Ukce oct

OCTOBER 2017

26 COVER STORY - Why construction firms

must insure against cyber attacks

30 BUILDING A CONNECTED TOMORROW’S CITY

24 RISING COSTS AND

SKILLS SHORTAGES EXPECTED TO WEAKEN CONSTRUCTION INDUSTRY OUTLOOK

BEFORE

AFTER

Acrypol was formed in 1986.

Acrypol + waterproof roof coating is instantly recognised as the market leader.

Acrypol offer long term treatments to failed domestic, industrial & commercial roofs through products such as ULTRA

BY ACRYPOL. This high quality coating can offer ten or twenty year guarantees, is VOC free and moisture tolerant.

Customers consist of Builders & Roofing Merchants ,both local & national, Roofing contractors, surveyors & specifiers.

Our work ranges from introducing the products to new customers to carrying out �on site� roof surveys. Specifications & guarantees are available.

Acrypol endeavour to ensure the customer gets the best possible service from the initial enquiry, site visits and surveys, through to ensuring that the applicators are instructed on best application methods and approving the job in order to issue the guarantee. All guarantees are site specific and would require a written specification in order to obtain a guarantee at the completion of the work.

During application we ensure that correct coverage is adhered to and that weather conditions are favourable. Particularly with QUARTZDEK, the slip resistant

walkway coating.

Acrypol operate within the repair/ refurbishment market. We have to ensure that our specifications are accurate as poor roof surfaces can pose problems during application, especially when ponding water is present. However, our roof products are well capable of ensuring the building stays dry for the long term.

Fire legislation has recently become an issue due to recent tragic events. We are currently ensuring that our range of products are compliant with this to ensure customer piece of mind.

We are continually striving to keep ahead of the competition by looking at new and innovative products, keeping the market leading name of ACRYPOL at the forefront of the minds of the right people.

Due to health & safety regulations cold applied coatings are becoming more & more popular. Technology is moving forward and we intend to be there to offer both quality products and quality service to our customers.

T 01925 213655 E info@acrypolproducts.co.uk W www.acrypolproducts.co.uk A 4 Asher Court, Lyncastle Way, Barleycastle Lane, Appleton, Warrington WA4 4ST

WELCOME to the latest edition of UK Construction Excellence.

September has been an active month across the construction sector, with numerous announcements and projects taking off, such as the completion of the Queensferry Bridge and a new housing strategy for London.

Mayor of London, Sadiq Khan, released his vision for tackling the housing crisis in London earlier this

month. The first draft has been put out for consultation and actively encourages residents to discuss housing needs and solutions in the capital. The strategy looks to free up land for building and concentrate on developing more affordable housing, with the aim of creating 90,000 affordable homes by 2021. Find out more about the strategy and reactions to it in our review on page 18.

In this edition we also look at digitising

14 Supreme Shock Waves

the construction industry and what it means for the sector; from connecting on site offices, to cyber security, and cloud payments. With GDPR on the horizon, the call is for all businesses to take cyber security seriously, now.

And, as always, we catch up with the latest contract news, industry movers and our guest contributors, inside.

Victoria Maggiani

22 Tests, drugs and the payroll – understanding your obligations as an employer

32 What if BIM was employed when the pyramids were built?

Publications Editor Victoria Maggiani

Managing Director Grahame Steed

Designer Seamus Norton

Production Manager Gareth Trevor-Jones Display Advertising Sales T: 0800 6127680 admin@ukconstructionmedia.co.uk ISSN 1461-1279

Follow us on...

UK Construction Media, Pacific House, Pacific Way, Digital Park, Salford, M50 1DR 0800 6127680 • admin@ukconstructionmedia.co.uk • www.ukconstructionmedia.co.uk © Copyright ProMark 2017. All rights reserved. No part of this publication may be copied, reproduced or transmitted in any form without the prior permission of ProMark. Views expressed in this magazine are not necessarily those of the publisher.

3

www.biogenie.co.uk

UK WIDE COVERAGE FULLY COMPLIANT AND SUSTAINABLE SOLUTIONS

0118 916 7340

sales@biogenie.co.uk

HAZARDOUS SOIL TREATMENT FACILITIES

WASTE BROKERAGE SERVICE OUR PARTNERSHIP WITH BIFFA ENSURES TREATED MATERIAL IS BENEFICIALLY REUSED LANDFILL TAX EXEMPT TREATMENT OF HAZARDOUS HYDROCARBON IMPACTED SOILS WITH NONHAZARDOUS ASBESTOS FIBRES CONTACT US TO SEE HOW MUCH YOU COULD SAVE ON OFF-SITE HAZARDOUS MATERIAL TREATMENT

BIOGENIE AND BIFFA PROUD TO BE GREEN WORLD AMBASSADORS

www.biogenie.co.uk

0118 916 7340

sales@biogenie.co.uk

www.celtic-ltd.com

0118 916 7340

enquiries@celtic-ltd.com

EXPERTS IN SOIL AND GROUNDWATER REMEDIATION CELTIC IS A LEADING SPECIALIST REMEDIATION CONTRACTOR WITH A PROVEN TRACK RECORD OVER 25 YEARS OF DELIVERING COST EFFECTIVE REMEDIATION AND SOIL MANAGEMENT SCHEMES

COST EFFECTIVE BASEMENT SOLUTIONS

CONTACT US NOW OR VISIT OUR WEBSITE TO FIND OUT MORE ABOUT OUR SERVICES

www.celtic-ltd.com

0118 916 7340

enquiries@celtic-ltd.com

Connecting the UK’s fastest broadband Six projects are underway that will bring full fibre networks and connection speeds of 1,000 Megabits per second to a number of areas across the UK. High speed broadband is being piloted in six different regions of the UK as part of the first stage of a £200M scheme that will bring the UK’s fastest and most reliable broadband to businesses, schools and hospitals.

The projects will benefit from some £10M in funding to test innovative ways of connecting offices and public sector buildings with the next generation of broadband. The result is an incredibly reliable connection that can offer speeds of one Gigabit.

The pilot sites for the project are based in Aberdeen and Aberdeenshire; West Sussex; Coventry and Warwickshire; Bristol and Bath & North East Somerset; West Yorkshire; and Greater Manchester.

Development of the networks comes as part of a £200M programme unveiled by Chancellor Philip Hammond in his Spring Budget. The four-year plan by the Government is intended to stimulate the market and encourage the growth of full fibre up and down the country. The remaining budget will be spent on further projects running to 2020-21.

The development of the pilot schemes follows the July announcement of the Digital Infrastructure Investment Fund, unlocking more than £1Bn for full fibre broadband, as well as new legislation to enable business rates relief for new fibre.

Exchequer Secretary to the Treasury, Andrew Jones MP, said: “How we live and work today is directly affected by how good our broadband connection is.

Reliable connections enable new industries to flourish, help create jobs and give people flexibility in how and where they work.

“For our economy to thrive, it is vital we make smart investments to ensure our digital infrastructure is world class and fit for the future.

“Full fibre connections are the gold standard and we are proud to announce today the next step to get Britain better connected.”

Minister of State for Digital, Matt Hancock MP, commented: “We want to see more commercial investment in the gold standard connectivity that full fibre provides, and these innovative pilots will help create the right environment for this to happen. To keep Britain as the digital world leader that it is, we need to have the right infrastructure in place to allow us to keep up with the rapid advances in technology now and in the future.

“The cutting-edge technology will make internet access more secure and enable more people to work remotely without disruption, as well as equipping the UK’s homes, businesses and public services for applications of the future.”

6

Finishing touches for iconic Battersea Power Station chimneys Battersea Power Station is celebrating the early completion of its iconic chimney stacks, following a final lick of paint.

All four chimneys have received base and finishing coats identical to those of the original power station to ensure the historic structure appears as unchanged as possible.

For contractors, this is the culmination of many months’ hard labour. Each chimney has had to be painstakingly dismantled and rebuilt following a period of intense scrutiny and consultation with both Historic England and the London Borough of Wandsworth.

Reinstating the world-famous chimney stacks has long been a priority for the Malaysian shareholders behind Battersea Power Station’s ambitious redevelopment, and this latest milestone acknowledges their historical and cultural significance.

Rob Tincknell, CEO of Battersea Power Station Development Company, said: “It is wonderful to see the chimneys, which have become a permanent fixture on the London skyline, freshly painted and the finishing touches applied. This is a great opportunity to thank the BPS team, the specialist contractor and everyone else who was involved in ensuring one of the most important parts of the redevelopment project was successfully completed.”

According to Councillor Ravi Govindia, Leader of Wandsworth Council: “An exciting new skyline is developing at Battersea but it is fantastic to see our old friends, the power station chimneys, restored to their former glory: a proud landmark for Wandsworth and for London.

"Rebuilding the chimneys as exact replicas was a key condition of the overall planning application so it’s great the pledge has already come good, ahead of schedule.”

The Battersea Power Station redevelopment spans 42 acres and incorporates 3.5 million square feet of mixed-use commercial accommodation alongside 4,364 new homes. It is thought that the development will generate 20,000 new jobs and inject around £20Bn into the UK economy, making it a project of some significance to the City of London.

Industry must double output to meet infrastructure aims, warn Arcadis

The UK construction sector must raise the rate of infrastructure delivery to more than £95,000 of output per minute in order to meet future demand, Arcadis has claimed.

Large-scale infrastructure schemes are helping to stimulate the UK economy and generate much needed jobs. And yet, delivery of that same infrastructure will require the construction industry to more than double peak output of £20Bn per year.

That claim forms the basis of a brand new Arcadis report, entitled 'Opportunity Knocks: Delivering the UK’s Infrastructure Pipeline'. The report – which collates the knowledge and experience of asset owners, investors and delivery partners alike – outlines six key factors to ensure UK infrastructure remains deliverable.

According to Arcadis, the opportunities for the industry at large are many.

Today, there are more large-scale infrastructure schemes underway than ever before. In Greater London alone £28Bn of infrastructure investment is expected over the next four years.

Meanwhile, the Northern Powerhouse has a combined infrastructure opportunity of £13Bn in the run-up to 2021, with Manchester Airport's Transformation Programme and Network Rail’s Transpennine Route Upgrade taking shape.

This assessment is based on the current iteration of the National Infrastructure and Construction Pipeline (NICP), which forecasts £500Bn of infrastructure expenditure over the next decade. According to Arcadis, the NICP actually understates the scale of opportunity by excluding many of the UK's most significant infrastructure schemes – the proposed third runway at Heathrow Airport and Highways England's Lower Thames Crossing, for instance.

Delivery remains a sticking point, however. If the industry is to keep pace with growing infrastructure demand, it will require nothing less than a stepchange – a brand new way of working.

Greg Bradley, Head of UK Business Advisory at Arcadis, was on-hand to explain more: “With some of the most

complex and technically challenging projects now underway, the industry is under more pressure and facing more competition to deliver than ever before. We have a massive opportunity here to upgrade our much needed infrastructure networks, and to do things differently. From new roads, railways, power plants and utility networks to new technologies and Smart Cities, there has never been a more exciting opportunity to transform how we plan and deliver projects.

“The need to double construction output on infrastructure is no small task, and it will force us to do things differently. The industry needs to look at innovating on a massive scale to achieve the step-change required, including up-scaling digital solutions, offsite manufacture and offshore design, investment in skills and training, sharing of resources and better alignment with regional development agendas. We also need to continue to collaborate across sectors and the supply chain to help speed up the pace of delivery.”

7

Careers advice key to averting £90Bn GDP crisis, says Kier A newly published report – commissioned by the construction and services giant, Kier – has shown that parents have “significant concerns” over the quality of careers advice on offer to secondary school pupils.

The research – entitled ‘Averting a £90Bn GDP crisis: A report on the image and recruitment crisis facing the built environment’ – polled 2,000 secondary school teachers, careers advisers and parents.

