Building News is an information portal for all professional building specifiers. Here you can find all of the latest construction news from around the UK and the rest of the world.

Southern builders are growing despite rise in costs

Construction firms in the south of England enjoyed strong growth in the first quarter of 2018, according to the Federation of Master Builders (FMB) South.

Key results from the FMB’s latest State of Trade Survey, which is the only quarterly assessment of the UK-wide SME construction sector, include:

  • In terms of workloads, expected workloads and enquiries, the combined indicator for the performance of South Eastern construction SMEs the balance of responses remained clearly positive at +17%, but fell by 6 percentage points compared with the previous quarter, indicating a slight fall in positive responses
  • In terms of workloads, expected workloads and enquiries, the combined indicator for the performance of South Western construction SMEs, the balance of responses rose 16 percentage points in Q1 2018 compared with the previous quarter, to +20%, indicating a marked increase in positivity
  • More construction SMEs predict rising workloads in the coming three months, up from 38% in the previous quarter to 49% in Q1 2018
  • 90% of builders reported increasing material prices in Q1 2018, this is the highest reading on record
  • More than half (58%) of construction SMEs are struggling to hire bricklayers and 55% are struggling to hire carpenters and joiners
  • Two-thirds (66%) of construction SMEs expect salaries and wages to increase during the next six months, up from 62% in the previous quarter

Phil Hodge, Director of FMB South, said “The first quarter of this year saw smaller building firms in the South of England enjoy growing workloads and enquiries. Although growth slowed slightly in South East, it remained in overwhelmingly positive territory. The South West also had a particularly strong quarter with workloads, expected workloads and enquiries improving since the final quarter of 2017. This is all the more pleasing given the stumbling blocks small builders had to contend with in the first quarter of the year. In March the south of England experienced heavy snow fall which forced construction sites across the region to close, some for weeks at a time. The positive growth enjoyed in the first three months of the year therefore shows how resilient the South’s construction sector currently is.”

“However, construction bosses know they need to keep their wits about them and not count their chickens just yet. These latest findings show that there are significant headwinds, which will continue to cause headaches for smaller building firms. More than three-quarters of firms think that material costs are expected to rise over the next six months, while two-thirds anticipate rising wages. The cost of doing business is going up and this will cause difficulties for firms across the South of England. These SME builders should have a key role to play in delivering the 300,000 homes needed every year in England alone. So, it is in everyone’s best interest that these firms continue to weather the storm of rising costs.”

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Small builders resilient despite material price hikes

The workloads of small and medium-sized (SME) construction firms grew slightly in the first three months of this year despite record numbers of builders reporting rising material prices, according to the Federation of Master Builders (FMB).

Key results from the FMB’s latest State of Trade Survey, which is the only quarterly assessment of the UK-wide SME construction sector, include:

  • Construction SME workloads remained positive in Q1 2018 but grew at a slower rate than in Q4 2017
  • The construction SME sector has now enjoyed five years of consecutive growth
  • More construction SMEs predict rising workloads in the coming three months, up from 38% in the previous quarter to 49% in Q1 2018
  • 90% of builders reported increasing material prices in Q1 2018, this is the highest reading on record
  • More than half (58%) of construction SMEs are struggling to hire bricklayers and 55% are struggling to hire carpenters and joiners
  • Two-thirds (66%) of construction SMEs expect salaries and wages to increase during the next six months, up from 62% in the previous quarter

Brian Berry, Chief Executive of the FMB, said “Workloads for builders continued to grow in the first quarter of 2018 despite the ‘Beast from the East’ wreaking havoc across the UK’s construction sites. However, once again, the growth we are seeing is slower than in the previous three months and this can be partly attributed to pressure from rising costs. Indeed, 90% of builders reported increasing material prices in the first three months of 2018 and this is the highest reading on record. Insulation, bricks and timber are the materials that have increased the most and builders are predicting that these price increases will continue. We are also seeing increased salaries for tradespeople stemming from the acute skills crisis and that, coupled with material price hikes, are squeezing margins and stifling growth for construction firms of all sizes.”

“In terms of house building, these latest results should sound some alarm bells with the workloads of SME house builders dropping off in the first quarter of this year. In 2017/18, 197,000 homes were started in England but this is some way off the Government’s target to build 300,000 homes per year. The FMB has worked closely with the Government to identify how to remove barriers to small local house builders, but these latest results act as a reminder that there is more to be done. The FMB would now like to see the continued and speedy implementation of some positive Government policies designed to bring forward more small sites, properly resource planning departments and increase the flow of finance to SME house builders. If we are to reach our ambitious house building targets, we cannot rely solely on the largest house builders.”

