UKCE September 2018

SEPTEMBER 2018

4 Bytes and Mortar:

The Construction Sector Deal

18 BIM THERE, DONE THAT? BIM AND FM

26

THE DIGITISATION OF THE CONSTRUCTION INDUSTRY

Healthcare Estates

@HCEstates

Conference. Exhibition. Dinner. Awards.

9-10 October 2018 Manchester Central

KEYNOTE SPEAKERS

Come & see

Nick Hulme CEO, Ipswich Hospital NHS Trust

Network with

Simon Corben

Director and Head of Profession, NHS Estates and Facilities Efficiency and Productivity Division, NHSI

Dr Hayaatun Sillem

Chief Executive, Royal College of Engineering

Conference programme confirmed

@HCEstates

Healthcare Estates is a unique event that consists of the prestigious IHEEM Annual Conference, Awards Dinner and the UK’s largest trade exhibition for the sector.

Register and view the programme at www.healthcare-estates.com Apprentice Sponsor

Principal Media Partner health estate journal

Main Event Sponsors

JOURNAL OF THE INSTITUTE OF HEALTHCARE

ENGINEERING AND ESTATE MANAGEMENT

IHEEM

Registration Sponsor

VIP Sponsor

WELCOME to the latest edition of UK Construction Excellence.

are excited to share with you.

can help resolve. We take a look into the

This last issue of Construction

As the construction industry moves

future with Britsafe, and the importance

Excellence is, quite appropriately,

of Health & Safety in an automated

forward into the future, embracing

focussed on the future of construction

society, while researchers talk to us

new technologies and methods of

and how evolving technology is driving

about how machine learning and AI

working, so too does media, and we

a sea-change within the industry. We

can help develop better, more energy-

sadly announce that this will be the last

see where the future lies in digital

efficient, buildings.

edition of UK Construction Excellence.

technology, and as the Construction

Our readers can rest assured that they

Thank you for being such a huge

Sector Deal pushes for a more

part of what UKCE has produced

will still receive the same high-quality

manufactured and technical approach

and developed over the years and

news, features and opinion pieces,

to construction, we talk to technical

we can’t wait to hear your opinions on

but now in a more manageable and

innovators in the sector; looking at the

our new format.

personalised digital offering, which we

problems that a more digitised sector

16

Victoria Maggiani

20

CONSTRUCTION 2025: 3D PRINTED WALLS, DRONES & RECYCLED PLASTIC ROOFS

CHALLENGES OF E-DISCLOSURE IN CONSTRUCTION CASES

31 THE CHANGING FACE OF CONSTRUCTION AT UKCW

Publications Editor Vicky Maggiani

Head of Content & Client Services Sandra Peet

Designer Seamus Norton

Display Advertising Sales T: 0845 557 1316 enquiries@ukconstructionmedia.co.uk

UK Construction Online, part of BiP Solutions, is home to the largest and most actively engaged community of construction professionals.

UK Construction Online, Pacific House, Pacific Way, Digital Park, Salford, M50 1DR 0845 557 1316 • enquiries@ukconstructionmedia.co.uk • www.ukconstructionmedia.co.uk

NEWS

BYTES AND MORTAR: THE CONSTRUCTION SECTOR DEAL Speaking at the Northern Powerhouse Summit in Newcastle, the Business and Energy Secretary Greg Clark, announced a transformative deal for the construction sector.

The Construction Sector Deal will see innovative technologies applied to construction designed to increase productivity. The joint governmentindustry Sector Deal, worth £420M, will help tackle the housing crisis by allowing new homes to be constructed more quickly and with less disruption.

Digital design and offsite manufacturing will revolutionise construction as well as supporting the Clean Growth Grand Challenge mission to halve the energy use of new builds by 2030.

The Sector deal is the biggest investment in construction in a decade, and with almost half of the economy reliant on the built environment the government intends to improve

4

productivity and safety, and use less energy. Construction, manufacturing, energy and digital sectors will be brought together to explore innovative approaches, which will revolutionise the industry.

Business and Energy Secretary Greg Clark said: “The construction industry is fundamental to growing our economy as we build to invest in our future. Major infrastructure projects like HS2 and the commitment to deliver 1.5M homes by 2022 mean that we need a construction sector that can drive innovation, delivering homes and infrastructure quicker.

“As buildings account for around 30% of total emissions, we also want to ensure that we are at the global forefront in designing and building smart, energy efficient and affordable homes and buildings through the Clean Growth Grand Challenge, saving families money on their bills.

“This Sector Deal is supported by the biggest government investment in construction for at least a decade and will drive economic growth and create well-paid highly-skilled jobs in every part of the UK.” Andrew Wolstenholme, Co-Chair of the Construction Leadership Council said: “Securing this deal sends out a statement about the vital contribution our sector makes to the country. Our industry builds the schools to educate the young, the hospitals to care for the sick, the police stations to keep us safe, the roads and railways that get us to work, the power stations that keep us warm and the homes we return to each day.

“We are an industry that must be at the forefront of the UK’s drive for future growth and prosperity – and I’m confident that this deal will help to achieve that.”

The investment aims to transform

construction productivity by driving the development digital building design, new innovative construction materials and manufacturing techniques which will speed up building time, reduce disruption and ensure the homes, workplaces and public buildings of the future are more energy efficient. The deal will support the development of affordable, easy to construct homes – supporting the government’s ambition of delivering 1.5M new homes by 2022, schools and other buildings which can be quickly and sustainably manufactured offsite, then assembled where and when needed.

The deal will also support the development of construction skills to help tackle the skills crisis within the sector. Some £34M will be invested in innovative construction training programmes across the country, designed to up-skill the existing workforce, while there is also a commitment to increase the number of apprenticeship starts to 25,000 by 2020. The new T-levels will be implemented with government support to offer high quality construction industry placements.

The new T-levels : Future construction skills As part of the deal, the government will work with the Construction Industry Training Board (CITB) to ensure a strategic focus on future skills needs and increase significantly the number of approved apprenticeships standards.

With a third of the industry’s three million workers aged over 50, the Construction Sector Deal includes £34M for expanding innovative construction training programmes across the country to up-skill the existing workforce and a commitment to increase the number of apprenticeship starts to 25,000 by 2020. Government will work with industry to prepare for implementation of new construction T Levels by supporting the sector to offer high quality construction industry placements. There will also be a single industry portal to support construction careers based on Go Construct.

Smart construction As buildings account for around 30% of the UK’s emissions, this Sector Deal will also help put the UK at the forefront of the global clean growth shift towards cleaner, more efficient construction.

The government’s Buildings Mission announced by the Prime Minister as part of the Clean Growth Grand Challenge, set the objective of at least halving the energy use of new buildings by 2030, helping families to save money on their bills and making the UK a leader in the move to clean, green sustainable construction.

Industrial Strategy The government’s modern Industrial Strategy sets out how the government is building an economy fit for the future, and how we will help businesses create better, higher-paying jobs in every part of the UK with investment in skills, industries and infrastructure.

Underpinning the strategy are four Grand Challenges reflecting global trends that will shape the future and represent industries where the UK has an edge: artificial intelligence and the data economy; clean growth; healthy ageing; and the future of mobility.

Today’s investment forms part of the Clean Growth Grand Challenge, with the Transforming Construction investment supporting low-carbon approaches to housing.

5

NEWS

BREXIT BAFFLES CONSTRUCTION BOSSES

CONSTRUCTION OUTPUT SOARS THROUGH SUMMER UK Construction is riding high through summer, with the latest IHS Markit/CIPS UK Construction Purchasing Managers’ Index® (PMI®) indicating the fastest rise in construction output since May 2017.

With robust and accelerating rises in construction activity during July, the industry is riding a successful summer.

House building has expanded at its sharpest pace since December 2015, underpinning the sector.

The latest survey also indicated that new business growth gained momentum, which contributed to the largest rise in employment numbers since December 2015.

The latest survey results put the Index at 55.8, a sharp rise on 53.1 in June. Purchase Mangers responding to the survey noted improved demand and a higher volumes of new starts, together with some degree of catch-up work from the terrible spring weather.

Continuing the trend seen this year, house building and residential work remains the best performing sector.

Activity in July shows the strongest upturn since December 2015.

Commercial work, which has been lagging since 2015 also showed a strong pick-up in pace.

July 2018 has given the construction sector its strongest increase in total new orders for over a year, with survey respondents noting a general improvement in client demand had led to successful contract negotiations on larger scale projects.

However, construction companies are cautious about the year ahead business outlook, with the degree of positive sentiment about future workloads unchanged since June and remaining weaker than the long-term survey average. Anecdotal evidence suggests that Brexit-related uncertainty continued to hold back business

6 6

optimism in July.

Supply chain pressures continued in July, which contributed to another sharp lengthening of delivery times for construction products and materials.

However, input cost inflation moderated from the nine-month high seen in June.

Civil engineering activity increased only moderately, with companies noting a lack of work to replace completed projects (particularly railway infrastructure work).

Tim Moore, Associate Director at IHS Markit and author of the IHS Markit/ CIPS Construction PMI®, commented: “July data reveal an impressive turnaround in the performance of the UK construction sector, with output growth the strongest for just over one year. While the recent rebound in construction work has been flattered by its recovery from a low base earlier in 2018, there are also signs that underlying demand conditions have picked up this summer.

New business volumes expanded at the strongest rate since May 2017, while workforce numbers increased to the greatest extent for just over two and-ahalf years.

“House building was the bright spot for construction growth in July, alongside a stronger upturn in commercial development projects.

Residential activity and commercial work both increased at the sharpest pace since December 2015, which contrasted with another subdued month for civil engineering.

“UK construction companies experienced substantial cost pressures in July, driven by rising fuel bills and higher prices for steel-intensive items.

Meanwhile, supply chains struggled to keep up with greater demand for construction products and materials, which resulted in the greatest lengthening of delivery times since July 2017.”

A recent survey shows that some 76% of construction bosses don’t understand how Brexit will affect employees.

With almost two thirds of businesses in the sector employing EU staff, this latest survey from Blacks Solicitors shows businesses in the industry don’t feel confident in understanding changes to EU workers’ rights post-Brexit.

More than 70% revealed they feel underprepared, and a further 57% are worried about leaving the EU. In addition, 76% said they have limited understanding of how the Brexit process will affect their business and the implications for workers’ rights, under new upcoming immigration laws.

With two thirds of businesses in the industry currently employing staff from the EU, the research also shows the recruitment process could be significantly affected, with many businesses indicating they would be put off employing EU staff after the laws change.

Almost half of businesses said they don’t have a dedicated HR function, so unsurprisingly leaders in the construction industry are unclear when it comes to whose responsibility it is to communicate changes. The research shows that the majority of businesses don’t think the government and Home Office are doing enough to assuage worries.

