PHOSPHATE LEVELS COMPROMISE PLANNING

A bridge over the River Wye in Builth Wells. Picture by Mick Pleszkan.

One of Powys’ leading architects has warned that hundreds of new affordable and social homes in the county are at risk due to planning applications coming to a virtual standstill.

Hughes Architects claim measures to reduce high phosphate levels in some of the area’s rivers, including the River Wye, are seriously impacting on the planning system, particularly in south Powys and Ceredigion.

Planning applications for everything from small house extensions to large-scale housing scheme are now affected.

Doug Hughes, managing director and principal architect at Hughes Architects, which has Powys offices in Newtown and Welshpool and operates throughout Wales and the border areas, has warned the consequences of not finding a solution to the problem soon will impact on the ability of local authorities and housing associations to deliver new social housing projects, in addition to affordable and private developments. “It’s the perfect storm. We have high levels of demand for social, affordable and private housing in areas such as Powys and Ceredigion and yet we are at a virtual standstill in the ability to deliver planning approvals due to the current restrictions on all forms of development,” said Mr Hughes.

“It’s also impacting on private individuals who want to extend or convert properties. We fear the whole planning system is on the cusp of coming to a standstill.”

According to reports, phosphate levels in the Wye catchment area are four times higher in soils surrounding it, threatening its health and the wider ecosystem.

The River Wye has turned green at certain points of the year in recent years because of algal blooms

The intense rise in chicken farms in Powys in the last decade is seen by many as a major contributing factor to increased phosphate levels in the Wye – although the agricultural industry disputes this, with bodies like the National Farmers Union speaking out often.

In December 2020, however, Natural Resources Wales (NRW) said poultry units were just one of many reasons that could be contributing to failing phosphate levels. In January 2021 the agency said the Wye had failed to reach phosphate testing standards.

NA Judicial Review, meanwhile, into whether the action plan on phosphates in the Wye by NRW and their English counterparts was unlawful, was launched by nature campaign group Wild Justice last November. And earlier this year, the Environmental Audit Committee’s Water Quality in Rivers report – headed by influential MPs – supplied evidence saying NRW and its counterparts had failed to provide a solution to the problem. RW introduced new planning advice in January this year for Special Areas of Conservation impacting rivers. It requires proof that any development, regardless of size, would not contribute to increased levels of phosphates in waterways.

The Welsh Government has said while housing of all types is a priority, resilience of river ecosystems cannot be compromised. The government plans to support the development of 20,000 new affordable homes in Wales over the next three years, but this advice means this is practically unachievable.

“We recognise the causes of phosphate pollution in our rivers are complex and no single measure will solve the issue,” added Mr Hughes.

“We also recognise that our own developments and planning applications cannot compromise the health of our rich natural resources, which is why our team at Hughes Architects works so hard with planning departments and consultees to ensure this does not happen. All the same, advice from NRW and government needs to be clear and proportionate.

“In the case of most domestic developments, it is highly likely there would be no impact in terms of phosphate generation. But the additional planning advice impacts on everything from a simple house extension to a large housing scheme.

“We know discussions are ongoing between a range of stakeholders involved, but these need to be accelerated or we face a serious housing and property crisis. Delays now will impact on the ability to begin work on much needed homes in the coming years.”

Mr Hughes said his firm has adapted to become multi-disciplinary in recent years in response to the increasing complexity of the planning system.

He added: “We now employ a team of in- house specialist drainage engineers who have the experience and expertise to come up with solutions to tackle this issue.

“But this all takes time and as each planning application is judged on its own merits, then this invariably leads to delay in securing approvals.

“We need urgent clear and decisive advice from NRW and the Welsh Government to develop solutions to this complex issue.”

A spokesperson for Powys County Council said: “All planning applications that would generate additional phosphate within a river Special Area of Conservation catchment in the Powys Local Planning Authority area are determined on their own merits in accordance with legislative/regulatory requirements and have regard to Natural Resources Wales’s latest planning advice.

“This approach is consistent with that taken by all other authorities across Wales with river Special Area of Conservation catchments, and a similar approach has been taken in England by Natural England.

“This has resulted in some planning applications being refused planning permission in order to protect a river Special Area of Conservation and its conservation objectives.

“Planning permission can only be lawfully granted where it can be determined with certainty that the proposed development would not have a likely significant effect on a river Special Area of Conservation.”

The latest planning advice from NRW was last updated in May 2021 and is available on their website.

