UKCE March by BIP Solutions

MARCH 2017

FLEET IN FOCUS BVRLA condemn fourfold tax hike.

RISKY BUSINESS Dr David Hancock discusses the outlook ahead for UK construction.

STATE OF PLAY Alan Muse on the Great British BIM journey.

PAGE 15 UK INFRASTRUCTURE SHOW PREVIEW

WELCOME to the latest edition of UK Construction Excellence – celebrating the very best in British building. There’s reason to be cheerful this month. According to RICS, the UK construction industry - so uncertain in the days immediately following the EU referendum - has reclaimed ground previously thought lost to Brexit. Both employment and workload expectancy have returned to pre-referendum levels,

demonstrating the resilience of suppliers, contractors, engineers and architects across the country. It’s an encouraging trend, and as the Government doubles down on its commitment to large-scale infrastructure schemes, the hope is that this will continue far beyond the spectre of Brexit. Weighing in with expert opinion is Dr David Hancock, Head of Construction at the Cabinet Office, and Alan Muse, Global Director of

46 Evolving Student Living Andrew Kitchen considers the changing face of student accommodation.

Built Environment at RICS – both of whom speak exclusively to UK Construction Excellence about innovation and the outlook ahead for the industry as a whole. All this and more can be found inside, along with contributions from guest commentators and breaking news from Great Britain and beyond. Robert Atherton Publications Editor

48 The Challenges of Community Construction Jason Ruddle on the importance of preparing for ‘what if’.

80 Office Space The pre-letting trend taking Dublin by storm.

Publications Editor Robert Atherton

General Manager Ian Parker

Designer James Ormerod

Production Manager Gareth Trevor-Jones

Publications Officer Abigail Burr Sales Administrator Sarah Livesley

Creative Digital Seamus Norton

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How companies can add social value around their developments Mark Wells, a Construction Project Manager at Carillion has been seconded to Business in the Community as a Business Connector for Wandsworth in south London, where Carillion is delivering Phase I of the Battersea Power Station redevelopment. Mark tells us how building cross-sector relationships in the community can create long lasting social value. INCREASINGLY construction businesses are doing more than corporate social responsibility and seeing that the deeper they engage in the community, the greater the value for both. I’ve been working as a Business Connector for 16 months and have learnt some key ways for businesses to engage meaningfully with the communities they operate in. Get to know your community As I settled into my secondment and got to know people, I saw an opportunity to increase the interaction between businesses and the voluntary and community sectors. I arranged a day of activities bringing together the community with the aim of discussing issues that matter to them, building trust and local relationships. Around 200 local people attended. These included businesses, charities, the local authority, police and educational sectors who all rubbed shoulders at a community centre in Battersea. A school choir, two singers and a street poet and an art exhibition

hosted by a special needs charity supplied the entertainment, whilst food stalls from three commercial and two social enterprises kept everyone well fed. Waitrose supplied refreshments and we even got the London Scouts to lend us their PA system! More than a dozen local community groups and businesses exhibited their work and I’ve since heard that our informal event spawned a number of new and sustainable relationships. Link in with local networks Many of my local contacts have come through being part of my local Chamber of Commerce – a great way to get close to local firms and suppliers. I’ve also found it really useful to work with outreach organisations. One fantastic local organisation I’ve discovered is Carney’s Community, which works to intervene early with youngsters who could end up in gangs or who may already have been involved in criminality. The organisation, which was inspired by Mick Carney, the boxing legend, has

motivated and turned around many lives through engagement with boxing. Carney’s runs a scheme, Fit for Work, which has supported a number of young people into employment. After meeting their employability manager I gained an understanding of the types of courses and opportunities they were looking for and was quickly able to match them up with South Thames College in Tooting, who told me of the array of training and employability training courses that they were running and the problems they were having in finding suitable candidates. Simply introducing these two organisations means that young people at Carney’s will now be coached to raise their levels of ability allowing them to enrol on courses at the college, and then move on to the apprenticeship programmes. Get involved in careers evenings One of the significant areas of need, and opportunity, I’ve found as a Business Connector has been around the aspirations of local schoolchildren. I worked with Harris Academy in

Battersea to arrange a series of career evenings with a wide range of local businesses representing different aspects of commerce, and careers. Hanne & Co, a large law firm attended an event and were able to give invaluable advice on how to enter the profession, offering work experience, mentoring and guidance. Carillion, the company I was seconded from, is working in the heart of this borough and was able to explain the various roles available in a large support services and construction company, outlining to the students a pathway for securing these careers. Maximise skills-based volunteering Throughout my secondment I’ve seen how there are many ways to support charities that don’t involve opening a chequebook. Generate are a charity supporting people with learning disabilities to live full and productive lives. In 20 years they’ve developed a wide range of projects and were in desperate need of a website refresh that would help them communicate

their services. Previously I’d met the managing director of a local website design company called Golden Boy Media who were happy to have a look and an initial meeting with Generate was agreed, which has flourished into a pro bono relationship to modernise the charity’s website and train their manager in how to configure and populate it with updates. The site is now complete and the feedback from all the stakeholders involved has been very positive. I’ve also seen how using your employees’ skills as a mentor can be very powerful and help to turn around a life. Fast is an outreach programme on the Patmore Estate of Battersea, a disadvantaged area with significant gang problems. Their outreach workers had been supporting a young man called O’Neil. He had shown an interest in photography, which the charity had developed by letting him take the pictures at events that they had held, with some excellent results.

Through this O’Neil was persuaded to enrol for a photographic course at a local college. The outreach workers contacted me to see if there was anything I could do for him to help keep him focused. I met with a professional photographer, who I had got to know through networking events, and who immediately agreed to be his mentor. The support offered has been through guidance and advice on the industry, equipment and tricks of the trade; the photographer has agreed to take O’Neil with him on photographic projects. We have also arranged a work experience opportunity with a local studio. Today O’Neil is progressing well and looking to set up his own business and expanding his photographic portfolio. An inspiring story which I’m proud to have been a part of. These are just a few examples of how construction companies can use volunteering to get closer to the communities where it works.

ADJUDICATION AND ORAL CONTRACTS It is now well known that an adjudicator has jurisdiction to deal with disputes that arise under oral construction contracts for construction operations as defined in the Housing, Grants, Construction and Regeneration Act 1996 and amended by the Local Democracy, Economic Development & Construction Act 2009. This is all great in theory but having “bought and worn the T-shirt” on a number of occasions, I can tell you that in practice it is far from easy to determine what the terms of an oral contract actually are. This is particularly the case in an adjudication confined to

a 28-day timetable where you are presented with conflicting combatant witness statements, more often than not drafted by lawyers rather than the witness him or herself …..but that’s a different topic for a different article to be written on a different day. In contract or no contract arguments, more often than not, a meeting or hearing is needed to listen to and question the witnesses before you can begin to decide whose version of events you might prefer. But then you might find that the witnesses have been coached within an inch of their lives and you are left wondering why the witnesses

don’t just sell their tools and apply for jobs on stage in the West End? OK, rant over now, the bottom line is adjudicators are being called upon to decide these sorts of cases but what happens when the Courts are asked to enforce an adjudicator’s decision(s) where the contract is alleged to have been formed orally? Generally speaking, where only two parties are involved in what is alleged to be a contract formed orally and services have been provided by one of these parties, the Court is very unlikely to find that there is not a contract in place. The position is somewhat different where there

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are arguments involving three or more parties and there is clearly confusion and conflicting arguments about who has appointed whom and who has provided services. This type of dispute came before the Court in Dacy Building Services Limited -and- IDM Properties LLP [2016] EWHC 3007 (TCC). The case concerns an application to enforce an Adjudicator’s Decision. The facts of the case are that Dacy became involved in providing building services in December 2015. The problem was that Dacy was initially approached by a company called HOC (UK) Limited (“HOC”) who were performing services as Main Contractor under a contract with O’Loughlin Leisure (Jersey) Limited (“O’Loughlin”). IDM Properties LLP (“IDM”) were acting as the Employer’s Agent under the Main Contract between HOC and O’Loughlin. To complicate matters further O’Loughlin was in a joint venture with a company called Fastmild Ltd (“Fastmild”) and Fastmild was a subsidiary of IDM Investment Holdings Limited. It was well known to Dacy that HOC was suffering cash flow issues and Dacy argued throughout the life of the adjudication that it never agreed to work for HOC and that it had, in fact, agreed to work for, and be paid by, IDM following an oral exchange between Mr Kiernan for Dacy and a Mr O’Loughlin, which was said to have taken place on 3 December 2015.

Regrettably, it appears that during the adjudication Mr O’Loughlin denied that any such agreement had been reached and it was always understood that Dacy would be working for HOC and not, as claimed by Dacy, IDM. The adjudicator was therefore left with conflicting versions of events as to which party had contracted with Dacy. Whilst there was no doubt that Dacy had supplied labour, plant and materials to the project, getting paid proved to be something of a problem. Dacy therefore withdrew its labour from site and commenced adjudication against IDM. From the outset of the adjudication proceedings, IDM challenged the jurisdiction of the appointed adjudicator arguing that as there was no contract between it and Dacy, the Adjudicator could not have jurisdiction. Although the appointed adjudicator decided on a nonbinding basis that an oral contract had been entered into by Dacy with IDM and awarded Dacy payment of its outstanding invoices, the Court was unwilling to enforce the Decision.

Sub-Contractor. Moreover, this was a case where there were two possible parties that Dacy could have contracted with and the Court was not prepared to summarily enforce a decision where such uncertainty existed. So where does this leave us? Well, in cases where there is an argument about whether or not there is a contract, a Court will almost invariably find that a contract has been concluded if services have been provided and will enforce an Adjudicator’s decision to this effect. However, in cases where there is uncertainty about who is the contracting party and the facts and evidence are either too complex or not persuasive, don’t be too surprised if the Court refuses to enforce an Adjudicator’s decision concerning an oral contract. Peter Vinden is a practising Arbitrator, Adjudicator, Mediator and Expert. He is Managing Director of The Vinden Partnership and can be contacted by email at pvinden@ vinden.co.uk. For similar articles please visit www.vinden.co.uk.

In reading the judgement it is clear that the Court readily accepted that Dacy had supplied labour, plant and materials and that HOC’s financial difficulties were well known. It did not, however, believe that an Employer’s Agent would readily accept responsibility to pay a

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Better recruitment of women is essential for laying the foundations of construction’s future prosperity THE proportion of women employed in the construction industry continues to grow – but clearly, much work still has to be done if we’re to turn a trickle into a flood. If you were to ask prospective female employees whether they would like to help shape the country’s future towns and cities, while building sustainable communities, many would reply in the affirmative. However, if you then told them that they could do just that in construction, then the response from a significant proportion would likely change. Suddenly they would think of demanding physical labour and 12 hours spent standing in the rain, or worse, a closed male environment where builders’ bums and wolfwhistling proliferate. Overcoming such long-held perceptions continues to be a challenge for the industry.

Across the UK, women still only represent 12% of construction professionals and 1% of workers in manual trades. Construction remains one of the most gender-segregated professions in the world. To try to claim anything different would be foolish, and there are still significant issues at grassroots level where career stereotypes must continue to be addressed. In fact, a recent study from the Scottish Funding Council found that 93% enrolled on construction courses are currently male. Worse for construction, that’s against the backdrop of a much greater gender balance being seen across the further education spectrum. Of course, the fundamental question remains, does this traditionally ‘macho’ world actually want more women in its midst? The answer to my mind is an emphatic yes, absolutely. Where there are ambitious women with great skills, then they will be welcome, and indeed very much wanted as part of a widely

skilled workforce. Nevertheless, an industry determination is one thing, but the process of actually getting women into jobs is another entirely. In 2017, we’re definitely seeing greater interest from women at all levels, but retaining that engagement and then harnessing it is the key issue as we look to turn courses into apprenticeships, and apprenticeships into long-term careers. Undoubtedly, public perceptions of the industry remain rooted in the past – but that’s changing, albeit slowly, helped by construction’s slow recovery from the recession. A previous lack of on-the-job training and apprenticeship opportunities has been gradually turned around as part of a diligent and wide-spreading effort to rid construction of its outdated image. The industry is changing, and it’s changing for the better.

Over the last ten years, there has been a conscious movement nationally towards getting more women interested in the sector, and I firmly believe that it’s working. At Esh Border Construction, we are seeing an increased number of women applying for roles, and in our Livingston office alone, we currently have four talented ladies whose career development is being supported by the company through HNC and degree courses, further learning at our STEM (Science, Technology, Engineering and Maths) Skills Centre, and more. They have already proved a valuable addition to the team. As a company, we’ve worked hard to provide opportunities for all in an inclusive culture, and I believe we’re now seeing the pay-off from that. The only criteria that we look for is an ability to do the job and an attitude of self-determination. Of course, working on site can be physically demanding, but that’s not all we do. It’s certainly

no reason to be put off by an industry that’s constantly searching for skilled workers of all backgrounds to fill a variety of key roles, including decisionmakers and buyers.

tend to be highly paid – and more and more women are discovering this strong earning potential, not to mention greater flexibility for a better work-life balance.

Some critics still cite an undercurrent of harassment and bullying when it comes to female workers, but that’s not been my experience at all. It simply wouldn’t be tolerated at Esh Border Construction.

When we are recruiting, we want to see a diverse range of applicants, focusing on skills and attributes, not on gender, and it’s essential to communicate that. We look upon candidates as individuals, and the expertise they offer – it doesn’t matter if they are male or female. Essentially, if the women in our workforce reach their potential, then it helps us to reach our potential as a company.

We’ve seen women bring unique skills and talents, in turn boosting our wider fortunes. They’ve significantly enhanced the spectrum of our abilities thanks to often superior personal and organisational skills, not to mention a different and valuable viewpoint on how on-site challenges can be overcome, to name just a few benefits. That’s before you’ve even touched upon the associated positive of reducing the industry’s high staff turnover. It helps that skilled jobs in the industry

It’s predicted that a quarter of the construction workforce will be female come 2020. If the industry is to grow meaningfully, while emerging from the shadow of high staff turnover and poor recruitment, then that really can’t come soon enough. By Simon Phillips, Regional Managing Director of Esh Border Construction

The construction industry risks falling behind the apprenticeship levy LONDON’S City AM recently reported that the construction industry is amongst the worst for recruiting apprentices, taking on a woeful average of just 0.4 apprentices for every 100 staff. But there’s a number of developments happening now that mean that falling behind the Government’s apprenticeship revolution could prove costly if the construction sector doesn’t wake up quickly. Firstly, the Apprenticeship Levy, a 0.5% payroll tax on companies spending £3M+ on staff salaries, is due to be introduced this April. The Government’s intention is to encourage businesses to take on more apprentices by offering employers their cash back for training. Once the levy has been introduced there will be a serious financial incentive for employers to embrace apprenticeships, and a significant financial penalty for those that don’t. As an apprenticeship training consultant who regularly works with the construction industry to help them adapt to the levy, my experience is that as soon as firms understand how the new system works, it immediately becomes easier for them to see it as a benefit not a cost. The new funding available offers a very positive opportunity to take on new talent and, importantly, to upskill an existing workforce. It’s well worth embracing it.