Overall, 74% of survey respondents felt careers advice was biased towards academic routes, while 68% of parents said their children hadn’t received enough guidance to make an informed decision.

Curiously, 90% of teachers surveyed said they were unaware of the unprecedented scale of the construction skills shortage, while 41% were oblivious to the issue entirely.

Furthermore, 54% of teachers and parents felt there was a lack of career progression in construction.

Many still associate the industry with mud, manual labour and machismo, thanks in part to some pretty outdated perceptions.

Obviously, there is an image problem at work here. Pupils and parents are unaware of the career opportunities at hand, or the construction industry’s desperate need to take on 400,000 new recruits each year in step with growing housing and infrastructure demand. For Kier, it is ultimately about averting a £90Bn UK GDP crisis.

Now, with the much-publicised skills shortage in mind, the contractor is calling on industry and government alike to reject old-fashioned attitudes to construction and give secondary school pupils a fuller picture of what’s on offer.

“With an ageing workforce, uncertainty around Brexit and an ambitious pipeline of construction, housing and wider infrastructure projects, which equates to £90Bn of UK GDP delivery and creates a demand for circa 400,000 new recruits per annum, it is imperative that we attract new talent into our industry,” said Haydn Mursell, Chief Executive of Kier.

“We have invested in comprehensive resources to train and develop new talent, we offer a vast array of roles, great scope and support for diversity and career progression, and we offer the chance to leave a lasting legacy and make a real contribution to local communities, as well as UK GDP. But we also have an image crisis, based on out of date perceptions and advice. We cannot leave this to schools, councils or the government alone to resolve. Business is best placed to explain itself, its employment offering and its skills and training needs.

“For this reason we are pledging a minimum of 1% of our workforce as Career Ambassadors to work with schools and colleges across the UK, to engage with at least 10,000 pupils over the next 12 months.

“If every company in the FTSE 250 and FTSE 100 followed the 1% pledge as part of their commitment to employment and skills, we could create a powerful network of real world advisers, to inform and inspire the next generation.”

8

LGA warns of planning costs shortfall The Local Government Association has warned of a planning application cost shortfall, with councils needing some £1Bn to cover costs over the next five years.

With planning fees set nationally, councils have to cover the cost shortfall in processing planning applications. And with some 486,500 planning applications received on average each year, these costs are spiralling. Planning fees were last increased in 2012, and communities have been subsidising the shortfall ever since.

Analysis by the LGA reveals the bill to cover the cost of planning applications is growing at a rate of around £200M a year and will reach £1Bn by 2022. This represents desperately needed revenue being diverted away from local resources, and is the equivalent of: • Repairing 4.35M potholes – potholes cost £46 to repair, on average.

• Providing grant funding to help councils and housing associations provide 8,507 new affordable homes. The Homes and Communities Agency, on the last round of funding allocation through the Affordable Homes Programme, issued an average grant per home of £23,510.

• Creating more than 828 miles of public pavements, almost four times the length of the M6 – footways are estimated to cost around £150 per metre.

The stark warning from the LGA is that this ongoing fees shortfall is hampering planning departments’ ability to stimulate housing growth in communities, in direct opposition to the Government’s housing white paper calling for a major housebuilding push.

The LGA wants government to allow councils to increase planning fees, and commit to a fair and transparent scheme of local fee setting, allowing councils to recover actual costs.

Councillor Martin Tett, LGA Housing spokesman, said: “It is wrong for communities to keep being forced to spend hundreds of millions each year to cover the cost of all planning applications.

“Councils are working flat-out to approve almost nine in ten planning applications, with the majority processed quickly.

“But the shortfall in the amount of fees councils can charge and the cost of processing applications is heaping further pressure on the stretched planning departments which are so crucial to building the homes and roads that local communities need. Councils need to be able to recover the actual cost of applications and end such a waste of taxpayers’ money.

“Locally set fees would also allow councils to prevent increased costs being passed on to residents, while developers could contribute more to maintain high-quality planning decisions, and improve the ability of councils to speed up the planning process.”

Precast Concrete Water Management Solutions Water Management

Attenuation Direct Access Pipe Systems End and Mid Entry Pipes Multiple Tanks Box Culverts

Control Flow Control Chambers Weir and Split Wall Chambers Headwalls Pre-fitted with Hydro-Brakes, Orifice Plates, Gate Valves, Penstocks

Treatment Downstream Defenders™ First Defence Up-Flo™ Filters Biofilter™ Biofiltration System

To find out how CPM can offer speedy installation with either no or minimum on-site fabrications please visit our website or call our team

T: 01179 814500 E: sales@cpm-group.com W: www.cpm-group.com

Queensferry Crossing officially opened by Her Majesty The Queen On 4th September, Scottish First Minister Nicola Sturgeon accompanied Her Majesty The Queen to the grand opening of the much-anticipated £1.35Bn Queensferry Crossing.

This was the culmination of six years’ hard labour. Around 15,000 skilled workers lent their expertise to the landmark project, and – despite carrying a considerable price tag – Queensferry Crossing finished £245M under budget. Not bad for the UK’s tallest bridge.

Remarkably, the inauguration also marked the anniversary of Queen Elizabeth’s Forth Road Bridge opening 53 years earlier.

Following a ribbon-cutting ceremony

10

along the southern boundary of the bridge, the Queen – together with the Duke of Edinburgh – unveiled a plaque on the northern edge and declared Queensferry Crossing officially open.

The bridge opened briefly to traffic on 30th August, but closed the following weekend to allow 50,000 lucky pedestrians to walk the length and breadth of the bridge. Queensferry Crossing later played host to some 10,000 school pupils and community representatives, before reopening to motorists on 7th September.

“This crossing is the tallest bridge in the UK. It has required 150,000 tonnes of concrete, 23,000 miles of steel cabling and 19 million hours of labour,”

summarised Ms Sturgeon.

“But, far more important than those statistics are the benefits this bridge will bring. It will improve journey times, and bring benefits to families and businesses – not just in Fife and the Lothians, but across Scotland.

“It is already attracting global attention.

Together, the three Forth bridges will bring people from around the world to admire their ingenuity and their beauty.

“It is an honour to have Her Majesty The Queen opening the new bridge for Scotland’s communities,” the First Minister concluded, “just as she opened the Forth Road Bridge, linking Fife and the Lothians.”

Telecoms Forum Conference 2017 22 November 2017, London

RICS Telecoms Forum Conference brings together a variety of high profile speakers to discuss how the sector is ever evolving and how you can be better prepared for the future. You will hear the latest updates in planning law and regulation to ensure you remain compliant and can mitigate any risks to your business.

Attend this popular conference to network with other like-minded professionals and: • Hear from various parties on the stages involved in a site move and what is required from the operator, the instructing party and the landlord to make a smooth transition.

• Update your understanding of the Digital Economy Act, including the government’s 5G strategy, broadband policy, roll out in the UK, as well as future opportunities.

• Hear the latest on the The Code of Practice, its components, implementation and how improved collaboration between all parties can lead to effective business decisions.

• Understand the potential impact of the revisions to the Electronic Communications Code, what it means for operators and landowners, impact of Brexit and key legal updates.

• Receive the exciting update on the first 5G trial in the UK: testing 5G fixed wireless access technology and rolling out of small cells to deliver 5G in the UK.

Book your place online today at: rics.org/telecomsconference

Offshore wind power blows nuclear out of the water

UK manufacturing growth gathers pace over August The rate of growth experienced in the UK manufacturing sector has again risen, according to August’s seasonally adjusted IHS Markit/CIPS Purchasing Managers’ Index (PMI).

Manufacturing growth now sits at 56.9 – a notable increase on July’s figure of 55.3 and, encouragingly, its second highest reading for more than three years.

Strong performance across all five PMI criteria – output, new orders, employment, suppliers’ delivery times and stocks of purchases – has given UK manufacturing a much-needed shot in the arm at a time when economic uncertainty is the norm.

Intriguingly, while the domestic market accounted for the majority of new orders, August was one of the strongest months on record for international business.

Manufacturers are now seeing more opportunities from mainland Europe, the USA, China and Australia.

This positivity has also filtered through to employment, with the rate of job creation its quickest since June 2014.

The good news was tempered somewhat by a telling rise in purchase prices, however – the first such increase for over seven months.

Almost 31% of respondents reported a surge in purchase prices, which many linked to the rising cost of commodities.

But August was a broadly positive month overall. Business optimism

12

soared to a three month high, with over half of all respondents expecting output to be higher a year from now, in comparison to less than seven per cent forecasting a decline.

“The UK manufacturing sector continued to show signs of solid progress during the third quarter, with rates of expansion in output, new orders and employment all gathering pace in August,” said Rob Dobson, Director at IHS Markit.

“The key question is whether this positive start to the second half of the year can be sustained. This is looking increasingly likely during the near-term, given the breadth of the expansion. Business conditions improved across the three main sub-sectors – consumer, intermediate and investment goods – and at smaller and largescale producers alike. Business confidence also rose to one of its highest levels in over a year.

“There are increasing signs of supply-side issues leading to raw material and staff shortages, which could become a constraint on output growth going forward, while also leading to higher costs. However, at the moment, the survey data suggests that the manufacturing economy remains in good health despite Brexit uncertainty, and should help support ongoing growth in the economy in the third quarter, which will add fuel to hawkish policymakers’ calls for higher interest rates.”

A major marker for wind power and clean energy has been achieved, with figures revealing offshore wind power is now cheaper than nuclear for the first time.

The news is a further boost to the UK’s low-carbon supply chain, as part of the Government’s ambitious Industrial Strategy and upcoming Clean Growth Plan.

The figures for offshore wind were revealed by the Department for Business, Energy and Industrial Strategy, and are the result of an auction for subsidies, in which the lowest bidder wins.

This competition has driven down the cost for consumers, with new offshore wind projects delivered as low as £58/MWh from 2022-23.

The Government is committed to investing in clean technology and driving economic growth through the Industrial Strategy and upcoming Clean Growth Plan, and with the latest figures in mind, it has announced the latest round of competition auction renewable technologies. The latest round will see 11 new ‘green’ energy projects, worth up to £176M per year.

The projects, which are set to generate over 3GW of electricity, enough to power 3.6 million homes, demonstrate that the UK continues to be an attractive place to invest in clean energy.

Cost reductions in the renewable energy industry are being driven by competition and the development of technology. Costs for offshore wind are now 50% lower than the first auction held in 2015. While wind power is not the only big developer, other successful technologies such as Advanced Conversion Technologies and Dedicated Biomass with Combined Heat and Power, have also achieved significant savings.

Minister for Energy and Industry, Richard Harrington, said: “We’ve placed clean growth at the heart of the Industrial Strategy to unlock opportunities across the country, while cutting carbon emissions.

“The offshore wind sector alone will invest £17.5Bn in the UK up to 2021 and thousands of new jobs in British businesses will be created by the projects announced today.

This Government will continue to seize these opportunities as the world moves towards a low-carbon future, and will set out ambitious proposals in the upcoming Clean Growth Plan.”

UK Summit 2017 16 May 2017, London The Summit is the first of its kind to address the major touch points of change, presenting the UK's built environment sector with both unprecedented challenges and opportunities in the coming years.

Attend key sessions to: • Hear about the current and future trends in global real estate markets with our keynote address from JLL EMEA CEO Guy Grainger.

• Listen to an interactive panel discussion with Arup Associate Global Foresight Manager Josef Hargrave, L&Q Development Director Andy Rowland and British Land Head of Office Leasing Michael Wiseman on how UK real estate can and should respond to changing workspace, and changing lifestyles.

