9 : CONSTRUCTION

construction

£4.2bn major projects framework partners chosen

Procurement Hub, part of Places for People, has appointed Robertson Construction Group, Willmott Dixon Construction Ltd, and Farrans Construction to its new Major Projects Framework following a strict procurement process. The £4.2bn Major Projects Framework will be the second iteration, building upon the success and strengths of the current framework, providing a variety of construction work for a wide range of public sectors including local government, housing, health, transport, education and more. Features of the framework include • Transparent and low framework fees, which reduce for larger project values • 100% of fees generated will be donated to charities, support social value projects, or be reinvested directly into the public sector • Low Carbon alternatives presented • 100% renewable energy used on every site • A minimum of 85% of project values will be available to local supply chains and SMEs • Mandated Modern Slavery

Awareness training for contractors on each project • Fast payment of sub-contractors (within 19 days) • Up to eight jobs created per £5m of project value Developers who fail to resolve snags on new homes could see themselves struck off the New Homes Quality Board, NHQB, register. The board has released a new housebuilders code banning high-pressure selling, requiring an after-sale ‘cooling off’ period and protecting the buyer for up to two years after purchase. MP and NHQB chair Natalie Elphicke said the code, which has been five years in the making, would be central to driving up new homes’ standards. “It fills the gaps in existing protections and puts considerably more requirements on builders in terms of how they deal with their customers and any issues that they have with their new home.

• Immediate starts to projects - no further competitions required • Support from Procurement Hub’s dedicated framework management team. Alan Heron, Director of Procurement for Procurement Hub and Places for People, said: “This framework aims to be one of the most socially conscious, greenest, financially robust, and flexible frameworks available anywhere in the UK, enabling clients to benefit in all areas of procurement. “We are aiming to achieve this by reflecting the principles of the UK Government’s Green Paper ‘Transforming Public Procurement’, The National Procurement Policy Statement, The Construction Handbook, The Construction Playbook, and the recently published ‘Constructing the Gold Standard’ report. “We’re incredibly proud that the core ethos of this innovative new framework and the appointed contractors embody the principles of key current and future legislation and best practice.” The agreement will run for an initial four-year period, with the option for it to be extended for a further two years. The framework has been established with three regional lots covering Scotland, England and Wales, and Northern Ireland.

Large swathe of councils still failing to meet housing needs

Nearly a third of England’s local authorities failed to meet their housing delivery targets last year, according to government figures. Out of 321 local councils 93 failed to hit their targets, 29% - a modest improvement on 2020 figures where 34% failed. Head of housing and planning policy at the National Federation of Builders Rico Wojtulewicz said: “The problem is there are no real consequences for not meeting the targets. If you are constrained by the green belt, then the government will let you off.” Local authorities in the north and the midlands tended to perform better than those in the southeast. The housing delivery targets were introduced in 2018 as a way of putting pressure on local councils to build more new homes and help the government meet its goal of 300,000 new homes a year by the mid-2020s. The Construction Products Association forecasts growth of 3% this year and next in private housing building compared with 17% in 2021. Repair and maintenance output is predicted to remain flat due to rising costs in contrast to last year which saw a 17% growth.

Buyers’ rights of new homes strengthen with industry code

“Over the coming months, we will work closely with industry to support and help them make the transition to the new arrangements.” Deposits paid to the builder to reserve a new home must be protected, the developer has to provide details about tenure and future management service charges during the sales process. Snagging issues must also be dealt with promptly. The code also requires a home is complete before the buyer can move in and allows customers to ask a professional to carry out a pre-completion inspection. Builders must have an aftercare service for any snagging problems and a complaints process that responds to the new homeowners promptly keeping them informed throughout.

