simpson, director general of industry body the Rail Freight Group, said:

“Greater Manchester has one of the fastest growing economies in the UK, and is seeing investment in new homes, offices and infrastructure. Rail freight is already helping to minimise the carbon emissions of this construction, and with the right policy environment in place our members will be able to transport more products by rail into the region, reducing the number of lorries on our roads.”

The MPA is the trade association for the aggregates, asphalt, cement, concrete, dimension stone, lime, mortar and industrial sand industries. It has some 520 members including most independent SME quarrying companies in the UK, as well as the nine major global players in the sector.

Robert McIlveen, director of public affairs at the MPA said:

“Rail freight is an environmentally efficient way for MPA members to deliver aggregates and cement to city centre locations where they are in the greatest demand. We would love to see the market for materials by rail grow to allow the industry to supply more materials in a more efficient and environmentally friendly manner and we hope that government policy will help to deliver more desired outcomes for all.”

Source: MSN

 

 

 

Despite a recent polling of Buckinghamshire residents which showed overall support for the proposal, the council has refused planning permission for Marlow Film Studios, a £750m project supported by Sam Mendes, Pippa Harris and James Cameron.

Conducted on behalf of the film studios. The survey covered a sample of 500 Buckinghamshire residents, including 152 residents living within 5 miles of the proposed development.

Citing the creation of 4,000 new jobs, investment in the local road network, public transport, and the development of a new public recreation space, four fifths (79%) of Bucks residents surveyed support the building of the film studio in Marlow, with just 11% in opposition. This resounding support is retained within the 5-mile radius of the proposed site, where 78% support against 17% opposed.

At a meeting of the council’s Strategic Sites Committee, the plans were rejected after concerns were raised over the impact on the local road network and the use of greenbelt land for development. An initial decision was deferred by councillors in October 2023.

Other industry figures who voiced their support for the project included Andy Serkis; producer Gareth Ellis-Unwin; former BFI CEO Amanda Nevill; American Film Institute chair Howard Stringer; and CEO of global drama at Fremantle, Christian Vesper.

Speaking to the BBC, Robert Laycock, chief executive of Marlow Film Studios, said they were considering their next steps.

The proposals were for a 36-hectare plot built upon a former landfill site.

Buckinghamshire is already home to Pinewood Studios, which was approved for an extension last this year, as well as Wycombe Film Studios which is in the midst of development.

 

Source: ScreenDaily

Up to 150 school workers and pupils are at risk of death or fatal exposure from asbestos each year as current plans to fix the UK’s crumbling schools fail to address the deadly building material, experts have warned.

A group of leading health charities, professional bodies, unions and campaigners has accused Rishi Sunak’s Government of “abandoning” attempts to deal with the “schools asbestos crisis”.

Asbestos was banned in 1999 but was used extensively in England from the 50s to the mid-80s. In February 2017, the Department for Education published a report that found 83 per cent of English state schools reported that asbestos was present in their school estate.

The group – made up of the British Occupational Hygiene Society (BOHS), Asbestos victims’ groups, Mesothelioma UK, and education unions – are calling on the next government to take more robust action and set a deadline for the complete removal of asbestos from all schools.

They estimate that current plans will mean that 15 school workers in the UK will die annually from exposure and cite US research on asbestos which suggests that this means 135 pupils will be fatally exposed to asbestos each year.

The data from the Environmental Protection Agency in the US revealed that for every teacher dying from mesothelioma, an incurable cancer which can develop decades after asbestos exposure, nine pupils would die in middle or old age.

In a joint message, the group said the current school rebuilding plan “fails to address the growing risk to teachers, workers and pupils” and criticised data collection methods used to assess buildings which, according to government documents, do not report on hazardous materials, principally asbestos.

The experts said the Department for Education (DfE) has effectively “ceased to monitor” the condition of asbestos in schools and hope to put pressure on political leaders to act ahead of the election.

The Government argues that asbestos management in schools and other buildings is regulated by the Health and Safety Executive (HSE).

Asbestos is the biggest cause of work-related deaths in the UK, according to the HSE. Around 5,000 UK workers a year die from asbestos-related diseases including mesothelioma.

