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Three ways to tackle construction skills shortages

Increasing levels of gender diversity, widening talent pipelines and improving the wider public image of the sector will help to tackle the ongoing skills shortages plaguing the construction industry, according to One Way.

An analysis by the leading construction and rail consultancy has revealed that the skills shortages can only be tackled by employers being proactive and going above and beyond the call of duty. This comes at a time when estimates suggest that 27,000 projects will suffer from a lack of suitably skilled and qualified workers over the next five years.

Paul Payne, managing director of One Way, comments on the required approaches:

Improve gender diversity

“It’s downright negligent to almost rule out half of the workforce from working in the industry, but that’s essentially what is happening. We don’t need to go over-the-top, but considering how we could make the sector that bit more inclusive would make a huge difference. No other mainstream industry suffers from such a colossal lack of diversity and it’s certainly a major factor contributing to the skills shortages. We have launched our #GirlsAllowed programme and we’d urge more firms to consider similar approaches.”

Promote a better image of the industry to the public

“How many people outside of the field realistically know the potential that a construction career holds? In reality, it’s very few. The main stereotype is that a job in the sector means being cold and muddy and standing outside digging a ditch somewhere. That needs to change. The skills of quantity surveyors, for example, are similar to those of an accountant, and rather than being handcuffed to a desk for the rest of your career, they have the chance to work on major infrastructure or construction projects. Unfortunately, nowhere near enough people outside of the sector know about this.”

Widen talent pipelines into construction

“This can only be achieved by improving the wider image of the industry as, currently, few youngsters actively seek out a career in construction. To solve this, firms need to be proactive, get into schools and colleges and actually speak to children about the potential a career in the field holds. The alternative is to rest on our laurels and continue to do very little, which will only lead to the construction industry in this country falling apart.”

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Contracts signed to deliver tunnels, bridges and earthworks for HS2

HS2 has taken a major step forward, with the formal signing of contracts to deliver the tunnels, bridges and earthworks that will carry the first phase of the UK’s new high speed railway from London to Birmingham in 2026.

High Speed Two (HS2) Ltd Chief Executive, Mark Thurston, was joined by representatives from SCS JV, Align JV, CEK JV and Balfour Beatty VINCI, in a signing ceremony at the company’s Birmingham head office. The winning companies, whose names were released by the Department for Transport last month (17 July 2017), will go on to support 16,000 jobs across the UK-wide supply chain as they deliver what will be the biggest investment in UK’s transport infrastructure since the building of the motorways.

High Speed Two (HS2) Ltd Chief Executive, Mark Thurston, was joined by representatives from SCS JV, Align JV, CEK JV and Balfour Beatty VINCI, in a signing ceremony at the company’s Birmingham head office. The winning companies, whose names were released by the Department for Transport last month (17 July 2017), will go on to support 16,000 jobs across the UK-wide supply chain as they deliver what will be the biggest investment in UK’s transport infrastructure since the building of the motorways.

Welcoming the milestone for the project, HS2 Chief Executive Mark Thurston said “HS2 is more than just a railway. The contracts will provide much needed extra capacity and connectivity between our major cities, but it will also unlock huge opportunities for new jobs, homes and economic development and start to rebalance our economy.

“We are determined to deliver the project to new levels of safety and efficiency, with respect for communities, protection for the environment and value for money at the core of everything we do. The contracts we signed today will support 16,000 jobs and generate thousands of contract opportunities within the wider supply chain, spreading the benefits of this investment across the whole country.”

A team made up of Skanska, Costain and STRABAG (SCS JV) will build the first section of the route which is in a tunnel between Euston and Old Oak Common and onwards to Northolt. Welcoming the contract award, Peter Jones, Executive Director and SCS JV board member said “We are delighted to have been awarded these major contracts by HS2 which follow on from the South Enabling Works Contract awarded last year.

The awards are further testimony to the SCS collaborative approach and our strong track record in applying technology-based innovative solutions in the delivery of large-scale projects.

Align JV, a team made up of Bouygues, VolkerFitzpatrick and Sir Robert McAlpine will build the next stage, including the Colne Valley Viaduct and Chilterns Tunnel. Welcoming the contract award, Jérôme Furgé, Align Project Director said “I have worked on many major projects around the world, and find it a special privilege to be working on HS2. This project will require a unique level of collaboration between all of us and the highest industry standards, expected by HS2, will be implemented in order to obtain the very best outcome. My Align colleagues and I are delighted to be part of the challenge to deliver a world-class asset to the UK.