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Modular construction in schools: a modern and speedy solution

School buildings are in crisis. With many UK school buildings in poor condition and requiring urgent attention, funding for schools to refurbish and rebuild is also in short supply. But modular construction using structured insulated panels systems (SIPs for short) offers a fast, efficient, cost-effective and environmentally friendly solution.

Quick construction

Usually prefabricated in a factory and delivered fully-formed to the school site, classroom buildings constructed using modular SIPs panels are ideally suited to busy schools. Although the factory line approach suggests a rigid and uniform construction process, SIPs panel construction is in fact a flexible method – schools don’t have to stick to a one-size-fits-all template but can work with architects to design a classroom building that will meet their needs.

Importantly for schools requiring urgent refurbishment, the off-site construction method has several advantages that can help schools to get their new buildings up and running speedily.

Classrooms prefabricated using SIPs panels can be constructed and installed in a matter of weeks, because the site preparation work and off-site construction stages can be carried out simultaneously. With the prefabrication process taking place under cover, the project can go ahead whatever the weather. And by reducing the amount of time spent on-site, noisy and disruptive building work that might interrupt the school day can also be kept to a minimum.

Cost savings

A building project that is quick to complete and does not involve intrusive construction work translates into cost savings for the school – a vital concern in these cash-strapped times. Modular buildings are likely to provide a better return on investment than traditional builds. With excellent insulation properties, construction using SIPs panels also results in lower energy bills, because the classrooms retain warmth well and require only minimal heating.

For schools looking to the long term, durability is an important concern. Built using high quality, sustainable materials, modular SIPs panel classrooms can be expected to serve the school for as many as 50 years – providing a solution that offers real value for money and can be relied upon to last well into the future. (Modular buildings can even be uprooted and installed at another site, if the school relocates).

Comfortable learning spaces

Why is the state of our school buildings such an important issue? As well as being a potential health and safety concern, constructing comfortable learning spaces is vital for both teachers and pupils. According to a 2016 RIBA survey reported by Building Specifier, as many as 1 in 5 teachers have thought about leaving a school because of the environment they have to work in. So, creating a pleasant teaching space is high on the list if schools are to improve staff morale and retain valued teachers.

Learning environments can have a big impact on outcomes for children, too. From issues like lighting and air quality to factors like natural light and classroom structure, pupils do better in well-designed classrooms built from high quality materials.

Classroom construction using SIPS panels helps to address some of these issues, resulting in comfortable learning spaces that promote better engagement from all classroom users. Due to their structure and composition, SIPs panels offer excellent thermal performance, eliminating draughts and keeping out the cold and damp. The slimline profile of a SIPs panel also means thinner walls – and therefore more space inside the classroom. Finally, modular buildings constructed from SIPs panels have an aesthetically pleasing, modern appearance.

 

Author biography

Steve Warr is the Director of Green Modular, a company which supplies unique and environmentally-friendly outdoor modular buildings as effective space solutions. Each modular building can be tailored to suit every space or budget and they are perfect for school buildings, mobile classrooms, meeting rooms or offices. Steve is passionate about the environment and creating sustainable and stylish solutions for extra space.

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Government calls on industry to embrace offsite

Ministers today called on industry to embrace the latest innovations to make sure we are building the good quality homes that our country needs.

As part of the government’s focus on fixing the broken housing market and its ambition of delivering 300,000 new homes in England by the mid-2020s, it’s essential that the quality and design of new housing is addressed. This can help secure support from communities for new homes, and make sure we have good quality homes that people can feel proud living in and next-door to.

Recent research shows that more than 7 out of 10 people would support new residential development if buildings are well-designed and in keeping with their local area.

Action to boost innovative approaches for well-designed new homes include:

£1 billion investment through the Home Building Fund to develop new, modern approaches to design and construction

To date, 8 projects across 11 local authorities, backed by government funding, will use modern methods of construction such as modular homes to build good quality homes, using the latest techniques, whilst helping to speed up housing delivery.

Learning from other countries like Australia, Norway and Sweden where good design is embedded in decision making

For example, based on an Australian model, the government will urge councils to set their own design quality standards, giving communities the ability to better reflect their own unique character in local planning policy.

Embracing new technologies

For example using Virtual Reality (VR) technology to win the confidence of communities before a single brick is laid. By visualising proposed new housing from the neighbour or homebuyer’s perspective, communities will be able to see how development can visually contribute to the area from an early stage, even before planning permission has been granted.