Data from the Office for National Statistics (ONS) shows that 371 teaching and education professionals died from mesothelioma from 2010 to 2020.

The Joint Union Asbestos Committee (JUAC), representing teaching unions, estimates that between 1980-2017 between 5,000 and 10,000 school pupils and staff died from mesothelioma due to asbestos exposure in their former schools from the 60s-80s.

Wendy Gregory, 68, a former teaching assistant who was diagnosed with mesothelioma after being exposed to asbestos at a primary school in the 80s and 90s, told i it was “absolutely devastating” that teachers and pupils were still at risk.

Liz Darlison, the chief executive of charity Mesothelioma UK, said:

“We have demonstrated that the incidence of the disease amongst school and health workers is far higher than reported.

“Clearly, management of asbestos in situ isn’t working for a variety of reasons. Not least because what is assessed as safe on the day of inspection can change immediately in a high throughput environment.”

In a joint statement, the group criticised the way in which the DfE currently collects data on the physical condition of the 22,000 schools in England.

A Commons Committee of Public Accounts report on reinforced autoclaved aerated concrete (RAAC) in November said the DfE had “incomplete knowledge” of asbestos in schools.

The “unexpected presence of asbestos” had complicated ongoing work to address RAAC, the committee said, as it called for DfE evidence it has “a full picture of asbestos across the school estate”.

Professor Kevin Bampton, chief executive of BOHS, said the Condition Data Collection (CDC) methodology does not automatically prioritise asbestos and the risk is only considered when raised as an exceptional factor.

This could mislead schools returning CDC information and was unlikely to prevent future deaths, he said.

He believes the current approach of leaving asbestos where it is “is storing up poison for the future”.

“My children go to a school with an asbestos problem. It’s too late for me to prevent them from having been exposed,” he said.

“My daughter literally has an asbestos sign in her bedroom which was blowing around the playground.

“But I definitely don’t want my grandchildren to be still dealing with this problem when asbestos in schools is in an even worse condition.

“Asbestos is not a problem of the past, any more than climate change is. It is a deadly legacy, we bequeath future generations, if we don’t act now.”

For a school to be eligible for exceptional school funding, the asbestos must have already caused an exposure risk or be in a condition that would cause a direct risk to human health, the group said.

The experts are calling on any future government to commit to legislation for a national action plan for asbestos management and a deadline for removal from schools.

Sarah Lyon, a National Education Union lead on asbestos, said: “The odds are stacked against schools successfully bidding for a rebuild, with so many hoops to jump through (the guidance seems to be suggesting that people have to have been put at risk by exposure before action will even be considered) and removal would be cost effective.”

The group also want a publicly available register of asbestos in schools, including information about condition, risk and management plans.

Other demands include ensuring school workers who are likely to have been exposed to asbestos are properly trained, and that governors and parents are given information and training on asbestos.

The Faculty of Asbestos Assessment and Management (FAAM), the professional body for those managing asbestos risks, is concerned that teachers are being left to fend for themselves.

Jonathan Grant, chair of FAAM, said:

“Asbestos management requires complex risk assessment and constant vigilance.

“Less than 2 per cent of maintenance and other workers in schools who might need to disturb asbestos had appropriate training and 13 per cent did not even have asbestos awareness training.

“That’s like putting someone in a minefield, but not giving them a map.”

The HSE says annual deaths from mesothelioma are expected to decline during this decade, as asbestos has been banned for almost 25 years and legal protections are in place.

A 2022/23 HSE inspection campaign of more than 400 schools showed that the majority of schools were managing asbestos safely, the HSE said, with inspections on compliance in schools and elsewhere ongoing.

But Charles Pickles, an asbestos campaigner, said it would take hundreds of years to rid schools of the “toxic carcinogen” unless the UK planned to remove asbestos from buildings.

“The general message is that we don’t want to panic parents and pupils at a time of declining school attendance,” he said.

“However, that message is also being used to undermine accountability and bury the issues. It’s also patronising to suggest parents should be kept in the dark about a genuine risk to their children’s health.”

The DfE says responsible bodies could nominate schools for the School Rebuilding Programme, including evidence where asbestos could no longer be effectively managed, with schools and local authorities responsible for keeping buildings safe.