McLaren Group launches new national residential development business

International property group McLaren has launched a new business, focusing on mixed-use, residential development and placemaking in the UK. Matthew Biddle has been appointed as Managing Director of the McLaren Living business, which brings together McLaren Group’s property and construction expertise. The company will work to create agile, solutions-focused partnerships and joint ventures with private and public-sector organisations, bringing speed and flexibility to the process of building much-needed homes and mixed-use developments, across the UK. Matthew Biddle joins the business to lead a team who understand how to unlock developments and create places that make a positive difference to local communities. He brings with him 18 years of experience, leading residential development businesses at Berkeley Group. This includes building strong relationships with local authorities and registered providers. Matthew will work alongside former Chief Executive of Newham Council, Kim Bromley-Derry CBE, to strengthen McLaren’s partnership offering and develop long-term joint ventures. Kevin Taylor, Chairman, McLaren Group, commented: “We welcome Matthew to McLaren at this exciting point in the evolution and growth of our company. His skills and experience will help us to deliver homes that the country so badly needs and new places where people want to live, work and stay. We look forward to sharing our can-do culture with local authorities, registered providers and other organisations, working in partnership to help them to meet and exceed their housing priorities.”

Brick prices set to rise in coming months

The UK brick maker Forterra warned of further price hikes this year in its latest trading statement. The company said it was reviewing costs before deciding whether to charge more following double-digit increases over the last few months due to higher energy costs. Chief executive Stephen Harrison said: “We remain watchful of further inflationary cost pressures, and we will apply further price increases as necessary.” He added 70% of the company’s energy costs had now been secured covering the winter months when volatility is traditional at its highest. The company reported brick sales bouncing back to pre-pandemic levels with sales 1% above 2019’s figures and 33% ahead of 2020’s. Revenue for 2021 was expected to reach £370m - a 3% drop on 2019’s figures but a 27% increase on 2020. He said this was due to Forterra’s precast concrete factory closing resulting in reduced output of bespoke products but added brick and block revenues were seven per cent up on 2019. Bricks and roof tiles are in short supply with demand outstripping supply against a backdrop of rising inflation, the Construction Leadership Council (CLC) has warned. Imports of bricks from the EU and globally are set to continue until three new UK brickmaking plants come on stream next year and in 2024. The new factories are predicted to boost UK annual capacity by about 150m bricks per year. The CLC’s product availability group co-chairs John Newcomb and Peter Caplehorn said: “We continue to stress the importance of maintaining open lines of communication throughout the supply chain and encourage all sectors to continue to work closely and collaboratively to manage challenges and plan future work.” Aerated concrete blocks, steel lintels, manhole covers, plastic drainage products, sealants, coatings and paints are also hard to come by. Lack of semi-conductors is constraining boiler supply at a time of high demand although the CLC said insufficient supplies were not due to chip shortages.

New homes must show 30% cut in carbon emissions

All new buildings must reduce their greenhouse gases by nearly a third under new building regulations from June. Under the rules, carbon emissions from new build homes must be 30% lower than currently and other new buildings such as offices and shops must be 27% lower. Housing minister Eddie Hughes said the regulations were an important step towards 2025’s future homes and building standards where all new homes must be net-zero ready. “The changes will significantly improve the energy efficiency of the buildings where we live, work and spend our free time and are an important step on our country’s journey towards a cleaner, greener built environment.” This means installing solar panels and heat pumps and improving insulation will be critical for achieving the new tougher requirements. New homes must be designed to reduce overheating. Improvements to ventilation will be introduced to support residents’ safety in newlybuilt homes and to prevent airborne viruses from spreading in new nonresidential buildings. The National Federation of Builders head of housing and planning policy Rico Wotulewicz said: “We’re encouraging our members to go higher than this interim standard as the 2025 future homes standard will move the goalposts again.”

New residential development for Liverpool City Centre

Integritas Property Group (IPG) has announced the launch of Bastion Point - a brand new residential development in the heart of Liverpool, offering a opportunities for local investors. Phase one of the development, due for completion in Q3 of 2023, will see 67 luxury apartments built over seven floors on Naylor Street, just a short walk to Liverpool City Centre and the popular location of Albert Docks. Featuring a variety of one and twobedroom apartments. Mitchell Walsh, managing director at IPG, commented: “Liverpool is currently an excellent prospect for investors due to its strong capital appreciation. Seven of the city’s postcodes feature in the UK’s top ten best capital appreciation locations. “With the North West expected to grow in population by 24% over the next five years, there is real pressure to deliver new housing; the local market is likely to continue to outperform the rest of the UK. “We’re delighted to begin work on Bastion Point and open up this fantastic opportunity to investors, who we predict will profit from 7.5% net rental income upon completion. “Liverpool really is stepping up its game to compete with Manchester, with the local council investing heavily into the regeneration of the city to secure the same success as Ancoats.”

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