Capacity and resource could also become problematic, with over one third (38%) unconfident they would be able to replace EU workers with suitable British workers after Brexit.

Louis MacWilliam, Immigration expert at Blacks Solicitors LLP, said: “With less than seven months to go until Britain leaves the EU, it is worrying that such large numbers of employers still feel in the dark about their ability to retain and recruit EU nationals. This is in spite of the Home Office publishing concrete details about the new mandatory registration scheme for EU nationals, due to open later this year.

“Businesses in this industry rely heavily on EU labour and employers can play an important role in securing the rights of their EU employees. This includes ensuring employees are aware of any eligibility to apply for British citizenship or EU documentation before we leave the EU, as well as the new mandatory system of registration for EU nationals.”

CONSTRUCTION SECTOR – DEAL OR NO DEAL

Government plans to increase the construction industry’s productivity will flounder unless businesses across the total supply chain are engaged, according to Peter Johnson, chairman of Vivalda, the UK’s largest distributor of rainscreen cladding systems.

Reacting to the Construction Sector Deal, which was finally published in July 2018, Johnson said: “While it’s good to see the government recognising the huge potential we have in the building industry, I worry that the confirmed £170M meant to increase productivity and efficiency of the housebuilding process, will not percolate to every part of the industry.

“And this sharing of innovation is crucial – as we all know that supply chains are only as strong as their

weakest link. Our recent experience of working with modular housing projects proves the point that ‘on-time delivery with zero defects’ is the new mantra for the construction sector. While the huge PLC players have the manpower and resource to embrace new working methodologies, it’s the little guys that will struggle without active support.”

Johnson points out that while medium-sized, motivated business such as Vivalda Group have already embraced technology and strategies to increase productivity and supply chain efficiencies, smaller enterprises employing 25 or fewer people are probably unaware of the Construction Deal. Even worse, if not actively promoted, it could become just another government initiative that goes unnoticed by the majority of building firms.

Statistics from the ONS (Office for National Statistics, 2016) show that approximately 54% of all construction companies employ fewer than 25 people, often referred to as SMEs. Johnson concludes: “It’s often these guys that are engaged to supply ostensibly minor elements of a build

project, such as window handles, lighting or other sub-components of the structure. While their supply chain performance can go unnoticed in a traditional build, when it comes to the new, off-site fabrication method, this factor becomes crucial. The Government may be aiming for a 50% reduction in the time it takes to build a home, but if the supplier of the door knob or guttering isn’t on board with the new mantra – the whole production line is halted. It’s much the same as in the automotive industry, where every supplier signs up to the deal and is given the training and technology to deliver.”

The UK Construction Sector Deal was published, six months later than expected on July 5, 2018. Highlighting the importance of innovation, infrastructure, energy and skills, the plan confirmed £170M investment from the government.

Read more about the Construction Sector, Deal as announced by Business Secretary Greg Clark, on page 12.

EDINBURGH AND SOUTH EAST CITY REGION DEAL

Some £1.3Bn is to be invested by the Scottish Government as part of the Edinburgh and South East Scotland City Region Deal.

The investment is designed to deliver inclusive economic growth across the region through housing, innovation, transport, skills and culture.

First Minister Nicola Sturgeon announced the deal last month, which will see the Scottish Government and the UK Government each investing £300M over the next 15 years. The Scottish Government’s investment will contribute towards 41,000 new homes, 21,000 jobs and improve the skills of an estimated 14,700 people.

In addition, the Scottish Government is also providing Edinburgh Festivals with a £5M investment over the next five years to fund The Platforms for Creative Excellence (PLaCE) programme which supports new innovative programming and skills development opportunities across the capital’s 11 major festivals between 2018-2023.

Programmes included under the city region deal include: • A Data Driven Innovation programme of investment, including the creation of economic infrastructure across the region • Some £65M towards a regional housing programme, including the creation of a new housing company and housing infrastructure funding to enable the delivery of 41,000 new homes • A £120M investment in transport improvements to Sheriffhall Roundabout • Public transport improvements in West Edinburgh

• An Integrated Regional Employability & Skills Programme • A new concert venue for the city, providing a home for the Scottish Chamber Orchestra.

First Minister Nicola Sturgeon said: “Edinburgh and the South East of Scotland is an area of huge importance to the Scottish economy. The region contains over a quarter of Scotland’s population and contributes £33Bn to the Scottish and UK economies.

“The Scottish Government’s £300M investment in the City Region Deal will contribute towards 41,000 new homes, 21,000 jobs and improve the skills of an estimated 14,700 people across the region. Our investments will ensure businesses and communities from across the region benefit from the opportunities created by this the city region deal.

“Taken together these projects will help the region continue to thrive and grow, fulfilling our ambitions for the region to be one of the fairest and most inclusive areas in the country."

7

NEWS

BROKENSHIRE PROPOSES NEW GARDEN COMMUNITIES PROGRAMME Housing Minister James Brokenshire is calling for more garden towns, as he announces his brand new garden communities initiative.

According to Brokenshire, the programme will kick-start the creation of high quality homes and green spaces, in line with the government’s aspirations for more community-led housing developments. Crucially, garden towns have the potential to contribute to the 300,000 homes per year target by the mid-2020s.

Councils across England will be able to apply for a place on the programme, alongside any private developer who has secured support from local authorities. The winning bidders will receive tailored advice and potential grant funding to aid staffing or environmental assessments; part of the planning process for new garden towns.

“This plan is about the government working with councils and developers

10

to get great homes in keeping with beautiful areas in England,” said Brokenshire. “We want to help local authorities build strong and vibrant communities where people want to live, work, and raise families. Our garden communities programme already has the potential to provide over 200,000 new homes by 2050, and we want to go further.”

Garden communities can take the form of new villages, towns or cities and have the potential to deliver high quality homes at increased scale, with projects ranging in size from 10,000 to 40,000 homes. This prospectus is the latest step by government to bolster interest, with 23 locally-led garden communities already receiving funding support, with the potential to deliver over 200,000 homes by 2050.

Reaction has been mixed however.

According to Matt Thomson, Head of Planning at the Campaign to

Protect Rural England: “As a whole the prospectus is another example of the ‘garden’ soubriquet being applied to even more random development proposals, which all seem to lead to low-density, car-dependent, residentialled sprawl.

“Even the revised National Planning Policy Framework recognises the importance of using what limited land we have more efficiently. We need to ask whether ‘homes with gardens’ are compatible with the achievement of sustainable, walkable communities, and we need to get the efficient use of land back onto the garden cities agenda.”

Launch of the garden communities programme now signals the start of a three month application process, with successful proposals to be announced in the new year.

TFL SIGNS DEVELOPMENT AGREEMENT FOR SPACE ABOVE FARRINGDON STATION A development agreement between Transport for London (TfL) and HB Reavis has been signed which will see a 138,000sq ft, mixed-use scheme delivered above Farringdon station.

The Farringdon station site in Clerkenwell will be transformed into a mixed-use development with ground floor and basement retail below seven storeys of high-quality office space including a terrace, a fitness facility, and cycle provision accessed directly from the nearby Cycle Superhighway connecting Elephant and Castle and King’s Cross. Construction is expected to begin later on in the year.

Furthermore, plans are in place for 12 major developments over and around TfL’s new Elizabeth line stations and construction sites. In total, these development plans cover more than three million square feet of office, retail and residential space between Paddington in the west and Woolwich in the east. The developments are expected to raise £500M for reinvestment in improving transport across London.

Graeme Craig, Director of Commercial Development at TfL, said: “With the arrival of the Elizabeth line, Farringdon will become one of the best connected places in London. We are therefore delighted to have reached this

agreement with HB Reavis at this superb location. As a key part of our huge development pipeline, the Elizabeth line schemes are directly opening up opportunities for new homes and jobs, and could raise £500M to reinvest in London’s transport network.”

Steven Skinner, Transactions Director of HB Reavis UK, said: “We are delighted to have secured the acquisition of this strategically important site. The addition of the Elizabeth line at Farringdon station, creating the only station where the Tube, Thameslink and Elizabeth lines intersect, secures Clerkenwell as a sub-market with huge relevance across the whole of central London and reaffirms our commitment to invest in locations with superb connectivity and unique character.

“As with all of our buildings, we have put design quality and the needs of occupiers first. The design changes proposed for the scheme result in a unique product offering for Clerkenwell with large floor plates, uncompromised office space combining seamlessly with a real focus on the wellbeing of its occupants through carefully designed large scale outdoor spaces, a re-thinking of the traditional office reception and provision of spaces for health and fitness.”

ONE IN FOUR HOUSE BUYERS CONCERNED OVER THE QUALITY OF NEW BUILD HOMES Almost a quarter (24%) of UK house buyers consider the low build quality of new housing stock to be a significant disadvantage when compared to older properties, research from BLP Insurance has found.

Unsurprisingly, concerns over new build quality seem to intensify the further away from the capital you are. In northern England, for example, 29% of house buyers are wary of new build quality in comparison to 21% in London and the south east. Of course, that’s still more than a fifth of the marketplace which means – whether justified or not – today’s housebuilders have an image problem.

And the disadvantages don’t end there.

Survey respondents had similar concerns over characterless housing (26%), room size (24%) and, of course, price (21%). Predictably, those aged 16-24 saw cost (32%) as the biggest disadvantage when buying a new home. Those aged 55 and over were least concerned with the price tag however (18%), instead identifying bland housing as the biggest drawback when buying a new build home.

Crucially, the findings also show that 29% of people do not believe there are any significant benefits to purchasing a new build home over an older property; and those over 55 are especially sceptical (41%).

“Poor build quality is an increasing issue in the UK housing market,” comments Kim Vernau, CEO of BLP. “As developers attempt to meet the high levels of demand for new homes, practical design and quality is being compromised. As more and more buyers become aware of the issues that poor quality of build gives rise to, all parties involved in the construction of new homes will have to respond, taking greater responsibility and ensuring quality of the build process going forward.”

It’s no secret that the UK is in the grip of a housing crisis; and many more homes will need to be built over the next decade to sustain a growing population. But as residential developments spring up across the country, the question of quality remains. Anecdotally, UKCE has heard many stories of troubled construction sites, uninsulated homes and latent building defects. Isn’t it time we held our housebuilders to a higher standard?

11

NEWS

CONSTRUCTION NEEDS TECH INVESTMENT

HIGHWAYS ENGLAND HARNESS SOLAR ENERGY TO ILLUMINATE THE A38 As the Great British summertime in egins to wane, Highways England has fitted more than 4,500 solar road studs to capture sunlight and illuminate the A38 at night.