Secondly, under pressure from central targets, local authorities and other public sector bodies are starting to make apprenticeship training a condition in their supply chain contracts, and becoming increasingly assertive in ensuring that existing quotas are fulfilled. Construction companies within supply chains may lose lucrative public sector contracts if they aren’t creating the opportunities and delivering the number of apprenticeships they need to. Employers need to look now at their existing contracts and the conditions of future tenders, and take action now to ensure they are ahead of the curve. Thirdly, apprenticeship standards are changing. The Government knows that apprenticeships will only be as successful as the value they bring to employers. In an effort to put employers in the driving seat of the apprenticeships of tomorrow the new Institute for Apprenticeships will shortly be recruiting a panel of industry experts to review existing standards and to make recommendation for the future. In 2018 the institute will also gain authority over the multitude of technical qualifications in the sector too and has a clear government mandate to radically simplify what’s on offer. Now is the time for the industry to engage with this process, make its needs clear, and to help shape the qualifications of the future. Failure to do so risks creating skills gaps and deficiencies down the line.

Finally, with the explosion of apprenticeship opportunities predicted, the construction sector needs to work harder to attract the talent it will need in the future. Companies need to demonstrate the many amazing (and in many cases global) career path opportunities available in construction and put forward more examples of successful figures within the industries to inspire young people. There are many entrepreneurs and extremely successful individuals in this arena, and their stories should be communicated. To some extent the industry needs to look at how it presents itself. The construction industry is a vital, booming industry, but that’s not always shouted about in the same way as, for example, it is in the technology sector. Many young people hear ‘construction’ and baulk at the word because they envisage the manual labour, working outside and brute strength that they assume is required. But the construction industry is enormous, and there are a multitude of different roles within it. Schools should be encouraged to emphasise the diverse opportunities in construction, and to communicate to young people the wealth of opportunities the sector offers them. The Levy is a real chance for the industry to seize the opportunities that are afforded to it and I have no doubt that as April approaches, it will. By Angela Middleton, CEO and Founder of MiddletonMurray

The EU referendum held last year sent shockwaves throughout the business world, but so far, concrete plans regarding the withdrawal have been hard to come by. Here we lay out some of the potential outcomes that could impact haulage and construction. CROSS CHANNEL TRADE The EU receive 44% of all UK exports, by far the largest destination. However, following Brexit, it’s likely that the trade relationship will change. No deal has been struck yet, and a stalemate exists between European leaders. If the UK chooses to leave the single market, a brandnew trade deal will be required, possibly resulting in trade tariffs, increasing costs and damaging UKEU trade. This outcome is particularly relevant for the road haulage industry; while deals with non EU countries can be sorted, these are inaccessible by road. Fortunately, this is unlikely to change overnight, indeed we have yet to even trigger Article 50, and such established trade routes will change gradually as destinations and routes are altered. BORDER CHECKS & HOLD UPS Leaving the single market would also necessitate the introduction of border and customs checks. This will create chaos for the companies moving goods to and from the continent.

Delays and complex customs procedures will mean a far less smooth journey across the Channel, resulting in inefficiency and extra costs. However, this scenario would also affect those from Europe bringing goods here, so a more amicable negotiation can be sought as a win-win situation. FEWER DRIVERS & WORKERS One of the key points of the referendum was the debate over immigration; the free movement of people and labour. Tighter migration controls will result in a fall in the number of EU nationals working for UK companies. While a wide variety of UK industries employ EU citizens, construction and haulage are two of those most reliant on foreign workers. The expected changes in hiring policy will likely have an impact on these industries’ ability to hire enough of the right people. The availability of skilled labour in these industries is critical and a significant disruption in the flow of these workers could create a dramatic shortfall. Projects can be delayed by the lack of skilled workers and budgets blown by the increased demand. From the government, we need strong action to attract, train and retain people with the right skills needed for these industries to combat the anticipated shortfall. FURTHER ADDITIONAL COSTS One of the most immediate effects

of the vote was the fall in the value of the pound; down almost 15% against the Dollar, with analysts suggesting it may fall further. For expenses priced and traded in Dollars, like fuel, this means higher fixed costs and lower margins are a distinct possibility. As drivers are acutely aware, a huge percentage of the fuel cost is tax and duty; the government needs to look into ways of mitigating any large increases in prices or countless businesses will suffer. At the moment, SMEs (Small to Medium Enterprises) are eligible for a host of EU grants and funding. The UK’s membership of the union has also increased its creditworthiness. Leaving the EU will mean this funding will no longer be available to UK SMEs and may face a tougher time sourcing capital. This could result in fewer new businesses and fewer new construction projects as developers struggle for finance. It’s difficult to forecast the upcoming challenges we face and businesses need to be vigilant. Fortunately, Parliament has recently been awarded the right to debate the conditions of Brexit. This will allow for a more open and pragmatic approach, featuring input from a variety of points of view, hopefully meaning that upon leaving the EU, the UK and its industries suffer as little as possible.

Future-proofing Today’s Industry: Navigating evolving workforce, technology and operations INDUSTRIES today are under pressure from tighter regulations, increasing market speed and volatility, and the need to modernise ageing systems. In order to keep pace, our industrial environments must adapt to improve agility, attract new talent and provide employees with the insight they need to maintain productivity. While Industry 4.0 and the Industrial Internet of Things (IIoT) are becoming two of the most overused industrial automation buzzwords today, they serve as a positive reminder that we must advance.

architectures can help companies to adapt flexibly, future-proofing their operations while maintaining the operational integrity of their plants.

Understanding the potential that the IIoT and automation technologies hold in helping businesses to move more quickly and avoid falling behind the competition is a critical first step. Applying this potential in order to future-proof existing environments is the second important step. In order to both understand and apply new technologies effectively, businesses within the industry market must consider the impact of operations, technology and people in the workplace and how these impact on success.

A technology evolution, not revolution Using modern process automation systems also future-proofs the technology in use. The most effective automation systems embody a ‘continuously current’ approach, allowing plants to evolve to the latest state-of-the-art technology, while preserving existing hardware, software and applications. This approach supports the notion that teams must accommodate change by introducing new solutions alongside existing applications, rather than conducting a ‘rip and replace’ exercise. This ensures greater business control and drives the evolution towards a smart environment that is more efficient, safe and sustainable. While many see the IIoT as a revolution, in reality it is an evolution of technologies and functionalities developed by visionaries over a decade ago. Therefore, rather than scrambling to replace existing technology, taking a considered approach to update existing investments is essential.

Tackling the pace of industrial change Today, industrial operations must respond to market changes in realtime. Critical business variables have begun to fluctuate with more frequency and the price of electricity might change every 15 minutes. This is impacting the production value and costs of an operation. In order to overcome this, process designs need to be changed by improving agility. For automation systems to play a role in this, they must be designed from their inception to be extremely agile and flexible enough to process change quickly and easily. As these process changes are implemented, objectbased industrial service-orientated

Anticipating the workforce exodus Added to these challenges, across all industries today there are fewer and fewer skilled operators inside the plant, as the older, expert workforce moves into retirement. This creates a challenge for both attracting and retaining talent. New recruits naturally seek employers with modern working practices and the latest technology. That means industrial organisations must empower them with the intelligence they need to be productive and the tools to make their experience richer, irrespective of where they are. By using industrial automation applications, businesses can provide simpler, easier to use, and deeper

insight to make plants user-centric (not machine). Furthermore, enabling employees to work using a mobile device provides better connectivity, with instant access to their system and plant floor. Once industry organisations have hired new talent, they face a second challenge. They must now ensure that the intellectual property and operational insight from the ‘grey market’ is available to inform a new generation of engineers. This requires the use of software to capture and embed IP into the system environment before employees retire. Organisations can then build on this by combining operator training simulators and contextualised virtual reality training to help new operators achieve certification levels quickly. In fact, by embedding lifetime training capabilities into the online environment (using performance feedback and prediction software), new operators can actually reach higher levels of performance than their predecessors. Adopting the smart approach Those who begin making adjustments to the way they operate now will be much better equipped to deal with the IIoT. By phasing in new processes and tools to complement existing structures, industry businesses the world over can create smart environments that are well connected, optimised to process change and meet fluctuating market demand. Manufacturing in particular is undergoing significant technical change, so future-proofing systems to maintain momentum and remain competitive has never been more critical. By Ray Dooley, Industrial Controls Product Manager at Schneider Electric

Leadership, Emotional Intelligence and Soft Skills FOR a long time now, leadership skills have been bandied about as being essential for the construction industry to progress. Back in 1998, Sir John Egan reported that ‘the industry must provide decent and safe working conditions and improve management and supervisory skills at all levels'. Ten years later, the Chartered Institute of Building (CIOB) published their ‘Leadership in the Construction Industry' report which also highlighted that leadership is more than just deploying ‘the so-called ‘Hard Skills’ such as planning, directing, organising and keeping score'. Since then the industry has had a variety of initiatives, including Construction Commitments and Construction 2025, all pretty much focused on the fact that change was needed but both upholding a better focus on health and safety, and both giving greater emphasis to people and leadership in the industry. 21st century research by academics and psychologists also defined leadership as having been an issue in construction. ‘Traditional' leadership style in the industry has been based

on technical skills with a focus on managing activity in order to complete projects - a more ‘production-oriented’ rather than ‘relationship-oriented’ style of management ‘. My own ongoing research since 2011 shows that construction leadership is focused on technical ability and project completion rather than vision, people engagement and leading people into the future. Of course, this study followed an extremely difficult recession and therefore leaders could be forgiven for focusing on efficiencies and procurement practice, perhaps because understandably their perspective was one of having more important things to think about than their leadership approach, their personal style or that of their supply chain. Construction has been talking about its need for leadership for at least three decades (Latham, 1994) and the approach remains based on improving efficiency both in delivery and in procurement. But is this enough? What about communicating vision and employee engagement? And what of leadership style? Like most things, if there was one

simple answer we would have found it by now and already be implementing it! Leadership style is important but is only one piece of the jigsaw and there are volumes written on the subject. Experience and knowledge is key and we do know that in terms of leadership style, those with a ‘transformational style' tend to focus much more on supporting, developing and motivating others in order to achieve greater success. Whereas, the transactional style of leadership which is customary in the industry is much more about ‘command and control' in order to complete a project or achieve greater cost savings, retentions and supply chain control. The very nature of the command and control style is about managing loss or avoidance of loss, whereas the nature of transformational leadership is about people and those people being engaged and motivated enough to pull out the stops to get the job over the line. From an equality and diversity perspective, studies show that the transformational style is much more easily adopted by female leaders because they have a more interactive and inclusive style.

In my study it was evident that most leaders at that time had progressed into leadership roles not based on style but based on technical and mechanical ability and longevity in the industry. As with most things, there is a flip side to this coin too. Those with experience and capability bring much to the table but the depth of experience that they bring can often lead to them doing the same thing and operating in the same way and, of course, doing that never gets you different or better results. So what benefits could better construction equality and diversity deliver? When you read anything that relates to improving skills, teams or leadership it is usually followed by a reference to â&#x20AC;&#x2DC;Soft Skills' but what exactly does Soft Skills mean? And what impact can Soft Skills have on leadership? Soft Skills can have an enormous effect on getting things done. If you liken Soft Skills to being the glue that enables people to relate, communicate, manage themselves and others then that is good place to start. Many now believe that Emotional

Intelligence (EQ) is fundamental to great leadership, and as a subject or science it has increased in popularity and recognition over the last 25 years or so, particularly in relation to leadership. One of the leading exponents of EQ is Daniel Goleman who writes that at higher levels, interpersonal abilities matter more than technical skills in setting star performers apart. Emotional Intelligence in leadership is about inspiring and motivating others to engage with your vision and mission. Developing your EQ as leader helps you to recognize and handle your internal responses, maintaining your effectiveness as you work towards achieving the business goals. Another aspect of EQ is about recognizing and being sensitive to the emotional states of others and communicating in a way that doesn't violate the relationship and encourages and motivates. As a leader, knowing what triggers motivation at a â&#x20AC;&#x2DC;below consciousness' level in yourself, employees and even clients adds invaluable information to any situation, even those of a more

personal nature, and only increases your effectiveness to influence and achieve organisational and personal goals. EQ's Daniel Goleman states that most leaders are hired on their technical ability and expertise but will be judged and fired based on their lack of emotional intelligence. In the 2015 white paper published by Roffey Park, â&#x20AC;&#x2DC;Building Leadership Capability in the Construction Sector', their findings clearly indicate that what troubles leaders right now and in the next five years relates to leadership, people, skills, management and employee engagement. Effective leadership is important in any organisation because there is no escaping the fact that it is the people in an organisation who will deliver a leader's vision. This means that the discretionary effort made by the workforce will undoubtedly depend on the level of relationship, respect and engagement that an organisation's leader(s) has with its people. By Jackie Casey, Managing Director of Success Train

Construction Logistics: A fast changing landscape PRESSURE to deliver construction projects on time and to budget has never been higher. The increasing complexity of modern projects only adds to these pressures. Factors such as evolving safety and environmental regulations, or the sheer number of disparate suppliers, can hinder progress and put projects over budget. These, and other logistical challenges, will continue to change the way construction businesses and their supply chains do business in the months and years ahead. THE RISING CHALLENGE OF A FALLING POUND Last year’s depreciation in the value of the pound has led to rising costs for importing construction materials and other goods. Whilst this may pose a challenge to some construction businesses, it also offers an opportunity to appraise existing logistics solutions and identify efficiencies across the supply chain. One possible consequence may be that supply chain models, based on

importing building materials, will be challenged and new, more costeffective material sourcing solutions could take their place. AN EVOLVING REGULATORY ENVIRONMENT Increasingly stringent standards are being placed on the industry and these will have a lasting impact on ways of working and bottom lines. In London, poor air quality is a mounting political issue and construction businesses face a growing logistical challenge from strict new emissions legislation. From September 2020, all heavy goods vehicles (HGVs) entering the existing Congestion Charging Zone will be required to meet stringent emission standards or face substantial daily charges (in addition to the Congestion Charge already in place). London Mayor, Sadiq Khan, also recently proposed a “zero emission zone” for Hammersmith town centre and the implementation of an Emissions Surcharge for older, more polluting vehicles on London roads.