The department said it follows HSE advice that provided asbestos-containing materials are in good condition, and unlikely to be disturbed, it is generally safest to manage them in place.

Source: iNews

Lendlease is stepping away from the UK and selling its overseas construction business in order to focus on its Australian operations.

The New South Wales-headquartered developer is looking to free up AD $4.5bn (£2.35bn) of capital, to pay down debt and realise value for its security holders.

Profits had dropped by more than a third in the year up to June 2023 for Lendlease’s UK arm, adding to a difficult four years where the share price has fallen by nearly half.

Lendleases regional management structures are now set to be removed over the next year and the construction business will be solely focussed on Australia by the second half of 2025.

However, the developer says it remains committed to its UK projects, including the £1.9bn Smithfield scheme, and is hoping to secure planning permission as soon as possible.

The company’s European chief executive officer Andrea Ruckstuhl told Estates Gazette that the business was not “stepping away from any of our projects in Europe” but in some instances, they might look to “sell some of the plots” to other developers and investors.

The huge project in Digbeth is set to provide 82,000 sq m of office space, 3,079 apartments and 44,000 sq m of retail when complete.

Plans include a new home for the city’s historic Bull Ring markets, new leisure and cultural spaces, including a festival square and landscaped park.

Birmingham City Council planning officers deferred their decision on the Smithfield masterplan again this month.

Concerns were raised over the scheme’s open spaces and the connectivity currently proposed, causing another setback.

Objections from Historic England and pending changes to fire safety regulations meant Lendlease already revised plans that were submitted at the end of January.

Group chief executive Tony Lombardo said:

“This new Lendlease will be more easily understood by our people and customers, and transparent and predictable for security holders.

“By reshaping the portfolio, concentrating on our core competencies in markets where we have proven we have the right to play, and the competitive advantage to win, the financial and operational risk profile will be lower, and we believe the quality of our earnings (will be) ultimately higher and more sustainable.”

Lombardo reassured that Lendlease would not walk away from existing commitments and would “treat our people around the world with the care and respect they deserve as our business changes.”

But he said the restructure would be a “profound change” that has been based on “some very tough but necessary decisions”.

 

Source: The Business Desk

THE Chartered Institute of Building (CIOB) has launched its manifesto ahead of the General Election, outlining how a future UK Government can support the built environment sector. 

The manifesto, entitled ‘CIOB’s Manifesto for the Built Environment – Opportunities for future proofing the construction industry’, covers four key themes; Environmental Sustainability, Quality and Safety, The Future of Construction, and People and Skills.

It outlines short, medium and longer term policy recommendations to address some of the  challenges facing construction and society including late payments to supply chains, skills shortages, better opportunities for SMEs, and improving diversity and inclusion in the sector.  

Caroline Gumble, CEO at CIOB, said,

“Now the date for the UK General Election has been confirmed, we’ve launched our manifesto so we can engage with prospective parliamentary candidates while they’re developing their own campaigns. Candidates come from a range of backgrounds and don’t always understand the complexities and importance of the built environment sector, which is a major economic driver so it’s down to us all as the experts to educate them.

“It’s important they know what support is needed to enable the industry to play its part in creating a safe and sustainable built environment for everyone.”

CIOB’s manifesto recommendations are: 

Environmental Sustainability                

·       Develop and implement a green skills fund 

·       Adapt building regulations to include whole life carbon assessments  

·       Develop and implement a national retrofit strategy 

Quality and Safety   

·       Review the voluntary status of consumer codes for new-build housing 

·       Provide fairer opportunities for SME housebuilders 

·       Reform the current Land Value system 

Future of Construction 

·       Tackle late payment culture 

·       Develop and implement a strategy for Modern Methods of Construction 

·       Use geographical clustering to level up the UK 

People and Skills 

·       Include EDI (Equality, Diversity and Inclusion) commitments in public sector contracts 

·       Overhaul of the Apprenticeship Levy 

·       Introduce a Built Environment GCSE 

Alongside the manifesto, CIOB will also be launching a dedicated election page on its website for members to stay updated on key dates, election candidates, and what the political parties are saying in their own manifestos about the built environment. 