The new addition forms part of an £8.5M improvement programme spanning the A38 between Ripley and Junction 28 of the M1 near Mansfield – a stretch of tarmac traversed by some 23,000 vehicle each day. Crucially, the studs are effective in rain, mist or fog – all staples of the UK climate – and a four-hour charge can provide enough power for 200 hours of light.

Traditionally, road studs have required car headlights to illuminate their surface.

According to Highways England, this means headlights can be seen up to 90m away, giving drivers travelling at 60 miles per hour a mere three seconds to react to conditions ahead.

These new studs are solar powered, with a panel absorbing energy during the day. Throughout the night they generate their own light through a battery powered LED and can be

12

seen up to 900m away, giving drivers travelling at 60 miles per hour 30 seconds or more to react.

The new studs are also much more durable, lasting up to five years longer than the standard variant. They require less maintenance during their lifetime and at only four millimetres in height they are much safer for motorcycles.

“We’re always looking for new ways to further improve journeys and safety for drivers and this is a great example of that,” said Highways England Project Manager, Matthew Carruthers. “This section of carriageway has no street lighting so the solar road studs and improved lane markings make a real difference.

At the same time the new technology is more durable, meaning less disruption for motorists in the long term thanks to fewer roadworks.”

Additional improvements along the A38 include high visibility lane markings that make it easier for drivers at night or in adverse weather conditions, and coloured high friction surfaces that reduce the risk of skidding.

Following calls from the House of Lord’s Science and Technology Committee for the construction sector to avail itself of modern technology in order increase productivity, expert insight warns that a full package of investment is required.

Investing in small areas of tech won’t cure construction’s dwindling productivity, says software and service providers Engage Technology Partners, with them advising that a focus on outputs alone won’t deliver an increase in production.

The Committee advised the industry should increase its use of offsite manufacturing and other new technologies in order to improve productivity. However, Engage explain it is not so cut and dried.

Drey Francis, Director at Engage explains: “While investing in more efficient processes such as offsite manufacturing is certainly a step in the right direction, this alone won’t solve the problem of hard to meet targets.

There’s immense stress on the industry at the moment, with a high demand of expectations and low availability of talent. What we need to see is a greater focus on the use of technology across the entire construction remit, rather than just pockets of investment in the likes of offsite manufacturing.

“For example, small steps in back office systems which provide realtime, transparent data can help firms keep project costings on track, identify staffing shortages early on and, ultimately, ensure completion targets are more likely to be met.

“If we look at examples from other sectors – such as travel and entertainment – it’s clear that the integration of technology across all areas of the business can help a firm thrive. With pressure on the sector set to increase, now really is the time for construction to play catch up.”

NEWS

REGULATIONS TO PREVENT THE MISUSE OF DRONES A new consultation has been launched by the government to discuss measures to prevent the misuse of drones.

The new measures could see on-the-spot fines and the ability to seize drones if necessary. With a rapidly growing drone sector, and use of drones expected to multiply exponentially over the coming years by businesses and for leisure, the measures are intended to ensure drones are being used safely.

The drones industry is growing very quickly as more and more businesses recognise the benefits drones can bring, recent PwC research predicted the drone industry could be worth £42Bn to the UK by 2030, and other experts looking at even larger figures. As such, the government has decided that a blueprint for safe and secure use of drones needs to be established now to help prepare for the future.

Drones are already being used for a myriad of exciting applications, for example; Costain use drones for inspections at Hinkley Point C Nuclear Power Station, saving 50% of costs compared to the use of helicopters or human inspection teams, while similar savings can be seen on wind turbine inspections. Meanwhile, Network Rail are using drones to improve track maintenance and boost field worker efficiency, whilst reducing the amount of work at height required on Network Rail’s assets. It is therefore essential the sector develops with a strong framework to encourage innovation and growth while keeping people safe.

The police and security personnel

already have powers to address the misuse of drones, but these new proposals will reinforce the importance of complying with drone safety rules, and create a tailored toolkit to ensure they are observed.

The measures in the consultation are part of a wider programme of new drone legislation and will shape the content of a draft Drones Bill due to be published later this year.

Proposed measures include: • police issuing fixed penalty notices • using new counter-drone technology to protect public events and critical national infrastructure and stop contraband reaching prisons • introducing minimum age restrictions for drone owners in addition to the new tests they will need to take • proposals for regulating and mandating the use of ‘apps’ on which pilots would file flight plans ahead of take-off Baroness Sugg, Aviation Minister, said: “Drones present exciting benefits to our society and our economy, but with a small group of people choosing to use them for harm there are challenges we must overcome if we are to prevent them hindering the potential of this technology.

“That’s why we’ve already introduced safety measures like a height limit, and rules around airports, and today we are consulting on how we go further, including extra police powers and a minimum age requirement.”

The proposals are part of a package of work from the government to ensure drones are flown safely,

COMPANY FINED AFTER ASBESTOS FAILINGS A Peterborough company has been fined by the Health and Safety Executive (HSE) for failing to undertake asbestos assessments.

Property management company, Thistlemoor Healthcare and Management Ltd, was sentenced after failing to carry out an asbestos survey prior to undertaking extensive refurbishment works.

Huntingdon Magistrates’ Court heard how, between April and May 2017, construction work had been undertaken at two properties by Thistlemoor, both of which were likely to contain asbestos, and neither of which had been properly surveyed for asbestos.

An investigation by the HSE found the works undertaken were likely to disturb asbestos containing materials during the strip out and part demolition of the two properties. Despite this, the company failed in its duty to carry out an asbestos survey for either property.

Thistlemoor Healthcare and Management Ltd of Thistlemoor Road, Peterborough pleaded guilty to breaching Regulation 5 of Control of Asbestos Regulations 2012 and has been fined £15,000 and ordered to pay costs of £1,805.60.

Speaking after the hearing, HSE inspector Samantha Wells said: “The risk of exposure to asbestos could so easily have been avoided if the company had carried out a suitable and sufficient asbestos assessment to identify the presence of asbestos within properties prior to commencing refurbishment work.

“Companies should be aware HSE will not hesitate to take appropriate enforcement action against those that fall below the required standards.”

13

F E AT U R E

Registering existing buildings and locations; it’s a labour-intensive and costly process. Especially in 3D. Is the revision up to date? Are digital drawings or models already available? Should there be a baseline measurement?

New technologies help to answer these questions quickly.

New technological developments offer unprecedented possibilities to innovate the construction workflow - especially when combined with Building Information Modelling. Here are three technologies to look out for when it comes to connecting BIM to the building site: 1. Point Cloud Laser scanning as a technology has been around for quite a while, but it’s only recently that this technology has found its way to BIM applications in the MEP industry. With 3D laser scanning, MEP engineers can import accurate information about existing structures into their BIM models. This information is assembled in a point cloud: a collection of measurement points that have been recorded on the construction site.

2. Virtual and Augmented Reality Virtual and Augmented Reality are gaining ground in many industries. Not only in education, entertainment, and healthcare, but also in construction. For MEP engineers, both Augmented and Virtual Reality offer opportunities, since both technologies make it possible to see systems at the place where they need to be installed: 1. Virtual Reality simulates the complete environment. This makes it possible to view a virtual 3D model in the office, which can be useful during meetings with construction partners. Although this provides a great deal of insight, the technology is often less suitable for use on project sites because of

14

construction hazards.

2. In contrast to Virtual Reality, Augmented Reality is better suited for on-site applications. With Augmented Reality, a layer of additional information from the digital model is projected onto the user's field of view. This way, the engineer can see where an installation should be placed with respect to the location where he stands.

The applications of this technology in construction are in full development and the first real construction hard hats with Mixed Reality support are already being used.

3. Robots on Site There have been quite some speculations about the way robots will change the future of construction. What tasks that are currently being done manually, could be automated? Which processes can be optimized? In which

ways are robots already being used in construction? Robotics is a promising technology when it comes to increasing efficiency in construction. Especially in combination with BIM. When connected to BIM collaboration software, robots allow contractors to truly connect their digital model to the building site. Take, for example, robots equipped with accurate positioning technology. Because these robots use the data from the BIM model, contractors can quickly take measurements on site. Based on locations in the model, the robot automatically points to the corresponding locations on the construction site. With the help of a laser beam, points are laid out at positions in the building where, for example, a sleeve or hanger must be mounted. This means that taking measurements manually with a tape measure is no longer necessary, and makes the job on site a lot easier and more accurate.

Trimble Field Link for MEP Trimble Field Link for MEP enables one person to handle layout faster and more accurately than two people using a tape measure, reducing labour costs and eliminating mistakes that lead to costly re-work.

Robotic Total Station

Field Tablet & Software

Provides continuous measurement information for the accurate layout of your design data. One person can accurately layout hundreds of points in a single day.

Reduce errors by exporting hanger points or cable tray attachment locations from your models to the field software for easy field location and staking.

mep.trimble.co.uk 0800 028 28 28

F E AT U R E

CONSTRUCTION 2025: 3D PRINTED WALLS, DRONES & RECYCLED PLASTIC ROOFS Renowned futurologist Dr Ian Pearson has given an insight into how the future of the UK construction industry could look.

Commissioned by Colmore Tang Construction, Dr Pearson has presented some interesting findings on where technology is taking the construction industry. He suggests that drones carrying building materials to 3D printed walls, and roofs made from recycled plastic bottles from ocean waste will all be mainstream by 2025, while floating buildings or apartments will be possible by 2050 thanks to carbon foam, which is lighter than air.

Dr Pearson says that the near future will see artificial intelligence (AI) become commonplace, linking to sensors and cameras around construction sites, ensuring that buildings are being developed according to the architect’s plans.

While the humans who will work alongside AIs will not only see these robots as clever tools, but also colleagues and even friends as they start to develop unique relationships.

Looking even further into the future, Dr Pearson suggests that selfassembling buildings under AI control will allow a new form of structure – kinetic architecture – by 2025. This will see a structure literally thrown into the sky and assembled

16

while gravity forms the materials into beautiful designs.

However, it is 3D printing that will steal most of the construction headlines in the immediate future, according to the future-gazer. Cheap homes, built quickly using 3D printing, will essentially put an end to the housing crisis.

The report was launched by Colmore Tang Construction, which has partnered with Virgin StartUp to deliver a £10M innovation fund that is open to entrepreneurial companies in a construction industry-first technology accelerator programme called ‘ConstrucTech’.

The fund will be provided to those companies that can successfully show how their innovation and technology could improve the sector’s productivity, sustainability and skills issues.

Dr Pearson said: “By 2025 we will already see huge changes in the construction industry thanks to technology, with drones, AI and 3D printing all becoming commonplace. By 2050, we could see floating buildings or apartments that could save the housing crisis using carbon foam that’s lighter than air – the possibilities for this really are endless.”