ONS: construction markets contracting but still remain at high levels • Discuss with Heathrow Development Director Phil Wilbraham, along with other contributors from the road and rail sectors where the opportunities in UK infrastructure currently lie.

Figures for the three months to July, released by the Office for National Statistics this month, show that the construction market has contracted by 1.2%.

The latest figures reveal a threemonth trend of decline, but markets are remaining at high levels. The biggest declines were shown in the repair and maintenance arenas, with a 1.8% drop, and new work dropping to 1.0%.

Construction output also fell monthon-month, falling by 0.9% in July 2017, predominantly driven by a 1.4% fall in all new work.

This latest three-on-three month fall in output is the fourth consecutive fall in figures for the industry.

However, the market remains buoyant under difficult political and economic circumstances and trading

at relatively high levels in comparison with private commercial work • Observe an in-depth interview session, including to struggling markets. Construction growing by £7M and non-housing Cushman & 2017, Wakefield James Maddock looking at how output peaked in January repair and maintenance expanding by reaching a level that wascan 24.9% higher impact £6M. Infrastructure continued to fall, disruption positively your business. than the lowest point of the last five dropping for the third consecutive years, January 2013.

Despite falling month, byfrom £38M. Book now and join senior attendees high profile in July 2017, construction output Further depressions in figures are companies. remains 21.0% above this level. shown in public other new work, In direct contrast to the government which fell 6.6% in July 2017. drive for new housing, decline in New orders also fell quarter-onoutput was broadly driven by falls in year, decreasing by 12.6% compared private housing and infrastructure. with Q2 2016. All sectors, bar private Following strong growth in June industrial, fell in comparison with 2017, private housing fell by £95M, the same period in the previous representing the main downward year. However, it must be noted pressure on construction output. that Q2 2016 was a record high However, public housing boosted for new orders. More worthwhile the figures with an £18M increase comparisons can be drawn from the compared with June 2017. Elsewhere, most recent four quarters on a year both private commercial work and earlier series, where all new work is non-housing repair and maintenance down 1.0%, driven by a 4.2% fall in all recovered from falls in June 2017, other work.

View the programme and book now at rics.org/uksummit 13

SUPREME SHOCK WAVES

The ultimate legal authority in our UK court system is our Supreme Court.

By the time a dispute reaches this particular Court the dispute in question will already have been heard in the High Court and then by the Court of Appeal. In short, a lot of very clever people will have looked at the law related to the dispute in question.

Any judgement handed down by our Supreme Court is in effect the final word on the subject and is intended to clear up any uncertainty regarding a particular point of law.

Regent House, Folds Point, Folds Road, Bolton BL1 2RZ t. 01204 362888 f. 01204362808

tvp@vinden.co.uk www.vinden.co.uk

14 

The Supreme Court has just issued a judgement in a long-running dispute concerning liability for the failure of foundations to Robin Rigg offshore wind farm.

The judgement has taken many by surprise and is set to send shock waves through the UK construction industry and boardrooms of many insurance companies.

The case concerns a wind farm in the Solway Firth. E.ON Climate and Renewables had contracted with MHT in 2006 to design, fabricate and construct 60 wind turbine foundations at a site known as Robin Rigg. MHT had in turn sublet the design to Ramboll Engineers who prepared a design based on J101, an international specification used throughout the windfarm industry for such purposes. Unfortunately, unbeknown to all, J101 contained a serious error which meant that one of the loads used for designing grouted connections was underestimated by a factor of 10. In 2009, movement was discovered in these connections when the error in J101 came to light. The subsequent remedial costs were agreed at some E26 million. What wasn’t agreed, however, was who would bear liability for these costs.

The problem and the cause of all the ensuing litigation, was that the contract between E.ON and MHT appeared to contain conflicting obligations in relation to design responsibility. Although the contract expressly required MHT to design the foundations in accordance with J101 the specification incorporated in the contract also required MHT to ensure that the foundations had a minimum life of 20 years. Clearly, given the error in J101, there was an apparent conflict between these two contractual requirements and the question before the courts was who had to bear responsibility for the costs associated with the

remedial works to the foundations?

If the answer to this question was straightforward there would not have been the need to go through three tiers of courts to establish the correct position.

In the High Court action, Mr Justice Edwards Stuart held that although MHT had contracted with E.ON to use reasonable skill and care in designing the foundations in compliance with the requirements in J101, MHT was simultaneously in breach of its obligation to provide foundations with a 20-year service life as a consequence of the error in J101. MHT was thus held liable for the subsequent remedial costs.

The Court of Appeal adopted a different approach finding that the contract contained differing obligations in loose wording and that, on balance, MHT had not given a warranty of 20 years’ service life for the foundations and had fulfilled its obligation to undertake its design using reasonable skill and care by adopting the industry recognised J101 standard in fulfilment of this obligation.

Although an appeal to the Supreme Court was initially refused, permission was finally granted and the judgement was handed down on 3 August 2017 reversing the decision of the Court of Appeal and upholding the first instance decision of the High Court. Although the Supreme Court recognised that there was a difference between two competing obligations regarding design it decided that the J101 and 20-year lifetime warranty terms were expressed as a minimum requirement of MHT’s obligations and the correct approach was to adopt the “more rigorous or demanding” requirement which it said “must prevail” over the “less rigorous” J101 provision which “can properly be treated as a minimum requirement”. It was deemed

irrelevant that the 20-year minimum lifetime warranty was buried in a technical document.

MHT was aware of its existence and contracted to comply with this minimum requirement.

So, where does this Supreme Court judgement leave us. Firstly, it is now more important than ever to ensure that contracts are properly vetted and understood. If there are conflicting obligations in a contract on the same point it must be correct to assume that the Courts will apply the more onerous obligation if this issue comes before them.

Accordingly, ignoring conflicting obligations on the same point is not such a smart move and resolving any such conflicts before executing the contract would be a prudent and sensible approach. As for existing contracts that have conflicting provisions it would seem sensible to undertake a risk assessment in order to ensure that you are complying with the most onerous interpretation and make sure that your insurance premiums are being paid up to date.

Peter Vinden is a practising Arbitrator, Adjudicator, Mediator and Expert. He is Managing Director of The Vinden Partnership and can be contacted by email at pvinden@ vinden.co.uk. For similar articles please visit www.vinden.co.uk.

Regent House, Folds Point, Folds Road, Bolton BL1 2RZ t. 01204 362888 f. 01204362808

tvp@vinden.co.uk www.vinden.co.uk

15 15

London's building!

London Mayor, Sadiq Khan, has unveiled the first draft of the Housing Strategy for London, including plans that will free up sites for affordable housing.

The strategy highlights a fund of £250M that will be used by City Hall to buy and prepare land for new and affordable housing. These funds will be used alongside the additional £3.15Bn set aside for affordable housing in the Chancellor’s Autumn Statement.

Land made available for housing will then be sold to housebuilders, with the monies then used to buy further land for new affordable homes in a virtuous circle that will see 90,000 new affordable homes on site by 2021.

The strategy includes plans to bring together private tenants and landlords, developing better rights and security for renters in a new ‘London model’ of renting.

Building the right number and the right mix of new homes, and addressing the consequences of the housing crisis, are essential parts of the Mayor’s vision for good growth. He wants every Londoner to have access to a good quality home that meets their needs and at a price they can afford.

The aim of the strategy is to diversify housebuilding within the capital, allowing a wider variety of homebuilders to complement the work of traditional private sector developers. Alongside this, the Mayor acknowledges the need for support within the industry by bringing more workers into the sector and tackling the construction skills crisis as well.

16

To assist in this, the Mayor will provide leadership and coordination to improve the image of construction.

The strategy commits to improving London’s construction skills training system, and supporting the industry through the risks posed by Brexit.

The strategy also urges the Government to provide a comprehensive and urgent devolution of funding and powers to the Mayor.

“From £250M to kick-start my plans to secure more land for new and affordable homes, to a new model and fairer deal for millions of private renters, I want to help all Londoners facing the housing crisis," Khan said.

"I will use my powers and resources to their fullest extent, but Government needs to play its part too by giving London the powers and resources we need to see an even greater stepchange in the number of homes being built."

Mr Khan had already revealed new measures to boost affordable housing builds within the capital last month, with the delivery of his Supplementary Planning Guidance (SPG) scheme.

Mr Khan is promising developers safe passage through the planning process, providing their developments meet a minimum requirement of affordable housing provision – 35% on private land and 50% on public. Those developments that make the grade

will be fast-tracked through London’s planning quagmire.

There’s a caveat, however. All developments must be underway within two years of initial planning approval. Any developer that fails to do so risks intense scrutiny from City Hall, with particular focus on the financial modelling that underpins their proposals.

The push by Mr Khan to tackle London’s housing crisis follows hot on the heels of his rejection of a changed planning application for New Scotland Yard. London’s Mayor said that the reduction of affordable units within the £1Bn scheme was unacceptable.

Explaining his decision, Khan said: “A shortage of affordable homes is at the heart of the housing crisis in our city.

“The scheme put forward for this site is simply unacceptable: it fails to provide the maximum amount of affordable housing that could be delivered on this landmark site, and follows a previous application in which the affordable housing provision agreed by the previous Mayor was already appallingly low.”

Mr Khan is setting out his stall for London’s housing crisis, and is pushing his agenda for affordable living in the city. The New Scotland Yard rejection comes just weeks after the Mayor criticised Wandsworth Council and Battersea Power Station

developers for cutting the number of affordable homes within the Battersea development by 40% to just 386.

With no official powers to reject the change in application, Mr Khan wrote to the council and strongly objected to the cuts.

He stated: “I am more determined than ever to do all I can to ensure Londoners are not short-changed when it comes to developers doing their bit to help tackle London’s housing crisis.

“The Government now needs to show it is committed to this too and devolve the powers to help me stop developers getting away with unacceptably low levels of affordable housing.”

The strategy has already been complimented by the Federation of Master Builders (FMB), which has said the Mayor’s focus on small sites will benefit both SME builders and the housing shortage in the capital.

Barry Mortimer, Director of FMB London, said: “If we’re to build the number of new homes Londoners need, we must urgently make much better use of the many existing small sites that are dotted all over London. In doing so, we will the strengthen the capacity of SME housebuilders to build more new homes and perhaps even attract some new SME firms into the market.

“FMB research has consistently shown that a lack of available and viable land

is the main factor stunting the ability of small builders to deliver more homes.

Indeed, over half of SME housebuilders believe that the number of small site opportunities is, if anything, decreasing.”

Mortimer continued: “We therefore welcome strongly the strategy’s proposal for a presumption in favour of appropriate residential development on small sites, which goes further than proposed changes to national policy as laid out in the Government’s Housing White Paper. The ‘Small Sites, Small Builders’ programme will also link up public land owners with small builders, which could make accessing public land easier for small firms.

“We also welcome moves which will mean that less of the Community Infrastructure Levy is payable upfront on small sites. This will really help with cash flow for smaller builders and make the economics of small-scale development slightly easier.”

Mortimer concluded: “The London Housing Strategy therefore marks a step forward in empowering smaller housebuilders in London. In order to reach the 50,000 new homes London needs to build each year, this renewed emphasis on small sites is vital.

“However, all such progress could be undermined if the Mayor fails to protect small sites from onerous levels of developer contributions.

National planning guidance states that planning obligations should not be sought from developments of ten units or fewer, but implementation of this policy in London is patchy at best. Unless the Mayor, and London Boroughs, recognise the need to minimise burdens on the very smallest developments, SME builders will continue to struggle to enter the market.”

However, Anthony Codling, equity analyst at Jefferies, said the plan is easier said than done.

"Clearly any additional government funds invested into housebuilding is helpful, although suggesting that this will lead to the start of building 90,000 affordable homes is easier said than done, because private sector housebuilders choose to build homes only if the returns are attractive," Codling said.