The safety of vulnerable road users is also high on the political agenda. In January, the Mayor formally commenced efforts to ban over 35,000 HGVs that don’t enable drivers to have “direct vision” of other road users from their cabs. Under these proposals older model HGVs with smaller windscreens and limited side-cab visibility will not be compliant. There’s every chance similar policy measures will be rolled-out across the UK’s other major urban areas, particularly as new elected “MetroMayors” begin to take power as part of the devolution revolution. Again, the full impact of these changes are yet to be felt by the industry. The costs for the construction industry to ensure all their vehicles meet the new standards will be significant and failure to comply will impact efficiency and costs. SUSTAINABILITY IS KEY… While these regulatory interventions are hugely important, there’s no denying that overall project sustainability is a growing priority for all

stakeholders. Construction businesses need to be thinking about how else they can limit financial, social and environmental risks, meet obligations and exploit opportunities, both in the short and long-term. Demonstrating how these considerations will be met is now a standard part of winning and maintaining business. However, construction projects are undoubtedly becoming more complex as the trend towards wide-scale use of sub-contracting and tiered transactional interfaces becomes more commonplace. Many major infrastructure projects now have specific procurement policies to promote more opportunities for small and medium-sized enterprise suppliers. HS2, for instance, expects 60% of contracts to be awarded to SMEs. Needless to say, increasing the number of suppliers raises the logistical challenge for major infrastructure projects and managing all this complexity, whilst retaining flexibility is key to project success.

It’s time for construction to target a smarter, more joined-up way of working and building the logistics strategy into a project at the concept stage is the way forward. Unfortunately, too often logistics solutions are added on at a later stage, almost as an afterthought. Having a single provider overseeing logistics from the very start of a project can make all the difference to sustainability in all its guises.

loads to construction and building sites across the UK every year. My role isn’t limited to construction, however, as I also oversee logistics operations across industrial, manufacturing, energy and defence industries. What we’re increasingly seeing across all sectors is that collaboration is the answer to many shared logistical challenges.

Business leaders need to be planning now to ensure they’re not on the backfoot when these challenges really start to bite.

By working across a wide range of businesses and sectors, 3PLs are ideally placed to facilitate collaboration and integration across supply chains. They can also provide access to highly trained drivers and the latest, most compliant vehicles – in our case, on a flexible basis.

It’s clear the industry needs innovative logistics solutions that meet changing regulatory standards, demonstrate business value, minimise environmental impacts and help the industry take full advantage of the opportunities that lie ahead. This is where third-party logistics (3PLs) providers can really add value.

By working together to deliver logistics solutions, 3PLs can help construction businesses meet increasingly stringent regulations, surpass environmental performance KPIs, implement new, more advantageous supply chain practices, increase the profitability of operations and face the future with confidence.

At Wincanton, I lead a team responsible for delivering more than half a million

By Chris Fenton, Managing Director of Industrial and Transport at Wincanton

3PLS AND LOGISTICS SOLUTIONS

Interim Payment: Another Instalment ANOTHER recent case, Surrey and Sussex Healthcare NHS Trust v Logan Construction (South East) Ltd (2017), followed what is now a familiar pattern. An adjudicator found that a contractor was entitled to be paid the sum for which it had applied (about £1M), ruling that a document relied on by the employer was not a valid pay less notice. The Technology and Construction Court judge took a different view, finding that the employer had issues a valid pay less notice. Both adjudicator and judge found that there was a valid application from the contractor. The main point of interest in this case is the judge’s analysis that there was a valid pay less notice, where the adjudicator had found there was not. The parties were in discussion about the final account and this was the focus of the employer’s representative (the quantity surveyor named in the contract) in the discussions. At the same time, the contractor issued the interim application on which it succeeded in the adjudication. The next day the employer’s representative sent an email to the contractor with his

assessment of the final account, which stated: “I attach the Final Certificate…I received an Interim Payment Notice [he then wrongly stated it was out of time and void; in fact it was valid]… In any event, the details stated in the Final Certificate are the same as would have been stated in any final Interim Certificate…” It was this email and attachment that the employer relied as being its pay less notice in respect of the contractor’s interim application. The contractor submitted that it was not intended as a pay less notice. The judge accepted that the primary purpose of the employer’s representative’s email was to issue the final account; he also accepted that the communication would not be a pay less notice unless it was intended as such (the intention to judge objectively). Nevertheless, the judge found that the communication was an effective pay less notice. It had the requisite content: it specified the sum the employer considered to be due and the basis on which it was calculated (which the contractor accepted). The

real issue was intent; the judge found the element of intention to be present by reference to the words in the email quoted above from “in any event”. The judge found that what the employer’s representative was saying was that if he was wrong about the interim payment notice being void (which, as it turned out, he was), his valuation of the interim account was the same as his valuation of the final account and this showed the only sum to which the contractor was entitled. Viewed in this way, one intention of the email was that it should be responsive to the interim payment notice. It would seem, therefore, that as, in the judge’s view, a pay less notice must be intended as a pay less notice as well as having the requisite content, the result would have been different but for the words in the email as quoted above. It would not have been enough to issue a document containing all the requisite content of a pay less notice if it was not also intended as a pay less notice. By Peter Sheridan, Partner, Sheridan Gold LLP

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Vehicles at Work: How Good an Operator are You? OPERATING a goods vehicle over 3.5 tonnes requires an Operator Licence by law. Failure to do so could have a detrimental and even fatal impact on your business and its staff. While you might be under the impression that you are a good operator, what can you do to ensure sure that you are, in fact, complying with all the necessary requirements? When you obtained your Operator Licence you would have given at least eleven undertakings. Whilst complying with those undertakings is fundamental to being a compliant operator many businesses remain unaware of what those undertakings are. The most pivotal component of the whole system is road safety and, in the construction industry vehicle, maintenance is usually the paramount consideration. The tragic case of the tipper truck that killed four people in Bath when its brakes failed due to poor maintenance highlights the vital importance of properly looking after construction vehicles. While undoubtedly your maintenance regime would not allow for a similar incident to occur, are you really doing enough to be classed a good operator? The main requirement is to have systems and procedures in place that ensure; “vehicles and trailers …are kept in a fit and serviceable condition.” Beyond record keeping of maintenance systems and procedures, it remains your responsibility as to how you achieve compliance.

There are some fundamental features that all maintenance regimes must have. All maintenance inspections should be planned and intervals between inspections strictly adhered to. Every driver should be properly trained to undertake a walk round check. Walk round checks must be done every day when a driver first uses a vehicle and there must also be robust systems to deal with any defects he detects. Records must be kept of everything you do in your maintenance regime. Those records are crucial and can protect your business in the event of an incident. It is not uncommon for a driver when facing prosecution or fixed penalty for driving an unroadworthy vehicle to seek to pass the blame to the employer. “I told them about the bald tyre / dodgy brakes / missing wing mirror but they did nothing about it”. If you are keeping proper records of the walk round check you can prove that is not the case. In construction, the fleet is a crucial but ancillary part of the business and the temptation is to employ someone suitably qualified to whom to delegate the compliance aspects of the operator Licence. That does not absolve the business of responsibility. There must be proper reporting structures to the board and proper control exercised by the board over the compliance aspect, a two-way street. The reporting and decision making must all be recorded. Implementing systems and procedures is to a degree the easy bit. There are any number of companies that will advise and assist a business in setting up the compliance structure. The

challenge for the business is keeping on top of it and ensuring that those systems are properly utilised, no corners are cut and they are effective. To draw an analogy with an area far closer to the heart of a construction company, in health and safety you know that with PPE you can display signage, give tool box talks and get every site worker to sign to say they will always wear it but unless you have someone on site every day enforcing those systems it will not produce the required result. The other challenge facing all operators is that the regime is always aiming to drive up standards within the industry – so what may have been acceptable two years ago may now be below what is currently expected. Sitting on your laurels is not an option Whilst the risk of losing your licence and ability to run vehicles is one consequence there is a much more serious potential consequence to not being a good operator. If your maintenance regime is not robust and effective and one of your vehicles is involved in an accident the company (and in extremis the directors) can find themselves before the Crown Court facing criminal prosecution. On a positive note, many operators find compliance drives efficiency within a fleet.Even if you think you are a good operator it is always worth reviewing what you are doing. Standards are always rising and even the best systems and procedures do not maintain themselves. By Jeremy Woodcraft, Consultant Solicitor at Keystone Law

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ISUZU D-MAX ARCTIC TRUCKS AT35: ENGINEERED FOR ADVENTURE THE Isuzu D-Max Arctic Trucks AT35 is a pick-up truck engineered to excel in the most arduous conditions, and is the result of close technical collaboration between two respected specialists. Based upon the strong and durable Isuzu D-Max pick-up, which is extensively enhanced by Arctic Trucks, a company with 25 years of heritage in Iceland and Scandinavia as a developer of 4x4 vehicles able to take on the most gruelling terrains and conditions. The AT35 retains the impressive onetonne payload and 3.5-tonne towing (braked) capacities that have helped make the Isuzu D-Max one of the most popular pick-ups for those seeking an exceptional workhorse with low running costs. It will be the first Arctic Trucks pick-up in the UK that can be ordered directly from a vehicle manufacturer’s authorised dealer network. Available in either Double-cab or Extended-cab configurations, the AT35 is priced from £31,499 CVOTR. ENHANCED RUNNING GEAR The AT35 introduces several key hardware enhancements, ensuring extraordinary off-road capability unprecedented in a pick-up on sale in the UK. Within the Isuzu D-Max model range, suspension is re-engineered exclusively for the AT35 with Fox Performance Series dampers, which helps deliver increased mobility over even the most rutted tracks and brutal boulders. Special all-terrain Nokian Rotiiva AT tyres endow the AT35 with improved all-round grip in the most slippery conditions. These huge 35-inch tyres

are specifically engineered for off-road use and are fitted to 17-inch x 10-inch alloy wheels, considerably larger than those on the standard D-Max. The vehicle accommodates the larger diameter tyres and wheels within dramatically-widened wheel-arches, giving the AT35 a securely planted and powerful look. The specification of the tyres follows Arctic Trucks’ assertion that any off-road journey can be completed without the assistance of a winch or other rescue materials. Deflation and inflation of tyres – helped by the AT35’s on-board inflation kit – should be part of the adventure. The combined effect of Arctic Trucks’ specialised suspension and larger tyres is a ride height 125mm higher than that of the equivalent standard Isuzu D-Max. With the increased ground clearance comes greater approach, departure and break-over angles. The AT35 sits 55mm higher than a standard Double-cab Isuzu D-Max, making for six degrees’ extra approach angle gain, and an added 10 degrees’ ramp angle flexibility. Furthermore, drivers and passengers benefit from improved all-round visibility, a great advantage for identifying the safest route to an ultimate destination. COMPREHENSIVE STANDARD EQUIPMENT The AT35 can haul more than a tonne of on-board cargo and up to 3.5 tonnes in a braked trailer (where the terrain allows) – just as its Isuzu D-Max stablemates can – as well as traverse more extreme topography than ever before. Meanwhile, passengers remain

as well catered for as ever in the refined and well-appointed premium interior. Inside the Double-cab model, the AT35 also includes a six-speaker audio package with ‘Exciter’ speaker in the roof lining, heated and folding door mirror, full leather upholstery, automatic climate control air-conditioning. Exterior standard features include projector headlamps, body-coloured front bumper, chrome trio of door handles, grille and rear bumper, LED rear lights and a rear load liner. The Double-cab model also adds roof bars and rear parking sensors for further increased practicality. LOW RUNNING COSTS Despite being the most capable pick-up ever to be launched onto the UK market, buyers and operators will benefit from the same ultra-low running costs that all Isuzu D-Max owners enjoy. This is thanks to a competitive 42E insurance rating, low-cost finance packages and a comprehensive five-year / 125,000-mile warranty package. In addition, costs are kept low by 12,000-mile or 24-month service intervals, three years’ recovery and assistance cover, a three-year paint warranty, and a six-year anti-corrosion warranty. EXPLORE WITHOUT LIMITS With the superb handling and mobility of Isuzu D-Max combined with the agility of an Arctic Truck, The Isuzu D-Max Artic Trucks AT35 sees the pickup, reimagined. To find out more visit www.isuzu.co.uk/isuzu-dmax-at35

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Call 03303 335119 or visit isuzu.co.uk #Isuzu D-Max Yukon Manual Fuel consumption in mpg (l/100km): Urban 31.7 (8.9). Extra Urban 44.1 (6.4). Combined 38.7 (7.3). CO2 emissions 192g/km. MPG figures are official EU test figures for comparative purposes and may not reflect real driving results. For model specific figures please contact us directly or visit www.isuzu.co.uk †Important Information. Business users only. Rental amounts shown are for an Isuzu Yukon Double cab Commercial Vehicle On The Road with manual transmission, excluding special paint finish. Contract based on 10,000 miles per annum, non-maintained. Vehicle must be returned in a good condition to avoid further charges. Subject to status. Provided by Lex Autolease Ltd trading as Isuzu Contract Hire, Heathside Park, Heathside Park Road, Stockport SK3 0RB. Available at participating dealers only. Excludes motability and fleet sales, not available in conjunction with any other offers or with BASC or NFU member discounts. Available until 31st March 2017. *3.5 tonne towing applies to all 4x4 models. **125,000 miles/5 year (whichever comes first) warranty applies to all new Isuzu D-Max models. Special paint finishes extra at £400 excluding VAT. Finance options available at participating dealers, subject to status. Terms and conditions apply. www.isuzu.co.uk

Rental sector to be hit by fourfold tax hike ACCORDING to the British Vehicle Rental and Leasing Association (BVRLA), a newly-established Vehicle Excise Duty (VED) regime is set to hit the car rental industry with an eye-watering fourfold tax hike, potentially damaging the sector’s ability to purchase vehicles and provide an affordable alternative to millions of motorists nationwide. An Oxford Economics report, commissioned by the BVRLA, has found that the rental sector will be impacted “unfairly” as a result of the Government’s decision to increase VED rates, and remove altogether the ability to claim a refund for any unused first-year tax, as of 1 April 2017. No, this is not an April Fool. Research indicates that the average duty paid for rental cars will rise from £36 in 2016 to an astonishing £170 from April 2017. Consequently, the rental sector’s full first-year VED bill will surge some 400% - from £11M in 2016 to a whopping £55M the year following. In its 2017 spring Budget submission, the BVRLA has understandably called upon the Government to defer or stagger these increases and preserve the owner’s ability to obtain a full refund for any tax outstanding in the event a car is sold in the first year.