The largely rural stages between the Chilterns Tunnel and Long Itchington will be built by a team made up of Carillion, Eiffage and Kier (CEK JV). Welcoming the contract award, Sean Jeffery, Executive Director and Chairman of CEK JV Board said “We are delighted to have been selected to help deliver this major infrastructure project and look forward to working in partnership with HS2. Our involvement in this project will enable us to create many new jobs and training opportunities as well as working with a diverse range of supply chain businesses from across the UK.”

A team made up of Balfour Beatty and VINCI will complete the route, taking the line north past Birmingham Airport and into the new Curzon Street station in the centre of Birmingham, as well as onward to a connection with the existing West Coast Mainline at Handsacre. Welcoming the contract award, Mark Cutler, Balfour Beatty VINCI HS2 Managing Director, said “I am proud that our long-standing joint venture has been chosen to deliver these two important and complex sections of HS2.

“This iconic rail infrastructure project will create significant opportunities for the UK construction industry and enable long term benefits in skills, jobs and regional prosperity. We look forward to building on our successful track record of major infrastructure projects, and playing our part in the delivery of HS2.”

The contracts are two-stage, with the contractors spending the first 16 months working collaboratively with HS2 Ltd on the detailed design before construction begins around 2018/19. Preparatory work has already begun on the project with geological investigation underway across the route and ecological and archaeological work due to begin soon.

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Bogus self-employment in construction out of control, warns Unite

Unite, the UK’s largest construction union, is calling for root and branch reforms of employment rights after new figures demonstrated bogus self-employment in construction is out of control.

A Freedom of Information request by Unite has revealed that in 2016/17 at least 1.076 million construction workers were paid via the Construction Industry Scheme (CIS), an eight per cent increase on the figure of 12 months ago when 992,973 were paid via CIS. In total 47 per cent of the entire construction workforce is now paid via CIS.

The sharp rise in workers operating via CIS demonstrates that the government’s hopes of reducing construction bogus self-employment has failed. In 2014 the government introduced measures that barred construction workers operating via engagers (employment agencies and payroll companies) from being self-employed.

CIS is the stand alone tax system for construction workers. Workers paid via the scheme are normally officially classified as self-employed although the nature of their engagement means that the vast majority are bogusly self-employed.

The bogusly self-employed have all the employment characteristics of an employee but are denied even the most basic employment rights such as holiday and sick pay and can be instantly dismissed without warning.

The principal beneficiaries of bogus self-employment are employers who do not pay employers’ national insurance contributions of 13.8 per cent and don’t have to pay employee benefits such as holiday pay.

Gail Cartmail, assistant general secretary, of Unite said “These figures demonstrate that bogus self-employment in construction is out of control. Employers are simply ignoring the rules in order to line their pockets and deny workers their rights.”

The government’s 2014 reforms led to a huge increase in workers being paid via umbrella companies, which results in the worker having to pay both employers’ and employees’ national insurance contributions as well as a plethora of other deductions from their wages. The government has previously conservatively estimated there are 430,000 workers being paid via umbrella companies, the majority of whom work in construction.

The government’s much heralded Taylor Review, while calling for it to be clearer to “distinguish” between workers and self-employed workers fails to address how existing Treasury policies are creating bogus self-employment and causing worker exploitation.

A recent survey by the Joint Industry Board (JIB), that sets the standards for employment, welfare, and apprentice training in the electrical contracting industry, revealed that 84 per cent of electricians want to be directly employed, rather than employed via an agency in order to receive full employment rights, paid holidays and benefits.

Gail Cartmail added “We have huge numbers of construction workers being routinely exploited via the government’s own tax scheme and via umbrella companies and yet the Taylor Review has ducked these issues.

“Taylor talks about his seven principles for fair and decent work which includes workplace training and the health and wellbeing of workers but while the real employer can continue to divest themselves of their workforce and have no responsibility for them, his principles are nothing but warm words.

“The only way that workers will be treated fairly and decently is by introducing clear rules which ensure that workers are either genuinely self-employed or paid by a standard PAYE method. Without such a reform productivity in construction will remain low, accidents and ill health will be high and the industry will fail to train sufficient numbers of apprentices.”

“The recent survey by the JIB destroys the myth that construction workers want the flexibility to operate via agencies or be self-employed. What workers want is to do know they are going to receive a steady wage and have the security of regular employment.”

