Build magazine July 2015

New Products Bring BIM to the Fore / UK Construction Week Launches Exciting New Trailer

Saving the Planet the Smart Way Can financial incentives persuade customers to go green?

Downfall of the Green Deal Why has Government subsidy programme been axed?

U.S. Energy Efficiency Market: an Overview How customers are driving change.

Build Magazine Issue Three: July 2015

Also in this month’s issue...

New Heathrow Terminal: Flight of Fantasy?

What are the implications of a new runway for the UK construction industry?

Deaths in Construction We look at the history of deaths in major projects with emphasis on the recent loss of life surrounding Qatar’s preparations for the 2020 World Cup.

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Contents 4. News

Inside the Industry 14. BIM Solutions to Boost Efficiency Time Saving BIM software looks set to save time and money on cosntruction projects.

18. Heath-Row? Economy and construction industry could suffer if expansion plans don’t go ahead.

22. Dying for Construction We examine the death rates and causes of these at major consturction projects following news of Qatar stadium deaths.

26. Construction at the Cinema UK Construction Week’s explosive new trailer sets an exciting precedent for the trade expo.

Eco Building 32. The U.S. Energy Service Company Market – Challenges and New Opportunities

By Casey Talon

36. Smart Ways to Save Energy PECO’s Smart Ideas campaign comes under the spotlight as we look at how effective the marketing strategy is at changing consumer habits.

38. Energy Deficient How will loss of the Green Deal subsidies affect the industry?

Regulation 44. Industry Leaders Welcomed into Construction Leadership Council We show how the membership shake-up promises to make the council more industry focused.

Real Estate 50. Securing The Value Of Your Commercial Property Russell Kirby examines how to reduce the risk of physical damage to commercial property.

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News Construction Beyond Concrete Mordor Intelligence releases their report on the Global Insulated Concrete Form (ICF) Market with the report elucidates the situation of insulated concrete forms around the world and studies the markets of the insulated concrete forms type which include Polystyrene foam, Polyurethane foam, Cement-bonded wood fiber, Cement-bonded polystyrene beads and Cellular concrete.

The study is also divided by geography - North Americas, Europe, the Asia-Pacific (APAC), South America and Middle-East & Africa (MEA); where-in the market share of each region is analyzed and estimates are provided for the next 6 years. The various applications of insulated concrete forms have been discussed in detail in addition to a comprehensive overview of the market.

Global insulated concrete forms (ICF) market is expected to show an exceptional compound annual growth rate of 27.5%. North America currently dominates the market for insulated concrete forms followed by Europe and APAC. The developing regions of South America and Asia Pacific are expected to increase its market share in the future owing to the growing construction activity in the developing countries.

Insulated concrete form or insulating concrete form (ICF) is a system of formwork for reinforced concrete which is made with a rigid thermal insulation that stays in place as a permanent interior and exterior substrate for walls, floors, and roofs.

The forms can be characterized into three main

categories: Block, Panel and Plank, each having their own advantages.

ICF construction is less work demanding due to its modularity. Less-skilled labor can be employed to lay the ICF forms. Unlike traditional wood beam construction, no additional structural support other than temporary scaffolding is required for openings, doors, windows, or utilities, though modifying the structure after the concrete cures require special concrete cutting tools.

ICFs are revolutionizing the global residential, commercial, institutional and industrial building industries. ICF construction has been growing at 25-30% per year for quite some time. Building with ICFs is gaining momentum over other building methods because with comparable costs, ICFs offer unparalleled comfort, energy efficiency, and safety ratings.The emerging regions such as Asia, South America and Middle-East have been witnessing sizeable growth in construction activities have excellent prospects for insulated concrete forms.

Companies profiled in the Insulated concrete form market report include the manufacturers, raw material suppliers and the end users - IntegraSpec, Airlite (Fox Blocks), Quad-Lock Building Systems Ltd., Reward Wall Systems Inc., Durisol Build, Bayer MS, The Dow Chemical Co. Future Foam Inc. among others.

The operating costs of a typical building over its lifetime easily exceed its construction cost - sometimes by a multiple. Thus building owners & operators need to minimize the total cost of the building instead of only the cost of construction. Insulated Concrete Forms are revolutionizing the construction industry because of the exceptional energy efficiency, comfort, safety ratings, and speed of construction at lower total cost. Insulated Concrete Form building envelopes can reduce the heating and cooling component by up to 70% compared to other materials used, making it the single biggest and most cost-effective cut in a building’s total cost.

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BIM Project Wins Canary Wharf Award 3D Repo have won the ‘Virtual Design and Construction’ section of the awards with their open source Building Information Modelling platform.

3D Repo’s winning platform is an open source Building Information Modelling system which enables better collaboration on construction projects.

The firm, which specialises in open source technology, won in the third wave of the Canary Wharf Group’s Cognicity Challenge, which was created to help identify ground-breaking technologies in the construction industry.

4Projects by Viewpoint Features BIM Level 2 Compliance Viewpoint Construction Software announces the latest 4Projects release providing critical features to meet BIM Level 2 compliance, a precondition of winning government construction projects by 2016 in the UK. Viewpoint Construction Software announces the latest 4Projects release providing critical features to meet BIM Level 2 compliance, a precondition of winning government construction projects by 2016 in the UK. 4Projects helps project managers save time tracking how and when their project team members deliver what is needed during the project lifecycle and ensures contractors meet Level 2 compliance standards.

The software is a collaborative project management solution that integrates the entire project team - owners, architects, construction managers, engineers, and subcontractors - to facilitate a truly collaborative building effort. It includes Document Control, Project Communications, BIM viewing and management, and mobile capabilities to help ensure the right information reaches the right people at the right time.

4Project’s BIM Information Planner brings the management of the model information into a truly collaborative environment. It allows project managers to assign roles as well as establish and track which deliverables are required at different stages of the project and to what level of detail.

“We realize that all levels in the construction supply chain will need to demonstrate BIM Level 2 compliance in the next year and we are focused on helping contractors on government projects, as well as private sector contractors, meet these requirements,” stated Rob Humphreys, Vice President of Global Product Management at Viewpoint. “By allowing entire project teams to walk through models and quickly coordinate and update information, identify risks, and quickly assign, track, and manage tasks to resolution, we help customers meet this compliance. The 4Projects BIM solution also helps project managers save time by identifying and validating whether the information they are receiving is what was requested, avoiding errors and interruptions later on. The enhancements available in this release were heavily influenced by ongoing customer feedback. This feedback helps ensure we are enhancing our software to meet the needs of the market and to maintain our role as the leading project collaboration provider in the industry.”

Additional BIM viewing and management updates include Model Differencing, allowing users can quickly identify changes between 3D model revisions with color-coded tracking. This helps ensure the changes requested are reflected in the model; Model Measurement Tool which allows team members to easily gather dimensions when in the field, taking point-to-point measurements from models using snap points and the File Name Checking Tool which lets administrators of the Information Planner can set file name requirements to help guarantee all models in the BIM container follow the required naming convention, which helps users easily find files needed.

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The ‘Connected Home’ stream of the challenge was jointly won by BlockDox and Puckily, who will share the £50,000 cash prize and collaborate on the piolet scheme. Puckily’s innovation allows a range of devices around the home to be connected and controlled remotely, while BlockDox has developed an app which enables residents to perform everyday tasks, such as organising repair work and contacting management, more quickly and easily. The combination of the two will create a technological tool capable of significantly improving the ease with which home repairs are managed.

The challenge was created in conjunction with Cognicity, a smart city accelerator programme designed and delivered by ENTIQ for Canary Wharf Group. The program aims to support the development of ground-breaking technologies, drawing on the expertise of CWG executives and a number of industry leaders including Intel and ARUP. Sir George Iacobescu, Chairman and CEO of Canary Wharf Group, described the program in his comments on the award.

‘We chose to run the Cognicity Challenge to identify companies and technologies which will help ensure that Canary Wharf Group’s developments remain among some of the most advanced in the world. Collaborating with 36 startups has provided the opportunity to appraise our own processes and understanding of innovation in the smart cities arena, at the same time as helping shape their thinking and products. We are looking forward to the piloting phase and its outcomes.’

Claire Cockerton, CEO and Chairwoman of ENTIQ, added a comment on the subject of the awards.

‘This is just the beginning of an incredible journey for 3D Repo, Puckily and BlockDox. Their solutions will drastically improve the way we plan construction projects and interact with our homes. A procurement model like Cognicity is one of the best ways of ensuring lasting, authentic innovation which has the power to transform the urban environment as we know it.’

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Camgian Awarded Infrastructure Contract by U.S. Army Corp of Engineers Camgian Microsystems has announced they have signed a contract to the Internet of Things product to civil infrastructure through project with the U.S. Army Corp of Engineers.

Utilising their award winning Internet of Things (IoT) product Egburt, Camgian will design and build a novel platform for implementing secure, scalable smart infrastructure solutions across a broad range of remote assets that the USACE maintains.

These assets include locks, bridges, dams and leveesand Camgain’s service will also be providing critical operational and structural intelligence that supports improved system performance and maintenance.