Caroline added, “I strongly encourage CIOB members to use this manifesto and our online resources to engage with those standing for election in the constituencies they live and work in to help push construction further up the political agenda.”

 

DOWNLOAD THE MANIFESTO HERE

Biobased building materials less sustainable than concrete in South Africa, experts find

Scientists at the University of Bristol have discovered that mycelium composites, biobased materials made from fungi and agricultural residues, can have a greater environmental impact than conventional fossil-fuel-based materials due to the high amount of electricity involved in their production.

In the findings, published today in Scientific Reports, the team show that this is further exacerbated in countries like South Africa where fossil fuel is the main source of electricity. This isn’t helped by mycelium composites’ shorter lifespan and the need for multiple replacements over the duration of long-term applications, thereby increasing their overall environmental impact.

Despite this discovery, they also concluded that the overall potential damage on the environment caused by this technology can be mitigated by incorporating alternative energy sources like firewood.

Lead author Stefania Akromah explained:

“Mycelium composites are considered a sustainable alternative to traditional fossil fuel derived materials.

“However, the sustainability of these materials depends on various location-specific factors like resource availability, economic structures, cultural practices, and regulations.

“Our main focus was to determine if producing mycelium composites is sustainable in Africa and to identify which manufacturing processes have the most potential to damage the environment.”

Now the team plans to evaluate the environmental impact of mycelium composite technology under various scenarios aimed at reducing the overall footprint, to conduct uncertainty analysis to verify the accuracy of the current results, and to compare the footprint of mycelium composites with other emerging green materials that are or could be used in Africa. Additionally, they are also looking to investigate the economic feasibility and social implications of the technology to provide a comprehensive evaluation of its sustainability.

Stefania continued:

“Africa faces heightened vulnerability to climate change impacts owing to its limited financial resources, making it crucial to mitigate these impacts as much as possible.

“This study offers valuable insights that can be used to proactively address the potential impact of this technology on the environment and human health.

“It was interesting to find that even a technology that is generally perceived as sustainable can sometimes have a greater environmental impact than conventional fossil-fuel-based materials. This highlights the importance of life cycle assessment studies and the need to carefully consider all factors, including energy sources and lifespan, when evaluating new materials.”

“Stefania’s work just demonstrates that it’s important, when conducting Life Cycle Assessments, that geographical considerations, and cultural practices, are taken into account, to calculate sustainability.

“The right decisions can then be made to ensure that manufacturing has as low an impact as possible, while also contributing to local economies and African livelihoods” said Professor Steve Eichhorn, Director of the Centre for Doctoral Training in Composites, Science and Manufacturing (CoSEM) – from which this study was funded.

The research was conducted using a life cycle assessment (LCA) methodology following the ISO 14040 and 14044 standards for evaluating the environmental impact of materials or processes.

 

Building Liability Orders (BLOs) are a new type of order that the High Court has the power to make under s.130 of the Building Safety Act 2022 (BSA), if it considers it “just and equitable” to do so.

Since BLOs are a novel remedy, there is very little guidance about how the courts will apply the “just and equitable” test or, indeed, about how a BLO application should be made in practice. A recent High Court ruling has provided some welcome guidance on a number of practical aspects, such as:

  • At what stage in proceedings should a BLO application be made?
  • Who may apply for a BLO?
  • What factors might the Court consider in deciding whether it is “just and equitable” to make a BLO?

In this update, we examine the background to this case and the key takeaways.

What is a Building Liability Order?

The policy intent behind the introduction of this new type of order is to prevent developers from escaping liability for building safety defects by setting up thinly capitalised special purpose vehicles (SPVs) to carry out developments. It has been common practice for such SPVs to be wound up following completion, thus allowing their well-capitalised parent companies to avoid long-term liability for any defective works.

BLOs will target this scenario, by extending a “relevant liability” of a body corporate (Party A), so that it will also be a liability of an “associated” body corporate (Party B). In the event that a BLO is made, Parties A and B will then be jointly and severally liable for the relevant liability.

A “relevant liability” is a liability incurred either:

  • under the Defective Premises Act 1972 (DPA 1972);
  • under section 38 of the Building Act 1984 (BA 1984) – if and when this is brought into force; or
  • as a result of a “building safety risk”.