Andy Robinson, Group CEO,

Colmore Tang, said: “The forwardthinking report has shown that technology can have a positive impact on the construction industry; however, we need to discover those exciting and innovative start-ups, whose products and services could deliver the technologies and innovations that will be the key to future success.

“We are hopeful that our partnership with Virgin StartUp to create the ConstrucTech programme and £10M innovation fund will be the start of a new dawn within the industry, where the future innovations predicted become a reality.”

Virgin StartUp is a leading business support organisation which has run a number of successful accelerators and supported 11,000 entrepreneurs across the UK. Construction in the UK has been slow to embrace innovation and adopt new technology and Colmore Tang has identified a number of key areas within its business, and the industry as a whole, which it believes could benefit from the contribution of enterprising start-ups.

Interested start-ups can apply to be part of ConstrucTech here: http:// virginstartup.org/constructech

BIM THERE, DONE THAT? BIM AND FM

BY SIMON LEWIS, PARTNER, AND VICKY MCCOMBE, MANAGING ASSOCIATE AT LAW FIRM WOMBLE BOND DICKINSON In our recent review of the second edition of the CIC BIM protocol (Second Helpings), we noted references to an Asset Information Model (AIM) which had been introduced into the second edition and suggested that the implications of using the protocol for the Facilities Management (FM) phase of a project needed to be worked through.

In this article we consider how BIM will operate during the FM phase and the practical issues that this raises. Given that the application of BIM to existing assets is bound to be more extensive and consequently involve greater resource than the application of BIM to new build alone, it is important to understand the structure of the underlying PAS 1192-3 and the practical issues that arise.

PAS 1192-3 is concerned with the availability, integrity and transfer of data and information during the operational phase of an asset's life.

It introduces the AIM which is, as the

18 

CIC protocol points out, a maintained Information Model which is intended to govern the use, maintenance and operation of the asset. The obvious difference between the AIM and the Information Model which operates in the new build phase (which used to be referred to as the Project Information Model (PIM)) is that the AIM will have to cater for a more flexible sequence of activities through the asset life cycle, dealing with a mixture of planned and unplanned events that could happen in any order between the points of asset handover and asset disposal.

The Asset Information Model is designed to allow your company/ you to cope with things which will bring change, either to the assets you hold or to the way others value them. PAS 1192-3 refers to these events as triggers. Either an AIM will already be in existence when a trigger occurs or a new AIM can be created in response to a trigger and at the inception of a trigger-related

event. Triggers would therefore include planned and unplanned maintenance works, refurbishment and update, variations and end of life works such as demolition, decommissioning and mothballing.

The AIM should be put in place at the beginning of the FM phase of the asset's life cycle or when that asset is acquired by its new owner if there is not already an AIM in place.

If the asset remains in continued ownership from the new build phase through to the FM phase, PAS 11922 at paragraph 10.2.1 requires the constructor to create an "as built" PIM to act as the foundation for the AIM in the next phase. The AIM then develops and evolves over the course of the FM phase of the asset life cycle.

The capture of the information that needs to be included in AIM is likely cover a much longer period than the new build phase and also requires a slightly different information structure to support the AIM. This would include recording the Organisational

Information Requirements (OIR) of the organisation that owns the asset (the data and information required to achieve the organisation's objectives), as well as the Asset Information Requirements (AIR) (the data and information requirements of the organisation in relation to the asset itself). This information would be administered by the Asset Information Manager and the Data Manager (who controls the reception and transfer of information).

One of the advantages of BIM is the ability to provide accurate information about an asset. As with the PIM, it is therefore vitally important that the AIM contains good quality up-to-date data and there needs to be a process set out in any FM contract to deal with this just as there should be in a construction contract. Documents such as the AIR and the OIR (which are broadly the equivalent of the Employer's Information Requirements during the construction phase) should set out the process needed to achieve the requirements of PAS1192-3. Those documents should be incorporated into any FM contract along with obligations on both parties to comply with these.

A priority clause should also be included in the FM contract to deal with any inconsistencies between these documents and the others that form part of the contract.

Consideration should be given as to who will carry out the new roles of Asset Information Manager and Data Manager specified in PAS 1192-3 and be responsible for assuring data and information flow to and from the AIM. These roles could be undertaken

either in-house or externally. It may also be that the same person can undertake both functions. We would also suggest that those roles are identified within the FM contract along with an obligation to comply with their reasonable instructions.

Another issue which is familiar from the construction phase is ownership of the AIM and intellectual property rights within it. This should really be considered during the construction phase if ownership of the asset is not being sold or transferred at the end of its construction. The intellectual property rights in the construction contracts will need to allow for use for the purposes of facilities management and any licences will need to include a right to grant sub-licences. Any FM contract will also need to deal with intellectual property rights and ownership of the AIM. It is worth noting at this point that the operational phase could throw up other issues which will need to be considered. For example, some services may be carried out by a tenant and others by the landlord.

What happens to the model after the lease ends, either by way of expiry or termination? If the asset is sold, the AIM will need to go with it along with the necessary transfer of intellectual property rights. This takes BIM considerations beyond the FM contract potentially into sale and lease arrangements.

The FM contractor may want to look at whether it should be entitled to compensation or relief in the event that incorrect information in the AIM (which has not been provided by the facilities manager) results in additional

costs or delays to them when carrying out FM services.

When considering the use of BIM throughout the life cycle of an asset, progressing from PAS1192-2 to PAS1192-3, it is clear that the most efficient and cost-effective approach is to have the requirements of the FM phase in mind when creating the PIM. In other words, the FM sector should be involved at the design concept stage of any project. In short, start with the end in mind and involve the FM team when developing the design of your project. The structure of PASs 1192-2 and 3 contemplates a virtuous circle where the AIR feeds into the Employer's Information Requirements, which leads to the development of the PIM, which in turn contributes to the AIM. Consequently, the AIM should be a product of both the EIR and the AIR. This must make sense in the context of the cost savings that can be obtained by constructing a building in such a way that it is efficient to run.

As is apparent from even this short description of the use of BIM in the FM phase, the CIC BIM Protocol would need to be substantially changed in order to deal with these new concepts, offices and responsibilities rather than just referring in passing to the AIM. It is useful that the authors of the Protocol have drawn attention to the need to consider the use of BIM at the FM stage, but we believe that it would be preferable to create a separate protocol dealing solely with the FM stage to mirror the PAS 1192-2 and 3 structure and to cater adequately for the practical and contractual issues that will inevitably arise as the use of BIM in FM becomes more widespread.

F E AT U R E

CHALLENGES OF E-DISCLOSURE IN CONSTRUCTION CASES

As the use of technology has changed the way we communicate, and the volume of documents created every day has drastically increased.

It is estimated that 156 million emails were sent every minute last year. Add to that the new methods of communication developing and being favoured by companies and individuals, and it is easy to understand why the data created by companies during the course of a project is constantly growing – but as a result so is the task of e-disclosure. Much has been done in recent years to improve the efficiency and usefulness of the disclosure process in arbitration and court litigation.

This article, from Maren Strandevold, Associate at Haynes and Boone CDG, will discuss the usefulness of the tools and techniques available to parties in a construction dispute to deal with the data explosion.

Disputes in the construction sector are typically document heavy, particularly where the dispute includes a claim for delay on a big project.

The document count can be in the hundreds of thousands and that in itself presents a number of challenges. The nature of the work creates further challenges: disputes are usually technical in nature and the relevant evidence is likely to include spreadsheets,

20

drawings and photographs. Managing such documents, reviewing them for relevance and providing disclosure can be a real challenge and lawyers engaged in this type of work have to look at the tools available and consider carefully the most appropriate approach. Making the wrong choice can make the exercise both more costly and far more time consuming.

The basic toolkit Whilst there are still lawyers who would prefer to print out all the documents and hand over hard copies, it is widely accepted that disclosure today requires the use of an e-disclosure platform that can process documents much more efficiently. A processing tool will also typically be used prior to uploading documents to a platform. In their most basic form, this allows you to: • Sort documents by file type • Run basic searching based on keywords and metadata • De-duplicate documents.

Using these simple tools, you can start assessing the data available early on. It may be sensible to hive off certain types of documents, for example drawings, for review by expert witnesses. Similarly, it may

be useful to ring fence photographs for human review as searching is difficult unless the photographs have been saved with meaningful titles. Even at this early stage, you can start prioritising the review and ensuring that the most appropriate resource is used.

Keyword searching Keyword searching remains very popular as a method of locating relevant documents and ensuring that a “reasonable search” has been carried out. In the English courts, the forms that must be exchanged prior to the first case management conference (even under the pilot scheme for the Business and Property Courts which is due to start in January 2019) encourage parties to think about keyword searches at an early stage.

Keyword searches can be used to narrow down the document population and reduce the quantity of documents that have to be reviewed during the disclosure process but it is essential that you know your document population and what you might be looking for, as otherwise this method has its drawbacks. It is a very blunt tool and unless you understand the terms and phrases typically used on that particular project, you may end up with a significant volume of documents to review, a significant proportion of which may well not be relevant. Misspellings must also be accounted for, otherwise key documents will not be caught by a search, which can lead to important information being missed.

F E AT U R E

Analytical tools The main alternative to keyword searching followed by manual review of documents that is often proposed is full-on predictive coding, which is discussed below, but this fails to consider the variety of other options available. For example, if you have a huge volume of emails, but know that a significant portion are irrelevant, it usually helps to see the domain listing – that is a list of all the email domains in the population. This information can be used to exclude irrelevant sources, such as news subscriptions, from the pool of data that requires review.

Alternatively, you could identify the key domains involved in the project and focus on reviewing correspondence passing between those domains, ie: you focus your review on emails passing between @employer.com and @contractor.com.

There are also some more sophisticated tools such as clustering and concept tools. These can be particularly useful if the claim comprises a number of different issues, for example if you have a delay claim with multiple relevant delaying events. The clustering and concept searching works to find patterns in the text contained in documents.

Concept searching allows for more

dynamic searching than keywords while clustering may assist by grouping together documents with similar content, so that documents relating to specific issues may be identified and reviewed together.

Predictive coding There has been a lot of hype around predictive coding, with it being hailed as a cost-effective yet accurate way of categorising large numbers of documents. In construction disputes, however, the feeling has typically been that it is not appropriate. Predictive coding is good at identifying single issues and less good at dealing with technical documents (spreadsheets and drawings) and multiple issue cases, such as a delay case with hundreds of separate delaying events arising out of entirely separate factual matters.

But is it true that this renders predictive coding useless in a complicated delay claim? I think not.

As with a lot of the other technology available, it is very much a question of how you use it. For example, you can use the technology to rank documents so that you can focus the human review primarily on the most highly ranked documents. In addition, you would ideally conduct a review of a

sample of the lower ranked documents, to find out if these need to be reviewed further or can all be considered irrelevant.