Gary Butler, chairman and CEO of Camgian commented on the contract.

‘Enabling our nation’s civil infrastructure with advanced IoT technologies such as Egburt will lead to revolutionary improvements in efficiency, reliability and safety. Moreover, insights gleaned from this new digital window into our infrastructure’s operations will serve as a critical resource for designing and building next generation systems for more effectively meeting the demands of our growing population.’

e-Builder Expands into BIM Industry The firm, which deals in fully integrated, cloudbased construction program management software, has announced that it has acquired the assets of Scenario Virtual Project Delivery.

Scenario Virtual Project Delivery is a leader in collaborative Building Information Modeling (BIM) technology for construction.

The new technology provided by Camgian would rejuvenate the U.S. Army Corp of Engineers’ infrastructure systems according to the USACE’s engineering lead for the contract, Matthew Smith.

This transaction extends e-Builder Enterprise, the company’s award winning project management information system by tightly integrating it with BIM. The full terms of the acquisition are yet to be disclosed.

‘USACE operates and maintains a vast array of aging infrastructure. Structural health monitoring and automated decision support technologies are critical to detecting problems with infrastructure and ascertaining the safety and reliability of these assets. Developing cost effective and flexible sensing and analytic capabilities is the key to bringing these much needed technologies into our daily operational processes.’

A leading start-up established in 2010, Scenario VPD created an innovative SaaS-based BIM integration platform for design, construction and operation of complex projects and structures. This award winning platform was deployed on various high-tech manufacturing, educational, healthcare, aviation and theme park projects including one of the top five largest projects in the world with an aggregate project value of over $8 billion. With roots in the turnkey construction and fabrication industry, Scenario VPD experienced first-hand the value of digital modelling and collaboration and the use of this technology to improve project outcomes. This experience combined with the significant investment in research and development in the last six years resulted in a truly unique and innovative collaborative BIM platform for construction management.

Ron Antevy, President and CEO of e-Builder made it clear that the move into BIM was a key step for the firm.

‘BIM adoption rates are on the rise as facility owners seek new strategies to improve project outcomes

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and reduce the risk on their projects. This acquisition strengthens our commitment to provide the most complete system to manage capital projects specifically for the facility owner. While many project management and BIM technologies are available for contractors and designers, our combined technology will provide the only integrated system that is designed from the ground up to meet the needs of the building owner throughout the process from planning to construction.’

Roland Soohoo, President and Board Member of Scenario also commented on the acquisition.

‘Scenario is extremely pleased that e-Builder as an industry leader will continue the heritage of innovation and extend the capabilities of the platform for better owner and project outcomes.’

Phil Cherne, Chairman of Scenario added, ‘We look forward to a bright future for the AEC industry as BIM will only grow in popularity as a critical Construction Management tool.’

Scenario VPD is a subsidiary of KHS&S Contractors an international design-assist specialty subcontractor that creates spectacular interiors, exteriors, prefabricated building components, themed environments, rockwork, water features and specialty finishes for some of the most recognized projects in the world.

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News

Energy Merger Honeywell to acquire Elster, a global leader in gas heating, controls, metering, and advanced technologies.

Honeywell has announced that it has signed a definitive agreement to acquire the Elster Division of Melrose Industries plc, a leading provider of thermal gas solutions for commercial, industrial, and residential heating systems and gas, water, and electricity meters, including smart meters and software and data analytics solutions, for approximately $5.1 billion. Elster also manufactures flow computers and regulators for the gas industry. Elster consensus sales for 2015 are estimated to be $1.8 billion. The price translates to approximately 12.6 times Elster’s estimated 2015 consensus earnings before interest, taxes, depreciation, and amortization (EBITDA), and the acquisition is anticipated to occur in the first quarter of 2016. The agreement is subject to customary closing conditions, including regulatory review and Melrose shareowner vote.

“The acquisition of Elster will generate strong future returns for Honeywell’s shareowners because it increases our growth profile globally – creating both organic and inorganic growth opportunities – and because Honeywell can run this company effectively and accelerate its growth through our complementary technologies, software knowledge, and presence in High Growth Regions,” said Honeywell Chairman and CEO Dave Cote. “Elster has outstanding technologies, brands, energy efficiency know-how, and global presence, all of which we are very well-positioned to build on. Elster also creates a new platform for acquisition targets for Honeywell that will be additive to the business’ growth and global presence. We will see immediate benefits to Honeywell’s portfolio, accelerating into 2016 and 2017. This is a great acquisition for Honeywell and our shareowners.”

Elster employs approximately 6,800 people with major locations in the United States, Germany, the United Kingdom, and Slovakia. The company maintains an impressive installed base with more than 200 million metering modules deployed over the course of the last 10 years alone.

“This acquisition will allow us to improve customer value with technologies and lifecycle management solutions for industrial end users served by Honeywell’s Environmental Combustion and Controls and Process Solutions businesses,” continued Cote. “Elster’s gas business offers products in high demand among natural gas customers and brings a strong, global distribution network and numerous cross-selling opportunities for existing Honeywell technologies to new customers in both developed and High Growth Regions.”

“Elster’s gas, electric, and water meters are highly valued for their reliability, safety, and accuracy.

Elster has a world-class reputation for delivering on the operational efficiency and regulatory certification requirements of utility customers globally. We expect that energy efficiency initiatives and mandates and the increased need for natural resource management will drive meaningful and sustained growth for Honeywell in the metering segment.

Utility metering in particular is rapidly evolving as new ‘smart’ technologies and software and data analytics capabilities are becoming adopted around the world and we expect strong growth from this segment globally. Elster’s differentiated technologies, extensive industry expertise, and relationship with utility customers globally – combined with their strong positions in the highly regulated heating, controls, and metering segments – are a great fit for Honeywell’s portfolio,” concluded Cote.

There is no change to the 2015 full year guidance Honeywell provided in its second quarter earnings release. The firm expects that the dilutive impact of the transaction on its 2016 Earnings Per Share to be minor.

“The Elster acquisition proves that we are staying true to our disciplined M&A approach and integration processes because it’s a model that has worked very well for us,” said Cote. “During the past decade, we have completed more than 80 acquisitions adding approximately $12 billion in revenues. We will continue to look for good acquisitions to enhance our growth profile. We see Elster as a great opportunity to deploy our operating model and key process initiatives to grow the business, enhance our position globally, and drive significant returns to shareowners over the long-term.

The Honeywell Operating System (HOS) will be a major factor in creating new synergies that will increase the growth and profitability of each of Elster’s businesses.”

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Fluor Awarded Contract at Nuclear Plant The firm has been awarded a five year contract

by Luminant to provide engineering, maintenance and modifications, and facility services for its Comanche Peak Nuclear Power Plant.

Fluor will book the undisclosed contract value into backlog in the second quarter. The firm already has a strong bond with Luminant, having already been providing ongoing maintenance and modification services at four of Luminant’s power plants since 1984 and since then growing the relationship to support all of the company’s fossil power generation units.

Fluor previously serviced the Comanche Peak plant from 1991 until 2006. The nuclear power plant is located in Somervell County, Texas, in close proximity to Fluor’s regional Power Services office.

Matthew McSorley, President of Fluor’s Power business, made it clear that it was this relationship which secured the firm the contract and this is an important aspect of Fluor’s growth.

‘With a relationship history spanning more than 30 years, Luminant has selected Fluor to provide power services for the Comanche Peak nuclear plant. The addition of this important nuclear asset to Fluor’s portfolio enables us to provide integrated solutions and services to Luminant’s generation system.’

Jim Breland, Vice President of Fluor’s power maintenance division echoed this in his statement.

‘Fluor is an industry leader providing execution excellence in maintenance and outage services to the power generation market. This significant award solidifies our footprint in the nuclear services industry.’

Comanche Peak is Luminant’s sole nuclear generation asset. The plant operates two units which, combined, produce 2,300-megawatts of power – enough energy to power about 1.15 million homes during normal operations and 460,000 homes during periods of peak demand.

UIL Holdings to Invest In Regional Energy Solution Stake in Northeast Energy Direct will help relieve New England gas pipeline constraints.

UIL Holdings Corporation (NYSE:UIL) will invest in a natural gas transmission pipeline project that, when complete, is expected to alleviate capacity constraints in the system that serves New England and the northeast region.

UIL announced its investment in the development of Kinder Morgan’s proposed Northeast Energy Direct (“NED”) natural gas pipeline project, which will extend approximately 188 miles of new transmission pipeline from New York State, through Massachusetts and New Hampshire. The new pipeline is expected to begin commercial operation in 2018.

Under an agreement signed this week, UIL has acquired a 2.5 percent interest (approximately $80 million) in Northeast Expansion LLC. UIL will also have additional options — under limited circumstances — to increase its equity participation.

Northeast Expansion is the joint venture responsible for development, construction and ownership of the new pipeline, which will be part of Kinder Morgan’s Tennessee Gas Pipeline system.