A “building safety risk” is defined as “a risk to the safety of people in or about a building arising from the spread of fire or structural failure”. This has broad scope: while claims under the DPA 1972 are limited to dwellings, liability as a result of a “building safety risk” encompasses a wide range of potential liabilities, including in respect of non-residential buildings.

Background to the recent decision

The case of Willmott Dixon v Prater and others concerns alleged fire safety defects in the design and construction of the external wall system (EWS) at a mixed-use commercial and residential property development in London. Willmott Dixon is seeking to recoup the cost of fixing the defective EWS by claiming around £47 million from its supply chain.

This includes claims against the specialist cladding and external envelope contractor Prater Limited (Prater), its guarantor and parent company Lindner Exteriors Holding Limited (Lindner), the architects, the building services engineers and the approved inspectors. They all deny any liability.

One of the co-defendants has applied for BLOs against both English and German-registered companies within the same corporate group as its other co-defendants, Prater and Lindner. Based on publicly available information, the applicant alleged that both Prater and Lindner had largely disposed of their assets, transferring them to other companies within their corporate group in the period after Willmott Dixon’s claim against them was filed.

If ordered, the BLOs will make the additional Lindner Group companies responsible for liability attributed to Prater or Lindner in the main claim.

The issue before Mrs Justice Jefford DBE related to the application by the Lindner Group companies for a stay on the BLO claim until the main claim was resolved. They submitted that it would be unfair for them to have to deal with the BLO claim until the question of whether Prater and Lindner were liable had been resolved, and/or whether they would discharge any resulting liability.

Technology and Construction Court decision

Mrs Justice Jefford DBE rejected the application for a stay. Notably, she found that:

  • A party seeking a BLO was not obliged to bring its claim at the same time as the primary claim against a related company, whether or not such a party existed at the time of the project or the time of the proceedings.
  • However, if the company did exist at the relevant time and the BLO was claimed before the resolution of a main claim, it would appear that the correct approach would be to have the BLO application heard and dealt with at the same time as the primary claim. Any burdens or difficulties with ensuring that the Defendants to the additional claim were afforded a proper and cost-effective opportunity to deal with it could normally be dealt with by appropriate case management.
  • On proper analysis of the legislation, BLO claims would normally raise issues that did not necessarily arise in the main claim – but resolving those issues would typically involve consideration of much of the evidence relevant to the main claim. It would, therefore, seem unnecessary and unsatisfactory to have the court deal with the same/similar issues, which might involve considering evidence already on record more than once and/or require further evidence on much the same issues.
  • BLO claims are claims contingent upon the liability of others and these contingent claims (such as claims for a contribution, or claims under guarantees) are the norm, not the exception, in sophisticated litigation – and claims for BLOs are no different.
  • A BLO claim does not only arise and/or is made if the company facing the main claim failed to pay – a failure to pay was (and still is) not a pre-condition under the BSA.
  • BLOs may be sought by defendants to building safety claims, and not just by claimants.

In light of the above, Mrs Justice Jefford DBE declined to agree to a stay of proceedings and rejected the application, then set directions for the additional claim (including deadlines for remaining Defences and an initial case management conference).

Just and equitable?

A few notable points from the arguments – which it will be interesting to follow when the BLO applications are heard in full – included:

  • First, the court noted during argument that it was entirely possible in an appropriate case that it would be “just and equitable” to impose a BLO on related companies where the primary company had disposed of assets – even if such disposal was entirely innocent and not done to “asset strip” that company; and
  • Second, one of the companies facing the claim for the BLO expressly relied both in its pleaded Defence and in its submissions to the court upon the fact that Prater and Linder (the Defendants in the main claim) had valid and effective professional indemnity insurance, which would serve to meet, at least in part, the claim made against them.

Key takeaways on the use of Building Liability Orders

There are very limited circumstances in which the courts will look beyond the separate legal personality of a company and ‘pierce the corporate veil’. However, the granting of a BLO (as well as certain other provisions of the BSA, which we examine separately) will do precisely that: it will allow for the corporate veil to be ‘pierced’ by extending liability for defective construction works and/or design services to “associated” entities, such as parent or group companies.

