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Boosting construction productivity could deliver £15 billion savings every year

New plans set out by the Department for Transport will revolutionise British infrastructure and boost the construction sector’s productivity in a move that could generate savings of £15 billion a year.

The plans were revealed alongside the National Infrastructure and Construction Pipeline, which sets out projects for the next 10 years.

This £600 billion pipeline includes both public and private investment. It will give certainty to industry that there is great appetite to develop infrastructure and will encourage the sector to invest in the right technology and skills to meet this demand.

The Transforming Infrastructure Performance programme sets out how the government will ensure these projects are delivered swiftly and efficiently. It contains ambitious plans to transform infrastructure delivery over the long-term, using the government’s influence to drive modern methods of construction so Britain can lead the world in high-tech building. The Transport Infrastructure Efficiency Strategy sets out how these lessons will be applied to drive efficiency and productivity in transport.

Andrew Jones MP, Exchequer Secretary to the Treasury, said “We are backing Britain with a record amount of infrastructure investment as we build an economy fit for the future. That’s why we’re working with the industry to skill up and scale up for the challenges ahead.

“Investing in infrastructure boosts productivity for the economy as a whole. The scale of the investment we are talking about here will deliver a step change for our country.”

Transport Secretary Chris Grayling said added “We’re undertaking the most ambitious improvements in our transport network this country has seen for decades. But we must also drive forward plans to ensure these infrastructure projects are completed on time and on budget.

“World-leading projects such as Crossrail, the Ordsall Chord and the huge investment programme in our major roads show that Britain can deliver on time and on budget, boosting jobs and growth and creating new opportunities across the nation. But we want to do better. This strategy shows the way and sets out our standards for how we will do more and better in future.”

The government is a major player in construction and delivers many projects every year, such as transport, schools, prisons and hospitals. This accounts for a quarter of all construction projects, and using this purchasing power will enable ministers to drive innovation and encourage firms to invest in modern methods and technology.

Methods such as off-site manufacturing, where projects are part-constructed before being assembled on location, can boost productivity by reducing waste by 90% and speed up delivery times by more than half (60%). For example, a school that typically takes a year to build could be done in just over 4 months.

The announcements tackle this head on and give the sector the certainty to start investing in the right technology and skills.

Tony Meggs, Chief Executive of the Infrastructure and Projects Authority (IPA), said “Publishing our Transforming Infrastructure Performance (TIP) programme demonstrates our commitment to tackling the annual £15 billion productivity gap in construction. The IPA has a significant role to play in helping to create a more productive and innovative sector.

“We want to maintain confidence in the sector and will work alongside industry, using our purchasing power to drive the adoption of modern methods of construction in both new and existing infrastructure. The scale of ambition is great but by aligning our initiatives we can work with industry to deliver transformation for the sector.”

Andrew Wolstenholme, Co-Chair of the Construction Leadership Council (CLC), said “The Transforming Infrastructure Performance programme presents a huge opportunity for the industry and government to reap the economic gains from improving productivity during the delivery of the UK’s £600 billion infrastructure pipeline. Transport is a huge part of that.

“I am delighted that the IPA, DfT and CLC are working closely to encourage construction clients to procure on the basis of whole life value, deliver more industry led innovation, develop the skills we need for the future and give the UK a competitive advantage in exporting new technologies and expertise. I am proud to chair the Transport Infrastructure Efficiency Taskforce which will ensure these strategies are brought to life across the transport sector.

“It all adds up to better economic and social infrastructure, as well as more homes, delivered quicker, at better value and more sustainably than ever before, underpinning the UK’s growth and providing jobs all over the UK.”

 

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Public consultation reopens for controversial third runway at Heathrow

The previously shelved public consultation on the planned third runway at Heathrow has been reopened due to new evidence, according to the Department of Transport (DoT). It will seek to gauge public support for the plans in light of the new findings.

DoT has published a series of new reports relating to the environmental and human cost of expanding an already-bustling airport in a heavily populated area.

The government’s sustainability appraisal expects the plans to have a negative effect on air quality, noise and biodiversity. It also says that the Gatwick second runway scheme would cause less damage than either potential scheme at Heathrow. The plans will have to mitigate against any significant deterioration in air quality or the whole scheme could be thrown into jeopardy.