BVRLA Chief Executive Gerry Keaney had this to say: “Our members are facing a 400% increase in one of their main tax bills, and the inability to claim a refund on any unused portion of the VED is totally inconsistent with usual UK tax policy.” Presently, the rental sector purchases upward of 324,000 cars each year. This number is likely to fall however, as businesses lengthen their operating cycles in an attempt to diminish the impact of the new VED regime. Analysis of BVRLA member data has shown that 24,800 fewer cars will be bought throughout 2017 – a prediction which carries with implications for the industry at large. “Rental companies account for a substantial proportion of new, lowemission car purchases in the UK, and if these changes go through, the Government will seriously damage its green agenda and air quality goals,” continued Mr Keaney. Crucially, the rental sector continues to play a pivotal role in the uptake of cleaner vehicles. Typically, rental cars are Euro 6 compliant and 22% less toxic than their privately-owned equivalents.

The worry now is that the new VED regime will slow the rate at which these cars are brought into fleets and subsequently sold to the second-hand market. In urban centre such as London, Birmingham and Manchester - where a quarter of all rental cars can be found there is likely to be a knock-on effect as far as curbing emissions goes. Furthermore, vehicle rental provides a viable alternative to ownership outright for those who have need of a car but also wish to rely on public transport, walking or cycling. Mr Keaney concluded: “Our research shows that rental customers are much more likely to use a train, bus or bicycle on a regular basis. This tax hike is likely to lead to price rises for these customers at a time when the UK Government is trying to encourage people out of reliance on the motor car.” All of which outlines a fairly substantive case for why the new VED regime should be staggered or deferred for the time being. For now, the rental sector waits with baited breath for the spring Budget and an announcement proper.

John Henry Group turns to Enterprise for cost-effective commercial vehicles and great support John Henry Group primarily operates in the infrastructure, telecommunications and highway services sectors and has seen considerable and positive growth in the past two financial years. Currently running over 500 vehicles, the business depends on getting people, tools and equipment to sites across the UK. It has 1,200 staff across 13 UK office and depot locations. John Henry, Director of John Henry Group, notes: “For many years we ran our own vehicles. Although this worked for a while, the financial and physical resources required to ensure that a well-maintained and appropriately equipped vehicle was always in the right place at the right time was becoming a major challenge. “With major capital expenditure required to renew the fleet, as well as the need to improve our overall public image, it was clear that something needed to change.” Enterprise Flex-E-Rent helped John Henry Group to look at how it could control both the headline rental figure as well as the whole life cost of operating each vehicle. John Henry continues: “After all, there’s no point in a cheap upfront payment if

it’s going to be recovered further down the line in end of contract damage charges, or compromised by inflexible working practices. “Enterprise’s open and honest approach wasn’t just part of a sales spiel; it was the foundation of how it worked on a day-to-day basis. From the service team, right up to the MD, they are all available for direct contact and have the same ethos as we do here.” One of the biggest challenges John Henry Group faces is that it often needs vehicles at very short notice. This can be standard box vans or drop-sides, but the requirements can also be quite specialised. Getting these new vehicles to site on time can make the difference between keeping a client happy and incurring a financial penalty. John Henry adds: “Enterprise Flex-E-Rent understand this and, as the world’s leading rental provider, it has the resource to deliver and a can-do approach to making it happen. “Enterprise’s understanding of our business, and the fleet we operate, can also be seen in its approach to vehicle maintenance. Using its previous experience of running many thousands

To find out more about the difference we can make to your business, call 0800 328 9001 or visit flexerent.co.uk

of vehicles like ours, it’s put in place a preventative maintenance schedule which has helped minimise employee downtime and the inevitable costs that go with it. “And on the odd occasion when we’ve needed a swift vehicle repair, or a like for like replacement, its UK wide coverage and team of mobile engineers has meant that everything has been sorted out with the minimum of fuss or delay.” He concludes: “Clients, employees and competitors have all noticed the difference in our fleet. It’s not just the vehicles Enterprise provides, because there are other people who could probably do that, it’s everything else it does that makes it different. “It’s what elevates it from being just another rental provider to a true mobility partner, which is what we needed, and it’s certainly what we got. Without Enterprise Flex-E-Rent, we would not be able to grow at the rate we are.”

How to use workplace charging grants to future-proof electric vehicle investments THAT moment when your mum gave you a tenner to go and buy your dad’s supper and said you can keep the change. Sorry Dad, its Spam again tonight. That moment when the Government made the nation’s electrical contractors custodians of £1,000 grants (later reduced to £750) for installing electric vehicle charging points in people’s homes. Kids in a sweet shop! To be fair, the decision enabled a certain degree of control, as installers have to demonstrate that installations and equipment meet conditions laid down by OLEV (Office of Low Emission Vehicles) in order to reclaim the grant. However, it encourages many to keep too much of the change by installing low cost, or ‘free’ chargers. Now ‘free’ always comes at a cost. And there is not an installer in the land who does not have a story to tell about having to return to a broken, or worse burnt out unit, cursing the day he fitted it. But real market forces will prevail and there will always be somebody else to do the job. It’s unlikely that the commercial sector will be quite as short sighted now that the Government has extended its grant scheme to workplace locations.

However, there is a longer term, hidden problem with trying to build a sector from the bargain basement up. The value chain evaporates before new technology can deliver its promise. And electric vehicle charging technology advancement in the commercial sector is where the largest clean air return on investment can be made, simply through bigger numbers of vehicles in fleets and higher road usage. Over half of passenger vehicles in the UK are bought by companies, and ultra-low emission van and truck sales are growing fast. The technology that makes a difference to charging in commercial locations, that equipment specifiers should now count on as a given, manages access control and provides usage data. Electric Village is close to Government discussions already about widening the employee benefit-inkind net to cover aspects of workplace charging that will require employers to account for usage by staff. Not much further along the technology road map – still a need to have – is the capacity for managing and sharing energy flows around the car park, and returning energy to the grid.

Smart energy charging systems allow system scalability with less digging and investment in power supply infrastructure, which always dwarfs equipment costs. Nice to have technology today is cable-less induction charging, and powerline data that will connect directly with renewable energy sources. A little over 18 months ago, there was a collective cheer as plug-in vehicles broke through the one per cent of UK sales mark. The latest figures provided by the SMMT (Society of Motor Manufacturers and Traders) for January 2017 show that percentage is now over 4%. Sector growth is in hockey stick territory and there is no reason to suspect that battery power will not overtake the internal combustion engine. The Workplace Charging Scheme is a voucher-based scheme that provides up £6,000 support towards the up-front costs of the purchase and installation of electric vehicle charge points. By Stewart McKee, Managing Director of electric-village.com

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Call 0330 159 0794 to join today Every mile matters †Research conducted by 3Gem on behalf of RAC Business, among 500 UK business decision makers, April 2016. *2 months free RAC Business Breakdown cover and free Onward Travel terms and conditions. £41 saving is based on the purchase of RAC Business Breakdown + Onward Travel cover for a fleet size of 1-2 vehicles. The offer is for 2 months free business breakdown cover and free Onward Travel for the first 12 months of cover purchased on an annual subscription basis. The 2 months complimentary cover are included in the contract term. Valid for a fleet size of 1-99 vehicles from 25/01/2017 until 30/04/2017 and available on quotes given before 30/04/2017 and purchased within 30 days of the quote received date. Free Onward Travel is only available when purchased with RAC Business Breakdown cover within the promotional period. The offer price is based on the advertised web price of RAC Business Breakdown Cover as at 31/10/2016. The 2 months free and free Onward Travel offer cannot be used in conjunction with any other offer and may be withdrawn at any time. Onward Travel is valid for cars and vans (less than 3.5 tonnes) only. The offer is available to new RAC Business Breakdown customers only. No cash or other alternatives available. Taxis and minibuses excluded. 03 numbers are charged at national call rates and included in inclusive minute plans from landlines and mobiles. Calls may be monitored and/or recorded. Business breakdown provided by RAC Motoring Services, Registered No 01424399 and/or RAC Insurance Ltd, Registered No 2355834. Registered in England; Registered Offices: RAC House, Brockhurst Crescent, Walsall WS5 4AW. Arranged, sold and administered by RAC Motoring Services who is authorised and regulated by the Financial Conduct Authority in respect of insurance mediation activities only. RAC Insurance Ltd is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 1216152014-2

The Evolution of Student Accommodation AS well as meeting the changing expectations of students and parents, university accommodation must justify the significant investment from institutions looking to create communities that will not only be profitable, but be beneficial to its educational status. Andrew Kitchen, Director at LK2, discusses how architects can successfully achieve this balancing act through smart design, as well as having a positive impact on areas that desperately need to reclaim their housing stock.

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The requirements of student accommodation have shifted hugely over the last few decades, both on the side of universities but importantly, also in the eyes of parents and the students themselves. The root of this change is in the increase of tuition fees, with a higher price meaning the expectation of higher standards. The international student market continues to be strong and itâ&#x20AC;&#x2122;s easy to see why they too would demand more from even higher rates

and essentially a full-time home while in the UK. Additionally, parents who are across the other side of the world, of course, want even greater assurances their child is secure and comfortable, as well as having the best possible environment to complete their studies. For the architect, what the student and family wants must be aligned with the brief and importantly, the budget, of a university. As well as the accommodation being an income stream in itself, a good scheme

needs to naturally integrate and work alongside the wider campus, ensuring students are encouraged to stay and spend their money on site. This also encourages closer proximity to study facilities and lectures but perhaps more crucially, creates a feeling of inclusivity and community. Furthermore, there is an increasing drive to protect local housing stock, maintaining its use for residents and protecting locations from the negative connotations of a student favoured area. This makes it a ‘win win’ situation for any university that wants to retain students on campus, councils that need to ensure there is as much available housing as possible, and residents who want to reclaim areas of their town or city. To prevent private landlords from dominating the market, the benefits of being in bespoke accommodation need to be made clear and the design contribution from architects is an essential part of this. To achieve this success, student accommodation has to support a positive experience and quality of life. In terms of architecture, the accommodation itself is probably the main area where effective and aesthetically-pleasing design can be implemented. After all, the appeal of the bedrooms has a clear impact on students wanting to move in and parents being willing to pay for associated fees. Of course, in addition to the design being practical and attractive, it now needs to include technological elements such as Wi-Fi connectivity.

Relationships prove to be incredibly important at this stage of the design. Architects must work closely with planning authorities and the police during consultations, to ensure the best outcome for all parties. In terms of the accommodation itself, we’ve seen a steady change in what needs to be included in the design. Traditionally, one main bathroom would serve a large block of individual bedrooms, with separate kitchens and living area. This has now shifted to ensuites becoming the norm, as modern students want independence and privacy. The accommodation itself is often modular with three bedrooms fitting in a ‘standard’ module, with the bathrooms included. Two of these units create six rooms in total, with a dedicated communal living space. This seems to be the optimum ratio of bedroom to social space. Furthermore, modular units are indistinct from traditional builds once complete and it isn’t a problem that student accommodation is repetitive. In fact, it’s beneficial that each student receives exactly the same size and style of room. By keeping to this model, the council will consider the accommodation to be one flat and therefore there is no need for high levels of sound insulation between each bedroom. This is important to maximise the budget while ensuring we keep to the required

standards which provide more than adequate sound protection. While a new-build of this type is preferential, refurbishment projects are still prevalent. Many student accommodation blocks need modernising, especially when it comes to the standard of facilities such as bathrooms and kitchens. This not only relates to wear and tear, but again the expectations of parents and students. Architecture in this sector is a delicate balance of many ever-moving parts. While meeting the needs of the end-user, those paying the fees, and the university itself, education establishments are often situated in challenging locations. Restraints relating to space continue to be the dominant challenge for master planning, mainly because as well as ample accommodation and living space, parking, leisure, and retail facilities, can amount to a total area that’s relative to a small town or community. Education continues to be a growing sector and one of importance for the architectural world. Cities, like Lincoln where we are based, are continuing to grow and prosper. While the current focus is meeting demand, we expect that in five years or so the investment will begin to have an impact on the ultimate aim of both councils and local communities; drawing students from private accommodation which is crucial if we are going to improve availability and meet housing targets.

In relation to technology, safety and security always has to remain a priority. Entry systems must be incorporated into each flat, with CCTV feeding into a wider security system. As well as the presence of the physical technology, there is a wider impact on the design. For instance, is there a clear view of the entrance for the cameras? Are outside parking areas and bike sheds well-lit and again easily accessible to the front doors?

Confronting the Challenge of Community Construction 2017 has started with some significant encouragement for housebuilding. The first few days of January saw significant announcements, and new policies were outlined in the White Paper “Fixing our Broken Housing Market.” As the year unfolds, we wait to see how these announcements transform into reality, and actual projects. The Government’s approach is a policy of two halves. It supports using previouslydeveloped and hidden brownfield sites, and acknowledges that huge swathes of new development are required to meet the country’s housing demand. Among these are an expanded number of garden towns and villages across England. £6M is being made available by the Government over the next two years for the new villages programme alone. A commitment to efficiency unifies the policy, with frequent use of the term ‘accelerated development,’ and intimation that the use of offsite manufacturing, and other modern methods of construction, will be encouraged.

Although keen to see more detail, the approach has had only a cautious welcome from the construction industry – perhaps more so than policy-makers anticipated. It will certainly generate significant opportunity, especially for specialist housebuilders, smaller contractors and offsite manufacturers. However, the construction sector is perhaps more cognizant of the challenges involved in delivery. They know there are numerous road-bumps to emerge as projects get underway. A total of 17 new garden settlements, from towns of 10,000 homes to villages of as few as 1,500, have already been announced. Housing and Planning Minister Gavin Barwell said: “Locallyled garden towns and villages have enormous potential to deliver the homes that communities need. New communities not only deliver homes, they also bring new jobs and facilities and a big boost to local economies.”