This is thought to be the first judgment considering BLOs and, therefore, provides welcome guidance on some of these points.

How this guidance will be applied in practice will be seen as the case proceeds to full trial and the BLO applications are heard. Applications for BLOs have also been made in a number of other cases and it is expected that several of these will make their way through the courts this year.

 

Source: Mondaq

 

UK grid poses the biggest challenge for renewable energy developers. –  At a recent networking seminar hosted by Vattenfall IDNO UK, developers representing PV and BESS projects flagged grid issues as the primary obstacle to achieving the UK’s fast-approaching net zero deadline. 

Hitting net zero emissions by 2050 is a formidable goal, but for many developers in the energy sector, one challenge looms larger than most: the UK’s archaic power grid. This key insight emerged from Vattenfall IDNO’s recent networking seminar in London, where 95% of the 20 developers highlighted grid-related issues as their primary obstacle.

The Electricity Grids and Secure Energy Transitions report by the International Energy Agency (IEA) underscores that globally, grids are struggling to keep pace with the rapid progress in renewable energy development. This revelation highlights the urgent need for modernisation of grid systems, many of which haven’t been updated since the 1960s and are unable to adequately manage the fluctuations in supply from renewable energy generation.

“When it comes to working on a new project, the grid is definitely the biggest hurdle to overcome,” shares Ian Chisholm, Head of Greenfield Development at Vantage RE. “Starting from timeframes for a connection and finishing with a lack of flexibility on the Dependent Network Operator (DNO) side when it comes to decisions over cable routes, design decisions, or selection of equipment.”

Capacity constraints are another major obstacle, with many renewable energy developers being told by their local DNOs that they must wait in a 15-year backlog of applications before being considered for a connection to the grid. Hamzah Ahmed, Network Infrastructure Lead at Amberside Energy, points out: “The grid often lacks the capacity to handle the influx of renewable energy. This results in bottlenecks that delay projects and increase costs.”

For everyone in the energy sector, this is not breaking news but a frustrating, daily reality. The more important question is how renewable energy developers can thrive given the circumstances. According to McKinsey, achieving net zero will require extensive investments from both governmental and private funding. This includes scaling up renewable energy capacity, such as offshore wind and solar installations. Earlier this year, Ofgem and the UK government set out a plan for reforming grid connections and regulatory policy. While promising, these are long-term projects, and businesses can’t afford to wait. So, what is the solution?

Tangible opportunities and solutions 

Historically, developers had to gain grid connections through the local DNO in the regions where they develop projects. But now, to introduce competition and reduce costs, Ofgem allows Independent Distribution Network Operators (IDNOs) to develop, operate, and maintain local electricity distribution networks across Great Britain.

Vattenfall IDNO, with over 100 years of specialist grid infrastructure knowledge, has energised more than 50 commercial grid connections, significantly benefiting renewable energy developers through competitive asset adoption values and other techniques that free up Capital Expenditure (CAPEX) and expedite project connections. Their Grid Connections Consultancy helps developers obtain grid connections faster while reducing costs. Services include reserving grid capacity, assessing design requirements, negotiating with landowners, and conducting compliance audits. Additionally, Vattenfall IDNO offers asset adoption payments for adopting new grid connections, freeing up funds for developers to reinvest.

“At Vattenfall IDNO, we recognize the urgency of achieving net-zero goals, and that many businesses find it challenging to manage the intricate process of securing grid connections,” says Stewart Dawson, Managing Director of Vattenfall IDNO. “Understanding how we deliver value engineering, and alternative solutions which make difficult projects feasible is pivotal for renewable energy developers looking to drive business growth and sustainability, and especially important for the UK’s net zero targets.”.”

Developers’ POV 

Developers at Vattenfall’s seminar stressed that without a stable policy environment, uncertainty will deter potential investors and delay crucial projects. Additionally, they called for enhanced resources for DNOs. “By increasing the capacity and resources of DNOs, the industry can better manage the growing demand for grid connections. This includes streamlining processes and boosting workforce capabilities to handle the surge in renewable projects efficiently,” shares Dan Sanderson, Technical Manager at Exagen Group.