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Leading Eco-Roof company calls for Yorkshire colleges to upskill or risk being left behind

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Huddersfield-based energy efficiency roofing specialist, Ploughcroft, has issued a stark warning to construction colleges across the region: upskill and evolve, or risk being left behind in the fast-moving roofing industry.

With hundreds of students leaving construction colleges to seek employment this summer, Chris Hopkins, Divisional Director at Ploughcroft, is warning the majority of those leavers will be untrained and unprepared for the energy saving construction techniques that consumers now demand.

An industry first

As a consequence, Ploughcroft has taken the initiative to develop its own pioneering, Eco-Roof apprenticeship scheme – which has already been trailed over the last 12-months. This is believed to be an industry first.

This proactive approach from Ploughcroft is essential to provide apprentices with the skills and knowledge required to succeed in the fast-growing energy efficiency industry, and to underpin the cost-effective installation of new roofing schemes.

While under the current college curriculum, the focus quite rightly covers the basic roofing installation essentials, it fails in the view of Chris Hopkins, when it comes to the incorporation of now crucial energy efficient-related skill sets, such as U-Value calculations, condensation risk analysis and heat-loss monthly savings.

This means forward-thinking companies such as Ploughcroft, which lead the way with its unique Eco-Roof product, are unable to find suitably qualified staff, even at entry-level positions, further exacerbating the industry-wide skills shortage. Ploughcroft believes that by ‘future proofing’ the Apprenticeship schemes, this will also have the knock-on effect of attracting the brightest and best to the industry.

Chris Hopkins is now calling for urgent dialogue with course and curriculum planners to collaborate to address this key area. He said “Over the past three years we have seen a rapid growth in our Eco-Roof business, as energy prices continue to rise, and customers become increasingly clued-up when it comes to greener living and the impact it can have on their energy bills.

“However, while consumer demand rises, colleges simply aren’t keeping up. Given there was no existing eco roof apprenticeship scheme in place that covered the type of specialist work we carry out, we’ve been trialing and created our own using my professional teaching and roofing assessor qualifications.

“That said, we can only do so much, and today’s apprentices are the people who will drive the energy efficiency industry forward in years to come. As such it is absolutely essential that colleges – and other construction businesses – continue to evolve, and invest in skills and development.”

One of Ploughcroft’s most successful apprentices is 18-year-old Charlie Oakes, who began his apprenticeship in 2015 when the scheme launched. He says: “Joining the Eco-Roof apprenticeship has been a fantastic experience. Roofing is often seen as industry that lacks innovation, but working at Ploughcroft I’ve found that’s not the case, and I’ve learned a great deal about emerging energy efficiency techniques. This is a huge growth area, and one I’m excited to see developing.”

Ploughcroft’s two-year Eco-Roof apprenticeship offers a mix of on-the-job training and classroom-based learning spanning traditional roofing, as well as a wide range of cutting-edge, energy-efficient construction techniques required to meet the needs of this fast-growing eco-construction sector. It is currently seeking graduates to join its Eco-Roof apprenticeship scheme.

To find out more, visit www.ploughcroft.co.uk.
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Fines totalling £1m for construction companies after workers exposed to asbestos

Three companies have been fined a total of more than £1m after workers were exposed to asbestos while refurbishing a school in Waltham Forest.

Southwark Crown Court heard that on 24 July 2012 a worker removed part of a suspended ceiling in one of the ground floor refurbished rooms at St Mary’s school and identified suspect asbestos containing materials. Asbestos fibres were subsequently found in numerous areas in the school.

The court heard that the London Borough of Waltham Forest had a contract with NPS London Limited to manage development and refurbishment of its estate. At the time of the incident the Principal Contractor for the work was Mansell Construction Services (aka Balfour Beatty) and the subcontractor was Squibb Group Limited.

A Health and Safety Executive (HSE) investigation found that although an asbestos survey was completed, there were multiple caveats and disclaimers which were not appropriately checked.

Balfour Beatty Regional Construction Limited (previously Mansell Construction Services Limited) of Canary Wharf, London was fined £500,000 and ordered to pay costs of £32,364.84 after pleading guilty to breaching Section 2(1) and 3(1) of the Health and Safety at Work Act 1974.

NPS London Limited, of Business Park Norwich, Norfolk was fined £370,000 and ordered to pay £32,364.84 in costs after pleading guilty to breaching Section 3(1) of the Health and Safety at Work Act 1974.