 

Source: Country Times

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OVERHEATING: APPROVED DOCUMENT O, SETTING STANDARDS FOR OVERHEATING IN NEW RESIDENTIAL BUILDINGS

Despite dire predictions that mortality rates from overheating are expected to rise*, the Government has only just recognised the need to regulate in this area. Overheating, Approved Document O, is being introduced to the Building Regulations which will come into effect on the 15th June 2022 for new residential buildings in England.

Managing Director at Whitecode Consulting, Alex Hill, examines what this new regulation means for architects, if it goes far enough and if it is all just too little, too late.

Mitigating overheating in residential buildings is essential to protect the health and welfare or those who live in them. The new regulation aims to reduce the occurrence of high indoor temperatures in new residential buildings by limiting unwanted solar gains in the summer, whilst ensuring that there are adequate means of removing excess heat from the indoor environment when necessary. To comply with the new requirement, designers can use the simplified method or the dynamic thermal modelling method. Whichever route is selected, Whitecode Consulting has the experience and expertise to help clients navigate their chosen path.

At Whitecode Consulting we have a great deal of experience carrying out thermal assessments because for many years we have carried our CIBSE’s TM59 thermal assessments to predict overheating risk in buildings to comply with the London Plan. The new regulation however does apply limits to CIBSE’s thermal modelling method which has to be used when the simplified method of mitigating the impact of overheating can’t be used.

The simplified method can be used when the geographical level of risk has been established and the design of the building allows for cross-ventilation (openings on opposite facades). The new regulation sets standards under this simplified method to limit solar gain in homes, the standards go further when buildings are deemed to be in high-risk locations (for example parts of London and central Manchester). Standards are also set for the removal of excess heat. Multi-occupancy residential buildings would need each residential unit to be categorised separately for cross-ventilation purposes as well as any shared communal rooms or common spaces. This simplified method is not suitable for buildings with more than one residential unit that use a communal heating or hot water system with significant amounts of pipework and with a main distribution route through vertical risers.

Using the dynamic thermal modelling method will offer designers more design flexibility and I can see this being the preferred method even in areas considered at moderate risk. We are experiencing the perfect storm; newly constructed houses aim to increase thermal efficiency in the winter which means they may not be able to cope with extreme temperatures as a result of climate change that we could be experiencing in the future. This means that there is a huge risk of buildings overheating unless robust measures are taken immediately. The new regulation does not apply to work subject to a building notice, full plans application or initial notice submitted before 15th June 2022, provided the work for each building is started before 15th June 2023. Has the government missed a chance to protect people from the very real dangers of overheating right now?

Acceptable strategies to reduce overheating include: fixed shading devices like shutters and external blinds; glazing design solutions including size, orientation, and g-value; building design, for example the placement of balconies; and shading provided by adjacent permanent buildings, structures or landscaping. The use of Internal blinds and curtains though helpful in reducing solar gains will not be considered as complying with the new regulation.

Foliage and tree cover will also not be taken into account under the new regulation. I believe this might be a mistake because it would seem to exclude ‘living walls.’ Living walls or green walls of plants can provide a huge number of benefits, they not only reduce the temperature of a building’s walls, but they also support biodiversity and reduce air and noise pollution too. We should learn the lessons of our colleagues in warmer climates who are enjoying the benefits of living walls being fitted to new and existing buildings. This leads me to my next concern. That this regulation is for new residential buildings only, many of the strategies to reduce solar gain in new builds can be retrospectively fitted into older repurposed buildings. If the government really believed in tackling overheating in residential buildings, they could have gone further with the regulations to encompass more living spaces.

To remove excess heat the following means are considered sufficient under Part O: opening windows, ventilation louvres in external walls, and a mechanical ventilation system. A building’s overheating mitigation strategy needs to consider external noise, pollution, security and ensure that occupants of a building are protected from falling and entrapment. If external noise is an issue for example, it is unlikely that windows can be opened, in which case dynamic thermal modelling should be used. As with all new regulations they don’t stand alone, they interact with other parts of Building Regulations. For example, Part O gives guidance on window openings for removing excess heat, Part B gives guidance on the size of escape windows. Extra glazing needed to comply with Part B could impact the risk of overheating in the building.

All practical passive means of removing excess heat will have to be used first before mechanical cooling can be adopted. This caveat is welcome in this new regulation, though I fear as we see more extreme temperatures spikes in the future, we will also see a huge rise in the use of mechanical cooling systems, increasing the amount of energy consumed by buildings which is the opposite of what we are working towards.

I believe that the new regulation is much needed, but it could go further to really tackle the growing issue of overheating in buildings. As an industry, we need to foster innovation and go beyond the minimum standards, however, this new standard should initiate this much needed change.