"If the Mayor’s funding makes the building of an additional 90,000 affordable homes viable they will be built, if not I suspect they won’t."

The draft strategy will undergo three months of consultation before the strategy is implemented.

17

PRECAST ARCHITECTURAL & STRUCTURAL SOLUTIONS At FP McCann, we believe in working with you as a partner from the start, which means offering our expertise in designing and manufacturing rooms to suit every individual project. Far from being an off-the-shelf solution, our architectural and structural solutions are made-to-measure, whilst maintaining our design philosophies and standard details.

Our precast concrete crosswall construction is a fast and convenient way to produce multi-unit structures such as hotels, education, student, secure and health accommodation, private and social housing in a fraction of the time of traditionally built structures.

SALES@FPMCCANN.CO.UK FPMCCANN.CO.UK BYLEY OFFICE 01606 843500 LONDON OFFICE 020 3905 7640

OFFICIAL MEDIA PARTNER

The UK Infrastructure Show – Constructing the Future, taking place

at NEC, Birmingham on Tuesday 17 April, is a must-attend event for those working in all areas of infrastructure - from construction to technology - as UK infrastructure investment is set to reach a record high of over £500Bn and a building boom is under way in the UK’s large regional cities, with construction finally returning to levels last seen before the 2008 financial crisis.

Key findings from a recent Crane Survey report that the volume of office construction in London has increased by 4% over the past six months to an eight-year high of 14.8 million sq ft. Birmingham and

Leeds are also building offices at the highest rate in a decade.

Officially supported by CompeteFor – the leading infrastructure supply chain service – and celebrating major ongoing and future infrastructure projects including HS2, Tideway and Crossrail, the second annual UK Infrastructure Show 2018 will provide exhibitors, sponsors and delegates with a unique opportunity to engage, connect and collaborate with a vast array of key projects, a captive audience of 1,000 decision makers and influencers representing all areas of the supply chain.

Make your business known, build

REGISTER FOR YOUR COMPLIMENTARY PLACE

valuable relationships and develop market insight that creates lasting competitive advantage by exhibiting or sponsoring at this event. All on one day, in one place at the UK Infrastructure Show 2018.

For early bird exhibition and sponsorship opportunities call the UK Infrastructure Team on 0845 270 7066 or email exhibitions@ ukinfrastructureshow.co.uk

LONDON OLYMP

The UK Infrastructure Show 2018 is FREE to attend for anyone working in the infrastructure sector – SMEs, Prime Contractors and representatives from major projects across the UK. To register for your complimentary place, simply click here.

WHAT CAN YOU EXPECT AT THE UK INFRASTRUCTURE SHOW 2018?

KEYNOTE ARENA The Keynote Arena at the UKInfrastructure Show 2018 will showcase presentations from some of the organisations charged with setting the strategy of future infrastructure plans as well as some of the major projects currently under way across the UK. Do not miss out on this unique opportunity to hear from a range of the most important speakers in the infrastructure industry.

OPPORTUNITY AND TRAINING ZONES

UK’s leading projects, both those under way and those planned, with details of supply chain opportunities available to organisations like yours.

COMPETEFOR SUPPLY CHAIN ADVICE HUB CompeteFor is a free service that enables businesses to compete for contract opportunities linked to major public and private sector buying organisations.

The CompeteFor Supply Chain Advice Hub is the go-to place for any organisation looking to improve their procurement capability, get a complimentary profile check-up or have your questions answered.

PROJECT PARTNER PAVILIONS

Designed to educate delegates on the key issues common to large-scale infrastructure projects, these zones will take you through all you need to know in order to make the most of the supply chain opportunities available in this sector. You will also hear from representatives from some of the

PIA • 20TH APRIL 2018

We are delighted to be working with some of the largest infrastructure projects currently under way across the UK. Our project partners will each have a dedicated pavilion within the Product Showcase Exhibition. Come along and meet with representatives from

these projects to learn more about the supply chain opportunities open to organisations like yours.

PRIME CONTRACTOR ENGAGEMENT VILLAGE The UK Infrastructure Show Prime Contractor Engagement Village will allow visitors the opportunity to meet directly with many of the key Prime Contractors currently engaged in the delivery of live projects, providing an insight into possible opportunities for developing ongoing working relationships.

The UK Infrastructure Show 2018 is FREE to attend for anyone working in the infrastructure sector - SMEs, Prime Contractors and representatives from major projects across the UK. To register your complimentary place, simply click here.

For early bird exhibition and sponsorship opportunities call the UK Infrastructure Team on 0845 270 7066 or email exhibitions@ ukinfrastructureshow.co.uk.

WWW.UKINFRASTRUCTURESHOW.CO.UK

Tests, drugs and the payroll – understanding your obligations as an employer Suzannah Robin is a drug and alcohol safety expert at AlcoDigital. She works with dozens of corporate and governmental organisations addressing their alcohol and drugs testing needs. For the last 14 years she has helped numerous businesses implement alcohol and drug testing policies for their staff through certified training programmes.

Here she explains what an employer’s obligations are when it comes to drugs in the workplace and describes the best methods for testing staff.

With the introduction in recent years of roadside drug testing, and the surge in drug-related accidents at work, employers are coming under increasing pressure to ensure their staff are fit to work, and that health and safety aren’t compromised as a result of an individual being impaired.

According to a survey carried out in 2015 on employees from a range of sectors, nearly a third of them admitted using drugs at work, with a significant number of them claiming to be ‘under the influence’ every working day. In fact, many of those admitting to taking drugs were using cannabis or other illegal narcotics.

Although there is still no legal requirement for an employer to adopt a drug or alcohol testing policy, they do have an obligation to maintain a safe working environment as part of

22

the Health & Safety at Work Act – and, as these statistics prove, drugs could certainly be an issue in any workplace if practices for detecting misuse aren’t implemented.

If carried out with the proper guidance and training, a drug testing policy will not only make your workplace safer, it will also help to reduce absenteeism and increase worker productivity. But how do you know what makes a good drug testing policy?

Drug tests – know the pros and cons With numerous options available, it isn’t always immediately apparent which drug-testing method will be the most suitable for meeting your company’s requirements.

The first step before making any commitments to using a certain testing method is to fully understand the pros

and cons for each type of drug test available. So while you may already have an idea about what drug testing method you will use, understanding the various benefits and restrictions of each version will truly help you to establish which one will be the most suitable for your requirements.

One of the most popular choices for drug testing – but not always the most effective – is testing urine samples. For many years these have been used as a reliable and cost-effective form of drug testing providing instant results that can be undertaken in-house.

However, while urine tests are ideal for implementing random testing policies, and can help to prevent incidents from happening in the first place, this form of testing is not without its limitations. For example, a urine test will often not reveal if an individual has consumed drugs in

the last two hours. So, in the event that an incident occurred in the workplace, a urine test obtained immediately afterwards will not determine if the employee was impaired by drugs at the time the incident actually took place.

Blood testing is the most accurate method of establishing what drugs are in a person’s system – but the medical training and laboratory analysis required can mean it is beyond the reach for company testing. Hair testing can give you historic data of what drugs a person has consumed – but not from the most recent few weeks.

For this reason, oral fluid collection has been established as the go-to method of drug-testing. With a far simpler collection process, which can be observed at all times and is therefore less susceptible to tampering, the window of detection for the drugs in saliva mimics that of blood testing, making it the method of choice for UK police roadside testing and companies implementing drug screening policies.

To test or not to test?

One of the things that concerns companies from the outset is how their employees are going to react to a new testing policy being introduced.

Of course, there may be some reluctance from staff so employers should always communicate clearly with them before introducing new

policies, encouraging staff to declare any medical or dependency issues that could potentially affect a drug test. Ensuring your workforce fully understand the rationale behind the decision, and what the potential consequences of a positive test result will be, are pivotal to operating a best practice policy.

But how often should you test? As a minimum, companies should aim to test 100% of their workforce every 12 months. A pre-employment test will set in place the expectations for new staff joining the company, establishing from day one the company policy on drugs in the workplace. The policies and testing methods used subsequently would then depend on your day-to-day business activities and employees’ duties.

For example, a company that employs commercial drivers should always have a regular testing policy in place for both drugs and alcohol.

Best practice policy and training Alongside setting a drug testing policy for your business is the question of exactly how it will be put into practice on a dayto-day basis.

While knowledge and information is essential to determining appropriate testing methods, properly training personnel to carry out tests is absolutely essential for making sure that they are fully prepared and capable of working within the recommended guidelines.

This is particularly important in the event that a member of staff provides a positive result and this information is going to be relied upon for a future disciplinary or tribunal hearing.

AlcoDigital operates Alcohol and Drugs Testing in the Workplace training courses for companies across the UK.

Why random testing?

Random testing will enable an employer to form a basic consent agreement with their staff, acting as a deterrent and encouraging them to be more aware of what they are consuming and how this could have an impact on their lives, and those around them. In turn, it will create a safer, healthier and more stable working environment and safeguard your business from the potential fallout of lost revenue and reputational damage.

23

Rising costs and skills shortages expected to weaken construction industry outlook As the population of the UK inexorably increases, the most frequently employed stock response in political circles is to promise to build more houses. In Scotland alone, the Holyrood Government has a target of 50,000 new affordable homes.

Vast sums of money have been allocated with a view to upping the building rate and encouraging councils, housing associations and construction companies to deliver new accommodations despite a challenging economic environment.

While such ambitions are laudable, there are many factors which can throw plans off target, and it is becoming clear that considerable increases in the price of building materials is heading up the worry list.

A newspaper investigation earlier in the year disclosed that some of the essential raw materials of the construction industry in the UK have been hit by price increases of up to 35%.

Hikes of this magnitude can push the most meticulous margin planning into disarray.

The costs of some construction components, including plasterboard, chipboard and loft insulation, are rising at their fastest rate for 25 years.

The Construction Trade Survey from the Construction Products Association in Q4 last year showed that overall costs increased for 88% of civil engineering contractors, while 75% of main contractors also reported a rise in raw 24 

materials costs.

The main blame for these cost rises has been laid at the door of Brexit, with the subsequent decline in the value of sterling which is producing industrywide inflation. Increased energy prices are also hitting manufacture of items such as bricks.

Nearly a quarter of building materials supplied in the UK are imported and a modicum of good news is that, in a typically proactive response, many trade suppliers are actively seeking to source alternatives to traditional markets.

But as well as cost issues, the construction sector is beset by an ongoing skills shortage affecting key on-site trades, with main contractors reporting at the beginning of the year that shortages of carpenters and plasterers were at their highest in nine years.

The Federation of Master Builders also warned of a shortage of labourers.

Nearly one in eight comes from outside the UK and there is concern that many of these employees may decide to repatriate in the event of a hard Brexit.

As well as material costs, wage inflation is playing its part in the worries affecting construction. A survey by recruiter

Hays showed that average salaries in construction and property rose by 2.8%, with building services achieving 3.5%.

Nearly two-thirds of building service employers said they had raised salaries over the course of 2016 and the same proportion expect to have to offer similar rises in 2017, with 16% anticipating that these increases will be in the order of 5% or more.

It is hardly surprising that the Office for National Statistics recorded a 1.2% decrease in construction output in May this year, both month on month and three month on three month. The most notable decline was in infrastructure, which fell 4%.

The construction industry is resilient. It has to be, considering the wide variety of external factors which can buffet it unexpectedly. But despite all its efforts, a weaker outlook for the rest of 2017 seems inevitable.

By Andrew McFarlane, consultant in the Glasgow North office of DM Hall Chartered Surveyors and a Fellow of the Royal Institution of Chartered Surveyors.

Why construction firms must insure against cyber attacks Construction businesses of all sizes understand the nature of risk and the necessity of mitigating against it by investing in comprehensive insurance policies.