The existing technology can therefore be of use, even in cases with multiple issues and large volumes of technical documents.

However, the technology is constantly evolving. Some e-disclosure providers have seen the need for technology to cope better with non-textual documents and are in the process of developing technology that can carry out predictive coding of images. There is already technology for facial recognition and image searching and this is now being harnessed for use in e-disclosure. This is largely untested at present, but could be the first step towards better management of technical documents.

The use of predictive coding on the right cases and in the right way can greatly reduce the amount of manual review required and the associated time costs. Computer-aided review is often more consistent than human review and it has the potential of reducing the overall cost of the exercise. However, this can only be achieved if those using the tools understand how to use them correctly and consider their application on a case by case basis.

21 

F E AT U R E

The adoption of technology into building design is becoming more prevalent, with early adopters citing many benefits from more flexible spaces, to enhanced user experience.

The industry is standing on the edge of a revolution. With the government pushing for better productivity within the industry and technology ready to make the leap into practical applications, now is the time for the construction dinosaur to become the pathfinder to the future.

We spoke to Peter Greaves at Aurecon about the development of technology in the built environment and where it would lead us.

Can you give me a little background about yourself and your company?

Aurecon brings ideas to life to design a better future. Imagining what is possible, we turn problems into solutions. We provide advisory, design, delivery and asset management services on projects across a range of markets, in locations worldwide.

I am Aurecon’s Buildings of the Future Leader. My passion with Intelligent buildings is to create smart buildings not only from a technology perspective but an emotional intelligence perspective. I am also a chartered building services electrical engineer with over 20 years of international engineering experience within the construction industry. As a manager of multi-disciplinary teams, I have worked on a variety of projects including defence, health, education and sports facilities, museums, theatres, historical buildings, data centres, and commercial and residential buildings.

I am passionate about the use of Digital Engineering not only in design and construction, but also in procurement and over the entire life of assets- supporting the growth of teams and individuals to do more than the average. I am excited about what the next 20 years will mean for engineers and how we can help shape the future.

Can you give me some background on the use of technology in construction?

Operational construction functions,

22

BUILDING THE BUILDINGS OF THE FUTURE

activities and experiences, as well as expectations around performance, are evolving. A ‘one-size-fits-all’ approach to building design is becoming less and less palatable. The use of new, flexible construction materials, including composite materials, additive manufacturing concrete, solar polymers and carbon fibre balsa, is fuelling new design approaches.

These options are unlocking the architectural limitations of size, weight and shape that the building and construction industry works within today.

In future, we may see buildings being mass-designed with flexibility in mind. Buildings will no longer be rigid structures that can’t change: by design, they will adapt and their spaces will be adaptable without significant building modifications. This could give rise to a greater degree of modular or off-site construction.

In addition, the ability of robotics to simplify and automate a diverse range of tasks is also set to revolutionise construction. Within the construction industry, robots are now available to lay pavers and bricks, while drones provide new surveying and security opportunities and are used to construct sculptures and houses.

What facilities have you invested in for demonstrating/ using the new technologies?

Aurecon established its new Melbourne base camp at 850 Collins Street, Victoria Harbour, Docklands, it did so with its staff’s needs driving the design. The eightstorey Aurecon Centre houses all 700 Melbourne-based staff in the top five interconnected floors to offer innovative, market-leading standards of air quality, energy efficiency and sustainability. Essentially the Smart Centre is a digital platform that connects a range of sensors that are located throughout the Aurecon Centre building. These sensors can be found in places like the main walkways, stairwells, bike racks, office areas, lunch break-out rooms, recreational areas, and meeting rooms. They are linked to an online platform that allows the user to identify and interpret a range of useful data to recommend how the building

should be modified. The Smart Centre allows us to monitor a variety of simultaneous dynamics: how many people are working from home, how the teams are interacting, when they are interacting, how many people are using meeting rooms, etc.

How are clients/designers responding to the technologies?

Through our Buildings of the Future research, we interviewed a broad group of professionals across the built environment who were asked to imagine what Buildings of the Future might look like and how they might be created. What we found was our clients and designers believe that technology is the supporting act to design and one of the important tools that we use to achieve our aims, but it is great design that helps us to make optimal choices about technology solutions.

Our research showed that our clients will react positively toward new technologies i.e. robotics, automation, new materials and new approaches to energy creation, use and storage, when these technologies support their needs and make life easier – not technology for technology’s sake.

Technology must have a purpose and remaining focused on the needs and expectations of your tenants and their workforce is key.

Technologies seem to be progressing quickly to become vital pieces of equipment. What is propelling this and will it continue?

What is propelling this is the people’s needs and expectations. We need to accept that as the needs and expectations of people change, the way we design and construct buildings will need to follow. Increasingly, employees will value mobility, a shift to ‘the cloud’, on-demand services – to name just a few. As mentioned previously, new technologies and construction materials create new approaches to building design.

Technologies such as 3D printing, modular construction, sustainability measures, centralised and digital facilities management are now considered vital to create flexible and attractive spaces for future tenants and landlords.

Do you think the adoption of BIM at higher levels will go hand in hand with the development of technology and virtual construction?

The quick answer is yes. However, BIM is not a silver bullet. BIM is a tool that designers, operators and building owners can use to integrate their designs operation and maintenance through the entire lifecycle of an asset. When you consider that in approximately 75% of the building cost is after construction, the need for reliable trustworthy data is key, not just data for data’s sake. Data fog, as I call it, is the enemy of buildings of the future. The winners will be the building owners and teams that are able to filter the data to achieve outcomes to drive businesses and communities forward.

BIM at higher levels is probably the first step to our industry really taking the step change required and adopting techniques from areas such advanced manufacturing, aerospace and car industry. BIM will need to evolve along with us.

What do you think it will take for SMEs and smaller businesses to integrate/embrace the technology?

Understanding the value of these technologies is imperative to integration. Our research shows that often initiatives get culled during the schematic design and design development stages because we don’t yet have the necessary financial models to convey the message. We call for a ROI model that reflects the importance of designing buildings for the long term and looks at both the financial and non-financial benefits of intelligent buildings, such as improving employee productivity and wellbeing, while maintaining design flexibility to plan for a rapidly changing future. When these organisations can see the value of their investment from a long-term view, we will start to see new technologies integrated and embraced. Also, the technology must be simple for users to understand and operate. This is a key part of the ROI.

Are there any other emerging technologies coming to market?

There are many emerging technologies coming to the market ranging from new materials, to re-use of material, energy storage devices, machine to machine communication and artificial intelligence for selflearning buildings. Along with these technologies there is also acceleration of off-site construction and use of automation, which is increasing tolerances and speed on site. Some of these emerging technologies are being driven externally to the construction market – for example reliability and cost of power is becoming important to many people.

This forces building operators and owners to reconsider not only the type of energy, but how do we ride through interruptions. Artificial intelligence is being linked to this as it can assist in driving down energy consumption.

23

F E AT U R E

TELEMATICS TO DRIVE CONSTRUCTION INDUSTRY REVOLUTION

Advances in technology are transforming the construction industry. From digitisation to drones, innovative new technologies are helping to increase quality, reduce costs and improve safety in all areas.

John Cameron, General Manager of Trimble Field Service Management, believes that the Internet of Things is poised to radically change the way service and maintenance operations are performed on equipment within the construction industry and sees telematics-driven connected workflows as being the key enabler for preventative maintenance. In this article, he discusses these latest innovations and the effect they are having on construction.

The Internet of Things is poised to radically change the way service and maintenance operations are performed on equipment within the construction industry. Whether equipment is owned, leased or rented, pressure is put on maintenance and repair teams to perform tighter SLAs. Construction jobs run on tight margins and have a lot of cross-dependencies between tasks. A broken piece of equipment can bring the entire project to a halt, causing loss of work and, ultimately, income.

A big focus has therefore been put on the Internet of Things (IoT) for preventative maintenance. Gartner agrees, stating that field service

24 

management processes must change to benefit from IoT devices and that he expects there to be 20Bn internetconnected things by 2020.

Telematics a key enabler for preventative maintenance Advances in telematics technology are at the heart of the IoT for field service management revolution.

Once regarded as being the basis for tracking the location of vehicles, today it can be extended to connect the entire service workflow. Indeed, telematics today can share realtime information and connect mobile workers in the field with the back office, customers and equipment.

When combined with deeper analytics systems, telematics-driven connected workflows offer a plethora of benefits to both construction businesses and equipment rental companies. One such benefit is switching the service model from a reactive, break-fix workflow to a preventative and, ultimately, predictive model. These advanced workflows require a tight connection from

the asset/equipment to the service management system and telematics is the best candidate for providing this connection.

How it works Many assets and equipment today are equipped with sensors, connected to cloud software, that can monitor telematics data. This data can include machine operating hours, the state of the motorised parts and health information such as faults and diagnostic codes. Any unexpected behaviour is visible remotely to the service or rental provider, including its exact location. The equipment sensors can automatically trigger a service call when it needs something repaired or is due for maintenance.

The future of operational efficiency lies in detecting and performing maintenance before failures occur.

That way, service/rental organisations are not forced to react to emergencies after equipment has failed and construction businesses don’t have to deal with the more serious damage that can occur as a result of the

domino effect a single failure can cause.

This proactive way of working allows service and rental companies to control their operations and solve equipment problems faster, whilst the construction company can get the most out of the equipment.

What’s more, adopting a preventive and predictive approach to service and maintenance as opposed to a break/ fix service structure maximises the long-term usage. In the event of a vehicle, asset or piece of equipment breaking down, real-time intelligence about its location enables businesses to retrieve it for service immediately whilst a nearest available asset can be identified and reallocated, helping to minimise downtime. Furthermore, many businesses track service vehicles alongside assets and they can often be viewed on the same map. Identifying the nearest service technician to a broken down asset therefore becomes a simple task and this can improve response time considerably.

There are still many advantages to deploying telematics to connect assets even with break-fix workflows.

Understanding the condition of the asset before deploying a technician will improve first time fix rates; which will drive higher customer satisfaction. This is often the first step in changing the service model.

Connecting assets from multiple suppliers A challenge many construction businesses need to consider is how to connect to assets from multiple suppliers. Each supplier often has their

own proprietary systems that have different data formats which make integration difficult and time consuming.

The construction industry is starting to incorporate data standards that help alleviate much of the effort required to establish connections to the assets.

One such standard is the Association of Equipment Management Professionals (AEMP). A standard protocol was recently adopted that allows for fault code and other information to be shared in a standard way. This standardisation helps create more interoperability in the market and will surely be a boost to connected workflows in this market.