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OXFORD ECONOMICS – GLOBAL CONSTRUCTION REPORT

image Oxford Economics

Global Construction costs to remain high in 2023

 

Key points:

  • The global rebound in construction activity is set to continue over the coming years, supported by a wave of publicly funded infrastructure projects. This investment is coming at a time when global supply chain disruptions are hampering the delivery of construction materials, and tight labour markets are limiting the supply of labour. The resulting supply-demand mismatch has driven up construction costs, increasing the risks of cost-blowouts as well as project delays and cancellations
  •  Lockdowns in China and the Russia-Ukraine conflict have intensified global supply chain disruptions which means that input costs are likely to remain elevated for some time. While we write about national averages in our various construction service, there are sub-national and sub-sector variations. Please contact us if you would like more granular information.
  • A boom in residential construction activity across advanced economies saw the real value of global construction work done rebound 2.3% in 2021. Residential investment boomed, particularly in the Americas, as low interest rates, strong household finances, and shifts in household spending boosted the appeal of single-family dwellings. The ramp up in demand, however, coincided with Covid-induced supply chain disruptions and mobility restrictions. This mismatch between supply and demand drove a jump in construction costs across the globe, particularly for single-family homes.
  • The upswing in global construction activity is set to continue over the coming years. Governments around the world responded to the coronavirus pandemic by fast-tracking major infrastructure projects, as investments in the economy’s productive potential has proven to be a key driver of economic recoveries in the past. The Infrastructure Investment and Jobs Act in the US provides US$500bn in new spending over the next decade, with significant funding going to new highways, railways, and bridge projects. The European Union’s Next Generation EU fund will support a ‘renovation wave’ as the EU works towards decarbonising the continent’s building stock. In Asia, China is set to undergo an infrastructure boom, as the authorities look to infrastructure investment to not only help offset the real estate downturn, but also to help the economic recovery following the Shanghai lockdown.

Click here for the full research report

 

About Oxford Economics:

Oxford Economics is one of the world’s foremost independent global advisory firms, providing reports, forecasts and analytical tools on 200 countries, 150 industrial sectors and 7,000 cities and regions. Its best-in-class global economic and industry models and analytical tools provide an unparalleled ability to forecast external market trends and assess their economic, social, and business impact.

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Construction recruitement drives increase as industry looks to Skills Training

Construction industry set to experience recruitment pinch points as UK demand rises

New figures from the Construction Industry Training Board (CITB) forecast a big rise in the demand for construction workers over the next five years.   

  • The industry is set to experience recruitment pinch points, as extra 266,000 workers will be required to meet UK construction demand by 2026 (53,200 workers per year)
  • Carpentry and joinery identified as one of the occupations most affected by rising demand
  • The recruitment challenge for the sector is expected across England, Scotland, Wales and Northern Ireland
  • All major sectors forecast to experience recruitment pinch points as demand soars with private housing, infrastructure and repair and maintenance most affected

Construction is set to experience recruitment pinch points, as over a quarter of a million additional workers will be needed by 2026 to meet growing demand in the industry, the latest Construction Skills Network (CSN) report finds.

 The report finds all major sectors are expected to experience increasing recruitment demands as demand for construction increases, but the most affected sectors are expected to be private housing, infrastructure and repair and maintenance.

  • Private housing output is forecasted to exceed pre-pandemic levels by 2023, having seen strong growth since the pandemic.
  • Infrastructure: saw the shallowest fall in output (5%) of any of the new work sectors in 2020 The government views investment in major infrastructure projects and programmes of work as key in delivering the post-pandemic economic recovery along with levelling-up and future energy security.
  • Repair and maintenance: Growth in repair and maintenance is expected to be driven in part by the Government’s £9.2bn commitment to increase the energy efficiency of homes, schools and hospitals, which includes funding to improve energy efficiency of social housing and grants for private home improvements. 

 With job vacancies at a record high, and unemployment at its lowest level in 50 years, the report forecasts that recruitment and developing a highly-skilled workforce will be the biggest challenge construction will face over the next five years.

 If projected growth is met, construction employment will reach a high of nearly 2.78 million workers by 2026, with the largest increases in annual demand will be for occupations such as carpenters, joiners and construction managers, along with a range of technical roles. These include electronics technicians, civil engineering technicians, estimators and valuers, as well as office-based support staff. 

 This comes as CITB urges industry and government to come together in refreshing the way the industry hires and trains, making construction an attractive place for everyone to work.  

 

CITB CEO Tim Balcon, said: “Construction is vital in supporting the backbone of the UK economy. These future growth projections are encouraging after the stalling effects of the pandemic. However, this is set against a current backdrop of higher energy costs, material shortages, and associated price inflation that is currently hitting companies across the sector.    