“We are pleased to have this opportunity to participate in this critical investment in New England’s energy infrastructure,” said James P. Torgerson, UIL’s president and chief executive officer. “The NED project will bring abundant, low-cost and critically needed natural gas supplies to the heart of New England, helping alleviate infrastructure bottlenecks that have resulted in higher energy costs to residents of the New England region.”

Earlier this year, regional transmission pipeline constraints led one of UIL’s subsidiaries, The

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Berkshire Gas Company, to impose a moratorium on new natural gas customers in its eastern region.

While UIL’s investment in the NED project was not based on Berkshire Gas’ expansion of service constraints, the company acknowledged the moratorium would be lifted as a result of this project’s commercial operation.

Public reports have identified natural gas transmission pipeline constraints as a key factor behind wintertime “spikes” in the price of electricity generated at natural gas power plants.

The NED project would supply capacity necessary to help meet New England’s growing residential, commercial and industrial demand for natural gas, while also providing a reliable supply of fuel for power generation.

In March 2015, Kinder Morgan announced multiple “anchor shippers” for the project, including UIL subsidiaries Berkshire Gas, The Southern Connecticut Gas Company and Connecticut Natural Gas Corporation, as well as other natural gas distribution companies. Currently, Kinder Morgan has executed commitments to transport more than 550,000 dekatherms per day of incremental natural gas supplies.

“The addition of UIL Holdings as an equity investor further demonstrates the importance and value this project will bring to New England in the years ahead, meeting the energy demand for business and residential customers, and furthering economic growth in the Northeast,” said Kimberly S. Watson, president of Kinder Morgan’s East Region Natural Gas Pipelines.

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News

UK Turning the Tide

tidal barrage technologies,” says Technical Insights Research Analyst Lekshmy Ravi. “The deployment of hybrid energy systems consisting of a combination of tidal and offshore wind energy seems probable in the long term.”

The UK is the market leader in the development of tidal energy solutions, finds Frost and Sullivan.

Although the basic technology of tidal energy is similar to that of wind turbines, the harsh conditions of the ocean multiply the issues faced during operation. Hence, parameters such as material strength, performance, maintenance and lifespan of tidal converters are aspects that research and development (R&D) efforts must address. Low capacity factor and high costs are further drawbacks.

The growing emphasis on renewable and carbon neutral energy generation has pushed tidal energy into the spotlight. Tidal energy being more reliable than wave energy has a few operational plants with substantial capacity across the globe. New, experimental concepts such as dynamic tidal power, which enable production even in low-tide regions, possess the potential to disrupt existing technologies and make tidal power a key energy resource.

New analysis from Frost & Sullivan entitled ‘Tidal Energy: Current Status and Future Outlook’ finds that the United Kingdom is the frontrunner in the development of newer tidal energy solutions, buoyed by an ideal tidal pattern and a supportive regulatory scenario. Canada, China and South Korea are also showing steady progress. The United States is one of the top innovators.

“The success of smaller demonstration plants will propel the immediate adoption of tidal stream and

The setting up of research and development centres and funding institutions dedicated to the cause of tidal energy generation will be crucial to speed up advancements. For example, the Fundy Ocean Research Centre for Energy (FORCE) is a main driver for the progress of in-stream tidal energy in Canada.

“Stakeholders must build a coordinated, multi-disciplinary strategy for tidal power to continue creating ripples in the renewable energy sector,” urges Ravi. “A concerted approach by regulatory agencies, technology developers, funding bodies and infrastructure firms will open the floodgates of development and give rise to tidal energy solutions with significant industrial and societal value.”

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iBuild Skanska has been awarded over £700,000 to develop robots for on-site and off-site construction.

Innovate UK and the Engineering and Physical Sciences Research Council awarded Skanska with the funding as part of their collaborative research and development program.

The Sweden based engineering firm will use the money to continue their research into ‘Flying factories’. Skanska is the head of a consortium which is creating the technology, which will allow structures to be built in controlled conditions separate to the construction site. This removes various hazards from the process, such as the potential effects of bad weather and other on-site issues, which speeds up the assembly of the building on site.

The full value of the grant is £709,000, which will allow the project, entitled Flexible Robotic Assembly Modules for the Built Environment, to scope out the opportunities for automation and develop robotic applications, building on a suite of Skanska initiatives that are transforming productivity in the construction industry. The project will begin in the fourth quarter of this year.

Skanska’s Head of Innovation, Sam Stacey, commented that the grant was a big step forward for construction robotics.

‘We are delighted to have been awarded this grant. Robotics in construction is an unknown field and provides great opportunities. A robot to drill and fix to the underside of slabs, for example, would eliminate a lot of work at height in dusty, noisy environments.’

Skanska’s partners in the project are: ABB Robotics, The Building Research Establishment, Tekla UK (software), Lean consultants Exelin and the University of Reading.

Stacey added that the partnerships were key to the project.

‘This approach, of collaboration with experts from a range of industries, is bringing to construction the levels of quality and cost reduction experienced sectors such as automotive. Our relationship with ABB has been established through the 3D concrete printing project and, in Sweden, with robot solutions for civil works; Exelin is a partner on flying factories.’

Mega Wattage Construction completed on 100 MW AC utility-scale solar farm in Ontario creates largest working site in Canada.

Canadian Solar Inc. one of the world’s largest solar power companies, has announced that its wholly owned subsidiary, Canadian Solar Solutions Inc., reached substantial completion on its 100 MW AC (133 MW DC) utility-scale Grand Renewable Solar Project (“GRS”). This project, located in the county of Haldimand, consists of approximately 445,000 CS6X MaxPower high-performance Ontario-made modules, and carries the proud distinction of being the largest operational solar farm in the nation.

Canadian Solar provided Engineering, Procurement, and Construction (“EPC”) services for the Project, which is jointly owned by Samsung Renewable Energy Inc., Connor, Clark & Lunn Infrastructure, and Six Nations of the Grand River.

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The environmental and economic benefits from this solar farm are significant. Not only is GRS expected to produce approximately 170,000 MWh of electricity per year, the solar energy will power approximately 17,000 homes and displace approximately 162,000 metric tons of carbon dioxide emissions over the 20-year period of the power purchase agreement with the IESO. At the peak of construction, approximately 450 local jobs were created, averaging out to about 240 local construction jobs over the building period.

Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar, commented, “The completion of this utility-scale solar farm, the largest operational one in Canada, is a culmination of three years of strategic business planning, coordinated efforts, and tenacious work on the part of Canadian Solar. We are extremely excited to see this project come to fruition, especially given the solar farm’s substantial economic and environmental benefits for Canada.”

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News

Whitney Museum gets in the Mood

Wimbledon Uncommon

The new location for the museum will feature Mood Media’s specially engineered theatres and interactive audio-visual systems.

The Whitney Museum, now located at the base of the High Line in Manhattan’s meatpacking district, incorporates the technology, which allows the museum to screen its extensive film and video collections.

Mood Media’s innovation brand and specialists have engineered, procured and fabricated several theatres and interactive audio-visual systems throughout the museum. These installations create an engaging and immersive experience for visitors.

Designed by architect Renzo Piano and built by Turner Construction, the new building includes approximately 50,000 square feet of indoor galleries and 13,000 square feet of outdoor exhibition space and terraces facing the High Line Park. Included in the new space is an expansive gallery for special exhibitions, approximately 18,000 square feet, making it the largest column-free museum gallery in New York City.

The building includes an education centre offering state-of-the-art classrooms, a multi-use black box theatre for film, video and performance with an adjacent outdoor gallery, a 170-seat theatre with stunning views of the Hudson River, a Works on Paper Study Centre, Conservation Lab and Library Reading Room.

The classrooms, theatre and study centre are all firsts for the Whitney. While the museum’s official ribbon cutting was performed by First Lady Michelle Obama in April, the official opening occurred on May 1, 2015. To-date, the museum has received more than twice the number of visitors than expected.

Architects given green light for new high quality eco housing scheme to take place of run-down car park.

Feilden Clegg Bradley Studios have announced that their plans for an eco-friendly six storey housing development have been approved, with work due to start on site later this year with completion scheduled for mid-2017.

The building will take the place of a run-down car park at the junction of Milner Road and Morden Road, South Wimbledon, with the plans consisting of primarily residential dwellings in the form of fifteen apartments, three townhouses and a commercial unit at street level.

Being so prominently situated on the corner and with a line of sight from the Kingston Road and Morden Road junctions, the architects have made every effort to ensure the building’s visage is both striking and memorable, and the firm has stressed that they want the design to ‘to respond to the surroundings; to enhance and to sustain and to improve the character and setting of the area, to complement but not necessarily replicate local architecture character.’

They also stated that the structure will be comprised ‘simple palette of materials composed of glazed terracotta and timber cladding to interiors.’

The development will be ideal for residents, being situated 1.2km to the southeast of Wimbledon Town Centre and less than a minutes’ walk from South Wimbledon Station.

The design has had to incorporate lightweight construction materials owing to a London Underground tunnel being located directly under the site. Therefore, the building will be constructed from CLT (Cross Laminated Timber) to lower the weight of the structure.

The designs have been focused heavily on resident’s comfort, with all the apartments and houses due to have outdoor spaces in the form of balconies, terraces or winter gardens.