Housing Secretary Sajid Javid said “Our homes are the making of all of us, which is why today’s event on raising the bar on the quality of new homes is so important.

“This government is determined to make sure that high quality design is the norm rather than the exception.”

Housing Minister Dominic Raab added “We are putting high-quality design on the map as never before when it comes to building better homes and stronger communities.

“Today’s conference marks an important milestone in that journey.”

Industry leaders, including local authority planners, developers and design professionals, attended the Design Quality Conference to share their expertise to ensure how homes look becomes just as important as the number delivered.

Ministers made it clear that they intend to focus on how developers can use better quality design in order to win over both communities and new generations of first-time buyers, who expect the highest quality homes before parting with their hard-earned deposits.

When things go wrong, the government has also proposed strengthening ways for homebuyers to complain when their home hasn’t been built satisfactorily – with these new measures recently being subject to a consultation.

The event will build on previous government action to ensure new homes are built using quality materials and design methods, as set out in the recently published draft National Planning Policy Framework.

The document, which is currently out to consultation, outlines requirements for design guides and codes to feature prominently in new Local Plans, significant consideration to be given to existing local character as well as setting out the density of developments that meet the needs and expectations of the community.

The conference also included speakers from the Royal Institute of British Architects, Stephen Lawrence Trust, The Princes Foundation, Historic England and Homes England as well as other experts with experience in delivering excellent build quality for new and existing communities.

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Construction industry needs 1.5m new recruits by 2021

In a report, Consultancy firm Arcadis suggest that around 400,000+ new workers will be needed each year up until 2021, in order to keep up with ambitious plans within the construction sector – that’s the equivalent of one new person every 77 seconds!

Housebuilding

Plans outlined in the recent Housing Whitepaper are extremely positive for house builders, who will have government support and reduced restrictions to help them deliver the sheer volume of housing needed in Britain today. However, could the lack of skilled people in the sector prove to be a hindrance if left unaddressed?

The report says “When it comes to the much maligned ‘housing crisis’, there is no doubt that the sheer lack of people to physically build the homes we need is evident.

“Between now and 2026 the UK needs to build an additional 110,000 homes per annum on top of those currently projected in order to keep pace with our growing and ageing population.

“Housebuilding is a particularly labour intensive industry and although new technologies and increased off-site production are being implemented to reduce costs and increase productivity, the supply of labour is still one of the binding constrictions on output.

“Existing evidence suggests that the relationship between labour and number of houses that can be built is close to being linear. Therefore, in order to increase the number of homes being built the labour force employed in housebuilding needs to increase by the same share.”

Infrastructure

The report also touches on infrastructure. Britain currently has one of the most ambitious national infrastructure programmes in Europe. With HS2 and Crossrail underway and much more planned, companies in the industry will draw heavily on the common talent pool.

“Despite the uncertain outlook for the UK economy following Brexit, the government under Theresa May seems committed to drive the largest projects forward.

“Moreover, it is expected that the government will set aside more money for road and rail works in order to support the UK economy over the coming years.

“According to figures from the Construction Products Association, the infrastructure sector is projected to grow only by 1.2 percent in 2016. However, for the years from 2017 to 2020 it predicts a pick-up in infrastructure output of 30 percent. Increased demand for people in the infrastructure industry is calculated by assuming that the workforce has to expand in line with this growth.”

To read the full report, click here.
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Construction must reform to reduce high suicide rates

Analysis by the Office for National Statistics found that the risk of suicide among low skilled male labourers, particularly those working on construction was three times higher than the male national average. For males working in skilled trades the highest rate of suicide was among building finishing trades, especially plasters and painters and decorators who had more than double the rate of suicide than the male national average.

Research has found that major factors which can put people at risk of suicide include low pay, low job security and wider socio-economic characteristics. All of which are potentially major factors in construction.

Unite acting general secretary, Gail Cartmail, said “These figures are truly disturbing and demonstrate that sadly the majority of construction employers are failing in their duty of care to their workforce. This is the latest evidence that the industry’s hire and fire culture is fundamentally unhealthy and is a major factor in these terrible and needless tragedies.

“Until the industry re-organises its approach to its workforce then it is not going to tackle the underlying causes of suicide in construction. Construction needs to tackle the macho culture where workers who talk about their feelings or mental health issues are too often considered to be ‘weak’.

“Unite is fully prepared to work with any employer large or small who is prepared to do the right thing and tackle mental health issues and the risk of suicide in construction.