He’s correct - but there may also be resistance. Local communities are concerned not just about the directions of development on their doorstep, but the enormous upheaval large developments can bring. New towns need infrastructure and utilities – the Ebbsfleet Development Corporation recently announced a £12M new bridge, for example, supporting 15,000 new homes to be built over the next 15 years. Homes must also be supported by other elements including public amenities, local schools and shops. Community and neighbourhood groups will monitor planning applications carefully, as will larger campaign groups such as Campaign to Protect Rural England which recently said: “CPRE welcomes efforts to tackle the housing crisis in the form of high quality, well-planned and welllocated developments. Done well with genuine local consent, garden villages and garden towns can be part of the

solution and certainly preferable to what is currently happening in too many parts of the country. ” Rural development challenges are multiplied and amplified when building on brownfield sites. Since these are often previously developed, groundworks surprises abound. With urban brownfield redevelopments, the sheer proximity to existing homes and businesses creates legal issues via party walls, noise, dust and vibration nuisances, health and safety worries, and concerns about interruption of commerce. Underground utility surprises, not to mention the proximity to overground and underground transport infrastructure, make precision planning and the ability to work around the unexpected, key skills. Developers will continue to submit plans apace. It will be essential to bear practical challenges of delivery in mind, and take a responsible stance to working in close proximity to locals throughout entire project durations. Contractors will need to adopt similar approaches, as espoused by the Considerate Constructors Scheme and companies’ own corporate responsibility plans. Meanwhile, local authorities should put emphasis on great planning and communication, and ensure it lies at the core of successful bids, before granting approvals. Excellence in project management is about to become an even greater priority. Alongside the ability to call on powerful planning software that enables easy communication with clients and communities, contractors need rapid visioning of alternative and re-engineered solutions to overcome surprises. As developers and contractors view the opportunity and pressures of accelerated housebuilding, we offer some salutary, but inspiring, stories of real-world encounters our customers have overcome. COPING WITH LOCAL COMMUNITY

CONCERN Local community concern was something that ISG faced when it set out to build Lulworth & Winfrith Primary School in Dorset. It was faced with a sensitive site at the edge of a pretty village on a Jurassic Coast world heritage site. The concerns of residents spanned every single facet, from the look of the building to the upheaval that construction would cause.

site of an old high school, asbestos was discovered during demolition, necessitating resequencing of the subsequent works. It proved the power of using software to envision potential problems and brainstorm solutions. Planning Manager Ray Ferguson said it “is especially useful to us for risk analysis. It has a “what-if” manager. Using that we can run various scenarios of what would happen if ...?” EXPECT THE UNEXPECTED

When approval was made contingent on reprofiling the site, ISG built a relationship with a local landowner so it could route huge quantities of spoil away from the village. ISG used our planning software with such precision that they could alleviate local concerns at every stage, even when bringing in site welfare facilities, major plant and large steels down a village lane, past an existing school. LOGISTICS MATTER McLaren Construction faced up to intense challenges of developing in the tightest of inner city locations when it developed Devonshire Arms in the heart of London Piccadilly’s theatre land. With tourists and actors everywhere, and party walls on every side, this redevelopment required the company to come up with innovative ways around surprises such as finding that the perimeter had no foundations, as well as managing day-to-day site logistics. Gavin Turnbull, its project leader, said “When unforeseen changes happen, you see the value of good planning. Good site logistics were essential, to accommodate deliveries and skip movements, which meant very careful scheduling.” ENVISION THE ALTERNATIVES Graham Construction discovered the perils of brownfield sites while preparing the ground for an urban leisure facility. While constructing the Aberdeen Aquatics Centre on the

Mace Group encountered perhaps the most unwelcome surprise, as it rebuilt Chenil House on the King’s Road. Not only was an unmapped, sealed chamber measuring 4x5m discovered in the basement, so was a doorway through to former wartime munitions factory. It meant poring over maps of tunnels and unexploded bombs, hoping no further nasty surprises lay in wait. This delay added to all those that occur typically, and again meant high reliance on the software. “It helped us cope with a whole range of typical discoveries and changes” said Project Manager Charlie Bevan. While construction contractors are used to project planning, the sensitivity and high profile nature of future housebuilding will demand even greater planning excellence. This is a time when expert planners and project managers will truly earn their stripes. For developers and contractors already embarked upon, or about to become involved on, housebuilding projects, the mantra must be “expect the unexpected.” Preparing for the ‘what if’, learning from the experiences of the past, and investing more significant effort in the community communication and liaison side of projects, will not only pay business dividends, but could make you part of changing the lives of a generation. By Jason Ruddle, COO, Elecosoft

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Risky Business:

An Exclusive Interview with Dr David Hancock ALMOST a year on from the Government’s hugely ambitious BIM Level 2 mandate, UK Construction Excellence’s own Matt Brown speaks exclusively to Dr David Hancock about the UK BIM journey, skills shortage concerns, and the outlook ahead for construction in 2017. Dr Hancock leads the Government Construction Team and chairs the Government Construction Board for the Cabinet Office and Infrastructure and Projects Authority (IPA). Prior to that he was Head of Risk for Transport for London and London Underground. Renowned internationally as a leading thinker and practitioner in the field of behavioural risk, David is the author of the bestselling book “Tame, Messy and Wicked Risk Leadership” in which he developed the concept of risk leadership. He has worked with the public, private and voluntary sectors and was Head of Risk for the Terminal 5 Project at Heathrow. AS WE MOVE CLOSER TOWARDS THE ANNIVERSARY OF THE BIM LEVEL 2 MANDATE IN APRIL, WHAT’S YOUR VIEW ON WHERE THE CONSTRUCTION INDUSTRY IS POSITIONED ON ITS BIM JOURNEY? The construction industry has responded well to the change to a digital construction approach to date. Industry have generally embraced the opportunity to digitalise their

approach to construction on projects and recognise the productivity and efficiency benefits this can have, but also the challenges this has created. One year on from the mandate I would suggest we have now passed the midpoint in the journey and now our focus needs to be on embedding BIM (Building Information Modelling) Level 2 into business as usual, and laying the foundations for the next digital standard for construction. One of the key areas of development is to be inclusive of the product manufacturing and SME’s. Industry needs to support them to make sure they embrace the journey that the sector is going through. The Construction Products Association response through Lexicon is a great way to bring the supply chains and manufacturers on the journey. IS THE GOVERNMENT’S COMMITMENT TO SIGNIFICANT INFRASTRUCTURE INVESTMENT AN ENDORSEMENT OF THE HUGE ADVANTAGES OF WORKING WITHIN THE BIM PROCESS? As you may know, the Government published its first combined National Infrastructure and Construction pipeline towards the end of last year. This identifies over £500Bn of planned spend and circa £300Bn by the end of 2020/21. BIM is one of a number of factors that supports Government’s commitment to infrastructure investment and attracting investment.

WOULD YOU SAY EMBRACING COLLABORATIVE WORKING PRACTICES IS FUNDAMENTAL TO THE FUTURE OF THE INDUSTRY? Collaborative working practices and early contractor involvement remains fundamental within many of the approaches outlined in the Government Construction strategy including BIM. DO YOU THINK THAT OFF-SITE MANUFACTURING AND PREFABRICATED BUILDINGS ARE A WAY TO HELP SOLVE SOME OF THE ISSUES FACING THE CONSTRUCTION INDUSTRY? It is definitely part of a mix of approaches to help solve some of the issues facing the industry but these approaches must be viewed as part of the solution and not in isolation and taken into account alongside other aspects of delivery. THERE SEEMS TO BE SOME NEGATIVITY SURROUNDING THESE METHODS OF CONSTRUCTION. WHAT CAN BE DONE TO CHANGE THIS? Individually, modern methods of construction are positive but sometimes difficult to embrace at scale. However, if these are treated and delivered as a suite of approaches that form a best practice approach then you drive an even higher level of

performance. I think if we can focus on Digital, Manufacturing processes and Whole Life Performance together, not separately, then any negativity should change as there is something for everyone in those methodologies. As announced in last year’s Autumn Statement, the IPA is leading a new review, looking at ways we can improve the cost, quality and performance of UK infrastructure. It will address many of these issues and is due to report in summer this year. We at the IPA are always looking for new ways we can help to improve the delivery of projects. THE SKILLS SHORTAGE IS STILL ONE OF THE BIGGEST PROBLEMS CURRENTLY FACING THE INDUSTRY. DO WE NEED TO CHANGE PEOPLE’S PERCEPTIONS OF WORKING IN THE INDUSTRY? Absolutely. A career in construction no longer necessarily means hours on-site in a hard hat and a yellow jacket – though there are still plenty of those roles! We need expertise in new technologies, digital skillsets, project management, manufacturing, and many other areas to deliver the infrastructure the UK needs. Bringing in new people into the sector is also important, and the sector needs to demonstrate the breadth of opportunities available to attract graduates and skilled workers, as well as those with less experience.

Apprenticeships are another excellent way to do this but we also need to keep them and so we need to look at our present working practices and embrace role sharing, flexible and part time working and gap years where appropriate.

government-planned projects. Ongoing projects such as Crossrail and HS2 are right at the forefront of innovative construction and offer exciting opportunities for the companies and individuals delivering them.

HAS THE RESILIENCE OF THE CONSTRUCTION INDUSTRY IN THE FACE OF RECENT UNCERTAINTY SURPRISED YOU?

WHAT ARE YOUR PREDICTIONS FOR THE CONSTRUCTION INDUSTRY IN 2017?

The construction industry has proven its resilience many times. It’s often criticised as a fragmented industry, however this is also part of its resilience – a range of different subsectors, companies and organisations that are able to flex to meet demand. In part this resilience may be ‘double-edged’ and also contribute to its resistance to change. GIVEN THE MULTITUDE OF CHANGES SURROUNDING THE CONSTRUCTION INDUSTRY, WOULD YOU SAY THAT THESE ARE EXCITING TIMES FOR THE SECTOR? The increasing use of new technologies and building techniques, such as offsite manufacturing, and new research opportunities such as the Industrial Challenge Strategy Fund, mean that this is very much an exciting time. The Government announced its £500Bn infrastructure and construction pipeline at the end of last year – this demonstrates the exciting reach and range of

I would be wary making any predictions – those who attempted to predict events in 2016 were not particularly successful! But I expect we’ll see increased interest in offsite manufacturing (not just offsite construction there is a difference), the application of digital and data and an increased focus on how we can improve the performance of assets. I also hope to see a continued increase in the numbers of women entering the sector and filling senior positions.

In the MEP sector, we hear a lot about the benefits of BIM but businesses often worry about having to invest heavily before receiving any payback in efficiencies or profit. However, there is a way to make sure you can keep ahead in the BIM race without having to splash-out on software, hardware or training upfront.

service, we’ll come to your project before you start working on site, scan the physical environment and take accurate measurements for use in your design and detailing process. There’s no need for costly reworking and a lack of original drawings is no bar to knowing exactly what to expect well before work is underway.

Dedicated to meeting the specific needs of MEP engineers and contractors, our team of virtual construction specialists boast unparalleled industry expertise and experience. Harnessing their skills and knowledge will help you work more efficiently and cost-effectively as the sector continues to evolve.

Our 3D modelling service creates functional 3D models in accordance with a projects Level of Detail requirements. We then supply the model in the file format of your choice. Simply provide us with existing construction plans, models, fabrication standards and any available MEP system specifications and we’ll build you a bespoke model that works seamlessly in the practical areas of construction-calibre quantities, schedules, and estimates.

By using our 3D modelling and 3D laser scanning from point cloud services, MEP professionals are able to achieve more accurate planning and control on projects. With Trimble’s 3D laser scanning

Whether you’re completely new to BIM or have an existing team of dedicated staff but need

more hands on board for bigger projects, Trimble MEP services mean everyone can confidently win work on BIM contracts. Our mission is to help MEP contractors maximise efficiencies and reap additional profits through the provision of fast and seamless integrated construction services solutions. Trimble’s reputation for reliability, expertise and specific MEP sector knowledge means our services are attuned to your precise and individual needs. In addition to putting you ahead of the game in terms of BIM capabilities, buying in Trimble MEP services enables you to make savings just where you need them throughout every stage of the process. To find out more, click here or call our team to find out how we can work with you to ensure rapid ROI and seamless simplicity to your next project.

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

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The State of Play: RICS’ Alan Muse on BIM, global standards and the year ahead

UK Construction Excellence’s Matt Brown talks exclusively to the Director of RICS’ Built Professional Groups, Alan Muse, about the UK’s BIM journey, International Construction Measurement Standards and 2017 predictions. Alan Muse has been leading RICS’ response to the Government construction strategy and sits on the CIC BIM Forum. He is a member of the group established to develop the BIM protocol and leads project management, quantity surveying and BIM initiatives within RICS including the development of skills, training and guidance for RICS members. COME APRIL, WE WILL BE A YEAR ON FROM THE BIM LEVEL 2 MANDATE. HOW WOULD YOU DESCRIBE THE CONSTRUCTION INDUSTRY’S PLACE ON ITS BIM JOURNEY? The figure I saw on the last comprehensive survey on building information modelling was around a 54% take up. That was in answer to the question ‘are you using BIM?’

There’s always the issue of the definition of what BIM actually means in practice when people are asked such a question. One of the concerns from our perspective is that a lot of the debate and thought leadership on BIM to date has been design-centric and related to the design professions. There’s nothing wrong with that, of course, because obviously BIM has replaced Computer Aided Design. Therefore it’s quite natural for the debate to have progressed in that way. However, we do feel that in regards to business management – project cost and facilities management – there is much more work that needs to be done. It is interesting that Level 3 aspirations and also some of the BIM Alliance work that is just starting up is geared more towards things like life costing operations than perhaps the work in the past. We feel that the industry has been nudged to take up BIM and the Level 2 mandate has been at least partially successful, but the real progress now depends upon changing

the conversation about BIM into more of a business management setting. That will allow greater engagement with the private sector who, to date, have not been as enthusiastic the take up of BIM as the public sector. I think the other issue, which certainly crosses over with the RICS, is existing buildings’ conversion, refurbishment, heritage and all that type of work that surveyors obviously get involved with extensively. A lot of the BIM debate has been related to new ‘sexy’ projects and we need to expand that debate to include technologies that are available for scanning existing buildings into BIM and then using that digital information in a way that creates efficiencies for the process of existing properties portfolios and property management. So that’s where we are but actually we think we’re in a good place in terms of continuing that debate and furthering

the BIM take up in industry through professional discourse and professional knowledge. DO YOU FEEL THERE IS CLOSE COLLABORATION BETWEEN THE BIM DESIGN AND BUSINESS MANAGEMENT PROCESS? Yes, in my experience the collaboration on BIM between the different professional institutions has been good. It’s one area where professional institutions have shown they can collaborate well, probably because they have had to in order to further the BIM debate. We do need to shift the conversation away from the design-centric nature of some of the debate to date over to business management. This would mean more engagement with the technologists’ solutions and their response to market demand and impacting client decisions. One issue that probably hasn’t been addressed as much as it could be is the private sector client, the decision making process that he goes through and how

BIM feeds into that process. Some government departments, such as the Ministry of Justice, have analysed their processes in quite a lot detail. Private sector clients work in a state of flux and transformation in response to market needs, particularly private sector developers. There needs to be a lot more thought in how business management process is applied to and benefiting private sector clients. Is the Government’s commitment to significant infrastructure spending an endorsement of the huge advantages of working within the BIM process? I don’t think that it is necessarily cordial but it is correlated. The fact that we do need to spend a lot of money on infrastructure over the next 10 to 15 years in the UK and globally is a huge opportunity to integrate BIM from the beginning as HS2 and others are beginning to realise. That large infrastructure spending allows the infrastructure market to realise the benefit of BIM in a way that might not have been possible in the repair and maintenance arena, which infrastructure spending in this country has been conventionally restricted to.