Squibb Group Limited, of Stanford Le Hope, Essex was fined £400,000 and ordered to pay costs of £175,000 after being found guilty after a trial of a breach of Section 2(1) of the Health and Safety at Work Act 1974.

Speaking after the hearing HSE inspector Sarah Robinson said “The principal contractor and contractors on site did not review the survey report in detail, and did not take into consideration the multitude of caveats.

“Therefore the work undertaken did not adopt the high standards of control expected for working where there was the potential to expose workers to asbestos.”

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Growth continues in UK for construction SMEs

The SME construction sector grew in the second quarter of 2017, albeit at a slower rate in most parts of the UK than the first three months of the year, according to the Federation of Master Builders (FMB).

Key results from the FMB’s State of Trade Survey for Q2 2017, which is the only quarterly assessment of the UK-wide SME construction sector, include:

  • Q2 2017 was the 17th consecutive quarter of positive growth which means that the construction SME sector has been growing for more than four years (ie since Q2 2013)
  • Almost one in two construction SMEs predict rising workloads in the coming three months, with just 9% predicting a decrease in activity
  • 83% of builders believe that material prices will rise in the next six months
  • 60% of construction SMEs are struggling to hire bricklayers; 57% are struggling to hire carpenters and joiners; and 47% are struggling to hire plumbers
  • Almost two-thirds (62%) of construction SMEs expect salaries and wages to increase in the next six months

Brian Berry, Chief Executive of the FMB said “Rising material prices and salaries could be starting to dampen growth among construction SMEs. However, it is encouraging to see that the sector has continued to grow despite the recent snap General Election and the resulting hung Parliament. The construction SME sector is particularly vulnerable to any dips in consumer confidence that might come from periods of political uncertainty. It may be that a number of home owners decided to delay any big spending decisions on new extensions or loft conversions while the election campaign was underway – this would account for the slow-down in growth seen in the second quarter of 2017.”

“Looking ahead, almost two-thirds of construction firms expect wages and salaries to increase over the next six months and this is in contrast to stagnant wages elsewhere in the economy. Rising salaries are undoubtedly the result of the escalating construction skills shortage – construction workers know their worth and are demanding higher wages from their employers. The majority of construction SMEs are struggling to recruit key tradespeople such as bricklayers and carpenters and we’re seeing shortages in other trades, such as plumbers and plasterers, starting to creep up. With Brexit on the horizon and worrying talk of the so-called ‘Tier 2’ immigration system replacing the free movement of people, the construction industry urges Ministers to bear in mind their strategic house building and infrastructure targets before pulling up the drawbridge on EU migrant workers.”

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Multi-million funding to transform town centres and neighbourhoods

The Mayor of London and Transport for London (TfL) have today announced a new multi-million pound funding programme that will transform town centres and neighbourhoods into more attractive, accessible and people-friendly public spaces.

A new £85.9 million Liveable Neighbourhoods programme will give boroughs the opportunity to bid for funding for long-term schemes and construction that will encourage walking, cycling and the use of public transport, in line with the Mayor’s Healthy Streets approach.

The programme will provide grants of between £1 million and £10 million for a wide range of community-supported projects, potentially including the creation of green spaces, new cycling infrastructure, redesigned junctions and the widening of walking routes to improve access to local shops, businesses and public transport. By supporting projects which have local support, the funding will particularly target schemes that are shown to improve boroughs and reduce car trips – improving health and air quality.

The Liveable Neighbourhoods programme is a key part of the Mayor’s draft Transport Strategy, which last month detailed plans to create a fairer, greener, healthier and more prosperous city by making London’s streets more welcoming and encouraging active travel and public transport.

The Mayor of London, Sadiq Khan, said “I’ve set out bold plans to transform the way Londoners move around our city to improve our health, air quality and future prosperity. London’s boroughs are key partners in delivering this vision and through this new funding we can make a real difference by supporting the projects that local people want to see. This will ensure that the improvements really work for our local communities, transforming our town centres and successfully encouraging many more Londoners to walk, cycle or use public transport for the good of their health and our environment.”

Tompion Platt, Head of Policy, Living Streets said: “London is a successful city, but it can become a city with a far better quality of life. Moves have been made recently to make London more liveable, but its streets are still car-dominated. This discourages walking, causes poor air quality and undermines people’s health. The ambition to create healthier, more liveable neighbourhoods across London with walking at their heart is welcome step.”