To build or not to build…

London’s airports are forecast to be full by the mid-2030s with Heathrow already operating at capacity and Gatwick at capacity during peak times.

This has left the government with the dilemma of either being framed as anti-business if it does not act to address capacity, or anti-environment if it goes ahead with expansion. It is worth noting that should they go ahead with construction, efforts to reduce greenhouse gas emissions by at least 80% on 1990 levels by 2050, as legislated by the Climate Change Act, will be seriously undermined.

A Heathrow spokesperson said “Expansion will support our plan to make Heathrow a great place to live and work, doubling the number of apprenticeships at Heathrow to 10,000, with fewer people impacted by noise than today, and an ambition for carbon-neutral growth.”

Attracting Controversy

A third runway at Heathrow would result in an extra 700 planes a day would pass through it. This equates to an extra 260,000 flights each year, increasing flights by 54% to 740,000 a year.

Paul Mcguiness, Chair of the ‘No 3rd Runway Coalition’ said “We are horrified that the government has even considered succumbing to the shameless, no-expense-spared browbeating of Heathrow, as the airport pursues its own narrow, financial self-interest.”

Friends of the Earth London campaigner Sophie Neuburg said “Airport expansion will bring more noise, pollution and misery to local communities.

“Bold and urgent measures are needed to head off the looming threat of catastrophic climate change. It’s simply pie in the sky to think we can build a third runway at Heathrow while keeping UK targets for slashing emissions.

“These short-sighted plans will also add to London’s pollution crisis. The courts have already warned the government to clean up London’s illegally dirty air as soon as possible – we need action now, not more empty promises tomorrow.”

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£15bn road upgrade plan updated to minimise congestion

Highways England has today updated its £15 billion road improvement programme to reduce the impact of roadworks on motorists and minimise congestion while improvements take place.

Plans for twenty-six road upgrades have been revised to reduce roadworks taking place in the same area of the network or on popular journey routes at the same time. This will mean less congestion for motorists as Highways England embarks on the biggest road upgrade plan for a generation.

The Supplementary Delivery Plan published today will see Highways England rescheduling its programme for the schemes between three and 24 months – meaning a number of schemes will be completed earlier than planned. All are still set for delivery as part of the Government’s first road investment strategy.

Jim O’Sullivan, Highways England Chief Executive said “Our update today is a sensible and responsible way to deliver major national investment in road infrastructure. It will keep our roads moving, deliver a lasting legacy for the country and ensure best value for money for the taxpayer.”

Now, more than two years into delivery of a £15 billion Government investment in motorways and major A roads, Highways England has already completed 18 major schemes, adding more than 190 lane miles of much-needed capacity to the nation’s roads.

The 10 schemes being brought forward are:

  • A19 Testos
  • A19 Downhill Lane
  • M56 junctions 6-8 smart motorway
  • M6 junctions 21a – 26 smart motorway
  • M6 junction 22 upgrade
  • A500 Etruria
  • M6 junction 10
  • M4 Heathrow Slips
  • A47 Acle Straight -small scale improvement
  • A47 and A12 junction enhancement

The 16 schemes being re-scheduled to smooth the timing and frequency of roadworks are:

  • A5 Dodwells to Longshoot widening
  • M3 junction 9 improvement
  • A31 Ringwood
  • M27 junctions 4-11
  • A47 North Tuddenham to Easton
  • A47 Blofield to North Burlingham dualling
  • M25 junction 25 improvement
  • M25 junction 28 improvement
  • A1 Birtley to Coal House
  • M60 junctions 24-27 and junction 1-4 smart motorway
  • A47/A11 Thickthorn
  • A47 Wansford to Sutton
  • A47 Guyhirn Junction
  • A12 Chelmsford to A120 widening
  • M25 junction 10/A3 Wisley interchange
  • M25 junctions 10-16

Highways England is obliged to ensure that investment in the road network delivers good value for money. Following a full review the Road Investment Strategy (RIS) programme some schemes require further development to achieve an acceptable return on investment. As a result, in addition to the 26 schemes above, 6 schemes have been paused for further review and consideration as part of future RIS planning process.