The three H’s – Hinkley Point, HS2, Heathrow’s third runway – all have a capacity and capability to bring BIM right into the process from the beginning and use BIM in a way that can produce a more efficient design process but, critically, allow the information for asset management to be controlled and structured in a much more cohesive and cogent way than has been possible in the past. The advantages accruing from that will only be evident through time but if the Government is committed to the digitisation of the industry, then infrastructure is one arena where, because of the nature of the repetition and the industrialisation of the process is possible, the benefits of BIM maybe even more significant than in building. WAS THE INTERNATIONAL PROPERTY MEASUREMENT STANDARDS A STEPPINGSTONE TO THE INTERNATIONAL CONSTRUCTION MEASUREMENT STANDARDS (ICMS)? >

sh detection Reinforcement cla

Cassidy Forsythe are experts in the 3d modelling of highway schemes to the BIM protocols. We can provide a 3d model of your design or we can design your scheme for you to DMRB standards or your adopted standards. We have extensive experience in the design of highway schemes, including feasibility studies, preliminary and detailed design, contract preparation and construction supervision. We can create 3d models for you which comply with the BIM principles. These models will show all 3d elements, such as pavement layers and street furniture, allowing quantities to be extracted directly from the model and 4d schedule simulation to be carried out. The models created will capture the design intent and will facilitate clash detection. The models will also feature elements which are capable of being attributed with information for asset management purposes, which is a key requirement of BIM level 3.

T 0191 466 1296 E INFO@CASSIDYFORSYTHE.COM

rthworks Carriageway and ea

modelling

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ARE YOU STILL DESIGNING THE SAME WAY AS YOU DID IN THE EIGHTIES ? Are you still using a computer like this to do your highway design ? No – of course not – it’s antiquated and not up to the job. So why do your highway designers still want to design using software which was created around the same time ? Why do your designers want to write input files which were designed to run on computers like the one shown ? In the early eighties, the industry standard software programme for highway design was called MOSS.

MX (formerly MOSS).

MOSS was written using Fortran and BIM wasn’t even a dream.

Bentley Systems, who are the current owners of MX, realised this and have completely rewritten the software using modern computer language and called the new package Openroads.

To use MOSS you had to write an input file, run it and then come back tomorrow to see if it had worked.

Models created using the Openroads technology allows elements to be attributed with data which can be harvested at a later date.

Unfortunately, many highway designers have held on to this way of working and won’t move on.

Openroads also remembers your design information and retains on the drawing for design checking purposes.

One of the problems with 3d models created using this way of working is that it isn’t suitable for BIM and isn’t BIM compliant in any way. One of the basic ideas of BIM is that you can attribute data to the elements you design, so that the information can be harvested at a later date. This is impossible with a 3d model created using

The latest version of the software is called the Openroads Designer Connect Edition and does not include the ability to create input files. Bentley have eventually removed the link to the past and produced a modern software package which is fit for purpose.

A 3d model created using Openroads A 3d string model created using input files

So, you may have designers who are very proficient in creating highway designs to DMRB standards however they need to be retrained to use the latest software and this is where we come in. We can train your Engineers to use the latest software and create BIM compliant models. We can come to your offices or you can come to our offices in Newcastle.

T 0191 466 1296 E INFO@CASSIDYFORSYTHE.COM

Well in so far as it’s a suite of standards – yes. The context here is that following international financial reporting standards, we thought as a professional institution involved in land, property and construction, that it was important following on from the global financial crisis that we developed global standards in the areas of land, property and construction. As surveyors, the first standard developed was the valuation standard called the Red Book, which looks at standard ways of valuing property around the world. Following on from that, the main input into valuation and property is floor areas and they also vary significantly around the world, so International Property Measurement Standards (IPMS) was the logical next step. Obviously people amend, adapt and build new property so construction having a consistent standard for cost classification around the world at a high level was the reason we embarked upon International Construction Measurement Standards. In all these cases, it’s been done through collaborative international coalitions. ICMS is a coalition of 43 professional bodies around the world. We feel that professional bodies are the right people to at least initiate these standards and write them in the first place, although clearly we want industry to shape them. By doing it through professional institutions, we can get the right expertise around the table to write the standard efficiently and quickly, then put it to the market and shape it through industry feedback.

HOW HAS THE LACK OF SUCH A SYSTEM AS THE INTERNATIONAL CONSTRUCTION MEASUREMENT STANDARDS RESTRICTED THE CONSTRUCTION INDUSTRY? First of all, the problem that ICMS is solving is a lack of a consistent classification or standard to compare construction costs around the world. Although we’ve had in recent times political populism with people retracting behind their own borders, there is no doubt that globalisation has a large effect on the world. Investors in construction are increasingly global and want to compare the cost of projects and infrastructure on an international basis and there is no common standard for doing so. You will recall the debate on HS2 and how it compared with other high speed rail networks around the world. There simply was not a comparable standard that could be used to make those comparisons. Sometimes people think of international as somewhere else and not relevant to the UK market but look at the amount of Chinese investment we are about to receive in the UK, both in railways and nuclear energy. Chinese investors in the UK will want somewhere to compare their costs that they’re going to undertake for construction in this country with costs in other parts of Asia. The need for a global standard and regulation in the profession is important because, unlike accountancy and the medical professions, quantity surveying is quite fragmented and does not have global standards. This is a first step in creating that framework and unifying the quantity surveying profession.

Harmonising the language will also be key. For example, cost engineers working in some parts of the world think they are doing a different job to quantity surveyors in the UK but actually, when you analyse the skills of those two different professions, they are very similar. The introduction of International Construction Measurement Standards makes a lot sense. Has this been the general reaction you have received? We have just finished the first public consultation on the 15th January. I was looking through the comments received and one of the questions that we put to the consultation was ‘What do they think about the need for this standard?’ Almost without exception, we received an awful lot of very positive comments. Most people, regardless of their market in the world, seem to immediately see the need for this and the benefit of it. WHAT HAS BEEN THE REACTION OF SMES? Positive. Once it’s explained to SMEs how it interfaces with existing national standards, such as the new rules and measurements, people do understand the need for this. I was speaking to an SME director in quantity surveying a couple of days ago, who hadn’t actually seen the consultation on ICMS. I asked him to have a look at it and he came back to me within a couple of hours. He thought it was a no brainer and was extremely positive about it. Even if you work at an SME level and think that large international projects are not something you necessarily are involved in, the issue is that we now have global supply chains. We

have certainly got supply chains in this country in quantity surveying where some of the larger practices are using the smaller practices.

HAS THE RESILIENCE OF THE CONSTRUCTION INDUSTRY IN THE FACE OF UNCERTAINTY SURPRISED YOU?

If the larger practices are talking about this standard on an international basis then the smaller practices need to understand it and how it is being used.

There have been some ups and downs along the way and there is no doubt that the depreciation in the pound is going to affect input prices.

As RICS is primarily made up of SMEs, we are very keen to make sure they are engaged in this standard and that they understand its place in the market and how they can become involved in it.

That is probably going to feed through into costs but in construction, price doesn’t always follow cost. Whether that can be subsumed within the industry to some degree, time will tell. The construction industry was in pretty good shape in terms of demand in the UK and therefore it’s not really surprised me that it’s been generally resilient.

DOES BREXIT MAKE HAVING THESE STANDARDS ALL THE MORE VITAL? I think that is an extremely good point. When we were developing ICMS, we actually went to the European Commission and their construction unit is very much in favour of it because it allows them to harmonise rules across the European economies. That’s important for us but at the same time allows harmonisation and a standard for the profession on a global basis. With regards to Brexit, as Theresa May said, we need to be seen as a truly international nation now and one of our major export potentials is in professional services. Global standards in professional services is something that we should be involved in, just as a general principal. Some of the other professions have been involved similarly so it makes absolute sense that the surveying profession – something that the UK is well known for – is involved heavily in the globalisation of standards.

There is a lot of uncertainty surrounding business decision making because of Brexit but at the same time there isn’t anything fundamentally wrong with the economy. We do still have a low interest rate environment although people are expecting inflation to increase because of the exchange rate. The issue is that shouldn’t be insurmountable and therefore the idea of industry suffering a major recession is unlikely. WHAT ARE YOUR PREDICTIONS FOR THE CONSTRUCTION INDUSTRY IN 2017? It’s going to be a bit of a curate’s egg with regards to sectors. Obviously we have a lot of momentum in the infrastructure arena and we all know the need for housing, so those are two sectors that will do particularly well. The general macroeconomic environment should keep retail, commercial, and industrial sectors fairly level. I don’t anticipate there’s

going to be same type of skill shortages and high demand that we saw a few years ago but I do think that might be prevalent in one or two sectors where work is more in demand such as housing and infrastructure. Across the board and taking the overall position, it will be steady as she goes; our forecast is construction output rising 2% in 2017. The elephant in the room, however, is the pressure on input prices from the lower pound. There are various scenarios there, but we expect to see price levels contained within construction because the industry is not necessarily operating at full capacity. There may well be cost pressures in certain sectors that are seeing higher demand such as housing and infrastructure, where there is clearly a potential for capacity constraints in both trade skills and professional skills. So the capacity of the industry to deliver what is demanded by the economy might start to push up prices in certain sectors. DID THERESA MAY’S RECENT BREXIT SPEECH PROVIDE BUSINESS WITH ENOUGH CLARITY? It was a big step forward in terms of the clarity that has been provided to date. Is it enough? Industry would always ask for more information; but that’s just the nature of industry. My personal view is that, given the situation Theresa May is in, it’s as much as she could give at the moment. The fact remains it takes two people to negotiate and you don’t know what the other party is going to say. Overall, I would say it’s positive not in so much what she said but the fact that she said it.

The BIM Proposition:

An exclusive interview with David Philp CAN YOU TELL US ABOUT THE SCOTTISH BIM PROGRAMME? A key recommendation within Scottish Government’s Construction Procurement review was the implementation of Building Information Modelling (BIM) to Level 2 by April 2017. The review set out the following recommendation which was endorsed by Scottish Ministers: ‘The use of Building Information Modelling (BIM) should be introduced in central government with a view to encouraging its adoption across the entire public sector. The objective should be that, where appropriate, construction projects across the public sector in Scotland adopt a BIM Level 2 approach by April 2017.’ The Scottish Future Trust (SFT) are supporting the delivery of these requirements and have created a BIM Implementation Plan, Scottish BIM Delivery Group to support procuring authorities within Scotland to implement BIM Level 2 from April 2017. This roadmap sets out a combination of focused actions including:

• Pathfinder Projects, • Guidance, • Training, • Research

DOES THE UK’S BIM MANDATE MAKE IT EASIER IN A SENSE TO GET SCOTTISH FIRMS ON THE BIM JOURNEY? Undoubtedly the HM Government mandate and the creation of the BSI suite of BIM standards has helped create a firm foundation for industry. The BIM requirements of the Scottish Government will further advance this journey in Scotland and create appropriate digital journeys for the Scottish Public Sector procurer.

CAN YOU TELL US A LITTLE ABOUT HOW SCOTTISH BIM IMPLEMENTATION WILL PRACTICALLY BE APPLIED? We have developed a three stage approach to implementation in Scotland. Firstly the public sector client will, early in the procurement process, utilise the SFT BIM Grading tool to determine the appropriate Level of BIM maturity for their project, either Level 1 or 2. Secondly they use the Return on Investment (ROI) calculator to help inform the business before finally the “How?” which is informed by our departmental specific BIM navigator portal. WHAT ADVICE WOULD YOU GIVE TO SCOTTISH FIRMS LOOKING TO TAKE THEIR FIRST STEP ON THE BIM JOURNEY BUT AREN’T SURE WHERE TO BEGIN? Get to know the British Standards in relation to BIM, they are free to download and are available via http:// bim-level2.org/en/. Make sure that you target Level 1 BIM maturity as your first milestone, it is imperative that this foundation is in place before proceeding towards Level 2. Benchmark where you already are in your journey. The SFT are promoting the BIM Compass http://bim. knowledgesmart.net/sft/ as a useful and agnostic way of doing this. Have a strategy based upon where BIM will give you and your customer’s added value. IS IT THE CASE THAT BIM IS AS MUCH ABOUT CHANGING PEOPLE’S MIND-SETS AS IT IS ABOUT THE TECHNOLOGY? Yes, it is important that BIM implementation is seen as much about improving behaviours and ensuring better ways of delivery than

it is about the technology. Creating more collaborative ways of managing and delivering information is at the heart of BIM. BIM in its various guises is becoming a metaphor for industry change. The client “pull” is helping drive innovation and set a compelling vision of what a digitised sector would look like using computer readable data. That said, the technology is the vital enabler and should be given equal consideration. It should however always be appropriate to the outcomes that an organisation wishes to achieve – don’t by authoring tools when all you need is a free viewer. Understand what plays you need, create a functional requirement and work from there. ARE THERE ANY NEW TECHNOLOGIES THAT YOU HAVE SEEN RECENTLY THAT HAVE GOT YOU EXCITED? I have seen a lot of improvement in AR/VR offerings which is great. However, I have witnessed some incredible examples of machine learning and cognitive workflows especially around generative design that got me real excited. WHAT ARE YOUR THOUGHTS ON DIGITAL CONSTRUCTION WEEK (DCW) AND WHAT INVOLVEMENT DID YOU HAVE? I was doing a talk on the improved functionality that Level 3 might offer and the benefits that it could enable especially in the operational delivery and how real time data and analytics can support. It was noticeable at this year’s DCW that as well as the BIM discussions there was more of a wider zoom out and embracing of a general digitisation of construction, which was refreshing.

BIMevoke Ltd is a specialist Digital Engineering consultancy delivering 3D design and Building Information Modelling to clients. In addition to new build detail design, we offer our DEA process, (Digitising of Existing Assets), providing data rich models for improved asset lifecycle management through bespoke software navigation packages.