Maximise equipment utilisation across job sites with telematics The case for telematics technology to considerably improve the utilisation of assets and equipment across job sites is a simple one. Businesses can monitor the location of their assets on demand and generate utilisation reports to determine which are being under-utilised across sites. With this information, they are better placed to determine how best the assets should be deployed, if any should be reallocated, which types of equipment customers need most and compare owned to rented asset usage – streamlining the efficiency and profitability of their assetdependent business.

Having the ability to monitor assets and equipment on demand can also help jobs remain on track. If an urgent job comes in that requires an asset be reallocated immediately, any idle units or those closest to the construction site can be identified and reassigned to ensure

delays are not incurred.

What’s more, the ability to create accurate utilisation reports for each job site can help businesses to improve job bids and win more business.

Knowing the actual hours it takes to build a parking lot of a particular size or a certain scale of building helps companies to bid competitively and can mean the difference between winning and losing a contract.

Prevent the loss or misuse of assets and equipment A major challenge construction businesses face is the loss or theft of expensive equipment due to it being abandoned, misplaced or stolen once it reaches a job site. Over 10,000 high valued construction assets are reported as stolen annually, causing the annual cost of construction equipment theft to reach $1 billion.

Businesses equipped with telematics can significantly maximise recoverability rates. They are able to quickly locate their assets, eliminating time spent searching for missing equipment and avoiding the need to replace lost assets.

Many telematics solutions incorporate functionality that ensures that if an asset or piece of equipment changes location or has been disconnected, an alert will be emitted and the equipment or branch manager will receive an exception notification. This helps them to minimise misuse and theft as they can locate the asset immediately and act quickly to retrieve it.

The future of telematics The future for telematics is certainly bright. As businesses within the construction industry increasingly look to extend their telematics capabilities to track their vehicles, workforce and assets, investing in telematics driven connected workflows, combined with deeper analytics systems, will reap many benefits. We will see businesses switching the service model from a reactive, break-fix workflow to a preventative and, ultimately, predictive model. What’s more, businesses ultimately need to ensure that they are allocating and using their equipment across sites as efficiently as possible.

Those that do not have the visibility into the status of their assets to determine this will be much more prone to costly inefficiencies. These advanced workflows require a tight connection from the asset to the service management system and telematics is integral to providing this connection.

F E AT U R E

THE DIGITISATION OF THE CONSTRUCTION INDUSTRY

To explore how the fourth industrial revolution will have a positive impact on the construction sector, we speak with Lucien Wynn, Chief Operations Officer at Olive Communications, a leading managed cloud communications provider.

The future of the construction industry is a highly debated topic. In a world where embracing disruptive change is a necessity to survival, it is widely accepted that the construction sector has been slow to adopt.

McKinsey’s report – Imagining Construction’s Digital Future – is a great example of the discourse on the digitalisation of the construction industry.

The report sets the scene well.

Cost and schedule over-runs are the norm, while labour productivity has not kept pace with economic productivity.

McKinsey's authors accept there will be many technical challenges when rolling out new technology at scale across a complex supply chain, but they also note that it is unlikely that these shifts will get easier in the future, due to the sheer complexity of projects and the unforeseen issues that inevitably arise with each one.

There are, however, numerous technologies available to help companies to digitally transform, with many more in the pipeline. Embracing these technologies, with a positive mindset towards change, will be key to success and widespread adoption and ensure that the construction industry

26

stays in line with its vertical peers.

Technology in a sustainable world The growing demand for environmentally sensitive ‘green’ construction solutions means that the industry will further look to implement processes that are resource-efficient and environmentally responsible to ensure lifetime sustainability of the building.

These processes include: building operations, site design, maintenance, repair, and demolition with the least harm on the environment.

Some examples of innovative technology that will continue to drive sustainable construction include selfpowered, ‘architectural solar system’ buildings, zero energy buildings, sustainable indoor environment technologies (building, heating and cooling technologies) and water efficiency technologies, using smart devices.

The focus is on efficiency: smart use of energy, water preservation and reduced waste and pollution. The aim is to ensure that the chosen materials are cost-effective, durable and will reduce the impact on the environment

and people. Also, whilst a lot has been written about the IoT (internet of things), there are some clear examples of how using smart devices can create greener, more efficient, zero carbon environments plus ensuring that working spaces are fully optimised and effective at the right times.

Collaboration for a paperless future During the implementation of these projects, collaboration of all parties – the construction engineers, the client and the architects – is a must throughout. Collaboration is essential to heighten productivity and efficiency and is fundamental to success. Collaborative technologies are a proven way to improve communications, increase efficiency and ensure that governance, health and safety and compliance are adhered to. Notwithstanding, the future is paperless and transitioning to less paper is a protracted process, especially in a paper-heavy business like construction. By fully embracing these technologies now, companies can futureproof their business against uncertainty, change and competition.

Whilst delivery over the cloud has created enormous changes to working life and the ability to share, we are also seeing some of the Tech Titans applications starting to be adopted.

For example, we are seeing global enterprises starting to fully embed Microsoft Teams (the hub for teamwork in Office 365) into the workplace.

This platform spells a new age for collaboration and sharing by allowing teams to communicate globally, over a single space and fully utilising the Microsoft 365 suite of applications.

Mobility, agility and better safety Empowering the workforce to work remotely, flexibly and more adeptly will be ever more important over the coming years. Increased uptake of cloud services will drive efficiency and increase productivity.

This will be enabled by using construction management solutions that incorporate electronic human resource management tools such as training and competence software, online site induction software, materials management plans, risk, incident and hazard analytics that can capture and analyse big data and health and safety information management tools, such as Safety Bank. This in turn will aid informed decision making for the future and continued business success. Most applications have a mobile first strategy and the FM world have led the way, through companies like Infor and Click, in terms of remote working, especially when scheduling large volumes of mobile engineers.

Automating to enhance the customer experience AI, bots, and chat options enable businesses to digitalise and automate

the front office. When your customers want to speak to someone, they can.

Likewise, should they want to interact online, they can. Automation should be valued as part of a positive experience so that your customers receive a service that is expected through the solutions that they choose to interact with, at all stages of their journey with your organisation.

For example, construction businesses can harness the power of automated technology to be leaner and more cost efficient through asset management software and the use of digitally enhanced mobile devices to better manage and track planned works; automated processes driving self- service; and leading-edge APIs that integrate different stakeholder systems and share vital information.

up to 600,000 jobs in the construction sector could be replaced by new technology in the next two decades.

To keep the existing workforce, there will need to be an emphasis on reskilling workers to enable them to manage the technology that replaced their original role.

If workers are reskilled, says the report, the construction industry could provide a projected figure of £25Bn per year to the UK economy by 2040. But this will only happen if the sector reskills to move to industry 4.0 and embraces productivity-improving technologies. By proposing such large-scale reskilling, with a major monetary injection into the economy, Mace’s report helps to reimagine construction’s digital future, with technology and skilled people central to success.

An empowered workforce in a skills shortage industry

Technology for efficiency, technology for the future

It has been predicted there will to be a shortage of skilled labour in the construction industry and the supervisors to manage them.

This means that the industry will inevitably require new ways of thinking and working.

One executive I spoke to commented “There are undoubtedly many pressures when it comes to sourcing construction talent and skills. In the UK, the potential labour skills shortage as a result of Brexit will only compound the pressure. An estimated 50% of EU labour is set to return to Eastern Europe. This means that highly skilled people (and those most likely to stay in jobs for three to four years) will leave the country. However, a younger emerging workforce of Gen Zs and millennials is likely to subside any negative impact.”

Mace’s report, Moving to Industry 4.0: A Skills Revolution, claims that

Whilst the BIM initiative has gained much media attention over the last few years and the internet of things (IoT) is undoubtedly a huge opportunity (sensors in buildings for example), it is acknowledged that you have to invest in both the technology and training and skills development for your people.

What’s happening right now in the world of digital technology for construction should inspire greater adoption of digital transformation but getting the right blend between technology, people interaction and behaviour is a must. It can be challenging to shift the cultural mindset of your workforce, to first accept and then adopt these new ways of working but, once this challenge has been overcome, the rewards and benefits that new technologies can bring to a construction company will make the time spent on adoption worthwhile.

27

AN INTEGRATIVE MACHINE LEARNING METHODOLOGY FOR OCCUPANTS’ BEHAVIOUR PREDICTION: AN ATTEMPT TO MINIMISE THE ENERGY PERFORMANCE GAP

28

Artificial intelligence has been at the centre of many media reports recently and a researcher at the University of Huddersfield is working on a project which will demonstrate how it can be a better way to better predict building energy usage.

Rima Alaaeddine is a PhD researcher within the University’s School of Art Design and Architecture. Her research aims to combat and minimise the ‘energy performance gap’ and could benefit the building sector at a time when there is increasing pressure on industries around the world to conserve their energy consumption.

“My research will employ a branch of Artificial Intelligence (AI) entitled Machine Learning” said Rima.

She explains how by employing machine learning techniques are capable of handling complex and nonlinear problems and can offer more accurate predictions on occupants’ behaviour. Rima’s project is already receiving national recognition. The 27-year-old researcher was shortlisted from hundreds of applicants from across the UK to present her research in Parliament, as part of the annual STEM for BRITAIN competition, to a range of politicians and a panel of expert judges.

In this article she tells us more about the research and its results.

Building energy simulation models are imperative for the planning, optimisation, and energy performance prediction of buildings. Due to the high level of complexity involved in the process and the pervasiveness of large number of interdependent factors and constraints, as well as the need for advanced mathematical knowledge, achieving a truthful simulation of real-world building performance tends to be challenging.

This challenge also lies in the limitation of present building energy simulation models to include occupant behaviours thoroughly. Most predictive models for building energy performance take occupants into account by prefixed values, deterministic scenarios, and predefined schedules. Consequently, limitations in the ability to predict occupants’ behaviour accurately is partially responsible for the building energy performance gap between predicted and actual building performance. For this reason, it is important, when estimating the building energy performance, to take into account occupant behaviour.

Bridging the energy performance gap is a viable key for energy, design, and construction firms’ decision-making

mechanisms, which support exploring various energy options and establishing more reliable energy predictions.

A need arises to predict energy performance with consideration to occupant behaviour. The research aims to address this need and the challenge of the energy performance gap, through providing a better understanding of occupants’ behaviour, and attempting to predict its impact on building energy performance.

The research proposes a novel methodology based on a probabilistic model built on the basis of knowledge derived from occupant behaviour. By employing machine learning techniques, which are capable of handling complex and non-linear problems, more accurate predictions of occupants' behaviour can be obtained using prior knowledge of occupants to provide insights and defined relationships. Different machine learning algorithms are employed to predict different human actions (ie: opening and closing of windows, shades control, use of appliances, HVAC and thermostat control, movement). This allows the inclusion of behavioural trends, patterns and their impact on energy consumption, which can be further employed as occupant behaviour-specific inputs into constructing the proposed predictive model. The predictive model is then used for co-simulating to predict building energy performance, which eventually leads to more accurate prediction of the building energy performance, thus minimising energy performance gap.