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Inside the Industry

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BIM Solutions to Boost Efficiency A new software range announced by Applied Software look set to integrate BIM technology with other technology to create time saving solutions.

he new products were announced by the technology systems integration company at the Revit Technology Conference North America 2015. The event, hosted at the Crystal Gateway Marriott in Washington, the world’s top instructors and industry experts in the field of BIM and other relevant construction technologies, with experts throughout the field providing a wealth of knowledge, practical methods, and new ideas.

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The range of software will increase the Autodesk Platinum Partner’s already expansive list of solutions that help optimize business processes and workflows for building projects. The solutions are designed to improving efficiency while eliminating waste and inconsistencies for building projects.

This solution provides users with a more efficient way to track issues by allowing them to create a persistent, direct link to objects in the building model, for example the location of an electrical outlet. Users can now automatically navigate to the building model, create or select an issue or problem, ask questions, and add information to a punch list. The Revit Prolog RFI Integration saves valuable project management time by eliminating the tedious manual look-ups associated with RFIs and is available for all current versions of Revit.

Another innovative solution for the marketplace being showcased

by Applied Software is Viewpoint Sync, which automatically transfers Revit Prolog RFI Integration, one of the new uploaded documents to the library of solutions, is completely unique to Revit.

BIM 360 Field, a cloud-based field The Prolog RFI Integration graphically management service combining a associates Requests for Information (RFIs) mobile application at the point of with objects in the Building Information construction with collaboration and Modelling (BIM) program. reporting. This product eliminates redundancies by syncing and storing documents via one platform. Project managers using Viewpoint Sync gain the necessary assurance that the latest versions of documents are available to all collaborative partners at the same time, eliminating the potential for errors and miscommunication. Viewpoint Sync is available now.

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Inside the Industry

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Inside the Industry

The final new product being premiered is Windows Sync. This unique product automatically takes files uploaded to Windows Explorer and syncs them with BIM 360 Field.

However, this solution also allows for the twoway transfer of files: from Windows Explorer to BIM 360 Field and vice versa. It also complements other storage services such as Dropbox, allowing for the uploading and syncing of file contents to the BIM 360 Field library. With the ability to work with FTP sites and network devices where Windows Explorer is used on the backend, the solution is ideal for project managers looking for a new way to eliminate redundancies, errors and miscommunications between construction partners and is also available now.

Richard Burroughs, President of Applied Software, made it clear that the new products will drastically improve efficiency for construction firms.

“Expanding our building solutions allows us to offer very specific ways to address the ongoing challenges that program managers, architects and engineers face in key areas of construction projects--from how to improve workflow efficiencies and productivity to eliminating inventory waste and document inconsistencies.

Across the board, the new products are designed to solve many underlying problems that can negatively impact not only collaboration, but also the ultimate completion of projects that are on-time and on-budget.”

Applied Software was established in 1982 and has a rich history and strong commitment to client success.

The company prides itself on the trust clients place in them and the long-term relationships it maintains.

Applied Software’s professionals take the time to understand each client’s business and goals, and to be part of its team. A technology systems integrator for the AEC and manufacturing industries, Applied Software is an Autodesk Platinum Partner. Applied Software provides strategies and solutions to assist manufacturing, architecture, engineering and construction companies in optimizing their business processes and workflow.

These new products have the potential to revolutionise the way in which construction projects are managed digitally and will move BIM further into the mainstream construction market, as the technology rapidly becomes less specialist and more accessible.

If sales of the new range prove successful they could pave the way for further advancements in the area, with BIM steadily gaining momentum in the construction sector and customers constantly searching for ways to streamline their operations and reduce the time building projects take.

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Heath-Row? 270 business leaders have pleaded with the Prime Minster to expand on the airport which could provide boost to aviation construction sector.

n an open letter to David Cameron the business heads demanded that he obey a recent recommendation by the Airports Commission, which decreed that ‘expanded airport capacity is crucial for the UK’s longterm prosperity’.

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The report goes on to state that despite analysing three schemes for this expansion ‘the Commission has unanimously concluded that the proposal for a new northwest runway at Heathrow Airport, combined with a significant package of measures to address its environmental and community impacts, presents the strongest case and offers the greatest strategic and economic benefits’.

The scheme would enable expansion to take place with minimal loss of homes and delivers fairly similar economic benefits to the other schemes.

The Prime Minister set up the Commission in 2012 to find the best way to maintain the UK’s status as an aviation hub, which they have attempted by recommending the expan-

sion which would they estimate would provide around 40 new destinations from the airport and more than 70,000 new jobs by 2050.

Cameron stated in a recent Prime Minister’s Question Time that he required time to digest the report’s findings and would make a decision on the airport expansion by the end of this year.

‘I think that there is a lot of common ground across almost all parts of the House that there is the need for additional airport capacity in the southeast of England, not least to maintain this country’s competitiveness, but it is important that we now study this very detailed report. I am very clear about the legal position; if we say anything now before studying the report, we could actually endanger whatever decision is made. The guarantee that I can give the right hon. and learned Lady is that a decision will be made by the end of the year.’

This non-committal answer does not offer any definitive proof that Cameron will actually allow the expansion to take place, which has led to business leaders writing an open letter urging him to make the expansion happen for the sake of the UK economy.

The open letter to the Prime Minster urged him to act on the report’s advice for the sake of UK businesses and industries.

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‘The independent Airports Commission has made a clear recommendation that Heathrow is the right location for airport expansion.

Heathrow’s new expansion plan ensures this can be done sustainably. The Commission’s final recommendation follows nearly three years of extensive consultation, evidence gathering and analysis.

But Heathrow – the UK’s only hub airport – has been operating at capacity for the past decade. This lack of hub capacity is holding back the growth of UK businesses who want to fly directly to emerging markets; trade and transport their goods via air freight; create more jobs and connect to the UK’s regions.

Now your Government must support this recommendation to expand Heathrow.

Heathrow puts Britain right at the heart of the global economy and has helped it become one of the world’s great trading nations.

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The Commission is clear: further delay will be increasingly costly and will be seen, nationally and internationally, as a sign that the UK is unwilling or unable to take the steps needed to maintain its position as a well-connected open trading economy in the twenty first century.

Now is the time for Government decision and action. Your Government must support UK businesses by implementing the Airports Commission’s recommendation and expand Heathrow.’

Signatories of the letter include Sir Nigel Rudd, Heathrow Airports’ Chairman; Carolyn McCall, CEO of EasyJet; Connor Hennebry, the Managing Director of Deutsche Bank and Alastair Kennedy, Communications Director of the Global Energy Group.

The letter also had strong support from the construction industry, with Nick Fletcher, Managing Director of Infrastructure for Morgan Sindall; Mace Group Chief Executive Mark Reynolds and Former President of the Royal Academy of Engineering Sir John Parker among those giving their voice to the issue by signing the letter.

John Holland Kaye, Heathrow’s CEO stated that this expansion was vital in maintaining Britain’s place in the global economy.

‘The Prime Minister showed leadership in establishing an independent Airports Commission. It unanimously concluded that

expanding Heathrow is the best way of securing Britain’s future as a powerhouse in the global economy.

Now the Prime Minister has the opportunity to show he is serious about delivering Britain’s long-term economic plan by listening to businesses from across the UK and backing Heathrow expansion. This debate has never been about a runway – it is about the future of our country. Let’s get on with it.’

The new runway has had opposition from various environmental groups such as Plane Stupid, who occupied the runway to protest against the runway, citing the environmental impact that increased air traffic would have.

Ella Gilbert, an activist from Plane Stupid who was on the runway as part of the protest, stated: ‘Building more runways goes against everything we’re being told by scientists and experts on climate change.

This would massively increase carbon emissions exactly when we need to massively reduce them, that’s why we’re here. We want to say sorry to anyone whose day we’ve ruined, and we’re not saying that everybody who wants to fly is a bad person. It’s those who fly frequently and unnecessarily who are driving the need for expansion, and we cannot keep ignoring the terrifying consequences of flying like there’s no tomorrow. No ifs, no buts, no third runway. And we mean it.’

However whilst the environmental impact would be large, the proposed airport expansion could have a positive effect on the UK construction industry.

An expansion of Heathrow would offer lucrative contracts for the firms involved, as well as providing businesses in the industry with greater distribution channels. In addition to this the new expansion could offer the chance for the UK construction industry to gain some publicity, with the potential expansion set to have global attention if it goes ahead.

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Dying for Construction Death toll for Qatar World Cup stadium is surprisingly low according to new timeline of death rates at major construction projects, but with current death rates estimated at around 2000 for the stadium project, why are workers perishing despite vast financial cost of the project?

he new timeline, created by the DAM law firm comes to the frightening conclusion that the deaths in Qatar are low in comparison to many historical projects, with the construction of the Panama Canal proving to be the most dangerous major construction project of all time, with 408.12 deaths for every 1,000 workers, according to the timeline.

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In comparison, the Qatar project had just 2.86 per thousand workers. However, this is still a phenomenal figure when the technological advancements since the Panama Canal construction are taken in consideration.