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Highway to BIM: Innovating England’s road network WHEN we think of Building Information Modelling (BIM) most minds alight on the obvious; buildings, and the myriad ways in which BIM is revolutionising both their conception and construction. BIM has broader applications however, and the industry at large is beginning to feel the benefit. First and foremost, what is Building Information Modelling? In broad strokes, it is a method of managing project information in a more collaborative and cost-efficient way – collaboration being the operative word. When properly implemented, BIM is able to create a single shared source of information to ensure all parties are working from the same page. It’s a more flexible and reactive way of working – one which might just iron out inefficiencies and bad practice further down the line. If the industry is to deliver a more sustainable built environment in-step with the Government’s aspirations, BIM will no doubt have a role to play. This is especially true of highways infrastructure, which has already made significant efficiency gains thanks to the implementation of BIM. In April of last year, the Government’s long-awaited BIM Level 2 mandate arrived, bringing with it a requirement for BIM to be used on all public sector projects, regardless of size. As a member of the Government

Construction Board responsible for the strategy, Highways England also agreed to roll-out BIM across all centrallyprocured projects. Its vision? To “make informed decisions and achieve excellence in delivery with visible benefits”. The Organisation – which operates, maintains and improves England’s motorways and major A roads – has thrown considerable support behind the BIM initiative, having launched a sector-specific Digital Component Library (DCL) last July. Compiled by Costain Graduate BIM Technician Faris Mahder on behalf of Highways England, the DCL houses a variety of 3D BIM models – from gantries and vehicle restraint barriers to MS4 variable signs and signals - for use on upcoming highways projects. Faris was on-hand to explain more: “The aim of the DCL is to reduce the extensive effort spent recreating content amongst project teams. The value for Highways England is in generating project information models more rapidly and at an earlier stage in a project lifecycle. The DCL will act as one version of truth, through the availability of digital contents from the highways supply chain.” Though the concept of a digital component library is well-established, the DCL has broken new ground in the UK highways sector. What’s more, it

demonstrates how Highways England is working to arm delivery partners with the tools necessary to make BIM uptake that much easier. Both BIM and the DCL are set to play a pivotal role in the ongoing delivery of Highway’s England’s hugely ambitious smart motorways scheme. This transition forms part of a £15Bn government investment, to be managed by Highways England between now and 2021. In total, 292 additional miles will be added to England’s existing road network through the conversion of the hard shoulder into an active traffic lane. Innovative new technology will tell motorists what speed to drive at, if lanes are blocked or closed, and about any incidents up ahead. Faris added: “In the Smart Motorways Programme, there is a huge drive towards standardisation of assets and features commissioned within all projects. The DCL reflects this drive but it doesn’t remove the responsibility of the designer to provide a safe, innovative and buildable solution.” There’s still work to be done, of course. SME uptake of BIM has long been a bone of contention, and more must be done to engage the highways supply chain in the process. But the message is clear. BIM is making a difference, and it might not be long before its use is standard practice.

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Integration and Communication: The evolving role of the construction security director SECURITY is one of the oldest professions in the world, followed close behind by construction. For as long as these two occupations have coexisted, the security director has been tasked with defending the perimeter, keeping unwanted visitors off the site and ensuring the safety of curious children, for example, or ill-wishing opponents. From ancient Egypt to 20th-century Manhattan, construction companies have always had a role for someone focused on the border fence, ensuring that intruders were dissuaded and, if necessary, apprehended. That role is still as essential as ever in the 21st century - but with the rise of connected security systems, the remit of the security director has suddenly expanded to include the whole cybersphere.

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Now the concept of the perimeter is almost limitless - a cyber-breach, in which attackers take control of security gates, cameras or identity checkers, could be every bit as damaging to the business as a more traditional blunt instrument, if not more. Many physical processes, such as surveillance and access management, are now increasingly being managed from a central control facility with responsibility for multiple sites - which may not even be on the same continent. As a result, thereâ&#x20AC;&#x2122;s a great deal of communication and information relay now surrounding construction sites, which is highly vulnerable to attack. New boundaries in construction In this new world, the role of the

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traditional security director and his or her team remains crucial, no matter where security headquarters are located. There is not now, and likely never will be, any substitute for physically interceding between a violent perpetrator and his intended target in a timely manner. Whether the perpetrator is holding a hammer, a suspicious package or a grudge; muscle on the ground is always vital. However, with new definitions of security, that role is now joined by a host of others. In many construction companies, professionals from backroom functions like IT, HR, legal and logistics are all now implicated in security, because all of these functions are digitally interlinked. A breach in the logistics department could lead a hacker through to the security frontline - for example, accessing entry passcodes. So where does that leave the traditional security director? In many cases it is still true that there is no one in a better position to lead overall security efforts than the experienced security director. However, it is equally true that, in order to do so, he or she must now be the leader of a multi-disciplinary team, with a group of professionals delivering what might be to them unfamiliar types of expertise. Moreover, that team will likely be located across several different sites, so effective collaboration and information sharing are essential.

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WIDENING HORIZONS This era of convergence is creating an enormous, albeit temporary, window of opportunity for the security director to grow the responsibility and importance of his or her role in the construction industry. However, in order to lead the newly expanded team, many security directors may need to expand their knowledge base first. This does not necessarily mean having to become an IT expert, or a shipping expert, or a legal expert, but for many security professionals it will mean gaining a better understanding of the technologies utilized by those disciplines, as well as the language they employ. This can be done readily through training, and many large organisations in the construction industry may offer courses that can help close the gaps in a security professional's knowledge. These organisations often also have books and manuals that relate to these issues, and these are often especially geared towards the needs of experienced, on-the-job professionals. LEADING FROM THE FRONT The security director's imperative now is to open, and, hopefully, lead, the dialogue with IT, logistics and other security-intersecting enterprise operations on how to integrate security applications with the rest of the business, and improving how risk is managed overall.

Security professionals need to take the lead and initiate the discussion. They can offer their security roadmap and business plan to peer leaders in the other departments and see where plans intersect, and how they can work together to provide the best overall security services to the enterprise. Changing the dynamics of a role and incorporating new skills can seem a challenging prospect, but especially in the essential work of the security team, it is often the price that must be paid for effective service in a changing business. At the end of the day, if security becomes a closeted world with no insight into the company it is designed to protect, then the defence it provides risks being mismatched, outdated and ineffectual. As collaboration and digital activity increasingly become the norm, the most successful security directors will be those who take the initiative and gain the skills necessary to integrate with other divisions. The construction industry is benefitting from digitalisation in many areas. But security directors must be alert to the dangers that come with it. They must consider how to integrate cyber-security considerations into their perimeter protection. If they donâ&#x20AC;&#x2122;t defend the companyâ&#x20AC;&#x2122;s cyber presence as well as its fences, then they might as well hand over the keys to the first intruder who tries their luck. By Simon Gawne, Director Integrated Solutions & Innovation, Tyco

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Economy Secretary on deck for Queensferry Crossing ECONOMY Secretary Keith Brown has witnessed first-hand the preparations for a landmark moment as engineers begin to hoist the final section of deck onto the Queensferry Crossing. Mr Brown commented: “The public have been fascinated by the spectacular progress on the Queensferry Crossing. While there is a lot of work left before opening to traffic in May, completing the deck represents a true landmark moment that we’ve all been looking forward to. “It’s the moment Fife and Edinburgh are connected by a third, stunning structure across the wide waters of the Forth. It’s a privilege to be here to see it. “Every time I visit the bridge I’m struck by the expertise and endeavour of the workforce. Today is a hugely important milestone, one everyone involved should be very proud of. I’m sure I speak for many of us when I thank

them all for their continued hard work and this fantastic progress.” In total, Queensferry Crossing spans 122 deck sections - a dozen of which were craned into place during October 2014. Lifting of the remainder began in September 2015, with last month’s milestone marking a muchanticipated end to this lengthy phase of construction. To date, the deck has required 77,200 tonnes of steel and concrete. Each section weighs an approximate 750 tonnes, is around 40 metres in width and 16 metres in length - though the final unit measures 12.1 metres long. Despite these considerable proportions, there has been little or no margin for error. It has been a painstaking process, carried out against a backdrop of icy temperatures and gale force winds. Completion of this crucial phase means that focus can now shift to the concrete

deck along the southern approach and the full and final closure of the bridge deck from end-to-end. Michael Martin, Project Director for Forth Crossing Bridge Constructors (FCBC) said: “This final deck lift is the culmination of a world-class team effort stretching all the way back to the very first day of construction in 2011. “The final “closure” is always one of the most significant milestones in any bridge construction programme. On a bridge of this magnificent scale, well, it’s more than a bit special. It is a real pleasure to pay tribute to the skill and dedication of everybody involved and to congratulate them on an outstanding achievement. “We are now focused on completing the huge range of finishing works and bringing the Project to a successful conclusion.”

Scottish Land Fund green light community ownership Communities the length and breadth of Scotland have been given the go-ahead to take ownership of and redevelop local land. The Scottish Land Fund has awarded 11 projects a total of £2.1M to allow local groups to purchase land for community ownership. The Scottish Government’s draft budget for 2017/2018 includes £10M for the Land Fund and an additional £3.4M for other land reform measures. This will enable the ministers to implement the provisions

of the Land Reform (Scotland) Act 2016, such as establishing the Scottish Land Commission from 1 April 2017. Land Reform Secretary, Roseanna Cunningham, said: “The Scottish Government’s draft budget not only protects, but increases the budget for land reform so that even more communities can take ownership of their land, making them stronger, resilient and more sustainable. “I am delighted that so many groups around Scotland now have the

opportunity to control the land that matters to them and redevelop it as a more useful and sustainable resource. I am especially keen to see that urban groups are beginning to take advantage of the changes to the Community Right to Buy legislation and in the Scottish Land Fund. “This funding marks a milestone for many local communities who have worked hard to design and present successful business cases for the future of their land resources.”

Trigeneration for Easter Bush Veterinary Campus THE University of Edinburgh is set to harness the power of trigeneration as part of a new £9M energy project which will revolutionise the way in which they produce heating, cooling and electricity at their Easter Bush Veterinary Campus. The system - to be delivered by Vital Energi - will capture the waste heat created during electricity generation and harness it to produce heating for buildings at the Easter Bush campus. In warmer summer when there is less demand, that heat will be converted into cooling to ensure maximum efficiency all year round. Vital Energi will also install a 4km, thermallyefficient, buried district energy network which will transport heated and chilled water campus-wide.

Scotland ripe for foreign investment Scotland is ripe for investment and remains open for business, External Affairs Secretary Fiona Hyslop has told Japanese investors in Tokyo. According to Ms Hyslop, Scotland has the highest number of foreign direct investment projects on record, while opportunities for business growth in Scotland remain strong despite the shock outcome of the EU referendum. With 85 Japanese-registered businesses operating in Scotland currently, Japan is Scotland’s 7th largest source of direct investment. Collectively their turnover in Scotland last year was £1.489Bn – a rise of £187M. Ms Hyslop said: “With substantial natural resources, one of the most highly educated workforces in Europe, a long-standing reputation for innovation and world-renowned universities, Scotland is a highly attractive place to do business for Japanese companies.

“While in Tokyo and Nagasaki this week, I will meet current and potential investors to reassure them that while the EU referendum result has cast a cloud of uncertainty over trading relationships, Scotland remains a great place to invest. “At almost £1.5Bn, direct investment in Scotland from Japan is at a record high with excellent prospects to grow even further.”

Mike Cooke, Regional Director for Vital Energi commented, “The public sector have been at the forefront of Scotland’s decarbonisation initiative and The University of Edinburgh are a great example of how embracing sustainable technology can deliver more affordable, reliable and lowercarbon energy. “Trigeneration is an exciting technology as it can operate at maximum efficiency all year round and our similar installations have a great track record of reducing emissions and saving money, so it’s an ideal solution at Easter Bush where they have a clear vision to deliver a 21st century, low-carbon campus.” The energy centre will be powered by a 1.5MWe Combine Heat & Power engine and two 4MW boilers. Cooling will be provided by a 1.5MWc vapour compression chiller and both heating and cooling systems will have a 100m3 thermal stores.

Ms Hyslop also met with Kyowa Hakko Kirin, a research and development company who previously acquired ProStrakan in Galashiels. A positive experience has led to the expansion of their headquarters, taking the number of employees in Scotland from 150 to 200 over the next five years. While in Japan, Ms Hyslop also discussed future plans with existing investors including Mitsubishi Electric and Reprocell.

Taking Stock: £34M to guarantee Glasgow housing improvements THE Scottish Government, together with Glasgow City Council, has this month unveiled a sizeable funding package, thought to be in the region of £34M, which is to go towards housing initiatives throughout the Govanhill area. In total, the Scottish Government has set aside £20M to fund a four-year programme with the aim of acquiring up to 350 properties and corralling them into the social rental sector so that much-needed repairs and improvements can be made. Subject to final approval from Glasgow City Council’s Executive Committee, the remainder (£14M) will enable Govanhill Housing Association to take direct ownership of the homes and improve significantly property management in the region. The multi-million pound investment looks to build upon the foundation laid by the South-West Govanhill Property Acquisition and Repair Programme – a pilot scheme which targeted four tower blocks which had, over a period of years, fallen into disrepair. To date, 124 flats have been brought under housing association ownership, far surpassing the initial target of 80.

Kevin Stewart, Minister for Local Government and Housing, explained: “The acquisition and repair scheme, which ran as a pilot and focussed on four blocks, has proven to be a great success. Evaluation of this project has shown that, in a relatively short period of time, significant progress has been made. “However, it’s clear that more work needs to be done in this area, and that is why I’m delighted that we’re able to invest £20M to support a wider programme of improvements across the Govanhill area. By working together with Glasgow City Council and Govanhill Housing Association we can continue to make real improvements to the lives of the people who live here.” Councillor Frank McAveety, Leader of Glasgow City Council, later added: “In our view transforming how the area’s housing is managed is the foundation for a long-term improvement in Govanhill. The impact of council-inspired initiatives such as the Acquisition Programme and the Enhanced Enforcement Area is now being felt and we are seeing real signs of progress in Govanhill. “This latest funding package builds on

this progress and sets out a clear vision for the future of Govanhill. We see real potential in Govanhill and are willing to back this with the kind of investment that will make a real difference to the area.” Vice Chairperson of Govanhill Housing Association, Annie Macfarlane – a resident of Govanhill – was among the first to welcome the announcement, saying: “This four-year funding commitment recognises the need for a longer-term approach to tackling the issues that exist in the area. Of the 124 housing association properties bought to date, over 60% are from private landlords. This reflects our successful efforts to take housing into the social rented sector, while also maintaining existing tenancies. “As a community controlled and owned association, we will continue to work with local people, involving them in the programme to ensure we achieve its aims – better living conditions in the area, reduced overcrowding and more effective property management and maintenance. The long-term approach needed in Govanhill requires continued support from the Scottish Government and Glasgow City Council.”

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Funding agreed for International Convention Centre FUNDING has been agreed between the Welsh Government, Celtic Manor Resort and Natwest (part of the RBS Group), to deliver the new International Convention Centre (ICC) in Wales.

In the past, we’ve been forced to turn away hundreds of millions of pounds of business because we did not have the capacity to hold the largest conferences. Not any longer.

A total of £51.1M will be loaned to the joint venture company by NatWest’s local corporate team.

“This International Convention Centre will allow us to attract the biggest and most lucrative business events to Wales, as well as high-profile summits and party political conferences. ICC Wales will rival any convention facility in Europe and will act as a magnet for major events, bringing huge benefits to the Welsh economy.”