“In the short term we need to be raising awareness of the suicide risk in construction and explaining where workers can receive confidential support. We also need to be ensuring that far higher numbers of workers, including union safety reps, are trained in mental health first aid”.

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Construction slave-owner jailed for seven years

A Romanian man who enslaved up to 15 men, offering demolition work and then using violence to trap them, has been jailed for seven years.

David Lupu, 29, promised the men £50 per day as well as accommodation, but instead paid them just a fraction of the wage, housed them in cramped conditions and confiscated their ID papers.

Metropolitan Police detectives began an investigation – supported by CITB’s Fraud Team – in September last year, after two Romanian men reported to Forest Gate police that they had been treated like slaves after coming to work in the UK.

On 23 March at Inner London Crown Court, David Lupu was sentenced to seven years’ imprisonment after being convicted of multiple offences of holding a person in slavery or servitude.

During the trial, seven Romanian men said they had been offered jobs in July last year, but after travelling to the UK, were expected to live in a small one bedroom flat in Leyton, east London. Up to 15 men slept wherever they could in the kitchen, bedroom, hallway and storage cupboard, on mattresses found in the street.

Victims said they were only allowed out of the house two at a time, and warned that they would be arrested if discovered.

They were told that they owed Lupu hundreds of pounds and were forced to work long hours in the demolition sector in order to repay the costs. Meanwhile, Lupu was paid a significant wage by the building site’s employers for the men’s labour.

When the men discovered their wages from the building site had not been passed on by Lupu, they confronted him, only to be beaten and threatened to be killed if they insisted on being paid before they had paid their ‘debts’.

Ian Sidney, CITB’s Fraud Investigator who assisted the Met Police investigation, says “Modern slavery is a horrific injustice that unfortunately is becoming more commonplace in the UK’s construction industry. Forcing people to work illegally not only deprives people of their human rights, it also harms the reputation of the industry, puts employers at risk, drives down wages and denies employment opportunities to many others.

“CITB has been working with industry, implementing measures to ensure that modern slavery is eradicated from the UK construction industry. We will also continue working with law enforcement agencies to bring offenders to justice.”

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Up to a third of millennials face renting from cradle to grave

Policy makers need to radically reform the private rental sector to make it fit for raising children and retirement because a generation of young people face the prospect of never owning their own home, according to a new report published today by the Resolution Foundation for its Intergenerational Commission.

Home Improvements sets out a blueprint for tackling Britain’s housing crisis, including tax reforms to discourage multiple home ownership and better support home ownership among the young, along with support for councils to get more affordable homes built.

The Foundation argues that more should be done to build homes and support young people’s home ownership aspirations. However, it also warns that policy makers cannot afford to neglect a crucial part of Britain’s ‘here and now’ housing crisis – poor quality and insecurity in the private rented sector (PRS).

Private renting has grown rapidly in recent decades. At age 30, four in ten millennials live in this way, double the rate for generation X and four times that for baby boomers at the same age. This major shift reflects the fact that, compared to their predecessors, millennials’ access to social housing has fallen as fast as their home ownership rates.

As more millennials reach their child-rearing years, the Foundation notes that policy has failed to catch up with the fact that bringing up children in the PRS has now become mainstream. In 2003, the number of children in owner-occupied housing outnumbered those in the PRS by eight to one. That ratio has now fallen to two to one as a record 1.8 million families with children rent privately, up from just 600,000 15 years ago.

The PRS is the least secure and lowest quality tenure – 2-month notice periods are standard, and one in four properties fail the decent homes standard. The fact that many tenants are on 6 or 12 month fixed term contracts also means that the prospect of large rent rises at short notice are a big concern.

The report argues that the sector will continue to be a major feature of housing in Britain for many years to come. Even if home ownership accelerates rapidly millennials will never experience levels the baby boomers have seen.

More pessimistically, if home ownership growth follows the weak pattern of the 2000s, up to half of millennials will be renting (either privately or in the social rented sector) in their 40s, and a third could still be renting by the time they claim their pensions.

This rising share of retiree renters, coupled with an ageing population, could more than double the housing benefit bill for pensioners from £6.3bn today to £16bn by 2060 – highlighting how everyone ultimately pays for failing to tackle Britain’s housing crisis.