John Michael Montevideo states that after finishing the timeline, he wanted to take it a step further and used some data from the U.S. Bureau of Labour Statistics to calculate a death rate for the entire United States and then compare it to the massive World Cup construction projects going on right now in Qatar.

deaths that year, yielding a death rate of 3.2 per every 100 thousand workers. He then used the most accurate estimates of the World Cup construction projects in Qatar, finding that 1.4 million workers are expected to be used with 4,000 expected fatalities, the death rate for the World Cup construction shoots up to 285.71 per 100 thousand. He found these results shocking and surprising.

“Since Qatar is the richest country in the World, in terms of overall GDP, I was surprised at how drastic the death rate numbers look for an advanced county when compared to other more modern projects in today’s day-in-age.

It really makes you wonder about how we, as a global community, protect the value of human life as compared to soccer, for example.”

In 2013, the United States workforce stood at 143.94 million with 4,585 work related

The Qatari government has strenuously denied the allegations and stated that no one has died during the construction of the stadium, which is still in its early stages. The statement cites the Washington Post’s article on the deaths as the source of the claims.

“In preparing its report, it appears that the Post simply took the total annual mortality figures for Indian and Nepalese migrants working in Qatar and multiplied those numbers by the years remaining between now and the 2022 World Cup – a calculation which assumes that the death of every migrant worker in Qatar is work related.”

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The statement goes on to report that no one has in fact died in the making of the stadium.

“In fact, after almost five million work-hours on World Cup construction sites, not a single worker’s life has been lost. Not one.”

Subsequently journalists were invited into the country to examine the issues Qatar faces with regards to migrant labour, however in the course of this several members of a BBC crew were arrested. The government issued a subsequent statement in which they argued that the crew was detained for trespassing.

“Perhaps anticipating that the Government would not provide this sort of access, the BBC crew decided to do their own site visits and interviews in the days leading up to the planned tour. In doing so, they trespassed on private property, which is against the law in Qatar just as it is in most countries. After an official complaint from the owner, security forces were called and the BBC crew was detained. The crew was brought before a public prosecutor who released them after the completion of the legal procedures.

The journalists who took part in the press tour were given an opportunity for a comprehensive look at the problems Qatar is facing, and the progress the government and the private sector are making to address those

problems. They saw some of the labour villages. The BBC was meant to be part of that tour, and would have been if they had not chosen to break Qatari laws.”

However, this arrest has led to many being suspicious that the government had something to hide. In addition to this some organisations believe that Qatar has been guilty of abusing their migrant workers for years, which could potentially be a key factor in the alleged construction site deaths.

Many of these issues stem from abuses of workers on the site, according to the Amnesty International report ‘Promising Little, Delivering Lies: Qatar and migrant labour abuse ahead of the 2022 football world cup’.

The report alleges that employers in the country routinely deny workers exit permits and confiscate their passports to stop them moving to other jobs. Citing a report by the country in 2014 which promised reforms following previous media scrutiny of the treatment of migrant workers.

In addition there are numerous allegations that workers are not paid or are paid less than they were told, that they are forced to live in horrific conditions and that they not given contracts or id in order to stop them moving jobs or going to the authorities.

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“My grandfather worked on the assembly lines of General Motors and his life matters. People, families and communal moral values matter. Our Human Cost of Construction timeline will help the construction industry remain human. It gives the industry and the workers in the industry the tools to track, evaluate and calculate a major construction effort’s cost of human life and safety rating. A global “Human Life and Safety Rating” of major construction projects will help us, as a global community, pause and ask whether this project was worth the lives and injuries of these workers’. Our timeline helps put the global “Human Life and Safety Rating” of construction projects in context of the cost of human life and the value we gained from their sacrifice. It also give us a forum to honor the accomplishments of the workers whom have given their life for the greater good of their community.”

- John Michael Montevideo

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Human Rights Watch published a similar report in 2014, ‘World Report 2014: Qatar’, in which they state that of the country’s 2 million population only 10% of these were Qatari nationals. The number of migrant workers in the country is expected to increase as the demand for workers also rose.

This report alleges similar abuses by employers in Qatar including a lack of time off and at times, abuse. The report also states that there are few legal barriers put in place by the government to limit this. The laws which are designed to support employees are allegedly openly flouted by employers, according to both reports. The Human Rights Watch report also alleges that the government’s work sponsorship system is a key problem for migrant workers.

“Qatar’s Law 14 of 2004 regulating labor in the private sector limits workers’ hours requires that they receive paid annual leave, sets requirements on health and safety, and requires on-time payment of wages each month. However, the authorities fail to enforce this and other laws intended to protect workers’ rights.

Workers typically pay exorbitant recruitment fees and employers regularly take control of their passports when they arrive in Qatar. The kafala (sponsorship) system ties a migrant worker’s legal residence to his or her employer, or sponsor. Migrant workers commonly complain that employers fail to pay their wages on time if at all, but are barred from changing jobs without their sponsoring employer’s consent other than in exceptional cases and with express permission of the Interior Ministry. Adding to their vulnerability, they must obtain an exit visa from their sponsor in order to leave Qatar. Migrant workers are prohibited from unionizing or engaging in strikes, although they make up 99 percent of the private sector workforce.”

Ultimately, then, Qatar’s alleged death rate in the construction of the new stadium is largely due to their poor treatment of migrant workers, who, because of their poor living arrangements, are not in a fit state to work. The lack of time off and the poor pay, as well as the toll the poor conditions is taking on them, will all affect their health and leave them unfit for manual construction work. These problems need to be addressed urgently, in order for Qatar to have any hope of creating a construction industry which maintains its worker’s lives.

“The migrant workers building the Qatar stadium are treated as sub-human slaves not worthy of basic human needs. The staggering death totals of the workers building the Qatar stadium for the World Cup come from a lack of safety enforcement from the construction project managers and a lack of regulation on these construction companies by legal authorities for violating basic human rights. Water, food, shelter and rest are basic human needs. The migrant workers, like any one of our family members, deserve these basic human needs. Until government and private construction companies decide to treat workers fairly under “The Golden Rule” and enforce basic human rights in the employer/employee relationship, we will continue to see these injury and death tolls rise. Government must write basic human rights for workers into law and most importantly enforce those laws.

And when that doesn’t happen, it’s up to the public and media to shame government and private industry into righting their wrongs and tip the scales of justice back into balance”.

- John Michael Montevideo

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Construction at the Cinema UK Construction Week launches exciting film style trailer to promote the trade exposition, due to be held in October.

edia Ten, the organisers of the event, debuted the trailer on the trade fair’s website as part of their promotional campaign to entice to visitors from around the world to the British based event.

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The trailer depicts a breaking news story of cranes all pointing towards the midlands, using film style special effects to build tension. The video declares that ‘Something big is happening’, with shots construction vehicles driving to Birmingham and empty construction sites, before the trailer declares the mystery solved. Numerous shots of the Construction Week logo are then shown.

The trade exposition, which will be held in Birmingham between 6th and 11th October, is the biggest trade event for professionals working in every aspect of residential and commercial construction, planning and design.

ised by Media 10, the UK’s biggest design and build event company, UK Construction Week will include nine shows, 1000 exhibitors, 100 seminars, 15 curated editorial content areas and over 50,000 visitors who will range from builders to developers, architects to contractors and industry decision makers.

The nine shows will each encapsulate one key aspect of the UK construction industry, including a Timber Expo which showcases the latest products, innovations and developments within the international timber market; a Smart Buildings show which is the only construction event in the UK dedicated to commercial and residential integrated building technology and Kitchens & Bathrooms Live which is dedicated to showcasing the leading brands at the forefront of design in the kitchens and bathrooms sector.

The newly launched event will span five halls of the NEC and include nine shows specific to the UK construction industry. Organ-

Each of the shows will include industry insiders showcasing their products and techniques, including one of the event’s partners, BM TRADA, hosting a Live Zone as part of the Timber Expo, where they will present an exciting range of demonstrations and displays on various products and techniques on timber strength testing.

Another of the shows taking place during the event will be Grand Designs Live, a live performance of the contemporary home TV show presented by Kevin McCloud.

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The NEC Birmingham

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Attendance at the event will be vital to industry insiders, with the program packed with leaders in the construction sector and trade events designed to offer insight into the latest products and services available. Entrance to the event is free for visitors allowing firms the opportunity to take numerous representatives.

Included on the program of seminars is a keynote speech by the government’s chief construction advisor, which opens the event by setting out the government’s priorities and plans for construction industrial policy over the next electoral cycle, giving the new government the opportunity to clarify how it intends to support construction as a key driver of the UK economy.

There are also discussions on the skills shortage in the industry, an analysis of ambitious upcoming infrastructure projects, integration between different sectors in the construction industry and the excitingly entitled ‘Why can’t we build a skyscraper in 14 days?’

The illustrious construction event has a number of high profile affiliates within the industry, with BRE, the independent research and advice firm, acting as the content partner for the event. The building science centre will take the lead in representing BIM content at the event, which includes offering a comprehensive BIM education programme and contributing to seminar content. Miles Watkins, BRE’s Group Business Development Director shared his views on what the event means to the company.