The research is comprised of the following setups: 1. Theoretical Setup: This stage provides insights to the occupant-related parameters affecting energy performance identified through previously conducted research and case studies. The stage is summarised as follows: • Identifying the uncertainties and implications of occupants’ behaviour on energy performance prediction.

• Defining the inputs related to occupants’ behaviours “occupants’ behaviour markers”.

• Evaluating the machine learning algorithms for each of the defined occupants’ behaviour markers by reviewing their application in building energy performance prediction, and which algorithms and techniques can be assessed to determine the best fit to each behavioural marker.

The output of this stage is the input for next stage in which the model will be built.

2. Practical Setup: Data will be will be acquired, which will be used to build the Knowledge Base. Selected educational buildings will be used as case study for our research. This stage can be summarised as follows: • Advanced evaluation techniques will be employed to identify behavioural trends and patterns.

• Different machine learning algorithms are employed to predict different occupant behaviour markers.

This allows the inclusion of the behavioural trends, and their impact on the energy consumption, which will be further employed as occupant behaviour-specific inputs into constructing the proposed predictive model.

• A probabilistic modelling tool to co-simulate current building energy simulation tools will be developed.

• Model is validated using the empirical data set from the case studies; the model is then tested and compared to the real case scenarios.

The research attempts to provide quantifiable benefits in terms of energy savings. By providing more accurate predictions, studying different alternative design, and operation scenarios, optimised solutions and improved decisions can be made.

This promotes energy efficiency in buildings and guide occupants to more responsible behaviour. Thus, a step towards meeting energy efficiency targets. By using machine learning techniques, we will be able to develop a tool that will quantify the impact of occupant behaviour on energy consumption, thus providing more accurate predictions and consequently, bridging the energy performance gap.

This research will be further developed by constructing an expert system that can be used by designers, architects, construction companies and other decision makers, in which a user will provide building-specific data, and (current or prospective) occupants’ characteristics, and the system will return an assessment report highlighting future energy demand, parameters that significantly affect energy consumption, and possible intervention strategies that might reduce the energy consumption.

As a conclusion, this research offers an integrative machine learning approach that aims to provide more reliable energy performance simulation through the inclusion of occupants’ behaviour impact on the energy performance in the simulation model.

29

9-11 OCTOBER | NEC | BIRMINGHAM THE UK’S LARGEST BUILT ENVIRONMENT EVENT

9 SHOWS UNDER ONE ROOF

2018

EVENT HIGHLIGHTS INCLUDE The ‘Future of Construction’ is UKCW’s 2018 theme, exploring the latest innovative ideas, products and systems

100+ product launches and creative ideas that will inspire construction professionals

ukconstructionweek.com

10,000+ innovative products and services will be showcased by 650+ exhibiting companies

#UKCW2018 @UK_CW

EXHIBITORS INCLUDE

BUILD SHOW HEADLINE SPONSOR

REGISTRATION SPONSOR

300+ content hours via CPD Hubs, Offsite Theatre, UKCW Stage, Regeneration Hub & Digital Construction Hub

HEALTH AND SAFETY SPONSOR

BEER FESTIVAL SPONSOR

REGISTER FREE

THE CHANGING FACE OF CONSTRUCTION AT UKCW

Construction output is returning to growth, which is a welcome sign following a difficult start to the beginning of the year. Tooling, connecting and upskilling construction buyers and suppliers to handle this growth is the UK’s premier built environment event, UK Construction Week (UKCW).

Hitachi power tools, which is launching its new Multi Volt range; Trumpf, showcasing its latest highperformance wireless power tools; Karcher, bringing its new range of wet and dry safety vacuum cleaners; and OnLevel, with two new product launches.

Birmingham’s NEC between 9 – 11 October will be overflowing with more than 10,000 innovative products and 650 exhibitors, seminars, CPD sessions and endless networking opportunities.

A must-attend for anyone wishing to get ahead of their competition.

Other exhibitors include: Aggregate Industries, American Softwoods, Cemex, Glennon Brothers, Kessel, Kingspan, Quinn Building Products, The Concrete Centre, and Tradepoint (B&Q).

Future of Construction The ‘Future of Construction’ is UKCW’s theme for 2018 which explores the latest innovative ideas, products and systems in the industry.

The Future of Construction Hub, in collaboration with Birmingham City University, provides an immersive opportunity to discover digital construction, 3D printing, robotics, AI and AR and modern methods of construction.

An Innovation Trail takes visitors on a journey of the latest innovative ideas, products and systems from companies including: Gripsure, which is launching two new products at the show: Gripsure Ecodek and Gripsure made with Accoya; Soudal and its new Genius Gun expanding foam; Kensington Traders with its balustrade systems and anti-skateboard fittings; and Velux with its new intuitive smart windows and curved glass rooflight.

New products will be shown from exhibitors such as Hikoki, formerly

With so much to see and do at the show, use your time wisely and arrange a time and date to meet exhibitors via their profile page on the UKCW website.

Broaden your horizons Once the deals are made, visitors can get up-to-date on industry issues and business tips from leading industry experts.

• UKCW Stage hosts high-level discussions with speakers such as Barbara Res, the project manager behind Trump Tower; Lord David Blunkett; and Kunle Barker, property expert and TV presenter, leading the panel discussion ‘Political correctness has gone mad?’

• Infrastructure Hub in Civils Expo discusses enabling sub-contractors, and power for a cleaner, quieter world with speakers from Equality Gold and Intelligent Energy; • Regeneration Hub, sponsored by Easy-Trim, at the Build Show includes topics on the circular economy and the

future of construction skills post-Brexit with speakers from Arup and the Home Builders Federation.

• Timber Focus Theatre, supported by TRADA, at Timber Expo covers timber cladding and fire safety performance and making the right connection with speakers including Ramboll Engineers.

Free CPD sessions cover topics including the future of your construction performance – is data your friend? and Building Regulations – update postGrenfell. Seats for CPD sessions are limited, so booking is essential.

A Working at Height CPD hub will be supported by the Access Industry Forum, and health and safety CPD sessions are available from OM Group’s stand. A separate CPD programme is also being run by the BRE Academy, covering topics such as BIM, ethical labour sourcing, offsite construction, urban planning and design, and more.

Other show highlights include: • UKCW Role Models winner announced on 10 October; • IEMA sustainability conference; • Confederation of Timber Industries (CTI) Time for Timber workshop; • The Institute of Civil Engineers ‘Save Civil City’ challenge; and • The Beer Festival, sponsored by Velux.

Get your free visitor tickets from www. ukconstructionweek.com and keep upto-date via the website and on Twitter at @UK_CW or using the hashtag #UKCW2018.

F E AT U R E

HOW CAN CONSTRUCTION TEAMS FUTUREPROOF THEIR BUSINESS? Simon Aldous, Head of Channels EMEA at Dropbox It is considered one of “leastdigitised industries in the world”. And yet, according to McKinsey, there’s scope to add as much as $1.6Tn to the value of the global construction industry – or about two per cent of the global economy – solely by increasing business productivity.

The good news is that we are increasingly seeing more construction users around the world beginning to experiment with digital solutions. This means that today more teams than ever use cloud-based solutions to support end-to-end projects and realworld collaboration.

They open, edit, and share thousands of files, while using the solutions at their office, on their mobile devices, or on site.

This goes beyond convenience.

Cloud-based solutions can revolutionise any modern business, and can often be the make or break element. This is especially true for older and more established industries such as construction, where many business leaders instinctively revert to tried and tested solutions and approach new business tech with caution.

Below, I’m looking at three reasons why business leaders shouldn’t shy away from new tech and why in fact, integrating cloud-based solution can future-proof your business: • Increase your Return on Investment (ROI): Moving to a cloud-based solution can significantly

32

increase a company’s return on investment – sometimes even up to 245% ROI – such as when EJ Prescott transitioned from papers to Dropbox. Construction teams have relied for too long on paper photocopies, pen and pencil mark-ups, scanning and emailing documents to submit bids, and it is now time for them to begin exploring new, more efficient solutions.

• Give your teams time back: Many teams don’t often realise their untapped potential until after they have made a change. Sometimes, moving to cloud-based solutions can free up over 500 hours of project management time, allowing teams to focus on providing better service to their clients. Last year alone, construction users and teams, in collaboration with architecture and engineering companies, created and saved more than a quarter of a billion files in Dropbox. That translates to roughly 25 million files per month or 800,000 files per day. Saving and editing this in the cloud rather than using the email or other solutions to share various versions of these documents saves teams tens of hours per year!

• Streamline your collaboration processes: Collaboration is at the heart of every efficient team.

For users in the field, performance loading large files has improved dramatically after incorporating

cloud-based solutions. Meanwhile their collaboration with subcontractors, partners and clients has been streamlined and the frustration of dealing with unreliable Internet connection has disappeared.

Today, AEC industries are undergoing a period of digital transformation marked by new technology. As part of this, content and speed are two emerging elements that form the common thread amongst AEC industries. Content is becoming richer, more complex and sophisticated, while the pace of business is faster than ever before.

To stay on top of competition, the need to access and share large files, work collaboratively internally and externally, is becoming the normal way to do business.

Ultimately, we want to see more construction companies learn from pioneering construction firms that aren’t afraid to do things differently – such as Built, which uses Dropbox Business to set itself apart from competitors.

The construction industry’s adoption of new technologies has historically lagged behind other industries, but we can make a U-turn on this.

33 

F E AT U R E

FUTURE WORKING, FUTURE RISKS The speed at which technology and the way we work are changing has led many to refer to our current period as the ‘Industrial Revolution 4.0’.

Automation, artificial intelligence and a working style that can have more impact on our mental than our physical health have all combined to create major changes in the everyday life of the working person.

Since the Health and Safety at Work Act was introduced in 1974, fatal and non-fatal workplace injuries have dropped by 85% and 58% respectively – but historical ignorance of dangerous materials means that thousands of people still die every year from illnesses that could have been prevented. With new materials and technologies being introduced all the time, it is vital that we continue to educate ourselves on the physical and psychological risks that come with development.

34

Today’s Workplace In the British Safety Council’s ‘Future Risk’ report, business psychology company Robertson Cooper’s Sir Cary Cooper CBE says “The future of work, at least for the next ten or 20 years, was set by the recession. It has had a prolonged impact that has created a workplace where there are fewer people doing more work.”