In order to improve the housing offer for renters, the Foundation is calling for:

  • The introduction of indeterminate tenancies as the sole form of contract in England and Wales, following Scotland’s lead and the practice in Germany, the Netherlands, Sweden and Switzerland.
  • Fair balancing of the needs of tenants with the rights of landlords. A landlord could remove a tenant that fails to pay the rent or treat the property well, or if they wishes to sell or reoccupy the home, but cannot simply end the tenancy at short notice without good cause.
  • Light-touch rent stabilisation that limits in-tenancy rent rises to CPI inflation for three-year periods.
  • A new housing tribunal, to ensure landlords and tenants can have disputes resolved swiftly.

Lindsay Judge, Senior Policy Analyst at the Resolution Foundation, said “Britain’s housing problems have developed into a full-blown crisis over recent decades and young people are bearing the brunt – paying a record share of their income on housing in return for living in smaller, rented accommodation.

“While there have been some steps recently to support housebuilding and first time buyers, up to a third of millennials still face the prospect of renting from cradle to grave.

“If we want to tackle Britain’s ‘here and now’ housing crisis we have to improve conditions for the millions of families living in private rented accommodation. That means raising standards and reducing the risks associating with renting through tenancy reform and light touch rent stabilisation.

“For any housing strategy to be relevant and effective for people of all ages, it must include this combination of support for renters, first time buyers and ultimately a level of housebuilding that matches what the country needs.”

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SME builders and Unite the union agree 3.1% pay rise over the next year

The Building and Allied Trades Joint Industrial Council (BATJIC) has agreed a one year deal involving a 3.1% pay rise to come into effect in June 2018. This follows from the successful conclusion of pay negotiations between the Federation of Master Builders (FMB), on behalf of SME construction employers, and Unite the union, on behalf of operatives, the FMB has said.

  • BATJIC has agreed a one year deal involving a 3.1% pay rise over the next year
  • All apprentices and trainees will also benefit from a 3.1% pay increase
  • The adult general operatives’ rate increases by 29p per hour to £9.52
  • The NVQ3 advanced craft rate increases by 37p per hour to £12.45
  • The changes will come into effect as of Monday 25th June 2018

Brian Berry, Chief Executive of the FMB, said “I am pleased that we were able to reach this agreement. A 3.1% pay increase is a significant rise, but it is designed to take into account higher inflation last year and make sure that employees continue to see the benefits of ongoing growth in construction through rises in real wages. The severity of the skills crisis means that it is imperative that we attract more people into the industry. It’s also more important than ever that we retain existing workers. At the same time, the economic outlook for employers remains uncertain, especially given key unknowns like the impact of Brexit. As such, I believe the agreement announced today strikes a fair balance which is right for the industry.”

Jerry Swain, the National Officer for Construction at Unite the union, added “Unite welcomes this agreement which recognises the impact of inflation and includes a 3.1% pay rise over the next year. It is only right that workers see the benefits of growth in the construction sector with this significant pay rise which demonstrates the importance of a strong collective union voice for construction workers. We welcome the FMB’s ongoing commitment to BATJIC which continues to set the standard for wages and conditions within the construction SME sector and look forward to ensuring the sector continues to go from strength to strength.”

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It’s time for the construction industry to consider alternative materials

Built environment experts Arup have released a report entitled ‘The Urban Bio-Loop’ which highlights the need for more diverse material usage within construction. For an industry that specialises in boxes, is it time to think outside of it in terms of how we tackle very real issues such as climate change and overpopulation?

The publication aims to demonstrate that a different paradigm for materials in construction is in fact possible.

Organic waste from our cities and the countryside, traditionally managed through landfill, incineration and composting could be diverted – at least in part – to become a resource for the creation of construction engineering and architecture products before being fed back in the biological cycle at the end of their service life.

The use of organic waste in construction would possibly allow the exploitation of its untapped value with a positive impact not only from an environmental perspective but also from a technical, social and economic standpoint. In this project a number of organic waste streams have been identified, together with their applications in building construction as products. Some of them are already certified products used in some markets at global level. Some others need further research and investment before being ready to market.

In the short term these examples are a guideline for designers and practitioners for replacing some of the traditional architectural products with equivalents made with organic waste as a resource.

The report also explores to which extent both our cities and urban districts could become self-sustaining – at least partially – from a feedstock point of view. This would be through the active implementation of organic waste streams into the supply chain of building construction products. This vision entails on the one side cities and urban districts that could implement more effective recovery systems and processes to turn organic waste into a source of value, while on the other side they can be planned for growing natural construction materials.

The principles of Circular Economy would provide the rationale for a shift form a linear – disposal model – towards a circular value chain where organic waste is the main resource.

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