 “The has a lot to offer, and there is so much potential to engage in a career that sees you enter the industry as an apprentice and leave it as the CEO. The industry needs to use its many strengths to attract and retain top talent in a competitive recruitment landscape

 “Training routes into the industry will be a focus for us and we have to attract and retain those that are under-represented – in particular women and those from ethnic minorities.  It will be a major task, but the industry needs to evolve and reach its untapped potential for the national economy and our competitiveness on a global scale.” 

In CITB’s Business Plan, launched last month, three core challenges are set out. These challenges, which reflect the views of employers and a wide variety of stakeholders, are: 

 

·       Responding to the skills demands  

·       Developing the capacity and capability of construction training provision 

·       Addressing future skills needs. 

 

The plan shows how CITB will invest over £233m across Britain to support construction throughout 2022/23. 

 CITB will create more accessible routes into construction, focus on apprenticeships and on-site experience, and roll-out occupational traineeships in Further Education.  

This year, a total of £110m in training grants reaching 14,000 businesses is available. This includes £60.3m in direct grants to employers who take on apprentices, supporting the industry to address its current and future need for a skilled workforce.   

 

Why the construction industry needs to investigate alternative paths to entry to address the ongoing pain of skills shortages

 By Emma Dickson Emma Dickson is Technical Director at Arcadis and industry co-chair of the

Scottish Construction Leadership Forum’s Skills and Workforce sub group

Employers in the construction industry in Scotland hardly need to be reminded of the skills shortages which are hampering the industry as it continues to focus on recovery – shortages which are coming close to threatening the sector’s long-term health.

The fact that demand for skills is outstripping supply is not by any stretch of the imagination a new problem but, as infrastructure and building companies enter 2022 with workloads at their highest levels for 10 years, it is certainly retaining pole position in the typical employer’s list of worries.

 Added to the nagging concerns of soaring prices, supply chain issues and materials scarcity, the ongoing struggle to secure and retain quality trades people is turning what should be a boom period for the industry into just another everyday nightmare.

 But, rather than dwelling on what seems an increasingly difficult problem, discerning employers are challenging themselves, along with industry bodies and associations, to search for alternative, realistic solutions.

 The first step, perhaps, is to look at what is actually working. The industry can be quietly proud of the way it supported apprentices over the Covid years, even though there was a backlog at the end of last year of around 1,000 who had still to qualify.

 However, it takes time – four years, typically – and significant dedication to bring school leavers through traditional apprenticeship routes; there can be a drop-out rate of around 35% in some craft trades; and, while they may be very well trained, many do not have the life experience of more mature employees.

 Though this is not intended in anyway to diminish the traditional entryway, some employers are also looking to take on older, with longer work histories, and offer them different, shorter apprenticeships on the grounds that they know what is expected of them and that, if they are keen to learn, they will progress quickly.

Of course, some employers may feel that taking on learners is an expensive option, even though there is significant financial help with training costs these days. In cases such as these, they could perhaps consider shared apprenticeships, which can work with a regional approach.

 These schemes allow companies who may not be in a position to offer full-term training to dip in and out, with durations as short as three months, thus supporting the development of skills but with no commitment at the end. Apprentices in these circumstances are found a series of placements and help with securing permanent employment on completion.

 Even employers who have invested in skills and nurtured employee relationships are facing another threat in the current climate – keeping their workers on board. Basic supply and demand is pushing wages up at an unprecedented level and skilled people are very much in a seller’s market.

 But while worker loyalties may be strained by tempting offers from elsewhere, responsible employees may be persuaded to exercise restraint if offered a more structured personal development plan, or a healthier work-life balance.

 On the same theme, making the industry attractive to the upcoming generations can only work to employers’ advantage. Gen Z, as well as demanding better conditions and company culture, can be attracted by an organisation which has demonstrable green credentials and differentiates itself from the competition by taking environmental, social and governance seriously.

 Part-time posts, rather than full-time, are a useful tool for widening the pool of people open to skills development and may well increase diversity by attracting time-limited demographics into the industry. Internships and school taster sessions will also help to generate interest.

 It could, in the end, be argued that one of the most positive approaches the industry could take would be to stop being so diffident about itself and start blowing its own trumpet.

 Not much recognition is given outside the sector to the fact that construction has changed out of all recognition over recent years, becoming a key component in the drive to build a stronger, fairer and greener economic future.

 Employees in construction have some of the best career paths in the country, are treated with dignity and respect and have sparkling prospects for advancement. Oh yes, and the wages can be terrific.

 If we can effectively get that message across, then in a few years the current pain of lack of skills could become a fading memory.