 

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Developer fined after failing to safely carry out demolition work

The owner of block of flats was prosecuted after a Health and Safety Executive (HSE) inspection identified serious safety breaches while it was being demolished.

Peterlee Magistrates’ Court heard that a member of the public raised concerns about the conditions at the site at 60 Pitcairn Road, Mitcham. Selliah Sivaneswaran was the owner of the property, but had failed to make appropriate appointments for the development project. The site had been inspected by the HSE in October 2016 and the work halted due to the workers being exposed to a range of risks including exposure to asbestos, falling from height, and fire.

The HSE revisited the site on 4 January 2017 and found the work had restarted and the site was still unsafe, despite enforcement Notices being served and advice being provided. The demolition was still being carried out by hand with workers climbing onto the unguarded roof and throwing the debris down. Workers were at risk of falling up to four metres through holes in the floors and partly demolished staircase. No welfare facilities had been provided and there was a significant risk of fire with the workers not being able to escape.

The project involved the demolition of the old flats and the construction of four one-bedroom flats and two two-bedroom flats on a site bought for £115,000 in 2001. The Court heard that despite the foreseeably large financial return from the project, Mr. Sivaneswaran put profit before safety and paid cash in hand to untrained workers, did not engage a site manager and provided none of the legally required site documentation.

Selliah Sivguru Sivaneswaran of Harlyn Drive, Pinner pleaded guilty to breaching Regulation 13(1) and 4(1) of the Construction (Design and Management) Regulations 2015 (CDM) and was fined £20,000 and ordered to pay £ 5928.28 in costs.

He was also ordered to pay a victim surcharge of £120.

HSE inspector Andrew Verrall-Withers commented after the hearing “Mr. Sivaneswaran was a commercial client as he was carrying out work as part of a business. When he failed to appoint a principal contractor, their duties fell on him.

“Thanks to a member of the public reporting the dangerous conditions the HSE was able to take action. It was just good fortune that no one had been killed at the site.

“Instead of taking the support and advice provided by the HSE, Mr. Sivaneswaran continued to let the workers operate in appalling conditions where they were at risk of being killed. He did not even provide them with a WC and washing facilities.”

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Extremely rare Roman sarcophagus lifted from ancient Southwark burial site

An archaeological gem, unearthed by builders from Galliard Construction, has been moved to the Museum of London, where its contents will be exhumed.

Earlier this year Galliard Construction workers, who are currently building a new residential development in the prime location of Harper Road, came across a rare Roman sarcophagus, leaving experts astounded by this unusual discovery.

This is an exceptional find for London, where only two similar late Roman sarcophagi have been discovered in their original place of burial in recent years: one from St Martin-in-the Fields near Trafalgar Square (2006) and one from Spitalfields in 1999.

The excavation, which began in January this year, revealed a large robber trench around the coffin and found that the lid had been moved, suggesting that the coffin was discovered and robbed in the past. However, it is possible that only the precious items were removed, and the less valuable artefacts, such as the body itself, still remain within the stone sarcophagus.

Southwark and the City of London are remarkable in being the only two London Boroughs that have their own, in-house, dedicated archaeologist. Southwark Council champions archaeology and has dedicated planning policies to ensure that the borough’s ancient history is identified, protected and managed for future generations. The Harper Road excavation is just one of the many archaeological projects that are currently running across Southwark.

Acorn Property Group, which is working in partnership with Galliard Homes and Otterlo London on this development to transform the new space in Trinity Village, have also been keen to develop the site sympathetically, without detriment to its historic surroundings.

Stephen Conway, CEO of Galliard Homes siad “This is a remarkable discovery and I am delighted that we were able to work with the council to ensure the safe passage of this archaeological gem to the Museum of London.

“This incredible find will add even more to the rich history of the area and the stunning new residential development which will stand upon its site. I’m sure buyers will be thrilled that they too can enjoy a slice of seminal history. ”

Recent archaeological research has shown that this area of Roman Southwark is the focus of ritual activity. The area further forms a complex ritual landscape containing various religious and funerary monuments and a vast dispersed Roman cemetery (sites such as Dickens Square, Lant Street and Trinity Street) incorporating a range of burial practices, often with exotic grave goods sourced from across the Roman Empire.

The burial of a 14-year-old girl from nearby Lant Street was one of the richest internments from the Southwark cemetery and is without parallel in Britain; her 4th century chalk-burial contained a bone inlay box, an ivory clasp knife depicting a leopard, and glassware.