While many proactively insure and protect their physical assets, few construction businesses consider cyber security as part of their insurance portfolio.

This might be because the sector still does not consider itself part of the digital landscape; a UK Government cyber security survey published earlier this year reveals that construction firms are more likely than others to think that online services are not a core part of their business offer (56%).

The same survey shows that only 43% of construction businesses have sought information, advice or guidance in the 26 

last 12 months on the cyber security threats faced by their organisation, compared to 58% of businesses overall.

The reality is that the construction sector is as vulnerable as any other to cyber attacks and online crime.

According to UK Government statistics, in 2015 some 15% of construction business premises were affected by online crime – one in six.

A study from the Home Office, also from 2015, shows there were 77,000 incidents of online crime against construction firms, 71% of which were computer viruses and 10% of which were hacking attacks. An estimated

2,000 firms had their online accounts raided by thieves.

Of course, financial crime is not the only cyber risk that construction firms need to protect against.

Data loss incidents, whether deliberate or accidental, could be devastating.

Consider the amount and variety of data even a small construction firm might hold digitally – on past, current and future projects; on clients, customers and members of staff.

This includes sensitive personal information, confidential commercial data, intellectual property and financial details.

The construction sector needs to wake up to its responsibilities, and quickly, as the law around data protection is set to change significantly next year with the introduction of the European Union’s General Data Protection Regulation (GDPR).

Moreover, a cyber attack or data breach could come from many different sources - from suppliers, contractors, even employees.

When you realise the potential damage a cyber attack or a data loss incident could do to a construction business, both financial and reputational, the need for dedicated cyber insurance becomes clear.

The construction sector needs to wake up to its responsibilities, and quickly, as the law around data protection is set to change significantly next year with the introduction of the European Union’s General Data Protection Regulation (GDPR).

The regulation was drawn up to give citizens back control of their personal data, and will come into force in the UK in May 2018 irrespective of the nature of our future relationship with the EU. In fact, the UK Government recently announced that the regulation would be transferred into UK law in the new Data Protection Bill.

The bill will require firms to gain explicit consent when processing and storing sensitive personal data, as well as making it easier for individuals to withdraw their consent, to access the information held on them and to ask for their personal data to be deleted.

There is also a new requirement for data breach notifications. Currently there is no obligation to report a data breach to the Information Commissioner’s Office (ICO), or anyone else for that matter, but the GDPR will introduce mandatory breach reporting.

Businesses will be obliged to report security breaches to the relevant authority “without undue delay, and where feasible, not later than 72 hours” after they first become aware of them.

Existing data protection practices are likely to fall far short of the requirements of the GDPR, and compliance could mean significant administrative burdens for businesses that are unprepared.

The severe fines for non-compliance – up to £17M (€20M) or four per cent of global turnover – mean businesses can’t afford to ignore the GDPR. There are steps businesses can take to protect their IT systems against the threat of cyber attack, for example by investing in the latest, most secure hardware; by ensuring anti-virus software is kept up to date; and by implementing a strict internal data policy for all staff.

But even with these precautions, cyber security breaches can still take place – and what happens to your

business then?

We have already seen a steady growth in demand for dedicated cyber liability and crime insurance policies as a direct result of the GDPR, and we expect this to continue until the regulation is introduced.

Subject to underwriting, a cyber insurance policy can protect against many potential incidents, including loss of data, cyber extortion, cyber business interruption, identity fraud, malicious data damage, telecoms fraud and commercial disruption.

A good policy will also cover things like defence costs, court compensation costs and even the cost of public relations advice, which is especially useful considering the reputational damage and loss of trust a data breach can cause.

The threat of a cyber attack or data loss incident is not a theoretical risk in a digital world; it is a very real risk with real consequences for your construction business. Can you afford not to protect against it?

Chris Davies is a director at Prescott Jones Property and Construction Risks, with more than 30 years’ experience he is a respected expert in the construction insurance sector.

The best in highway design and 3d modelling Cassidy Forsythe are experts in the 3d modelling of highway schemes to the BIM protocols.

The models we create include all 3d elements, such as pavement layers and street furniture, allowing quantities to be extracted directly from the model and a 4d schedule simulation to be carried out.

Our models also include earthworks modelling and drainage, allowing accurate quantities to be extracted directly from the model, allowing earthworks balances to be achieved.

The earthworks modelling we carried out for Balfour Beatty on the Norwich Northern Distributor Road saved approximately £7.5m by drastically reducing the amount of material needed to be imported to the site.

This picture shows the reinforcement for one of the bridges we modelled on the Norwich Northern Distributor Road. This shows that the original design included too much steel, however when the 2d drawings were examined it all looked okay – the 3d model showed that the overlapping steel meant that the bars were too close together.

This work allowed the client to modify the reinforcement before the steel fixing started on site, avoiding any wasted time on site All of the work shown above was carried out because Balfour Beatty were only provided with 2d drawings in the traditional manner, meaning that clash detection and visualisation was very difficult. By creating 3d models we were able to save approximately £10m on the overall construction costs.

This is a junction in North Tyneside we modelled for Capita. Below the surfacing, all of the pavement layers were modelled. All of the traffic lights and guardrail were modelled to allow the client to see exactly how the finished junction would look. Quantities were also directly extracted from this model.

The Cromer Road interchange on the Norwich Northern Distributor Road (NNDR) project involved the construction of a new overbridge to take the re-aligned A140 Cromer Road over the NNDR. The design of the new bridge placed it very close to the edge of existing Cromer Road.

Initial construction planning highlighted that extensive temporary works would be required to construct the bridge, costing approximately £500k.

In order to mitigate the potential cost and time impacts on the project, we proposed that the alignment of the new Cromer Road was amended, to move the new bridge further away from the existing road.

As a result of the bridge being repositioned, the scope of the temporary works was significantly reduced – as shown in the picture above.

The difference in cost between the original temporary works and the revised temporary works realised savings amounting to approximately £400k We realise that you may want to train your own people to be able to do this type of work, which is why we offer training courses, either at your offices or ours. This picture shows a recent 4 day training course we held at our offices in Newcastle.

If we can help you in any way – either training or producing fully featured 3d models, please give us a call. If you would just like to have an informal discussion please call the number below.

We are keen to help you with your project, either on a very short-term basis or for the duration of your project.

Tel 0800 061 4594 or email enquiries@cassidyforsythe.com http://cassidyforsythe.com/

Building a connected tomorrow’s city

Global cities are revaluating their physical infrastructure priorities as they come to terms with the reality of rising densification, increasing usage and demand, and a new risk landscape.

Looking ahead in time, 75% of the global infrastructure that will be in place in 2050 doesn’t exist at present.

This shortfall has been recognised, with innovative new ideas seeking to ensure future cities are kept moving and economically efficient. However, significant legal and regulatory hurdles stand in the way of delivering for tomorrow’s city.

Today’s challenge It is clear that the infrastructure demands of future cities are diversifying, and converging. With digital and physical becoming ever more interconnected the challenge is to develop infrastructure which provides an economic stimulus for today, and a sustainable, resilient system for the future.

To take the UK as an example, by 2030 the cost of congestion to London alone is estimated to hit more than £11Bn a year, while crowding on public transport, particularly rail, is forecast to double by 2050 if new transport

30

solutions aren’t introduced.

Meanwhile, internet access is fast becoming accepted as the ‘fourth utility’ and integrated into infrastructure planning and delivery. The UK, though, is lagging behind many of its global peers in terms of digital connectivity with only two per cent of the current UK population having access to ‘full fibre’ connection. Estimates suggest that an extra £17Bn could be added to UK economic output by 2024 simply as a result of increased broadband speeds.

Planning, funding and delivering It is little wonder, then, that the Queen’s Speech following the 2017 General Election, pared back as it was, still contained a significant commitment to infrastructure. Further, at the same time as the Queen was addressing Parliament, Mayor Sadiq Khan published his new London Transport Strategy, seeking to make the capital’s transport infrastructure fit for the future.

Meanwhile, for Lord Adonis, Chair of the

National Infrastructure Commission, there are 12 key priorities these plans should focus on – ranging from HS2 and 3 to Crossrail 2 and the roll-out of 5G services, along with a smart and sustainable approach to energy production and delivery.

The funding for these much-needed projects, though, remains a key issue and concern.

Geographically speaking, Sadiq Khan’s forward-looking approach for London is to be applauded, but there are real challenges to effective implementation at a city and regional level (including London to an extent). Firstly, for instance, while the so-called ‘Northern Powerhouse’ and ‘Midlands Engine’ have attracted plenty of headlines, in terms of actual investment current figures suggest that there still exists an 85% transport funding gap between London and the North East. Secondly, London, like the new devolved city mayors of Birmingham and Manchester, does have some powers to implement significant change but civic governance structures

will likely need to adapt to keep up with the pace of change.

While one city solution may not suit all, city-to-city collaboration at this level may be valuable and consideration should be given to how this can be facilitated for the future.

More broadly, the industry will doubtless welcome Chancellor Philip Hammond’s commitment to protecting access for capital projects to funding via the European Investment Bank during the Brexit negotiations and, further, the news that the UK Guarantee scheme will be expanded. However, there is a real socio-political tension here between the requirement for new and future-proofed infrastructure, and how far we are prepared for the state to actually deliver – which will likely entail significant data-capture and processing or redevelopment of places and spaces. Lord Adonis and others have observed that with the downward pressure of Brexit having a marked effect on investment appetite, it is very much up to the public sector to drive forward the commitment to infrastructure development and facilitate new forms of investment. But there is a place for private sector investment too, though current financial, lending and tax structures will likely need a shakeup to better facilitate and encourage the patient capital investment that

infrastructure demands.

There is, therefore, broad agreement that infrastructure is a priority for the UK, but questions remain over where and on what the firepower is focused.

Connecting tomorrow’s city Cities are becoming ever more digitally connected, with new smart urban offerings and an increased appreciation and usage of data-led solutions.

Meanwhile, continuing densification will necessitate the development of innovative new transport systems – from the Thames cycle deckway to Gensler’s so-called London Underline.

Globally, motorised mobility is set to double by 2050, while the impact of electric and autonomous vehicles will radically alter what is needed in terms of not only road networks and charging points, but also the laws and regulations that keep populations both mobile and secure. In terms of public transport, we have seen new solutions come to market from data-rich private companies such as City Mapper, while the rise of Uber has demonstrated how high the ceiling is in terms of shared and interconnected transportation.

As these systems become more connected through the ‘internet of things’, cyber security will become an increasingly important element in

resilience planning for infrastructure and the wider built environment. However, ‘smart’ and ‘big-data’ analytics have the potential to radically streamline not only how infrastructure is managed, and how users experience it, but also how it is planned for and developed sustainably.

Put simply, many of our key infrastructure and transportation systems, including the railways and London Underground, are essentially Victorian constructs and addressing the needs of tomorrow’s city will not be about developing solutions retro-fitted to yesterday’s tech. Solutions will need to be forward-looking, innovative and developed to maximise the potential of today’s technology.

Of course, laws and regulation often lag behind innovation, and the pace of change is quickening. New structures, strategies and frameworks (from investment to tax to planning legislation) will need to be developed not only to enable infrastructure delivery, but also to police the system and ensure that the future cities we are building are not only mobile, connected and integrated, but safe and secure.

Helen Garthwaite and Suzanne Gill, partners at Wedlake Bell and co-founders of Tomorrow’s City, Today’s Challenge

31

What if BIM was employed when the pyramids were built?

The great pyramids in Egypt are considered to be among mankind's greatest achievements, and their construction during the ancient past only makes them more impressive and awe-inspiring. The pyramid of Khufu, more widely known as the Great Pyramid of Giza, is the only one of the Seven Wonders of the Ancient World to survive intact, and a great deal of mystery and speculation still surrounds the questions of how, why, and even when it was constructed.