Technological advancements were another focal point. Implementing smarter grid technology and long-duration energy storage solutions can significantly enhance grid capacity and flexibility. These technologies are vital for balancing the intermittent nature of renewable energy sources and ensuring a stable energy supply. Developers emphasized the importance of collaborative innovation, where solutions are developed and deployed through partnerships between developers, technology providers, and Independant Distributions Network Operators to overcome current grid infrastructure challenges, leading to a more resilient and efficient energy system.

Collaboration is key   

When it comes to tackling the grid hurdle, the importance of innovation and partnerships between developers and energy experts cannot be overstated. The journey to net-zero is demanding but, with the right strategies, the UK can achieve its ambitious goals.

Several schools have been told by the Department for Education that building repair funding they had won approval for will now be put on hold, Tes has learned.

An academy trust that had two bids for Condition Improvement Fund (CIF) cash approved in March this year has now been told by the DfE that this funding has been put on hold while a “due diligence process” is carried out.

The trust, which preferred not to be named, said the call came from the DfE today – just days before contracted work was due to begin on its school site.

Staff said contractors has been lined up to start work on their projects this weekend. These projects were said to be fully funded by CIF money totalling hundreds of thousands of pounds.

Tes understands that several other academy trusts have received similar calls from the DfE’s capital team.

The Confederation of School Trusts (CST) said that it was aware the issue had affected several trusts and has raised concerns at “the highest levels of the DfE”.

School told to ‘get legal advice’ on building work

An executive at the trust that did not want to be named said: “We’re waiting for confirmation to see if the contractors have already bought the materials and therefore have made a financial commitment.

“I asked the person I spoke to over the phone [at the DfE] what I should do if they have made a financial commitment and he said, ‘I suggest you get legal advice.’”

The trust executive told Tes they asked the DfE if it would be contacting the third-party company that wrote the bid for the trust, and were told that it would not.

Academy funding consultant Tim Warneford told Tes: “I have been contacted by several fellow consultants whose schools have received similar phone calls from the DfE telling them the release of their funding has been put on hold.

“This has left those academies who had had accepted the terms and conditions of their CIF award, and who had subsequently entered into contracts with appointed contractors, feeling very vulnerable, especially where surveys and works have commenced or were due to start during next week’s half-term.”

A spokesperson for the CST said: “The CST has heard from several trusts that the timing of these decisions to put CIF funding on hold is causing them significant issues, including some projects where work was scheduled to start in just a few days’ time. This work had already been approved and trusts need urgent details on the reasons for this change.

“We have raised these concerns at the highest levels within the DfE and will continue pressing them for a swift resolution so trusts can get on with this desperately needed work, and for reassurance that trusts will not be left out of pocket through no fault of their own.”

A consultant at a company that puts CIF bids together for trusts said “quite a few clients” had contacted the company having received calls from the DfE – though not all of the trusts it had bid for.

“They are being told this is an additional due diligence step,” the consultant said.

He added that some school trusts are being asked how far along they are in terms of the process and to send details to the DfE about what work they have committed to having done through CIF funding.

The consultant added that some of the company’s clients had been told they would receive a letter tomorrow with further details.

“They’re being told any costs that have been incurred will be covered but they should stop anything further.”

He added that some clients had reported now being told to apply to the Urgent Capital Fund if they have work that needs to be done urgently.

Mr Warneford said one of his clients has been told by the DfE that its funding is still proceeding.

A Department for Education spokesperson said: “Where the department requires further information about an application or delivery of a project, the department may put projects on hold whilst further due diligence is conducted.

“We are in touch with the affected responsible bodies to discuss next steps and will provide a further update to them by the end of June.”

The DfE declined to say how many bids have been put on hold.

The Condition Improvement Fund

CIF is a pot of money for capital works that smaller academy trusts, voluntary aided bodies and colleges are able to bid for.

The DfE publishes a list of successful projects each year. Projects approved range from urgent roof repairs and electricity works to asbestos removal and boiler replacement.

For 2024-25, 866 projects were successful across 733 schools and colleges. This was a 16 per cent reduction on the number of projects funded the year before.

The number of projects in 2023-24 was also less than the number the year before, which funding consultants said was “devastating”.

 

Source: TES