These schemes are:

  • A1 & A19 Technology enhancements
  • M11 junctions 8 to 14 technology upgrade
  • A12 whole-route technology upgrade
  • M53 junctions 5-11 smart motorway
  • A14 Junction 10a
  • M62/ M606 Chain Bar

Two further schemes required rework to achieve value for money; however, changes in local development plans mean that these schemes can be progressed, albeit in the early stages of Road Period 2. These are:

  • M5 Bridgwater junction improvements
  • A50 Uttoxeter Project B growth corridor project
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Winners of £6.6bn construction contracts for HS2 Phase One announced

The winners of the major construction contracts for Britain’s new railway were announced today (17 July 2017), with the £6.6 billion contracts supporting 16,000 jobs across the country.

16,000 jobs will be supported through contract opportunities over the next 6 years.

The huge infrastructure investment covers the main civil engineering work on the first phase of HS2 between London and Birmingham – including construction of tunnels, bridges, embankments and viaducts.

Transport Secretary Chris Grayling announced the decision to award contracts today, which will mean the new high speed link reaching Birmingham by 2026.

Transport Secretary Chris Grayling said “This is a hugely important step in the construction of Britain’s new railway and underlines this government’s determination to deliver an economy that works for all.

“HS2 will deliver vital links between some of our country’s biggest cities, helping to drive economic growth and productivity in the north and midlands.

“As well as providing desperately needed new seats and better connecting our major cities, HS2 will help rebalance our economy.

“We will now get on with building the railway, while continuing to ensure affected communities get appropriate support and are treated with fairness, compassion and respect.”

David Higgins, Chairman of HS2 Ltd, added “This is a huge day for the HS2 project and for the country. These contracts will support 16,000 jobs here in Britain and will create opportunities for thousands of SMEs.

“HS2 was always designed to be much more than just a high speed railway and today we can see the opportunities it brings right around the country – spreading prosperity, acting as a catalyst for investment and rebalancing our economy 10 years before the railway even opens. Business now has the surety to invest with confidence to build a legacy for Britain.”

HS2 could carry more than 300,000 people a day. And with fast trains using the new line, there will be extra space for more trains on the existing rail network.

Benefits will be felt across the network with trains running as far as Scotland and the number of seats available out of Euston in peak hours more than doubled.

In total, construction of the full HS2 route to the north-west and Yorkshire will create up to 25,000 jobs and 2,000 apprenticeships. Another 3,000 people will operate HS2 and it is estimated that growth around new HS2 stations will create another 100,000 jobs.

2,000 apprenticeships will be created.

In February, Parliament granted powers to construct the Phase One route from London Euston to Birmingham, with the route opening in 2026.

The winning bidders to build the first phase of the route are:

Area South

Euston Tunnels and Approaches – SCS JV (Skanska Construction UK Ltd, Costain Ltd, STRABAG AG)
Northolt Tunnels – SCS JV (Skanska Construction UK Ltd, Costain Ltd, STRABAG AG)

Area Central

Chiltern Tunnels and Colne Valley Viaduct – Align JV (Bouygues Travaux Publics, VolkerFitzpatrick, Sir Robert McAlpine)
North Portal Chiltern Tunnels to Brackley – CEK JV (Carillion Construction Ltd, Eiffage Genie Civil SA, Kier Infrastructure and Overseas Ltd)
Brackley to South Portal of Long Itchington Wood Green Tunnel – CEK JV (Carillion Construction Ltd, Eiffage Genie Civil SA, Kier Infrastructure and Overseas Ltd)

Area North

Long Itchington Wood Green Tunnel to Delta Junction and Birmingham Spur – BBV JV (Balfour Beatty Group Ltd, VINCI Construction Grands Projets, VINCI Construction UK Ltd, VINCI Construction Terrassement)
Delta Junction to WCML Tie-In – BBV JV (Balfour Beatty Group Ltd, VINCI Construction Grands Projets, VINCI Construction UK Ltd, VINCI Construction Terrassement)
Preparatory works are already underway, with main construction work starting in 2018/19 following a period of detailed design work.

In addition, HS2 stations at Euston, Old Oak Common and in Birmingham will be central to HS2 and the work needed to develop designs is also well underway. Both the invitations to tender (ITTs) for the station design services contracts for all 4 Phase One stations and the invitation to participate in dialogue (ITPD) for the Euston Master Development Partner have been released to shortlisted bidders.