The advantage of BIM is that it facilitates collaboration and communication throughout the life cycle of a project. Given that the construction of the Great Pyramid alone is thought to have taken between 10 and 20 years, BIM would certainly have been extremely useful in terms of keeping track of the project, and may also have sped up the process as a result. If the initial 3-D model survived, we would now have answers to some of the mysteries that surround the construction of the pyramids and the purposes of the internal chambers, tunnels, and corridors.

Collaboration and communication Planning ahead If the ancient Egyptians had used building information modelling (BIM) when constructing the pyramids, then we would expect to at least have a better idea of how they achieved this incredible feat. Indeed, it could be suggested that ancient Egyptians used a similar methodology to BIM, with client, designers, architect, and construction teams all working together on site at the same time. They may have even built a physical model of the pyramid to scale on-site, before actual construction began.

32 

Certainly, the use of BIM technology would have helped in terms of mapping out the location with aerial photography and digital elevation. The Great Pyramid is built on a 13.1-acre site levelled to within a fraction of an inch. BIM would also have made it far easier to calculate the angle required for the structure. It seems that the ancient Egyptians developed their own techniques through trial and error over several generations, as demonstrated by earlier attempts such as the Bent

Pyramid at Dashur, which rises at 54 degrees until the top section, where the angle changes to 43 degrees. It is believed that the builders changed the angle through necessity when the construction started to show signs of collapse. The use of building information modelling would have prevented the need for this, as all such calculations would have been present in the digital model before actual construction began.

We do not know for certain exactly how the pyramids were constructed, but their scale and accuracy is breath-taking considering the primitive methods available at the time. It's little wonder that far-fetched theories concerning inspiration from older, vanished societies possessed of advanced technology continue to circulate. We can be sure that any attempt to build the pyramids today would certainly use building information modelling in order to achieve the same degree of accuracy and efficiency the ancient Egyptians demonstrated over 4000 years ago.

3D Laser Scanning Services Trimble’s 3D Laser Scanning Services mean you can reap the rewards of pin-point accuracy without the need to invest in scanning hardware or training.

3D Laser Scanning

3D Point Cloud

Using Trimble’s 3D Laser Scanning technology, a physical scan of your project will be conducted. Depending on the size of the project, the scan could take a few hours to several days.

A fully registered “point cloud” of the existing environment that can be used as an export into your 3D Modelling solution as an as-built comparison to modelled components.

mep.trimble.co.uk 0800 028 28 28

Connectivity in Construction

By Hubert Da Costa, VP EMEA at Cradlepoint Construction site offices are temporary, but they still need the ability to connect to central databases and systems.

They require fast, secure connectivity from the start of the project. Wired line solutions rarely meet this time-sensitive objective, often resulting in months of costly delays between the project start and the ‘Internet on’ date. In an industry where time wasted is money wasted, it is in the best interests of everyone to get the site connection up and running as quickly as possible.

Options such as USB modems are not rugged enough or business-grade – these devices frequently break and fail to deliver the quality of connection required. As the use of more advanced Internet-reliant applications – for example Building Information Modelling (BIM) and digital marketing suites – continues to grow in the construction industry, the need for increased bandwidth and reliability is more important than ever.

The benefits of wireless and the cloud LTE, commonly known as 4G, is helping businesses achieve ‘always on’ network connectivity. In the early stage of a construction project, sites are often void of luxuries such as power, Internet and telecommunications. Organised site managers will have a generator and fuel at the top of their requirement list and will be relentless in their pursuit of reliability. 4G provides a lifeline to the corporate offices and gives the site team

34

crucial access to Internet connectivity.

The technologies built into the LTE networking standard allow mobile network operators to get more capacity out of the same resource, which means the network can handle more traffic and achieve faster speeds.

Since the launch of 4G across the UK in 2012, the reliability and speed offered by the technology has been transformative.

With the latest innovations in networking, businesses are no longer limited to fixed-line services.

Wireless networks require constant management. When the network is highly distributed and many of the locations temporary, consistent physical access to equipment can be impossible.

Cloud-based management software means networks are easier to configure, deploy and maintain. Matched with the scale and speed of 4G, this means businesses can get on-site or get temporary networks up and running incredibly quickly.

The speed, flexibility and reliability offered by these networks means construction companies can be assured of 24/7 connectivity from day one.

Why LTE is the best option for construction 4G networking means that when it comes to working remotely, construction businesses no longer need to wait weeks to be up and running – they can get going without having to wait for expensive cable installations.

Some 4G wireless routers reduce the time it takes to set up a remote project site from around 30 days to less than 48 hours. This means that engineers and designers can start work almost as soon as they are on-site, an efficiency that would not have been possible prior to 4G. For permanent locations, 4G also provides an ideal failover solution.

Outages can prove massively detrimental, both to your bottom line as well as to your brand. If your network is fully reliant on a wired line, it can be more at risk of severe disruption.

Using a 4G router as your backup is the perfect solution. 4G can pick up if the main network fails, offering seamless connectivity at broadband speeds. A failsafe is essential for the construction industry, as a site’s connection to central databases and systems needs to be secured, even if the wired line fails.

By leveraging the power of 4G LTE wireless network solutions, construction companies can implement fast, secure connectivity from day one of the site build – empowering the site to progress at full speed, right from the start. A wireless solution delivers a reliable, temporary network – giving sites the fast, consistent network access they need, whenever and wherever they need it.

Looking for choice in construction and contracting software?

No matter what size your construction or house building business, how fast you want to grow, or what stage in the project lifecycle you need to streamline, Eque2 is likely to be the last software provider you’ll ever need to buy from.

Contractors

Enterprise Contractors

Estimators

House Builders

Contractors

Enterprise Contractors

It’s important to manage your job costing processes effectively to protect your margins and have visibility of your cash flow. Eque2’s construction-specific software for small-medium businesses with Sage Accounts at its core, helps you monitor cash flow, manage variations, and reduce costs and enhance margins by increasing efficiency.

With very tight margins, your construction business needs to run at optimal efficiency.

Eque2’s construction ERP software, built on Microsoft Dynamics NAV, helps your projects come to completion on time – and to budget – by giving you full control of your commercial, financial and operational processes and your data.

Estimators

House Builders

Managing subcontractor enquiries and processing accurate and consistent estimates is key to any estimator. Produce fast, accurate and consistent tenders, budget cost plans and final accounts with Eque2’s pre- and post-contract construction estimating software.

No matter the size of your housebuilding business, managing processes and information from one phase to the next can be complex and lead to inaccuracies. Gain a competitive advantage with Eque2 house building software to increase speed, efficiency and accuracy; from land-purchase through build and sales to customer care.

www.eque2.co.uk | 0845 080 4940 | construction@eque2.com

35

Securing your payments in the cloud Jo Gibson, Operations Director at First Capital Cashflow, discusses the comprehensive security benefits of cloud payments software and how to ensure customers’ financial data is always fully protected.

Cyber security is rarely out of the news at the moment, with high-profile hacks and data breaches happening on a regular basis. It might be tempting to assume this isn’t something that is likely to affect the construction industry, however it would be risky to ignore the potential consequences.

While there is a stereotype that construction firms have ad hoc systems, and rely on verbal contracts and cash in hand, this is not the case for the majority of firms in the 21st century.

The internet has revolutionised the way that the construction industry works, opening new avenues for sharing information and exchanging data including plans, designs, tenders, contracts and financial models etc.

An increasing number of firms are now making and taking payments using automated methods like Bacs Direct Debit and Direct Credit services which rely heavily on the cloud to ensure customers’ financial data is safe.

Safety of the cloud Cloud-based payment processing is proven to provide comprehensive security benefits that are far superior to paper-based or in-house software solutions.

Hosting financial data in-house can present business owners with problems and stresses they don’t need on their plate. In-house technology requires constant maintenance and a lot of tender loving care, not to mention an expensive monthly budget.

Using cloud-based technology has the added advantage of being designed to seamlessly integrate with existing payment processing methods, taking

36

only a matter of days to set up and allowing for lower and more predictable costs by eliminating the need for inhouse software and infrastructure.

This makes secure Direct Debit and Direct Credit processing more easily accessible to a wider range of businesses, not just those of construction firms, giving them real-time connectivity to their financial transactions.

Benefits of the cloud Firms that make and take payments using cloud-based technology reap the benefits of being able to access the data anywhere at any time. With data being stored in the cloud, business owners have the flexibility to gain access to this information at their own convenience. This doesn’t just help the practicality of the working day, it means that actions can be taken fast if a security breach occurs.

For example, if a laptop is lost or stolen, data can be accessed immediately from any location in the world and wiped to prevent the client’s financial information falling into the wrong hands.

Further, if a burglary takes place at headquarters or even if a natural disaster occurs, financial data can be remotely accessed instantly and the situation can be contained.

It is well documented that missing laptops are often the source of data breaches, so the ability to remove data from these systems remotely is a major advantage of cloud payments technology and something that currently isn’t clearly communicated to businesses and their customers.

Data centres One of the biggest advantages that the cloud has to offer is the ability to host information in an outsourced, offsite data centre. Data centres provide a castiron level of security, and the highest quality environment possible for data storage, with experts on hand to tackle any unwanted incidents.

By opting to use cloud-based payment methods such as Direct Debit, construction firms that hold large amounts of customers’ financial details have the ability to host the information in specialist off-site data centres. Managing directors, of both the construction firm and its clients, can be safe in the knowledge that such data centres provide the highest quality environment possible for data storage, meeting the challenges of big data, remote offices and short backup windows. Data can even be split between multiple centres, giving an additional layer of resilience against any potential issues.

Stay safe As the threat of cyber-attack becomes more present in everyday business life, it is important for construction firms to be proactive and take important measures to ensure that valuable financial information remains safe.

Firms that opt to collect and process payments via cloud-based platforms like Direct Debit or Direct Credit have the peace of mind that data, such as a client’s or customer’s payment details, will not be accessed by unwanted hackers.

Discover more UK construction contracts & project leads with Tracker Intelligence Bringing buyers and suppliers together for over 30 years Cloud Storage Window Cleaning

Computers Printing Equipment Office Furniture

Electricians

Maintenance

Plumbing

Street Lighting

Parking

Signage

Graphic Design Insurance

Paper/Stationary Flooring

Storage Catering

Try Tracker for free:

www.trackerintelligence.com/ukc

Alarms

Why the construction industry needs to start taking IT seriously

Why the construction industry needs to start taking IT seriously the industry is extremely valuable, from blueprints to intellectual property and client databases. The leaking of any of this information could be detrimental when trying to remain competitive, not to mention financially secure.

It was only recently that the ‘Petya’ ransomware attack hit companies across Europe and the US. With huge disruption to organisations, the cyber attack showed the scale of damage that can be unleashed if the right security protocols are not put in place.

Size doesn’t matter

From illegal access of personal information to ransomware attacks that can take out an entire supply chain, the construction industry is extremely vulnerable to the threats of cyber crime.

In this article, Quentyn Taylor explains why companies must start thinking about not if, but when, it will happen to them and how they can protect against such threats.

Understanding the true value of data and technology A lot has changed when it comes to data security in the last ten years and the industry has made good strides to ensure all data is held to the correct standards. However, with the General Data Protection Regulation coming into effect on 25 May 2018, considerably tougher penalties will be put in place compared to existing rules. If breached, organisations can expect fines of up to four per cent of annual global turnover or €20M – whichever is greater.