“Our key focus at BRE is on helping industry and government meet the challenges of the built environment.

UK Construction Week is set to provide a unique chance to interact with professionals from all sectors, giving us a fantastic opportunity to engage, share best practice and help move the industry forward.”

Glenigan, the UK’s leading construction intelligence provider, is the knowledge partner for the event.

Two members of Glenigan’s top level management, Alan Wilén, Economics Director at Glenigan, and Tom Crane, Economist, will both be taking up spots on the speaker programme, sharing some of the company’s vast industry knowledge and expertise.

The intelligence provider will also play a vital role in supporting the Hosted Buyer Programme at UK Construction Week. The programme has been created to offer active buyers a structured and highly effective show experience, allowing buyers to address their queries directly to the suppliers and vendors that are most able to meet their needs.

Robert Davis, Content Director at Glenigan, views the firm’s partnership with the event as key to the company engaging with the industry.

“Our knowledge partnership with UK Construction Week is further proof of our commitment to supporting best practice within the construction industry – enabling contractors, sub-contractors and suppliers to grow and trade together as the market enters a new phase of prosperity. The event is a great platform for us to share our market intelligence to benefit a much larger audience.”

Other event partners include a number of major trade bodies such as the Carbon Trust, RIBA, The SCIN Gallery and RICS. Media partners including Grand Designs, Icon architecture and design magazine and the Construction Enquirer will ensure that exhibitors receive full coverage and offer an exciting opportunity to further promote those who are participating in the event to readerships which collectively span the entire industry.

Overall, UK Construction week promises to be as lively and exciting as the film trailer being used to promote it.

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The U.S. Energy Service Company Market – Challenges and New Opportunities

By Casey Talon

In the United States, many cash-constrained institutional and government customers have been able to implement comprehensive energy efficiency building upgrades by entering into energy performance contracts (EPCs) with energy service companies (ESCOs). These engagements lead to the installation a wide range of building improvements with no out-of-pocket expense for customers. Customers commit to a long-term agreement that pays back the capital improvements with the energy savings from their utility bills made possible by the efficiency improvement projects.

Building upgrades with no upfront costs sound like a great deal, so why isn’t everyone doing this?

The classic business case for working with ESCOs centers on three specific benefits. First, ESCOs enable customers to integrate significant improvements in equipment and systems without upfront capital costs. Second, ESCOs bring the technical and engineering expertise to customers without the human capital to manage major energy efficiency improvements in-house. Finally, the comprehensive approach of ESCO projects generates long-term energy and operational improvements that enable customers to achieve energy efficiency and sustainability policy goals and mandates. The kicker is that the contract terms and costs associated with the project management and technical expertise are rolled into the projects. Many

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private-sector customers have much shorter-term requirements of 18 to 36 months rather than upwards of 10 years. In addition, in-house engineering and technical expertise can minimize some of the appeal of working with an ESCO. Navigant Research estimates that the U.S. ESCO market will grow from $6.3 billion in 2015 to $11.5 billion in 2024. In Europe, ESCO revenue is projected to grow from $2.7 billion to $3.1 billion over the same period.

ESCO Revenue, United States and Europe: 2015-2024 (Source: Navigant Research)

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(Source: Navigant Research)

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Addressing the Customer Demands There is an array of market drivers underlying the decision to sign an EPC that reflect specific business pain points for potential new customers, including: • Federal mandates for efficiency in government buildings through executive order • Corporate social responsibility and sustainability commitments • Market pressure for cost management • Demand for power reliability and resiliency • Infrastructure needs due to deferred maintenance The ways in which the barriers to entry and drivers for engagement interact provide key insights into the expectation for growth in the ESCO market. While energy waste in buildings is evident, ESCOs must tailor how the problem, solutions, and associated costs and benefits are framed to appeal to the differing priorities of customers across business segments. This complexity in terms of customer point of view reflects larger dynamics in the market that shape customer demands for building upgrades and determine the persuasiveness of the ESCO business case.

cause of the avoidance of upfront capital, but are also tied to the project backlogs that arise due to deferred maintenance when capital and operating budgets and limited.

• Reliability and resiliency are increasing concerns as extreme weather events become more common and grid demands cause intermittent outages. The priority for reliability and resiliency is often tied to the proportion of the facility or portfolio that supports mission-critical operations such as in-patient care, data centers, or military operations.

• Stakeholder pressures can be an influential driver for engagement in an EPC/ESPC because of the influence that can shift leadership through voting or direct budget allocations, for example.

• Competitive positioning is a driver for working with ESCOs for customers that perceive building performance, energy efficiency, or sustainability as a differentiator in the market.

Opening the Door in Europe The European Union (EU) has led international markets in climate change commitments and regulations on greenhouse gas emissions. The understanding that energy consumption

in buildings accounts for nearly 40% of the region’s carbon footprint has driven policies to promote energy efficiency improvements as a means of tackling emissions reductions goals.

Despite the momentum in climate change policy, the ESCO industry has been unable to solidify broad market development in Europe.

European Market Entrance SWOT Assessment See Illustration below Near-term revenue potential for ESCOs stems from opportunities in Germany, France, and the United Kingdom. These markets demonstrate the right combination of public policy and economic conditions to support the ESCO business model.

There will be continued demand for energy efficiency retrofits, renewable energy, and building improvements in the United States and Europe as customers grapple with emerging climate change policies, the risks associated with grid reliability and resiliency, and the growing awareness of energy and its influence on the bottom line. ESCOs can continue to support institutional and public-sector customers in the United States and realize sustained, yet moderate growth in revenue.

Market Dynamics Shaping ESCO Business Opportunities See Illustration left The following describes the key market dynamics shaping customer perspectives on the opportunity to engage with ESCOs: • Greenhouse gas targets are more commonly drivers for ESCO engagement in the public sector because of binding requirements for emissions reductions associated with legislation or executive mandate.

• Budget constraints are underlying the appeal of the EPC be(Source: Navigant Research)

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Smart Ways to Save Energy

PECO, an electric and natural gas utility subsidiary of Exelon Corporation, offers a range of subsidies for various energy saving techniques which successfully encourage customers to change their habits for the better.

The subsidies are available for both residential property owners and businesses, with residential opportunities for savings including PECO Smart Appliance Recycling, where customers can have their old appliance collected and recycled as well as receiving $50 for it; PECO Smart Builder Rebates, allowing construction firms to claim additional funding for their projects and technical advice and PECO Smart A/C Saver, where the company will pay customers $20 a month to remotely manage their air conditioning system in order to save energy.

The Smart Appliance Recycling initiative in particular has been well received by customers, with firm recently announcing that the 500,000th appliance was recycled earlier this month, equating to $1.8 million in rebates given back to customers.

PECO Smart Ideas has programs to help every customer save energy and money.”

PECO celebrated this milestone by presenting Havertown, PA’s Marcus and Amy Besser with an energy efficiency prize package, which included a $500 gift card toward the purchase of an energy-efficient appliance, a certificate for a free PECO Smart House Call energy assessment, LED lightbulbs, smart power strips, and other energy-saving devices and information.

PECO launched the scheme in October 2009, and announced the following year that customers had saved more than $68 million dollars using the various programmes.

Kathy Lentini, PECO director of Energy and Marketing Services, commented on the progress of the initiative.

The programs were initially created as part of the company’s support of Pennsylvania’s energy efficiency and demand response targets under Act 129. The act requires all state electric utilities to develop programs to help customers reduce energy use by 1% by May 31st, 2011 and 3% by May 31st, 2013. Utilities also must reduce energy demand during the 100 highest demand hours of the year by 4.5 percent by May 31st, 2013. The programmes were continued owing to their popularity.

“We are thrilled to have reached this major milestone and encourage customers who still have old working fridges and freezers to take advantage of this easy, convenient program as well.

The success of these residential subsidies offers scope to other similar firms to expand into offering their customers financial incentives to reduce their energy consumption

In addition to the $50 rebate, customers can save up to $150 a year on their energy bill by getting rid of an older, working refrigerator or freezer. The refrigerators and freezers recycled through PECO Smart Appliance Recycling has the same environmental impact as removing more than 5,700 cars from the road or planting nearly 66,000 trees.

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and encourage them to adopt their energy conserving products.

Business are also able to claim the subsidies, for example the Pennsylvania Convention Center, which announced recently that they had received $60,000 in PECO Smart Ideas rebates.

During the past two years, the Convention Center has replaced lighting throughout the facility and in the adjacent 12th Street tunnel with energy-efficient LED lighting.

This new lighting will save the Convention Center about 607,000 kilowatt hours (kWh) of energy savings annually.

Liz Murphy, Vice President of Governmental and External Affairs, PECO, said the firm was delighted to help the center.

“With PECO Smart Ideas, we are at the forefront of the energy industry, driving innovative programs to help our customers save energy and money. We are proud to partner with the Pennsylvania Convention Center on their energy efficiency initiatives, and we congratulate them on this work to help make Philadelphia a more sustainable city to live in, work and visit.”