These are significant milestones which show how progress is continuing to deliver stations that will be embraced by the local communities, drive economic growth and provide seamless journeys for passengers.

The Transport Secretary will today publish a Bill to deliver the next phase of HS2, from the West Midlands to the West Coast Main Line south of Crewe.

This means – subject to Parliamentary approval – this part of the route can open in 2027, 6 years earlier than planned, to bring the benefits of HS2 to the north and Scotland sooner.

The Transport Secretary will also confirm the final Phase 2b route, from Crewe to Manchester and Birmingham to the East Midlands and Leeds. This phase will complete HS2 and unlock the transformative project’s full benefits for the country.

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London Mayor criticises decision to delay new runway construction

‎Mayor of London, Sadiq Khan has criticised ministers for delaying the final decision of where to build a new runway in the South-East for up to a year.

The Mayor accused the Government of ‘causing unnecessary uncertainty for British businesses already struggling with Brexit.’

His comments came after Downing Street postponed a final decision on expanding Heathrow or Gatwick until late 2017.

The decision means Article 50 – the formal move triggering Britain’s exit from the European Union – is set to be taken before any final decision on airport capacity in the South East.

Khan said “The Government’s decision to yet again delay deciding where to build a new runway will cause unnecessary uncertainty for British businesses already struggling with Brexit.

“Now more than ever, businesses need certainty and stability in order to make investment decisions and to keep jobs in Britain. Instead they are getting dither and delay.

“Now it’s time to get on with building a new runway at Gatwick, which can be built quicker, cheaper, and without the years of legal and political battles that Heathrow clearly faces.”

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Mayor commits to building more river crossings in London

The Mayor of London, Sadiq Khan, has outlined his commitment to providing greener and more public transport-focused river crossings in the East and South East of London.

The Mayor has set out a package of new river crossings to be built in the next five to 10 years that will vastly improve travel across the capital, while supporting new affordable homes and business opportunities in East London.

These include:

  • Plans for a new pedestrian and cycle bridge linking Rotherhithe & Canary Wharf to be accelerated
  • A series of enhancements to be made to the proposals for Silvertown Tunnel to make it greener and more public transport-focused, and exploring further benefits for local residents who use the tunnel
  • A DLR crossing at Gallions Reach, helping support the development of around 17,000 new homes across Newham and the Royal Borough of Greenwich
  • Further assessment work for a Barking Riverside-Abbey Wood London Overground crossing
  • Further assessment of a North Greenwich-Isle of Dogs ferry, supporting new development on the Greenwich Peninsula and the Isle of Dogs

Mayor of London, Sadiq Khan, said “It’s no secret that London has long needed more river crossings in the east. With new homes and economic growth across East London, it becomes even more important that we deliver new greener transport links that allow Londoners to cross the river quickly and more easily.

“But we don’t want these to have a damaging impact on our environment, and that’s why I’ve reviewed and improved plans for Silvertown Tunnel and why I’m pushing forward with crossings that encourage public transport, walking and cycling.

“As we continue to unlock the massive economic potential of East London, we must secure the very best transport infrastructure that improves the quality of life for everyone living and working in the area.”

Alex Williams, Acting Managing Director of Planning at TfL, added “London’s population continues to grow and it’s vital that we do everything we can to support this to ensure that everyone can continue to move around freely and easily. The Mayor’s new vision for river crossings in East London is firmly rooted in supporting growth and providing better public transport links for all. We will now work hard to develop the designs for these new crossings, as well as identify potential funding opportunities, to allow them to be constructed more quickly.”

David Leam, Infrastructure Director at London First, concluded “Better river crossings will help unlock the economic potential of East and South East London and connect thousands of new homes in Newham, Barking, Greenwich and elsewhere. We’re delighted the Mayor has sped up these plans, aiming to deliver new ways of getting across the river within the next five to ten years.”

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Parliament calls for greater sustainability in transport infrastructure

Parliament’s Environmental Audit Committee has published a report calling for greater sustainability from the Department for Transport in future infrastructure projects.

According to the report (which can be read here), The Department for Transport needs a clear strategy to increase the use of ultra-low emission vehicles, reduce air pollution and deal with the VW cheat device scandal so that it can meet decarbonisation and air quality targets.