SMEs are encouraged to share their different approaches to resolve the skills shortages by emailing Emma directly via edickson@cs-ilg.org

£9,500 grants to help solve construction skills shortages

Apprenticeship training provider SBC Training is urging employers to come forward to help solve a shortage of skilled workers in the construction industry.The availability of labour is now the number one issue within the UK construction sector

It comes as the availability of labour is now the number one issue within the UK construction sector.

Staff mobility is high as people look for the best pay packets, causing further disruption. Research by Search Consultancy into the extent of the skills shortage has found that 83 per cent of businesses within the construction industry are feeling the strain from a lack of skilled workers.

But according to SBC Training young people are really keen to join the sector, they just need to be given an opportunity.

One day a week at the SBC Training Construction Centre is giving him the skills to apply at work and he is working as a full part of the team involved in setting out, blockwork and brickwork, increasing his skills every day.

SBC Training said many more young people would really like to join the construction industry and grants of up to £9,500 per apprentice are available to help employers to get involved.

Colin Thaw, of SBC Training, said: “We have some really excellent young people who really want to train in bricklaying and site carpentry, but need more employers to offer them the chance. The CITB provides generous apprenticeship grants to employers so I would urge employers to contact us on 01743 454810 or email enquiries@sbc-training.co.uk and between us we can begin to solve the skills shortage.”

 

Source: Shropshire Star

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SILVERSTONE TO SUE CONTRACTOR

Silverstone to sue contractor for botched track resurfacing

Silverstone bosses are preparing an £8M lawsuit against contractors whose 2018 relaying of the famous British racetrack left it unsafe and in need of resurfacing again just a year later.

Aggregate Industries were paid £2M to relay the 6km track in 2018 – the first time it had been renewed since 1996. The four-week job was intended improve racing by ironing out bumps and uneven surfaces and removing differently-aged asphalt sections that had different performance characteristics. It was touted as being “very close to the perfect surface for a racing circuit” by Silverstone managing director Stuart Pringle at the time, but problems quickly arose.

Formula 1 used the track for the 2018 British Grand Prix in July, but multi-time F1 Champion Lewis Hamilton described it at the time as “the bumpiest track I’ve ever experienced”.

At the British MotoGP Grand Prix in August 2018, standing water on the surface caused five riders to crash during practice and the actual race was cancelled for the first time in 38 years. This left the organiser, Dorna, obligated to refund 56,000 tickets.

The contractor agreed to carry out a full review of its work, but motorcycling’s governing body FIM revoked Silverstone’s license shortly after. Silverstone claims that losing the right to host MotoGP events has cost it at least £3.5M in the last few years.

The surface was relayed by Tarmac before the 2019 British Grand Prix, barely a year after Aggregate Industries’ job, at a cost of £3.7M.

Now Silverstone is gearing up to win that money back in court. In the court documents, the racetrack’s lawyers describe the botched surface as having “microbumps” and “fatty” areas where bitumen seeped out. They also describe excessive water retention and a release of foaming white liquid from the track at times.

Silverstone is suing for the cost of the lost MotoGP, the cost of resurfacing the track again and additional lost profits worth £624,552, bringing the total to £7,933,124 before legal fees.

Source: New Civil Engineer

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NEW CEMENT HANDLING FACILITY

Design and build contractors Spencer Group and specialist firm Slipform Engineering are delivering a huge new cement handling facility to meet soaring construction industry demand.

The 171 ft high silo is being built on Hull’s William Wright Dock amid a construction boom across the UK, which has led to bulk powder import and transport specialist Damac Group requiring greater cement handling capacity.

Spencer Group and Slipform Engineering were selected by Damac Group to carry out the project following the successful delivery of a similar 151 ft high facility to expand the company’s operations at the Port of Goole, in East Yorkshire.

The two companies have also worked together to deliver a 164 ft high biomass fuel storage silo at King George Dock, in Hull, to store and transport wooden pellets for Drax Power Station, as well as collaborating on similar storage facilities for other power suppliers.

The main structure has been built using Slipform Engineering’s slip forming techniques, meaning the construction of the silo walls from ground level to the peak took just 10 days.

 

Slip forming is a method of construction in which concrete is moved into a continuously moving form, used specifically for tall buildings while also being the construction method used to construct the Humber Bridge towers in 1976.

Richard Green-Morgan, off site construction director, is leading the project for Spencer Group.

He said: “Spencer Group and Slipform Engineering collectively have all the required in-house design and construction capabilities to deliver an outstanding facility, which will meet all of Damac’s requirements, quickly, safely, and to the highest possible standards.”