It is not just personal data that it is important to keep safe; data held across

38

The construction industry encompasses a wide range of companies, from one-man bands to multinational enterprises, and if the right security isn’t in place, the smaller companies can have significant effects on the larger ones. According to a report by Osterman Research, 22% of businesses with fewer than 1,000 employees that experienced a ransomware attack in the last year had to stop business operations immediately, with 15% losing revenue. The construction industry is at the mercy of its supply chain when it comes to data security. With many large construction companies relying on subcontractors to make up the bulk of contracts, their priorities are unlikely to be checking what security infrastructure these businesses have in place. It only takes one ransomware attack on a subcontractor to have a detrimental effect on a whole project including loss of delivery times and building plans, leading to the primary contractor facing serious financial consequences.

Education Once internal processes have been put in place, the next step is to ensure all employees are educated on these as well as the IT they are using. Investment in training can be beneficial, as well as applying strict processes that

standardise employees’ behaviours – from how to share information with colleagues to not saving documents on individual devices. Ensuring that employees feel confident when using business technology means CIOs and their companies can make huge efficiency gains as well as building awareness of the importance of data protection and IT security.

How to stay protected Compared to other industries, construction could be seen to have a higher risk as it perceives itself as not having IT dependencies, though in fact it relies heavily on technology.

Many day to day activities revolve around technology, from receiving and responding to bids and tenders, to being able to print building plans and email suppliers for crucial equipment.

Companies need to start thinking about security in the same way they think about other important aspects of their business and start to scenario-plan.

For example, if all capabilities were lost tomorrow, how would resource planning be carried out or staff and suppliers be paid?

Thinking in this way will help build resilience into everyday practices.

Conclusion It’s often said that when it comes to process, culture and technology that technology is generally last in the line of priorities. Construction companies cannot afford to think like this as technology holds the data, managing its processing and its movements. Can you afford to work even a few days without access to your IT systems? Attacks are taking place daily and if you’re not prepared, it will only be a matter of time until your business is hit.

Autodesk Building, Infrastructure & Construction User Conference 2017

Powered by

DATES & VENUES:

WHY ATTEND?

etc.venues Manchester – 17th October 2017 IWM Duxford, Cambridge - 2nd November 2017 etc.venues, St Pauls – 8th November 2017

• BIM Leadership breakfast meeting – achieving your BIM Level 2 Accredition • Built Environment & Infrastructure Workflow – Data Capture to Project Delivery Technical Showcase • Receive half a day of free product training with 4 x Technical Masterclasses • Full supporting technical documentation provided • Autodesk product tips and tricks • Great networking opportunities • Hands on Solutions Technology center

FIND OUT MORE & REGISTER NOW: www.cadline.co.uk/UserConference2017

SOLVING THE 4 C’S IN CONSTRUCTION

COMPLIANCE (BIM level 2 Delivery)

COLLABORATION of Design & Project Data

COORDINATION

the

Construction Team

of Design Data

FIVE EXPERTS. ONE COMPANY. NO COINCIDENCE.

www.cadline.co.uk

01784 419 922

constructionteam@cadline.co.uk

CONSUMPTION of Design & Engineering Data

New van market grows as car registrations decline New van registrations were up 1.8% year-onyear, reaching 37,349 in June 2017, whilst car registrations for the same period were down 4.8% according to the latest vehicle data published by the SMMT. Increased demand for small and medium sized vans coupled with high demand for pickups accounted for the growth. The number of pickups registered rose to almost 5000, representing a 14.2% increase year-on-year. The largest growth area was in the medium sized van market (>2.02.5t) which enjoyed a 29.9% increase.

Of all new car registrations, diesel vehicles took the biggest hit, down 14.7% against the same period last year. Petrol vehicles saw a modest increase of 2.5% and alternatively fuelled vehicles (AFV) rose by 29% to 10,721 registrations, representing a market share of 4.4%.

SMMT Chief Executive Mike Hawes said: “It’s encouraging to see alternatively fuelled vehicles experiencing rapid growth but adoption is still at a relatively low level and more long-term incentives are required if this new generation of vehicles is to be a more common sight on British roads.”

40 40

Use of technology will make our roads safer, says logistics industry The Mayor of London announced today in September the latest version of his safety proposals for HGVs – the Direct Vision Standard (DVS) - in London could be a big step forward in terms of safety for all the capital’s road users, says the Freight Transport Association (FTA), the largest transport trade association in the UK. The proposals, to be introduced for all HGV operators across the capital from 2020, could now make an allowance for technological solutions such as in-cab cameras and sensors around vehicles to improve safety, alongside regulations governing the visibility standards required from the cabs of HGVs. However, as Natalie Chapman, FTA’s head of policy for London, explains, the lack of clarity over which vehicles will be permitted to operate under the new scheme, is creating huge uncertainty for those unable to confirm what vehicles will be eligible for work in the capital or what equipment they will need in less than three years’ time.

“FTA has always argued that, in the long term, the really significant road safety improvements we want will be delivered through technology,” says Ms Chapman, “and we are glad that this point, which we have made repeated to the Mayor and TfL, is now being listened to. However, to ensure that the capital’s businesses are able to plan and function effectively, it is imperative we have clarity as soon as possible about what the final DVS scheme is going to require.”

The Direct Vision Standard, proposed by Mr Khan’s office at the start of the year, uses a “star rating” from 0-5 to rate HGVs based on the level of vision has directly from the cab. As Direct Vision only provides a limited benefit, FTA has argued that this is the wrong measure to pursue as a sole focus of a regulation. Technology has an unlimited potential to improve safety and FTA believes it is this that should be supported.

The success of contract hire is its simplicity.

Companies pay a monthly fee over an agreed period of time and mileage and then return the vehicle at the end of its lease.

Using contract hire for company cars and vans Company cars continue to be an essential employee recruitment and retention tool, and in many cases, along with light commercial vehicles, are critical to efficient business operations.

However, many businesses may be wasting money because they are not using the most efficient vehicle funding route, and thereby failing to maximise their hard-earned cash.

That’s why an ever-increasing number of companies are turning to contract hire to fund their company cars and vans.

Contract hire is the UK’s most popular fleet funding mechanism. Industry estimates suggest that at least 60% of businesses fund their vehicles via contract hire (exact numbers are not available) with possibly no more than a third – the vast majority being small organisations – opting for outright purchase and the remainder choosing to finance lease, contract purchase, lease purchase, hire purchase or utilise overdraft facilities and loans.

The commercial benefits of contract hire are underpinned by it being acknowledged as a straightforward, smooth and efficient way to run a fleet of company cars or vans, according to Days Fleet Managing Director Aled Williams.

Days Fleet, which manages more than 9,000 company cars and vans, is one of the UK’s leading independent vehicle leasing and fleet management businesses, offering a highly adaptable and flexible approach on fleet funding,

servicing, maintenance and repair as well as a wide range of fleet managementrelated services.

Value for money and not price should be a prime criterion in contract hire supplier selection, alongside the supplier’s ability to deliver, their culture and their fit with the customer’s fleet.

While there is no “one size fits all” approach when selecting a vehicle funding route, contract hire is the most popular for ‘normal’ businesses with mainstream corporate tax and VAT positions. Additionally, those companies are typically cashflow conscious, averse to risk and, in many cases, have limited in-house fleet management expertise.

The key benefits of contract hire include: • Benefiting from the purchasing power of a third party such as Days Fleet • Companies being able to select their preferred lease period, typically three years / 60,000 miles or four years / 80,000 miles • Fixed cost budgeted monthly vehicle costs • No cash tied up in a depreciating asset as residual value risk is carried by the lessor • Reduced vehicle and fleet administration as that is taken on by the providing partner • VAT-registered companies being able to make a full reclaim on the finance element of the rental cost if the vehicle is

used exclusively for business purposes – 50% on the finance element of the rental cost if a vehicle has dual business and private use; and 100% on maintenance costs irrespective of usage Mr Williams said: “The success of contract hire is its simplicity. Companies pay a monthly fee over an agreed period of time and mileage and then return the vehicle at the end of its lease.”

What’s more, many companies choose to bolt on a maintenance package to the contract hire of the vehicle. That further aids fleet budgeting as it takes account of all routine maintenance and servicing bills.

Additionally, many businesses choose to rely on their selected vehicle leasing partner to deliver a range of other added value services.

In addition to maintenance management that might include a fully outsourced fleet management solution with companies benefiting from the in-depth knowledge and expertise of their funding partner in relation to, for example, accident management, short-term rental solutions and work-related road safety management.

Mr Williams concluded: “We look to work in partnership with clients to provide a bespoke solution for their individual needs from our extensive range of products and services with contract hire at the heart of the business relationship.”

41

Finally the logistics message on Brexit is being heard, says FTA .

"Theresa May's call for a Brexit transitional period is a huge relief for the logistics industry."

With Brexit negotiations concluded in Brussels, the Freight Transport Association (FTA) has welcomed the call from Prime Minister Theresa May for a transition period to be a key priority for the talks. FTA, which represents more than 16,000 businesses transporting goods and services across the UK and Europe, has been lobbying for such a period since Article 50 was triggered, to enable the preparation of the necessary systems and processes to ensure that post-Brexit trade can run smoothly.

“Mrs May’s speech in Florence finally recognised the complexities of the trading relationships and processes which will need to be agreed and implemented,” says Pauline Bastidon, FTA’s head of European Policy, “and her call for a transitional period, to give enough time for negotiators to conclude a trade agreement, and for authorities and businesses to adapt, is a huge relief for a logistics industry charged with ensuring that trade continues to move smoothly after Brexit. The government has finally acknowledged the scale and complexities of the task ahead to ensure frictionless trade across borders with the European Union, both mainland Europe and in Ireland, which will come as a relief to our members, which have expressed concern while facing the task of ensuring that goods and services still reach their destinations.

“It is now imperative that the intentions

42

outlined in Mrs May’s speech are followed by concrete actions. Logistics arrangements affect every part of our daily lives and need to be prioritised in Brexit negotiations. Customers need to be certain that vehicles and planes can keep moving, that drivers can operate across borders and supply chains will not have to face insurmountable challenges overnight on Brexit day. Setting up the necessary arrangements for post-Brexit trade will take time and effort to get right and both industry and the authorities deserve some certainty that the status quo will prevail until all parties are ready to proceed with new arrangements. As Mrs May said, people, businesses and public services should only have to plan for one set of changes as the country leaves the EU. “The UK’s trading partnership with the European Union is vital to the future health and growth of the British economy and it is now time for the detail of how these relationships are to develop to be at the top of the Brexit negotiating agenda. The country’s businesses deserve to see constructive progress on mechanisms which will be needed in the future, so they have time to plan and implement changes seamlessly.

FTA is ready and willing to provide any assistance necessary to ensure that Britain can keep trading efficiently in a post-Brexit world.”

Ms Bastidon also urged clarity from

the government’s negotiators on the situation regarding trading arrangements with Ireland, which were missing from Mrs May’s speech on Friday: “The trading position with Ireland is a hugely complex one, and creative solutions are required to ensure that a hard border is not established between the Republic and Northern Ireland. Many businesses operate on an “island of Ireland” basis and their business models would be negatively impacted by any changes affecting the fluidity of trade and transport movements across the border. This needs urgent attention at the negotiating table, and FTA, and its sister membership body, FTA Ireland, will be pressing officials this week in Brussels to find a solution which enables Irish trading interests to continue to flourish with both UK and European customers.”

FTA represents the businesses that use or operate freight by any and all modes. Its members operate half of the UK’s lorry fleet (more than 200,000 vehicles) and consign 90% of the goods moved by rail and 70% of the country’s visible exports by sea and air. The sector contributes 11% of the UK’s non-financial business economy. In 2016, 2.54 million people were employed in logistics in the UK, approximately eight per cent of the UK’s workforce.

We know the measure of a great account

Choose from our options; parking, washing, recovery, repair, Dartford Toll and Daily Checks and build your cashless payment account around your own needs.