Roman London was a multi-cultural city, with a population spanning the empire and adding to the mix of different religious practices and beliefs. If the skeleton survives within the sarcophagus it will be a fascinating contribution to current archaeological research.

Gillian King, Senior Planner: Archaeology, at Southwark Council, added “In my long archaeological career I have excavated many hundreds of burials, but this is the first Roman sarcophagus I have ever discovered, still surviving in its original place of deposition. I have seen them in museums, but I think part of me believed that they had probably all been found by now!

“It really is a very special discovery. Personally, I find it really fascinating to contemplate that this area – which we are now so familiar with – was once, during the Roman period, so completely different. It really does make me feel very honoured that my role at Southwark Council contributes to protecting amazing archaeological treasures like this, and our work means that we can ensure that the historic environment is championed and preserved for the enjoyment of us and future generations.”

Cllr Peter John, the Leader of Southwark Council / Cllr Mark Williams, Southwark Council cabinet member for regeneration and new homes, said “This is a remarkable and exciting find. In Southwark we take our duty as custodians of the borough’s rich, varied and important archaeological heritage very seriously.

“This Roman sarcophagus is the find of a lifetime and a credit to the council’s commitment to ensuring that the borough’s history is properly conserved.”

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Construction 2017: Road to success still marred with uncertainty

Workloads have slowed across all sectors of the construction industry as Brexit delays investment, according to the Q2 2017 UK RICS Construction and Infrastructure Market Survey. Anecdotal evidence from respondents suggests that uncertainty regarding Brexit is weighing on investment decisions, alongside the political turmoil generated from last month’s general election.

A modest slowing

After a positive picture in the Q1 survey with the growth in workloads accelerating at its strongest pace since the referendum, there has been a modest slowing in Q2 2017 with private commercial and industrial sectors seeing the most significant easing in activity.

That said, a net balance of 29% of contributors continue to report a rise in private housing activity.

Although growth in total workloads has slowed in the sector, it is still rising, with 21% more respondents reporting an increase (down from +27% recorded in the previous quarter). Expectations for the next 12 months also remain relatively positive, although respondents appear noticeably less optimistic on their profit margins.

Infrastructure in focus

Infrastructure workloads remain broadly unchanged, with roads, rail and energy expected to see the strongest growth in output over the coming 12 months. Two areas of the UK that are seeing activity continue to rise are the Midlands and East Anglia, where activity has been boosted thanks to a surge in infrastructure.

Respondents in all other parts of the UK report a fall in workloads.

Looking back at the national picture, in the two sectors with the most significant easing, 21% more respondents saw their workloads in the private commercial rise rather than fall in Q2, down from 31% in the prior quarter. Private industrial activity also eased to 15% from 22% previously.

The more uncertain outlook for the economy as a whole has led to a less optimistic outlook for the sector over the year ahead; even so, 44% more contributors expect activity to rise rather than fall. This is down from 53% the previous quarter. Likewise, only 29% more contributors now expect to see employment rise rather than a fall, compared with an average of 32% over the four previous quarters.

Financial constraints

Financial constraints are reported to be by far the most significant impediment to building activity, and with a net balance of 79% (from 70% in Q1) is the highest reading in four years. Economic uncertainty driven largely by Brexit and the subsequent election result was identified as the primary cause of the constraint. Difficulties with access to bank finance and credit, along with cash flow and liquidity challenges, were the second and third most frequently cited reasons, respectively.

Despite the slowdown in growth, skills shortages persist with 55% of contributors reporting them as a constraint on growth. After having eased in 2016, the intensification of labour shortages appears to be biting once more. The lack of quantity surveyors and bricklayers appears to be particularly acute, but the shortfall extends to other construction professionals as well.

Tender price expectations over the next twelve months remain unchanged in Q2, with respondents envisaging greater price pressures. The expected increase in tender prices may signal rising costs and shrinking profit margins for businesses. Indeed, expectations on profit margins have eased from a net balance of 18% to 8% in the latest results.

Jeffrey Matsu, RICS Senior Economist said “Economic and political uncertainty appear to be weighing on sentiment, but all things considered, current conditions and year-ahead workload expectations are holding up rather well relative to the longer-term trend.

“Given the ongoing nature of Brexit negotiations, it remains to be seen what impact this will have on financial conditions or the availability of skilled labour to the industry.”

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