The quayside silo will have a 6,000 m3 capacity. The imported cement powder will be received from ships at William Wright Dock directly into the silo, where it will be handled by Damac Group, who will then distribute it using their fleet of bulk powder tankers for construction works across the UK.

A mechanical handling system is being undertaken by Silo Services Ltd, which will be used to transfer the cement onto trucks in a loading bay directly beneath the silo, which will stand on stilts.

Eamon Hanley, managing director of Slipform Engineering, said: “It’s a pleasure to once again be working collaboratively with our colleagues at Spencer Group on behalf of a long-standing client.

“We had to carry out the slip forming construction 24/7, as it was crucial the product didn’t get wet, and that’s why our expertise, technologies and experience have been so important.”

Damac managing director, Cathy Plaskitt, added: “The UK construction industry is buoyant, increasing the demand for bulk powder cement.

“This increase in demand means we need to import more from abroad and the new silo, in a highly accessible location with good motorway access, will be vital for our capacity to meet demand.”

Source: The Business Desk

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£3bn of Lending for Development

GB Bank is targeting £3bn of lending over the next five years and building a £1bn-plus balance sheet, according to chief lending officer Neil Williams.

The bank is gearing up to officially open in Q3 2022, once it receives its full banking licence without restrictions from the FCA and PRA.

It plans to enter the market with a competitive property development product, with accessible and bespoke loans.

“We will initially provide property development finance for both residential and commercial schemes, typically up to 24 months in duration, but we will consider longer terms where appropriate,” said Neil.

GB Bank will start off by offering development finance loans of between £500,00 and £5m, but will increase the maximum loan size as it grows.

In addition, Neil said the Teesside-based bank is looking to offer additional products and services that meet property developers’ various needs, including buying their next site before the one they are working on is complete.

Investment mortgages for completed residential and commercial properties are also on the list of services borrowers can look forward to receiving from the bank.

Having received its authorisation with restrictions licence from the FCA and PRA in October 2021, GB Bank has ambitions to finance almost 20,000 homes and several million square feet of office space, supporting the creation of over 100,000 jobs, according to Neil.

Filling the gaps

An authentic relationship approach and the provision of flexible lending structures still seem to be lacking in the development finance industry, believes Neil.

“With [many] lending decisions not being local and lending policies sometimes being rigid, developers are often all treated the same.

“It is not unusual to hear of relationship managers of other funders travelling 100-plus miles to undertake a transaction and then drive home. This feels more like commoditised lending vs a local relationship-led one which GB Bank’s will be.”

With the company’s relationship managers based locally, customers can expect a quick and convenient service and more traditional methods of communicating.

 

Source: Development Finance Today

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Surveying Gathers Pace at the Palace of Westminster

Dozens of boreholes to be drilled around the Palace of Westminster as surveying gathers pace for essential restoration

Experts will dig 23 boreholes, with some reaching up to 70 metres in depth, to assess ground conditions around the Palace of Westminster to inform decisions about essential restoration work to preserve the 150-year-old building.

The boreholes are part of an extensive programme of building investigations commissioned today by the Houses of Parliament Restoration and Renewal Programme. Survey contracts worth over £4m in total were awarded to seven companies.

Archaeologists will be on-site for each of the 23 holes to record any finds of historical significance. Previous ground investigations in recent decades have uncovered a centuries-old sword and buried fragments of King Henry III’s high table.

Elsewhere, 160 rooms across Parliament will be inspected by surveyors who will lift up floorboards, sensitively drill into walls and remove ceiling panels to look at a range of issues such as wall cavities, the material makeup of the building and the weight-bearing of historic flooring. Specialist teams will continue to inspect the hundreds of miles of interconnected power cables, gas, water and heating pipes as well as outdated water and sewerage systems.

Small to medium sized businesses are expected to benefit in particular from the latest contract awards, with five out of the seven contract winners being classed as SMEs. The various surveys are planned to begin from July 2022 and will continue over the next 12-18 months.

 David Goldstone, CEO of the Houses of Parliament Restoration and Renewal Delivery Authority, said: 

“Our experts are carrying out the most detailed ever surveys of the Palace of Westminster, which will be critical to informing decisions about the essential restoration to preserve our historic Parliament buildings.

The Restoration and Renewal Programme is carrying out tens of thousands of hours of complex building surveys and investigations needed to inform future decisions on the essential restoration work.

Since January, restoration and renewal programme teams have examined 2,089 spaces across the Palace of Westminster.  Surveys conducted throughout the last Parliamentary recesses included a thermographic study of heat loss from the building, examination of room spaces, and studying conditions just under the surface of the ground to measure tree roots and other obstructions which could impair restoration works.