+44 (0)1603 777242 | www.snapacc.com

UK car manufacturing falls in August The SMMT (Society of Motor Manufacturers and Traders) has reported that British car manufacturing has fallen -5.3% in August. Figures released by the SMMT show that production is down to 103,232 units, continuing a trend of decline seen since April 2017.

Production for domestic and overseas markets is also down -4.4% and -5.6% respectively in the month. Some 1,106,285 vehicles have been produced in the first eight months of the year, showing an overall decline of -1.9%, and the domestic market for production has been down in seven out of eight months Mike Hawes, SMMT Chief Executive, said: “It’s common to see fluctuations during the summer months, as output varies according to the timing and duration of holiday factory shutdowns. However, the continuation of the longer term downward trend in domestic demand

44

is a concern for production across the UK so it is vital for the future health of this sector that the current uncertainty around Brexit is removed and consumer and business confidence restored."

However, commercial vehicle manufacturing has seen a boost, particularly in export with output rising to 3,744 vehicles.

Double-digit growth was seen in August, with 3,744 CVs built in Britain, an uplift of 17.6%, as overseas demand continued to drive production. Exports grew 61.7% thanks to increased EU demand, offsetting a decline in domestic output, which fell for the 15th consecutive month, by -13.0%.

Overall production for the year-to-date remains down on 2016, with output falling -9.4% as growing demand from overseas customers – up 8.2% in the first eight months – has failed to counteract

losses in the domestic market. More than 33,524 vans, trucks and buses have been shipped abroad so far this year – mostly to EU markets – and exports now account for almost two thirds (62.1%) of UK CV production.

Mike Hawes, SMMT Chief Executive, said: “August CV production volumes are typically some of the smallest in the year and so, given the fluctuating nature of fleet buying cycles, caution is advised when making month by month comparisons. However, today’s figures highlight just how dependent the industry is on EU custom, and with UK demand continuing to fall, certainty on interim and future trading arrangements post Brexit is needed quickly in order to restore buyer confidence.”

SNAP Account is the complete solution for fleet operators and owner drivers looking for transparent control over their expenditure. Initially we began by offering drivers the opportunity to pay for parking through our cashless system, but quickly branched out and now we provide drivers a comprehensive package of services, all of which are paid for without the need for cash. Currently we have over 60,000 drivers from over 2,300 companies from more than 30 countries using SNAP to streamline their expenses and improve their business.

Using only your vehicle’s registration number, you can pay for parking, washing, the Dartford Toll, recovery and repair.

Once your details are in our system, you simply use the services you want and the account attached to your registration is billed. You then receive a simple, itemised invoice detailing your recent expenditure.

We don’t charge any sign-up fees, there are no monthly costs and you only pay for what you use.

Some of the key benefits of signing either an individual vehicle or an entire fleet up to SNAP Account include; - Remove the need to carry cash and hoard receipts to claim expenses back later. Our system means that the vast majority of all day-to-day costs can be covered without the need for cash and receipts.

- One simple, itemised invoice. Full details are provided of the costs incurred on each invoice, meaning record keeping has never been easier.

- Online account management can be done in real-time; manage and view your fleet information and make changes with immediate effect.

- Split and group vehicles by contract, depot or any criteria you choose.

- Control costs with limits. Our software allows you to choose which services are

available to each vehicle, including vehicle washing frequency controls to keep on top of expenses.

- Instant reporting allows you to download live or historic transaction data to streamline your bookkeeping.

One of the other features offered by SNAP Account is Depot Parking. We currently have a network of 14 Depot sites across the country; these are haulage companies’ own yards that often have free space as their drivers spend nights away. Through our system, we allow SNAP drivers to book in to these Depot sites and park for the night, meaning a secure and guaranteed spot to park for the driver, as well as a new source of income for the Operators themselves.

Whether you are an independent truck driver or manage an entire fleet, SNAP Account can revolutionise the way you do business. Rather than having mountains of receipts and then having to work out reimbursing drivers, firms with SNAP Account have a far easier time in dealing with expenses. Everything is kept track of in a simple way, giving finance departments a much more streamlined operation. For more information, please visit snapacc.com

Regenerating a troubled estate into an awardwinning showcase – with help from Police FROM SWILLY TO NORTH PROSPECT Out Crime Officers started long before building commenced and have meant that security has been embedded in to the layout, landscaping and physical security of properties in North Prospect.

A former ‘showcase’ council estate, which became synonymous for poor quality housing, crime and anti-social behaviour, is part-way through a major regeneration which is giving its new and returning residents a feeling of security and sense of pride about their new community. Once known as Swilly and renamed North Prospect in 1969, the development is two miles north of Plymouth city centre and is the largest regeneration project in the South West. Under the management of Plymouth Community Homes (PCH), it involves demolishing 800 homes, building 1,110 new homes and refurbishing a further 300. Building to

46

achieve a development with a greater choice of house types commenced in 2011. The third of five building phases is now underway.

How Secured by Design became a key regeneration partner To help address concerns about the reputation of the former Swilly estate and to encourage confidence in the new development, PCH invited Secured by Design (SBD), the national police crime prevention initiative, to work with architects, developers and local authority planners to ‘design out crime’. These planning meetings involving SBD’s specialist Designing

Incorporating SBD’s crime prevention techniques SBD’s advice on the built environment has included creating safer spaces through greatly increasing natural surveillance. Streets have been cleared of large mature trees and front garden hedges replaced by railings whilst high fences protect rear gardens. Properties have living rooms that overlook cars parked either in the street or within the curtilage of the building. Gable end walls with windows provide visibility over pathways and public spaces.

There are no alleyways at the rear of gardens to be used as escape routes and hiding places.

The physical security of properties includes products that meet SBD’s Police Preferred Specification, such as external doors and accessible windows that are sufficiently robust to resist attack from a casual or opportunist burglar. Front doors have quadruple locking systems, door chains and spy holes as well as letterboxes with protective cowls to stop thieves using rods to ‘fish’ for vehicle keys or other valuables left inside. Every property has been fitted with an external light.

Rear garden gates have two bolts and

47

a separate key-lock and every lockable shed has a large metal ground anchor to help protect bicycles, motorbikes and mowers.

The benefits of SBD advice Devon & Cornwall Police report a fall in recorded crime in North Prospect by 62% between 2007 and 2016 in four key neighbourhood crime categories: residential burglary fell by 49%, criminal damage by 84%, vehicle offences 78% and violence against the person 14%. A Plymouth City Council survey of occupants of new affordable homes in 2013-14, which included 26% of respondents from North Prospect, found that resident satisfaction had increased from the previous year with 96% feeling safe in their new home and 91% feeling safe in their new neighbourhood.

Key issues addressed by Plymouth Community Homes These lower crime and increased satisfaction results are testament to the vision and determination shown by PCH who have become well practised at making North Prospect succeed in many ways.

These include: 1. The complex, lengthy and sensitive process of helping residents to move to better homes.

2. Obtaining the necessary grant funding at a time of constrained public sector finances to avoid a partially completed project.

3. Tackling the many construction issues, including using existing infrastructure on a sloping site.

4. overcoming the many legal issues, such as identifying the owners of houses that had been left empty.

A troubled history Swilly was conceived as a ‘home for World War I heroes’ and building work started in 1921. With its mostly threebed, semi-detached homes, Swilly had all the outward trappings of a garden suburb lifestyle to bring up a family.

There were wide pavements sufficient to allow for mums with prams to pass each other, and narrow roads with the only expected traffic being the occasional milk float, coal cart, motorbike and bicycle.

From the 1960s onwards, many building faults and social problems

48

caused it to gain a reputation as the ‘Cinderella’ housing estate in Plymouth and ranked as one of the most deprived communities in England.

More recently, building surveys highlighted structural cracking, wall tie failure and extensive and untreatable damp. Residents complained that homes were difficult to live in and expensive to keep warm. Nearly 60% of homes failed even the basic Decent Homes Standard.

Creating a new community In 2009, Plymouth City Council transferred its housing stock of 14,000 homes and 45,000 residents to PCH. As part of the agreement, PCH were required to deliver a major programme of improvements within five years with the regeneration of North Prospect identified as a high priority. PCH management set about providing new impetus to existing consultation with local residents about the future of North Prospect. These close ties with the local community proved to be the bedrock of PCH’s vision for a transformation of the estate as it began to return to its showcase status as a place where residents were choosing to live.

A modern approach to reverse what had gone before The construction involved putting into reverse much of the original concept of the estate. Space was taken back from the large gardens and wide pavements and used to widen the roads to allow for today’s car ownership. The density of the housing rose from 30 to 50 dwellings per hectare to increase the financial viability of the construction to provide quality affordable housing for rent, shared ownership or private ownership. The estate that has emerged is an open environment with the latest build specification homes – which are more energy efficient to reduce fuel bills, robust to need less repair and maintenance, more secure and safe. North Prospect is winning architectural and building awards and is due for completion in 2022 at a cost of £130M. Going beyond better homes Plymouth Community Homes Programme Manager, James Savage,

said regeneration goes beyond providing new and better homes to improve family lifestyle, health, education and security.

“A case study we did with the Homes and Communities Agency reported that because families now have properly insulated homes, children would not have to do their homework wrapped up in a duvet on their bed and could use the kitchen table instead. It’s so easy to get lost in all the statistics around new homes, but children are achieving at school and health rates are improving.”

Paul Shepherd, Designing Out Crime Officer, Devon & Cornwall Police, explained that long before a spade had even touched the ground, there were pre-planning meetings every week for many months to discuss and debate all building considerations including how to ‘design out crime’.

“It was fantastic to have this level of reassurance that the plans were being continually improved. This was important because it channelled all of us into working to ensure residents were going to be happy and safe in their new community,” he said.

PCSO Lee Sheldon, who was the local officer on North Prospect between 2007 and 17, said: “The layout and landscaping, and the attitude of the new residents, has changed the place irrevocably. The drop in crime is noticeable for everyone and is no different to what you would find elsewhere. The transformation is quite remarkable.”

Established in 1993 , Thermobile UK Limited is a leading provider of heating and cooling products for a wide range of market sectors; incorporating the motor trade, agriculture, horticulture, poultry, plant hire, construction, rail and the events industry.

What’s more , with a highly trained team of personnel and extensive resources – the company is part of Thermobile Industries BV , a major European manufacturer of warm air heating products based in the Netherlands, which has been established for over 50 years - it offers not only great products, but genuine, practical and cost effective solutions.

With a central warehouse in Nuneaton, Warwickshire, Thermobile is renowned for providing professional advice, distribution and after sales service.

Its products are produced with great care and they are extensively tested. A permanent quality control system,

Thermobile is present at a number of leading shows too; ideal places to get to know the company and its products. In the latter half of 2017, it will be exhibiting at Showman’s Show at the Newbury Showground, 18th - 19th October.

49

accredited to ISO 9001, is part of the production process.

Thermobile has a vast range of products available, from direct oil fired heaters, natural gas/ propane fired and infra-red radiant oil fired heaters, waste oil heaters and dual voltage heaters plus dehumidifiers and mobile cooling units.

The company has a highly skilled and talented team and prides itself on the professionalism of its team and its commitment to superior workmanship and longevity.

This goes a long way to explaining why Thermobile is still thriving in such challenging economic times.

If you can’t wait , you can call: Andy Wallis: 07850 988382 E: andy@thermobile.co.uk Steve Jones: 07810 805935 E: steve@thermobile.co.uk John Hall: 07775 635527 E: john@thermobile.co.uk Or visit www.thermobile.co.uk

COMMUNITY

STAKEHOLDER

E-BOOKS

VIDEO

WHAT DOES THE CONSTRUCTION INDUSTRY NEED TO KNOW ABOUT YOUR ORGANISATION?

For more information please contact us on 0800 6127680 or email enquiries@promarkmedia.co.uk

2