Another aspect of PECO’s energy efficiency drive is their continued investment in the natural gas industry. As part of the firm’s commitment to provide safe and reliable natural gas service, the company is investing $750,000 to enhance the local natural gas distribution system in Spring City, Chester County.

The project will include the replacement of existing natural gas main and bare steel natural gas service lines with new plastic pipe, which enhances safety, is more durable and improves service reliability. Project work began in June and will occur in phases through November 2015.

Work will be completed along Broad, Cedar, Chestnut, Church, Hall, Main, Wall and Walnut streets. Work will be coordinated with any planned township or utility projects to minimize the impact to area traffic and the community.

These projects are part of nearly $90 million in investments that PECO is making to its natural gas system this year. This includes inspecting equipment, completing necessary repairs or replacements, performing preventive maintenance work, and installing additional natural gas main and service lines to bring natural gas service to new customers.

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Ron Bradley, Vice President of Gas Operations for the firm, made it clear that the investment would insure the company’s supplies were gathered in a secure manner.

“We continuously review our natural gas distribution system to identify opportunities to further improve service and ensure safety. This work helps us continue to provide safe, reliable natural gas service to our customers.”

Natural gas is often considered more environmentally friendly because there is less wastage occurring during generation and transmission of the energy than there is with fossil fuel energy.

PECO’s success serves as an illustration of how the industry could encourage customers to adopt energy efficient policies and products using both financial incentives and community partnerships.

By offering customers monetary reward for moving to energy saving products and services companies will also raise their own profiles within the industry.

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Energy Deficient

UK Government pulls funding on Green Deal following low take up potentially reducing the number of homeowners who will use energy efficiency schemes to improve their household energy levels. This news comes just days after the Government also announced a review of all renewable energy subsidies.

Low industry standards were also cited as a key factor in the decision to retract the funding, which could potentially cause serious problems in the sector.

Energy and Climate Change Secretary Amber Rudd made the announcements.

On the subject of the Green Deal, Rudd made it clear that any future schemes would have to provide better value for money, support the goal of insulating a million more homes over the next five years and aid the Government’s commitment to tackling fuel poverty.

The Green Deal scheme, was set up to fund the Green Deal Finance Company which offered grants to homeowners to help them fund projects such as insulation, solid wall, cavity wall or loft insulation, heating, draught-proofing, double glazing and renewable energy generation, such solar panels or heat pumps to improve the energy efficiency of their property.

This decision will not affect existing Green Deal Finance Plans or existing Green Deal Home Improvement Fund applications and vouchers.

Rudd commented on the retraction of funding, indicating that the project was not financially viable.

“We are on the side of hardworking families and businesses – which is why we cannot continue to fund the Green Deal.

It’s now time for the building industry and consumer groups to work with us

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to make new policy and build a system that works.

Together we can achieve this Government’s ambition to make homes warmer and drive down bills for 1 million more homes by 2020 – and to do so at the best value for money for taxpayers.”

This announcement comes as part of Government’s wider review of energy policies. The Energy and Climate Change Secretary has confirmed that her first priority is to get spending under control, which involves a review of energy subsidies across the board.

Although the announcements on this made it clear that they were on the side of taxpayers and the customers, they indicated that the subsidies were not being utilised effectively, with the Government describing the review as “measures to deal with a projected over-allocation of renewable energy subsidies”.

Financial support for renewable technologies primarily comes in the form of subsidies which are paid for via energy bills. The total amount of subsidies available is capped via a mechanism called the Levy Control Framework (LCF).

The measures being introduced to cut down on the amount of overused subsidies includes removing the guaranteed level of subsidy for

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biomass conversions and co-firing projects for the duration of the Renewable Obligation, also known as grandfathering; launching a consultation on controlling subsidies for solar PV of 5MW and below under the Renewables Obligation and hosting consultation on changes to the preliminary accreditation rules under the Feed-in Tariff (FIT) scheme followed by a wider review of the scheme to drive significant further savings.

Additionally the Government intends to set out totals for the LCF beyond 2020, providing a basis for electricity investment into the next decade and lay out its plans in the autumn in respect of future CFD allocation rounds.

Rudd indicated that a reduction in costs within the industry meant that subsidies were no longer necessarily required.

“My priorities are clear. We need to keep bills as low as possible for hardworking families and businesses while reducing our emissions in the most cost-effective way.

Our support has driven down the cost of renewable energy significantly. As costs continue to fall it becomes easier for parts of the renewables industry to survive without subsidies. We’re taking action to protect consumers, whilst protecting existing investment”.

are currently set to be higher than expected when the schemes under the LCF were set up. This is due to a number of uncontrollable factors such as lower wholesale electricity prices, higher than expected uptake of the demand-led Feed in Tariffs and the Renewables Obligation (such as solar panels on roofs) and a faster than expected advancement in the efficiency of the technology, meaning renewables are projected to generate more electricity than previously projected.

This has led to these announcements which will drastically impact on the industry, with the subsidiaries encouraging customers to invest in the technology and subsequently driving growth in the industry, which may potentially slow down with the removal of the grants.

The Government has also commissioned an independent review to be led

by Peter Bonfield to look at standards, consumer protection and enforcement of energy efficiency schemes and ensure that the system properly supports and protects consumers.

Some funding schemes will remain in place for now, with current Govern-

The Government has provided vital financial support to the renewable sector which has helped to establish it by aiding the development of new and innovative technologies, reduced household emissions, and increased the amount of low-carbon electricity that powers homes and businesses across the UK. However, the Office for Budget Responsibility’s latest projections show that subsidies raised from bills

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ment policies including the Energy Company Obligation (ECO) scheme set to continue to provide support this year to low-income and vulnerable households, reflecting the fact that ECO delivered 97% of home improvements in the last two years.

These reviews and stoppages of funding could also affect jobs and companies, with the potential for serious loss of income for firms which rely on the subsidies to drive sales. It will also reduce the impact of David Cameron’s recent energy efficiency drive, during which he made impassioned speeches on reducing the impact of climate change. In February the Prime Minister spoke to the DECC’s energy efficiency mission in which he declared that climate change “is a vital part of how we cut carbon emissions and continue to meet the ambitious targets set out in the Climate Change Act, which will allow us to meet growing energy demand in a way that protects the environment for our children, grandchildren and generations to come.”

These words will doubtless come back to haunt Cameron as the industry feels the effects of these savage cuts.

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Regulation

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Industry Leaders Welcomed into Construction Leadership Council New members drawn from industry as council is slimmed down to create a more business led construction council following calls from the sector for a better, more industry focused approach.

he new Council will build on the work of the government’s Chief Construction Adviser, working closely with ministers to ensure the industry’s concerns and ambitions are addressed. However the role is being axed, with the current occupant Peter Hansford leaving the post in November of this year following a successful tenure.

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In place of the role will be a new group of council members from numerous leading construction firms such as Laing O’Rourke and Bouygues UK, to bring new experience and a new perspective to the council.

The council was initially created in 2013 to work between industry and government to identify issues and deliver actions to improve efficiency, skills and growth in the UK construction sector.

Since then it has developed the Construction 2025 strategy which sets out a vision of long term ambitions for the industry, which include the reduction in greenhouse gas emissions in the built environment in order to

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ensure sustainability in the industry.

Other aims of the strategy include a 33% reduction in both the initial cost of construction and the whole life cost of assets and a 50% reduction in the time from the outset to completion for new build and refurbished assets.

There is also a focus on reducing the trade gap between total exports and total imports for construction products and materials.

Co-chair of the council and Skills Minister Nick Boles indicated that the newly rejuvenated Leadership Council would be vital to maintaining the improvement the industry has seen in recent months and working towards the aims set out in the Construction 2025 strategy, ‘The construction industry recently saw its 24th month of consecutive year on year growth, and is key to our plan for increasing Britain’s productivity and prosperity. We will work closely with the newly focussed Construction Leadership Council, with its top business expertise, to deliver that plan and drive growth for the sector and wider economy.’

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Regulation

Nick Boles

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David Higgins

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Regulation

David Higgins, another of the council’s cochairs, echoed this in his comments on the council’s shake-up.

‘I’m delighted the government has responded to calls for a smaller, more business-focused Construction Leadership Council. The new Council of 12, with its business leaders from across the sector, will be best placed to drive the skills, innovation and productivity outcomes to help the industry build on its recent growth.’

The new membership of the council sees a reduction from its previous 30 members to just 12, in response to calls from the sector to make it more effective and business-focused.

The new members were chosen because their seniority in business allows them to provide leadership and knowledge to the sector.

The new Council will represent a mix of businesses and a broad range of perspectives on the construction industry, allowing it to make informed and unbiased decision.

Industry representatives who will be taking on new roles on the council include Madani Sow from Bouygues UK; Anna Stewart of Laing O’Rourke; Mike Putnam from Skanska and Crossrail’s Andrew Wolstenholme. They will be joined by the Chair of UKTI’s Construction Advisory Group, a volume house builder, a supply chain small/ medium business and the Council co-chairs: Skills Minister Nick Boles and Sir David Higgins, Executive Chair of High Speed 2. The new council members have committed to remaining with

the council for a two year period.