In March, the Commissions of both Houses of Parliament met to discuss the future of the Restoration and Renewal Programme, following concerns over the emerging costs and timescales of the existing approach, and programme governance. They made a united commitment to preserving the Palace, and agreed to seek independent advice and assurance on the new approach to the works, as well as on proposals to take forward the Commissions’ decisions to replace the Sponsor Body. They also asked the Delivery Authority to place a high priority on continuing with the already planned programme of intrusive surveys, and other necessary work to inform future decisions, as swiftly as possible.

A revised mandate for the works and changes to the sponsorship function will be sought from the two Houses, which is currently planned to take place before the summer recess.

The first seven winning contractors include:

SupplierContract value
AECOM Ltd

Air Quality

£83,000
Concept Engineering Consultants Ltd

Ground Investigation

£937,000
Alan Conisbee & Associates

Building Intrusive Surveys

£268,000
Museum of London Archaeology

Archaeology

£184,000
DBR (London) Ltd

General Contractor

£903,000
Ductclean T/A DCUK FM

Asbestos Surveys

£233,000
Instrumentation & Monitoring

James Fisher Strainstall

£1.63m
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THIS WEEKS CIPS AND ONS REPORTS

CIPS (Chartered Institue of Procurement and Supply)

Weakest Rise in residential work for two years holds back construction sector during May

May PMI® data signalled another growth slowdown in the construction sector amid a considerable loss of momentum for the residential category. The latest rise in housing activity was the weakest since the recovery began two years ago. Survey respondents suggested the subdued consumer confidence and worries about the economic outlook had constrained demand.

Higher borrowing costs and intense inflationary pressures were also cited as factors likely to hold back growth over the next 12 months. The latest survey data indicated that business activity expectations at construction companies were the least upbeat since August 2020.

The headline S&P Global / CIPS UK Construction Purchasing Managers’ Index® (PMI®) – which measures month-on-month changes in total industry activity – registered 56.4 in May, down from 58.2 in April and the lowest reading for four months.

Weaker trends in the house building sub-sector were the main brake on growth, with this index falling to 50.7 from 53.8 in April. Moreover, the latest reading signalled the worst performance for residential work since May 2020.

Commercial building was the fastest-growing segment in May (index at 59.8), with the speed of expansion easing only slightly since April. Construction companies noted strong demand for commercial work, despite a degree of hesitancy due to the uncertain economic outlook.

Meanwhile, civil engineering activity increased for the fifth month running and at a robust pace (index at 55.5) amid a sustained boost from major infrastructure projects.

Total new orders expanded again in May, which marked two years of continuous sales growth in the construction sector. That said, the latest increase in new work was the slowest since December 2021.

Job creation accelerated slightly in May and was the strongest for four months. Survey respondents typically cited efforts to boost capacity and meet rising customer demand. There were again widespread reports citing recruitment difficulties due to shortages of suitably skilled candidates.

May data highlighted strong demand for construction products and materials, as signalled by a steep and accelerated rise in total purchasing volumes. Efforts to replenish stocks and pre-purchase ahead of price rises also contributed to higher purchasing activity in May, according to survey respondents.

There were positive signals for supplier performance in May, as delays were the least widespread since February 2020. Some firms noted an improvement in the availability of construction items, despite ongoing challenges including logistics bottlenecks, Brexit trade frictions and supplier staff shortages.

Rapid cost inflation persisted in May, with the vast majority of survey respondents (73%) reporting a rise in purchasing prices. This was linked to rising fuel, energy and raw material costs. That said, the overall rate of inflation eased to a three-month low.

The number of construction firms predicting an increase in business activity during the year ahead (46%) continued to exceed those expecting a decline (19%) by some margin. However, the resulting index measuring overall growth expectations across the construction sector signalled the weakest degree of optimism since August 2020.

Construction companies suggested that lower consumer confidence, rising borrowing costs and heightened economic uncertainty were all likely to act as headwinds to client demand in the next 12 months.

 

Comments on latest ONS (Office for National Statistics) report

While latest ONS figures show that job vacancies grew in the first quarter of this year, recent data indicates that vacancies in building and construction are beginning to slow, with figures dropping 56% between March and April 2022. With application numbers also continuing to decline, these statistics suggest that the lack of resources across the UK is impacting job growth across the sector. That’s according to the latest data from the world’s largest network of job boards, Broadbean Technology.

According to the statistics, the building and construction sector saw an even more concerning fall in the number of people applying for roles, with decreases of 75% between March and April, and 76% when comparing April 2022 with the same month last year. While this is cause for concern, it’s perhaps unsurprising given the widely documented skills shortages reported in the sector.