The Environmental Audit Committee highlights that the Department for Transport has planning and investment responsibilities for the UK’s road, rail, maritime, aviation and bus service sectors. The Department’s total spending is set to increase during this Parliament: although its resource spending is due to go down, its capital budgets will rise, with £73.4 billion of transport-related capital investment between 2015–16 and 2020–21, including £34.5 billion for Network Rail and £15.2 billion for its Roads Investment Strategy. In 2014–15 the Department allocated 50% of its gross expenditure to its roads, traffic and local responsibilities; almost 40% to its rail executive responsibilities; and 3% to its international, security and environment responsibilities.

Whilst Parliament acknowledge that many positive steps have been made towards better sustainability within the transport sector, the report focuses on those areas where the Department for Transport might go further to tackle climate change.

This has been welcomed by Campaign for Better Transport who will be writing to the Department demanding further reduction of their carbon footprint.

Sustainable Transport Campaigner, Bridget Fox commented: “The report shows that the Government is not doing enough to decarbonise transport and avoid building damaging infrastructure projects. Stronger action to clean up polluting vehicles is welcome but ultimately the answer lies in reducing car dependency, getting more freight onto rail and investing in good quality public transport alternatives. The call today from Team GB’s Olympic cycling champions for investment in everyday cycling is part of this solution. We’ll be writing to the Department for Transport Permanent Secretary demanding action on this report.”

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HS2 Midlands route to open six years early… despite soaring costs

The section of HS2 that connects Birmingham with Crewe is now set to open six years ahead of the original schedule in 2027.

This announcement follows last week’s Autumn Statement revealing that the overall cost of HS2 is now rising to over £55bn, £5bn more than the projection made two years ago of £50.1bn.

In the Autumn Statement the Chancellor also announced £200 million to support the operations of Transport for the North (TfN) and its delivery of Oyster-style ticketing across rail, bus, metro and trams across the region. He also confirmed at Spending Review 2015 that £13 billion would be spent on transport in the North over this Parliament. TfN and the Department for Transport have also jointly launched their Autumn Report on the Northern Transport Strategy.

Chancellor George Osborne said “bringing forward this part of the HS2 route by six years is a massive step in the right direction for the Northern Powerhouse where high speed rail will play a big role in connecting up the entire region with the rest of the country.”

HS2 Ltd Chairman Sir David Higgins added “This is another significant milestone in the development of Britain’s high speed rail network. By accelerating the second phase between Birmingham and Crewe, we will bring the capacity, connectivity and regeneration benefits of HS2 to the North-West and Scotland years earlier than originally planned. It has also been very gratifying, as we develop the plans for Phase Two, to see a consensus grow among the city regions in the East Midlands and Yorkshire on the siting of future hub stations at Toton and Leeds city centre respectively. We all recognise the huge contribution this infrastructure investment can make in helping to rebalance our economy.”

The plans, coined ‘Phase 2a’, is raising concerns among those who disagree with the building of a High Speed Rail in Britain. Many feel that bringing forward the completion date for just 40 miles of track will surely raise questions as to whether if HS2 is built, it would ever get further than Crewe.

Stop HS2 Campaign Manager Joe Rukin criticised the announcement, saying “the supposed ‘fast-tracking’ of the route to Crewe, coupled with the rising costs of HS2 and real problems with the practicality of the rest of the proposed route, will surely lead many to conclude HS2 would never get further than Crewe. Far from showing a commitment to the North of England, going ahead with this proposal punts the links to Manchester, Yorkshire and the East Midlands firmly into the long grass, and if being a rail hub equaled economic prosperity, Crewe would already be the most prosperous town the the country.”

“HS2 is abysmal value for money, and the increasingly dogmatic support for this white elephant and its’ spiralling costs is completely unfathomable. The costs of HS2 went up 11% in the Autumn Statement and with trains not due to run for over another decade, who knows where the cost of this vanity project will end up and what else will have to be cut to pay for it? A responsible chancellor would be asking serious questions about whether HS2 is really worth it, not chucking more money at a boondoggle which would only benefit the richest in society. This is simply rewarding chronic mismanagement, and signalling that there is no need for budgetary control when it comes to HS2.”

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