Madani Sow, one of the new members of the council who is also the Chairman and CEO of Bouygues UK, was positive that the new council could make a real difference to the construction industry.

‘This is an exciting opportunity for Bouygues UK and the industry. The UK’s construction sector is growing and leading the way in many fields, but productivity and skills are big issues we need to address and I look forward to working with my colleagues on the Council to achieve this.’

Certain members of the new council will lead a specific work stream designed to deliver improvements to working practices in specific sections of the industry.

Madani Sow, alongside the small supply chain business will be responsible for the supply chain and business models work stream. Anna Stewart will be in charge of the skills work stream, Andrew Wolstenholme will take the innovation one, Mike Putnam will take the sustainable work stream. The Chair of the UKTI Construction Sector Advisory Group will be responsible for the work stream focused on trade.

These new work streams will allow the council to provide focused information to the government on industry specific topics in which certain council members have experience.

There will be meetings between the new Construction Leadership Council and ministers four times per year in which the council will advise the government and update them on their efforts to drive improved productivity and growth across the industry. There will also be greater governmental influence on the board with the addition of the Department for Business, Innovation and Skills due to hold a permanent place on the council and other government departments expected to attend meetings as determined by the agenda.

The new board is not yet complete, with discussions ongoing with the Strategic Forum for Construction in order to identify an individual who would connect the Forum to the Council and contribute a manufacturing perspective.

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Real Estate

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Securing The Value Of Your Commercial Property Build Magazine

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Real Estate

Russell Kirby examines how to reduce the risk of physical damage to commercial property.

Smart businesses take loss prevention into account during the early stages of specification, design and construction in both new projects and regenerated buildings. Beyond meeting the minimum codes and standards, they make planning decisions that are functional for their needs and best protect their people and assets.

Resilient businesses go a step further.

During the planning or retrofitting process they aim to ask and answer questions, such as: what is our objective in terms of business continuity? How resilient is our building and business should a loss occur? And how can we avoid a big incident in the first place, so that we have a business to go back to in case of a disaster?

These businesses know that insurance helps alleviate some of the cost associated with property damage, but it isn’t the only answer, especially considering the loss of customers, productivity, goodwill and staff. They also know that businesses that are able to avoid substantial losses will outperform competitors and create real and sustainable competitive advantage.

In fact, a study commissioned by us, looking into FORTUNE 1000-size companies, showed that businesses with strong physical risk management practices, on average, produced earnings that fluctuated by roughly 18%, whereas those with weak physical risk management practices, on average, had earnings that fluctuated by about 31%.

Additionally, at FM Global we have discovered that the average risk of a property loss is 20 times larger for companies with weak physical risk management practices than for those with strong physical risk management practices.

Factoring in the financial costs of these losses indicates that the average loss at a location deemed to have weak physical risk management practices exceeds US$3 million, compared with approximately US$620,000 for a company that manages its physical risks well.

Having a resilient business can also lead to competitive advantage. For example, back in 2011 analysts gave the floods in Thailand as the primary reason for Seagate Technology recapturing the worldwide lead in hard disk drive shipments from Western Digital in the last quarter of the year. Seagate located their HDD manufacturing plant on high ground, and as such, were less adversely affected by the floods and able to continue business as usual and as a result gain the market leadership position.

Understanding the key areas of exposure for a business, when it comes to a new property project or retrofitting an existing one is a joint effort between all parties involved. However, it’s the role of a proactive insurer to help in the identification and management of risk in a collaborative manner with a client, recognising the needs of the business and the client’s business priorities.

At FM Global, for example, we are able to demonstrate to clients where they are most likely to suffer a property loss and what the business consequences of this loss will be through a tool we’ve developed called RiskMark. The tool provides a quantitative assessment of risk for each location our engineers visit (around 60,000 locations per year), and factors in fire risk, equipment hazard risk, natural perils, organisational risks, and specific occupancy risk. This in turn, helps clients decide where best

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to prioritise their risk improvement budget, and pinpoint critical properties in terms of revenue impact.

Once there is an understanding of the key areas of exposure, businesses have to think about the practical steps that need to be taken to incorporate resilience within the stages of specification, design and construction in both new projects and regenerated buildings. From a capital investment point of view, managing changes within a new building is, of course, easier than within an existing one. However, the approach to ensuring resilience should remain the same regardless of the type of project or the type of risk. The following key questions need to be answered: Where is the location of the building and what are the risks associated with it? In the UK, for example, one of the natural hazard risks that are most prevalent is flooding.

Facilities located in a published flood zone are five to seven times more likely to experience flood causing damages of £50,000 or more, than to suffer a fire or explosion of a similar magnitude. Our research shows that if you are unprepared, a flood could cost your business an average of £2.1m in property damage. It is critical to be aware of how much warning time you may have, how deep the floodwater is likely to get, what the impact of fast moving floodwater may be and how long it will take to recede.

Last year significant parts of the country were affected, in some way, by flood. Prior to 2014, we worked with a client who was planning to relocate their divisional head offices and data servers within the Thames Valley – one of the areas most exposed to flooding.

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About the author Russell Kirby is Group Manager Account Engineering at FM Global, a mutual insurance company whose capital, scientific research capability and engineering expertise are solely dedicated to property risk management and the resilience of its client-owners.

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Real Estate

We helped them to evaluate the risks associated with the move, as well as to advise upon simple modifications and adjustments to their facility to protect against what could happen in the future. For example, we advised them to position their data server equipment at a higher level, as well as build a wall to hold back water if it came out of the river. As expected, the area did flood a few years later, but our client suffered only minor leakage issues and was able to prevent any major equipment damages.

With a few practical steps they took to retrofit their new facility, they were able to avoid up to 2 months of down time and interruption, and keep their business in operation regardless of the flood risk.

What is the building made of? If you recognise what is the building material of your commercial property, or alternatively, what is going in it, then you can develop criteria for protecting and mitigating various risks. For example, fire is the leading cause of loss in commercial property facilities. Taking some simple steps can make a huge difference to business continuity. For instance consider the following: - Ensure suitable construction: when a building contains highly hazardous processes or is several stories high, fire-resistant material, such as reinforced concrete or a protected steel frame should be used. Appropriately approved and tested materials should also be chosen for insulating wall panels and HVAC systems. The possibility of property loss can also be reduced by subdividing large areas of a building with firewalls.

- Install fixed protection where needed: appropriate automatic sprinklers should be installed wherever there is combustible construction, material or processes related to the type of occupan-

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cy. Additionally, sprinkler systems should be properly inspected and maintained, initiate and transmit to an alarm-monitoring system; and have an adequate water supply. Some companies may think that retrofitting their facility with sprinkler systems will require a big capital investment, but this is not always the case. For example, it is the job of our engineers to identify where cost savings can be made to loss mitigation strategies. An agricultural facility in Spain was planning to install a sprinkler system in a 20,000 metres² extension to its facility.

Following our recommendation to move to a more modern system, the organisation reported costs savings of 300,000 Euros (33%), largely because the new system only required one branch line of sprinklers, as opposed to two.

Ensure special hazards protection: well-protected facilities isolate ignitable liquid operations by distance or construction, often in a detached location, or at least in a carefully located and designated cut-off area within a main building.

Implement ongoing fire prevention programmes: regular, recorded inspections of fire protection equipment should be ensured, including physically testing locked or sealed sprinkler valves. Inspections could include housekeeping, ignitable liquid handling and control of smoking. During inspections, the condition of extinguishers, fire hoses, hydrants, sprinkler alarms, fire pumps, water supply tanks and fire doors should be checked regularly.

What will be the purpose of the building? Loss prevention plans would be different depending on whether the building will be used for office or manufacturing purposes. In both cases, however, it’s important to

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implement relevant good housekeeping programmes, which involve all employees and include frequent cleaning, prompt waste disposal and proper material-handling practices – especially in large storage areas.

Every building, whether an office or a manufacturing facility, should have an emergency response team (ERT) to address emergencies that are specific to the building – whether that would be fire, explosion, hazardous material spillage or a nuclear accident, or natural hazards such as hurricane, freeze, earthquake and flood. Businesses should think about appointing a person in charge of the ERT to develop and maintain a written plan; be familiar with all facilities and any inherent special hazards; know the care and operation of all protection systems; and ensure appropriate employee training.

No company can afford the loss of property and productivity, regardless of the risk – be it destruction caused by fire, natural hazards, equipment outage or other threats, such as terrorism acts or other organisational risks. Equipment damaged in minutes can take months to repair or replace. If there is business interruption, revenue, share price and shareholder confidence all take a major hit.

Market position may be lost. Inflation and material shortage may make rebuilding difficult and costly.

Therefore, the best property risk management programmes begin with loss prevention. Taking loss prevention into account during the early stages of specification, design and construction in both new projects and regenerated buildings, is what makes a business resilient. And it is our responsibility as insurers to help protect the value created by our clients’ businesses by assessing and engineering risk to prevent and mitigate loss across their property portfolio.