Alex Fourlis, Managing Director at Broadbean Technology commented:

“The UK’s skills crisis is continuing to be a focal issue for the building and construction sector, and for good reason given that applications are dropping at a concerning rate. With a combination of Brexit and Covid accelerating our need for talent in the sector, vacancies have been on a constant upwards trajectory up until now, but there are simply not enough candidates to match this demand. Given the dearth of available resources, there’s a high chance that this drop in new vacancies is simply a sign that businesses cannot fill jobs they’ve had open for some time and are unlikely to add any more roles if they cannot meet the current operational needs.”

“For employers, now is a critical time. Businesses need to rebuild and nurture dwindling talent pools, utilise innovative technology and maximise partnerships with external talent suppliers in order to find the resources that are needed. Difficult times are ahead for the UK economy, and we need a recruitment market that can best support economic growth.”

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RESTORING THE ‘RIGHT TO BUY’

Right to Buy was one of the most transformative policies of the 20th century, making the dream of home ownership a reality for millions. Since its introduction in the 1980s, approximately 4.5 million social tenants took up the opportunity to buy their homes from the state. But the numbers have fallen off a cliff, hitting a low of 9,319 in 2020/21.

The collapse of Right to Buy is one of the reasons Britain now has the fifth lowest homeownership rate in Europe, alongside other long-term issues highlighted in the CPS’s work, such as lack of supply and restrictions on first-time buyer mortgages. Yet ownership remains overwhelmingly popular.

 

A major new Centre for Policy Studies paper, published today, welcomes the Government’s reported commitment to restoring the Right to Buy to the two million housing association households currently denied a chance to own. It also sets out the scale of the discrimination within the benefits system against low-income owners as opposed to renters.

 

The report, ‘The Right to Own’, by former No 10 housing advisor Alex Morton, demolishes many of the myths that have grown up around the Right to Buy. It shows that waiting lists for social housing actually fell when the policy was most popular. It shows that rather than having sold off too much social housing, we still have the fourth highest stock in Europe. And it explains that rather than costing the Government money, the policy delivers long-term savings for the Treasury of around £140,000 per house sold, largely due to the reduced cost of housing benefit when someone becomes an owner.

 

It also shows that the benefit system is fundamentally biased towards keeping people as tenants rather than owners, with CPS calculations finding that just 2.3p is spent on incentivising ownership among low and middle earners for every pound that subsidises renting. It calls for this imbalance to be redressed by making the benefit system as tenure neutral as possible.

 

While the CPS welcomes the Government’s commitment to extending home ownership, it argues that it should go further than just extending the existing Right to Buy by revamping it in the form of a new Right to Own. Under the proposal, tenants would obtain a mortgage worth 60% of the value of their home – which would be paid off in payments that rise at the same rates as social rents do each year. Like any other buyer, once this ends the property is owned outright however, effectively at a 40% discount, mirroring the Right to Buy discount but at a lower rate. In an emergency such as a loss of employment, the tenant would be able to access the equity they had built up, providing a cushion for them.

 

In other words, today’s proposal would provide tenants greater security, with every rental payment increasing the tenant’s share of ownership – but still leaving them better protected in the event of financial shocks or unexpected costs.

 

The paper shows how the revenue from these sales, plus the sale of high-value council homes as they become vacant, could be used to fund the construction of a new wave of affordable social housing – expanding home ownership and the housing stock at the same time.

 

Alex Morton, Head of Policy at the CPS, said:

 

“The Right to Buy was one of the most transformative policies of the 20th century, moving millions of people into home ownership. Many of the arguments made against the policy since do not stack up. The Government would be right to extend the policy to housing associations to take the opportunity to place greater ownership at the heart of its levelling up agenda, and deliver on the commitments made in the 2015 and 2019 Conservative manifestos.

 

“Longer term, the Government can not only revive the Right to Buy but fully reinvent it for the 21st century by implementing a Right to Own. This would put rocket boosters under home ownership rates whilst protecting tenants and the state coffers.”

 

 

Robert Colvile, Director of the CPS, said:

 

“The Government’s commitment to home ownership, and to the Right to Buy, is hugely welcome. Our report argues that restoring the Right to Buy to housing association tenants, as widely reported, will be hugely welcome – and demolishes many of the left-wing myths surrounding the Right to Buy.

 

“However, we also urge the Government to go further in boosting ownership among tenants of all tenures, for example by turning the existing Right to Buy into a new Right to Own, and incentivising private sector landlords to sell to their tenants, as proposed in previous CPS work.”

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