The report also mentions Britain’s ‘gig economy’ – a culture of shortterm and zero hours contracts leaving workers with a lack of security. The UK job market has become more fluid and more freelanced, raising questions about whether the skills currently required for modern working will still be relevant in decades to come.

While workplaces have become safer and more risk-aware in recent

years, the psychological impact of job instability and longer hours worked is taking its toll. The UK lost an estimated 12.5M working days to poor mental health in 2017, accounting for almost 50% of all absences. This marks a clear need for improved wellbeing strategies, not just to tackle existing issues but to safeguard for the future.

Automation, AI and ICT The Health and Safety Executive have indicated that 11M jobs may become surplus to requirements in the next 20 years as a result of automation in industries like automotives and electronics. Current technology in many cases involves what some refer to as ‘co-bots’ –robotics and automated processes that still require human collaboration.

As well as minimising opportunities

for human error, new technology can allow dangerous tasks to be taken off an employee’s to-do list. From a health and safety perspective the minimising of risk is key, but for many workers the fear of being replaced by machines will only continue to grow. In addition to this, questions are raised about the materials we work with. It seems unlikely that another asbestos crisis could happen now, but potential risks associated with new nanotechnologies need to be pre-empted and prevented.

Other technological changes in our working lives have come from ICT – portable technologies and high-speed browsing that mean many workers never truly ‘switch off’ when their working day is done. For many, the work-life balance is becoming poorly weighted, while concerns about job security can drive staff to overwork themselves and prevent them from expressing concerns.

Mitigating Risks According to research by REBA (the Reward and Employee

Benefits Association), the number of organisations with a wellbeing strategy grew by 20% last year to a total of 45% overall. Employee Assistance Programmes, health screenings and discounted gym memberships are commonly being offered to try to boost staff morale and wellbeing, but businesses must take a forwardthinking, people-centred approach to mitigate future risks.

While flexible working in the extreme can feel insecure, an element of flexibility helps to provide a better work-life balance and increase feelings of trust between employers and employees. The value of supporting employee mental health has been proved, with a wellbeing project from South Liverpool Homes decreasing employee absence by 54% in its first year and saving them £25,000. Somerset County Council’s £500,000 stress reduction programme is also a wellpublicised success, saving them £1.9M over a three-year period thanks to increased staff engagement, attendance and productivity.

More than half of UK employers currently have no wellbeing strategy in place, let alone formal mental health training provisions, something that will have to change to ensure the ongoing protection and support of the working community. As well as keeping up with developments and training in physical risks, employers must start to view the mental health of their staff in the same way they do the physical.

“Whether it’s 24/7 working, the ‘gig’ economy or the drive towards automation, our mental and physical health, even our very sense of self, is at risk,” says British Safety Council Chief Executive Mike Robinson.

“Safety has not gone away either in the future world of work, with the physical risks of working in close proximity with robots calling for new thinking in design, training and regulation.”

35

EMBRACE DIGITISATION TO KEEP PACE WITH CUSTOMER EXPECTATIONS In a modern-day business environment, where new digital developments are constantly emerging, it can be difficult to keep up to speed with new technology and what it can offer. With pressures on time and resource, businesses can be forgiven for their reluctance in embracing new forms of digitisation in favour of traditional working methods which have always proven effective.

Through years of working with customers in the construction sector, Wincanton has insight into how embracing digitisation can be key to overcoming challenges in the supply chain – from cutting costs to streamlining busy delivery schedules.

Digital tools can help businesses in the construction industry keep pace with high customer expectations for order fulfilment, the benchmark for which has been set in fast-moving and sophisticated retail industries.

36

Take, for example, the challenges of managing the delivery of materials to an infrastructure project. A digitised delivery management system – an IT system which allows contractors to control the flow of deliveries into a specific project – can streamline the scheduling process, reducing delays (and often the failure to meet KPIs), avoiding vehicles blocking the road and preventing others from arriving and unloading.

The online delivery management system allows the main contractor to manage the flow of vehicles and materials into the project and coordinate which parts need to arrive as priority and at what time. This means expensive machinery is not being under-utilised, vehicles do not get stuck in a congested bottleneck and suppliers know exactly what time to arrive on site. Adopting new technologies and IT systems carries

a cost of course, but the benefits to implementing them within the supply chain have long-term and measurable cost benefits.

Another example of how digitisation can improve the supply chain is by allowing greater transparency in the journey of products through the chain. Contractors are increasingly looking for traceability on their products but the way products and services have historically been procured does not allow for this kind of tracking. Digitisation can create a common language through the supply chain in which various parties can communicate with each other, reference components and follow products all the way from beginning to end. It is this visibility that gives contractors the ability to identify potential issues before they happen and avoid delays.

Digitisation can also help to

transform the planning of materials and people needed in a construction project. Building Information Modelling (BIM) incorporates forecasting services to allow contractors and project managers to accurately plan for projects. The BIM model can help users predict the activities throughout the construction of the project, which allows contractors to accurately pinpoint what needs to happen in each phase. This creates a complete schedule, showing what needs to be done to deliver the project within the allocated timeframe and predict what material components will be needed for the construction.

BIM can also take plans off the page and into a 3D realm through digital image mapping. It acts like an architect’s sketch of a building in 3D so you can virtually ‘walk through’ the design and look of a building.

These new, disruptive systems can

completely change the way the industry approaches projects and even helps communication with customers. Crucially, all of these processes are contained within one smart system which saves time and money and is easily accessed by various members of the team.

Digital tools have become vital elements in ensuring the supply chain delivers on time and on budget. Through reducing costs and improving efficiency they can make a positive impact on the bottom line of a construction project. Perhaps most importantly, they can enable contractors to keep their clients happy, by delivering on promises and communicating well; the ability to highlight and tackle a problem in the supply chain before it happens can make the difference between meeting a Service Level Agreement or facing a financial penalty for failure.

Construction has often been seen as lagging behind other industries when it comes to adopting new technologies to streamline the supply chain. But, as more businesses see first-hand the benefits that digitisation brings, the more compelling the case for adoption for those that remain, and the more opportunity the construction industry has to demonstrate commitment to meeting customer expectations. By taking up the digitisation of the supply chain, the construction industry can demonstrate how they are open to innovation and dedicated to meeting customer expectations.

For more insight from Wincanton into the digitisation of the supply chain, read their report here https://www. wincanton.co.uk/innovation/digitisedsupply-chain/

F E AT U R E

CONSTRUCTING AND FINANCING A CLAIM AGAINST THE TRUCK MANUFACTURERS CARTEL

38 

Recent European Commission antitrust decisions have resulted in users of trucks and lorries, including those in the construction and building sector, being able to claim substantial damages from the largest European truck manufacturers. Litigation funding can enable claimants to recover what is due to them with no cost or risk to their business.

We speak with Rosemary Ioannou, Managing Director, Vannin Capital.

The Decision The European Commission has issued decisions (the Decision)

against all Europe’s leading truck manufacturers for their participation in a 14-year cartel. The cartel illegally coordinated truck prices throughout the EU and delayed the

introduction of emission-reduction technologies, resulting in the European Commission’s ruling of anticompetitive behaviour.

The consequences of the Decision are such that all truck users in Europe, including those in the construction sector, are able to claim damages against the truck manufacturers identified in the Decision for the damages they have suffered as a result of the cartel’s wrongdoing.

The Decision is a key starting point for any damages claims by truck users because it can be relied upon to establish liability against truck manufacturers – one of the key battlegrounds in bringing a claim.

Thanks to the European Commission’s Decision, truck manufacturers cannot deny that their unlawful anticompetitive behaviour took place.

Since liability has been established by the Decision, the level of damages to be paid is likely to be the key test in any claim brought. This being said, given that the cartel lasted for 14 years across an entire continent, the damages that may be claimed by users of trucks are likely to be significant.

Claiming damages with legal finance To claim damages against the truck manufacturers for losses suffered, truck users will need to bring a claim in court against the manufacturers. The costs of bringing such a claim can be significant and can often be a bar to companies bringing claims.

The recent growth of litigation funding means that the costs of bringing an action should not prevent claims being brought. Litigation funders fund the costs of bringing claims on behalf of claimants in return for part of the damages secured.

Litigation funding is provided on a fully non-recourse basis, meaning that the costs of the claims are paid in full by the litigation funding – including lawyers’ fees and associated costs.

The claimant pays nothing but is still able to pursue what is often a very valuable claim.

If, ultimately, the claim is unsuccessful, the funder loses its investment and the claimant makes no financial contribution to the claim nor any reimbursements to the funder for costs invested. The entirety of the risk is with the litigation funder. If the claimant wins and there is a recovery, the funder receives repayment of its investment and a return on that investment from the damages paid to the claimant. The return on investment received by the funder is determined

on a case by case basis.

In the context of claims against the truck manufacturers, Vannin Capital is working with a law firm, Collyer Bristow, and advisory firm, Grant Thornton, to bring a group action on behalf of claimants affected by the truck manufacturers’ behaviour. Being part of a group such as this enables claimants to benefit from funding while also enabling them to benefit from economies of scale by sharing the costs of bringing the claim with other businesses. This reduces the level of funding required for each individual claim and therefore reduces the return payable to the funder from any damages received by each claimant.

typically would be considered as a necessary cost liability.

Moving forward The claimant group that is working with Vannin Capital, Collyer Bristow and Grant Thornton consists exclusively of end users of trucks. We are engaging with many companies across Europe with significant claims, often exceeding €10M. This underlines the potential value of these claims to claimants and the benefits that litigation funding can bring to businesses considering whether to bring them.

Delivering value for construction businesses Litigation funding enables companies to view litigation as an asset rather than a liability. Using funding to bring meritorious claims, such as the one construction businesses which use trucks have against truck manufacturers following the Decision, can generate value for companies without the need for them to invest their own capital.

The result is that any damages recovered from claims will have a direct benefit to profit and loss accounts, balance sheet value, EBITDA and cash flow, without any need to account for the potential costs of bringing claims. These clear accounting and financial advantages have resulted in executives increasingly feeling a duty to their shareholders to bring these types of claims where the financial investment requirement has been taken away and the potential upside rewards are significant.

In a time where many businesses, including well-capitalised firms, are struggling for liquidity and seeing their margins being increasingly squeezed, bringing a claim on a fully funded basis creates real value for companies – enabling them to maximise profitmaking potential.

For construction businesses, for whom transport and infrastructure costs represent a significant part of their ongoing business costs and liabilities, bringing a claim against truck manufacturers on the basis of the Decision, on a fully funded basis, to recover losses which may be very substantial damages should be viewed as a benefit for those companies. There is an opportunity to generate real value from an asset from an area of the business (transport and infrastructure) which

39

OFFICIAL MEDIA PARTNER

40 

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

@