In addition to the tripartite funding arrangement, the Welsh Government and Celtic Manor Resort have signed contracts to establish a shareholders’ and project management agreement to build and run ICC Wales. John Sisk and Son have also signed a construction contract, after working to pro-actively ensure construction costs remain within budget over the last 12 months. The total development cost is £83.7M, including car parking and external landscaping. ICC Wales will be capable of accommodating up to 5,000 delegates with total floor space exceeding 26,000sq m. The centre will house a 1,500-seat auditorium and separate exhibition hall which, at 4,000sq m, will provide the largest pillar-free ballroom in Europe, capable of hosting 2,400 people for a gala dinner. Celtic Manor Resort Chairman Sir Terry Matthews said: “This International Convention Centre has been many years in the planning and I am delighted that we are now in a position to build and deliver this facility that will be such an asset to Wales.

Welsh Government Cabinet Secretary for Economy and Infrastructure Ken Skates added: “This will be a major asset for Wales, enabling us to compete with any venue in the UK and indeed Europe to attract and host key events that make a huge contribution to the economy. “It is also important to emphasise that not only is it an asset for the Celtic Manor and Newport specifically, but this development will provide a very real long-term boost for the entire economy of South Wales. It will create direct and indirect jobs during the construction and operational phases, provide new business opportunities for a wide range of supply chain companies and deliver extensive knock on benefits for tourism throughout the region. “It will place Wales firmly at the forefront of business tourism destinations and I am delighted it is being delivered in partnership with the Welsh Government.” Construction is to commence in March.

“The Celtic Manor Resort has already established a reputation as the UK’s No 1 Conference Hotel but this new centre will be a real game-changer.

The centre is expected to open for business for June 2019.

Warm Homes initiative to heat Wales’ most vulnerable households THE Welsh Government is set to invest £104M over the next four years to enhance the energy credentials of up to 25,000 homes across the country – helping to cut energy bills and improve the health and wellbeing of some of Wales’ most vulnerable households. The Welsh Government’s Warm Homes programme, which includes Nest and Arbed, will provide funding for residential energy efficiency improvements to low income households and those living in deprived communities across Wales. The £104M sum includes £32M of the additional £40M announced in the final budget. The remainder (£8M) will be invested in other green growth initiatives. The Welsh Government investment will also lever in around £24M of European funding, in addition to Energy Company Obligation (ECO) funding. The Cabinet Secretary said: “During the winter months how to keep warm while also meeting high energy bills is a very real concern for many low income households across Wales. I am therefore delighted we are committing £104M to our Warm Homes programme over the next four years. “The Warm Homes Programme aims to make improvements to homes, such as boiler and heating upgrades and applying loft insulation, to increase energy efficiency, reduce household bills and in turn reduce energy use and climate change. “There is also an emphasis on using the local supply chain to make these changes, creating jobs, developing skills and boosting the local economy.”

Social housing transformed into energy efficient smart homes WELSH Communities and Children Secretary Carl Sargeant has announced a new programme to deliver innovative models of housing and help increase the number of homes being built in Wales. The programme, which will initially receive £20M over the next two years, will contribute to the 20,000 affordable homes target which the Welsh Government has pledged to provide over its current term in office. The innovative homes will help to significantly reduce fuel bills or eliminate them altogether and better inform the

Welsh Government about the type of homes it should support in the future. The announcement was made during the Innovative Housing Design Conference held at the Cardiff City Stadium, and jointly hosted by the Welsh Government, the Welsh Local Government Association and Community Housing Cymru. Mr Sargeant said: “The housing sector in Wales is facing many challenges. We know we need to build more homes, quickly. We know the homes we build have to be cheaper to heat,

more environmentally friendly and more capable of responding to the demographic challenges ahead.” “My ambition is to start changing the type of homes built in Wales,” the Minister continued. “Homes that are capable of being delivered at speed and cost and recycled, not just reused, if needs change. Homes that help to meet the challenges of climate change, fuel poverty and changing demographics with the huge pressures that puts on our health and social care budgets.”

Welsh construction to outperform UK for a third consecutive year WELSH construction is expected to grow almost four times faster than the UK average, according to the latest forecast from the Construction Industry Training Board (CITB). For the third consecutive year, output growth in Wales is likely to outstrip other parts of the UK, with infrastructure projects once again driving growth. The new CITB research estimates an annual average growth rate of 6.2% in comparison to a national UK average of 1.7%, according to the Construction Skills Network (CSN) forecast for 2017

– 2021. Furthermore, it is predicted that 19,450 new jobs will be generated over the next five years. Mark Bodger, Strategic Partnerships Director for CITB Wales, said: “The outlook is very positive, with Wales once again far outstripping the rest of the UK. “The challenge now is to ensure the right skills are in place and that we have the workforce available to build these major projects. Retaining the skilled workforce we already have and attracting new people to the industry will be essential.

“Our new Construction Wales Innovation Centre - which will open next year in Swansea, will be at the forefront of training for current and future skills needs. “This is an exciting time for Welsh construction, with substantial developments confirmed and a huge pipeline of proposed projects. The South Wales Metro and Swansea Bay Tidal Lagoon could be further catalysts for growth. Industry must maximise on every opportunity available over the next five years and beyond.”

Finance Secretary considers infrastructure investment post-Brexit

FINANCE Secretary Mark Drakeford has met with the Vice President of the European Investment Bank (EIB) to discuss how Wales might continue to maximise opportunities and unlock infrastructure financing post-Brexit.

the potential for investment in social and affordable housing. Here, the aforementioned Housing Finance Grant 2 is set to play a pivotal role, as the Welsh Government works towards delivering 20,000 homes this Assembly.

Currently, the Welsh Government is working alongside the EIB to better identify financing options for priority schemes in Wales. This includes investment in sections five and six of the A465, the redevelopment of Velindre Cancer Centre, band B of the ‘21st Century Schools and Education Programme’ and the Housing Finance Grant 2 to name but a few.

Mr Taylor and Professor Drakeford also met with Health Secretary Vaughan Gething to visit the Velindre NHS Trust and view first-hand brand new proposals for a state-of-the-art cancer centre. This is to be the centrepiece of a hugely-ambitious £230M scheme, which will transform cancer care across southern Wales. It is also one of several schemes previously identified as an investment priority by the EIB.

During the meeting, Professor Drakeford and EIB Vice President Jonathan Taylor spoke at length about the funding opportunities made available through the Investment Plan for Europe - the €315Bn European Fund for Strategic Investment, for instance. The Finance Secretary also reiterated his wish that the Welsh Government’s long-standing relationship with the EIB continue despite the shock outcome of the EU referendum.

To the surprise of many, the EIB has invested almost £2Bn in the Wales economy over the past two decades. This has gone towards a wide range of public and private sector projects including those in the water, aviation, automotive and housing industries. It’s perhaps understandable then that the Welsh Government would like to see this trend continue, particularly as the UK stares down the barrel of Brexit.

Mr Taylor later met with the Cabinet Secretary for Communities and Children Carl Sargeant to explore

Professor Drakeford said: “We are facing unprecedented challenges in terms of public finances so it is vitally important

that we unlock all opportunities to boost investment in Welsh infrastructure. As a government we are focused on attracting investment from the EIB for our £2.5Bn innovative finance schemes, including projects for affordable housing, transport, health and green growth.” “Wales already benefits significantly from our long relationship with the EIB and we want to see this continue post-Brexit,” Professor Drakeford added. “Our White Paper, Securing the Future, sets out a credible plan for the UK’s withdrawal from the EU, and calls for the UK to continue as a subscribing partner of the bank.” European Investment Bank Vice President Jonathan Taylor concluded: “The European Investment Bank has a strong track record supporting longterm investment across Wales that has included transformational education, water, energy, transport and social housing schemes. “Close cooperation with the Welsh Government and business partners across Wales is crucial to maximise the impact of EIB engagement."

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A near-record rise for Irish employment ACTIVITY in the Irish construction sector rose sharply in January on the back of new orders, a leading survey has revealed. What’s more, there was a near-record upsurge in employment as companies responded to this increase in workload.

Construction activity highest in almost a decade CONSTRUCTION in Belfast is at its highest level for almost a decade, a new report has revealed. In total, 11 developments completed in the City last year, including two brand new hotels. A further six are currently under construction, amounting to more than 1,000 additional hotel rooms. 30 projects are now under construction or have just recently completed, including eight hotels, four educational facilities, seven student accommodation schemes and six office developments, according to the first Belfast Crane Survey report to be produced by Deloitte Real Estate. Simon Bedford, a Partner in Deloitte's Real Estate practice, said the report showed that Belfast was on an upward trajectory as a prime location for investment and development. Suzanne Wylie, Chief Executive of Belfast City Council, said: "The report demonstrates that private sector developers and investors see the opportunities being created by a growth in tourism, new companies locating here, growth in our own business base and more people, including students, wanting to live in the city centre." Ms Wylie has claimed that more ambitious targets, rolled-out over the next five years, will help create 15,000 new jobs, double tourism expenditure and foster £1.5Bn of investment in buildings and regeneration projects to better meet future demand. According to the report, retail and

leisure investment remains healthy, with Deloitte noting that business rate revaluation is leading to more store openings and attracting new brands to the City, filling spaces on Ann Street, Castle Lane and Castle Court. Office and residential development was much more subdued however. The report said that 84 residential units were completed in the city centre last year, yet none are scheduled to come to the market in 2017. Simon Bedford stated: "Office development has proved difficult to finance in the market, which is unfortunate as the corporate demand for Grade A office space is on the increase. It is also clear that city centre living has yet to really take off in Belfast, but growing student numbers will, we believe, drive this market forward before 2020." Mr Bedford added that it was highly encouraging to see first-hand the direct investment being made by Belfast City Council in its city centre - most notably through the joint acquisition of the historic former Belfast Telegraph building on York Street last year. "Belfast's popularity as a business and leisure destination continues to rise and this is having a direct impact on the local property and construction sector, which is attracting significant investment to meet demand. "Belfast's development pipeline is in good shape and we therefore expect to see even more cranes on the skyline in 2017 and 2018," Mr Bedford concluded.

On the price front, the rate of input cost inflation quickened to its sharpest since February 2007. The Ulster Bank Construction Purchasing Managers’ Index (PMI) – a seasonally adjusted survey designed to track changes in construction activity – posted 55.7 in January to signal a marked monthly increase. That said, down from 58.9 in the previous month, the index exposed a slower rate of expansion for the third month running. Commenting on the survey, Simon Barry, Chief Economist Republic of Ireland at Ulster Bank, noted that: “Irish construction activity continues to grow at a healthy pace according to the latest results of the Ulster Bank Construction PMI. The headline PMI index remained comfortably in expansion territory in January, albeit that the pace of growth eased for the third month running consistent with a modest loss of momentum early in 2017 after a robust end to last year. “Very encouragingly, residential activity remains a particular bright spot with housing activity continuing to rise at a rapid pace, while commercial activity also very much remains in expansion mode, though the pace of growth has eased in recent months. Civil engineering continues to lag behind the other sectors, with respondents reporting a third consecutive monthly decline in activity.”

Infrastructure scheme lays foundation for new homes MINISTER for Housing, Planning, Community and Local Government Simon Coveney has turned the sod on a major infrastructure scheme at Cherrywood, Dublin. The move is an initial step towards the delivery of 1,300 new homes due to begin construction later this year, and represents one of Ireland’s first buildto-rent developments as part of the Government’s solution-based plan for ‘Rebuilding Ireland’. The Minister said: “This is Rebuilding Ireland for real, and the start of one of Ireland’s biggest urban development

projects which will eventually employ around 3,000 people. The overall investment of capital into the Irish economy from the full Special Development Zone (SDZ) infrastructure project will be in the order of €160M and will build up to just short of €1Bn. " "There are additional announcements to come on other major public and private housing projects in Dublin and regionally. Work is advancing on the Government’s National Planning Framework for overall planning and development - Ireland 2040. Our plan, Rebuilding Ireland is gaining momentum and delivering on the ground.”

Cherrywood is a SDZ and as such is subject to a fast-track planning status. The Minister concluded: “Cherrywood will be a model sustainable community, provided from the outset with high-quality public transport facilities, new parks equal in size to Marlay Park and Saint Stephen’s Green and a truly integrated residential and retail town centre along with 1,300 build-to-rent units, 10% of which will be social, in one straight go, with the aim of starting in autumn of this year.”

Funding announced for arts centres THE Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs, Heather Humphreys has made public details of more than €9M in capital funding for arts and culture centres across Ireland. The Minister made the announcement as part of the Creative Ireland programme, with funding to be provided under her Department’s Arts and Culture Capital Scheme 2016-2018. In total, 56 cultural organisations will benefit from this capital investment. These include theatres, heritage centres, galleries, archives, integrated arts centres, studios and creative and performance spaces.

Seven flagship projects are to receive substantial funding allocations: • Solstice Meath Arts Centre (€0.3M) • The Irish Arial Creation Centre (€0.35) • The Hunt Museum, Limerick (€0.4M) • The Hawk’s Well Theatre in Sligo (€0.55M) • Cavan Town Hall Theatre (€0.75M) • The Riverbank Arts Centre, Kildare (€1M) • Wexford Arts Centre (€1M) A further 49 projects will receive funding ranging from €20,000 to €276,000. Minister Humphreys commented: “This kind of investment goes to the very

heart of what I am trying to achieve through Creative Ireland and the Action Plan for Rural Development. Creative Ireland aims to place culture and creativity at the heart of every community nationwide, while the Rural Action Plan seeks to revitalise rural towns and villages through a range of investments and initiatives. Of the €9M in funding I am announcing today, over 85% is going to projects outside Dublin. However, a number of very important cultural facilities in the capital will benefit, including The Irish Film Institute, the Ark, the Gallery of Photography and the Project Arts Centre.”

Office Space: A closer look at Dublin’s pre-let craze A newly-published report, authored by real estate advisory firm Savills Ireland, has revealed a sudden and unforeseen rise in office pre-letting Dublin-wide. For the uninitiated, pre-letting enables tenants to enter into a lease contract well in advance of a building’s construction. Research indicates that pre-letting accounted for 28,000sq m or 44% of all Dublin office space leased during the fourth quarter of 2016. In Dublin 2 and 4, where demand for office accommodation is greatest, this practice accounted for an even larger market share – 61% over the same period. What’s more, it seems preletting has been on the increase over the past two years. It’s a baffling trend. Why would so many businesses bind themselves to a building that has yet to be built? The answer is relatively simple. According to Savills Chairman Roland O’Connell, the pre-letting phenomenon is symptomatic of current market conditions: “Although enough Grade A space is available to accommodate

around 2,200 office workers, occupiers with large space requirements or very specific locational preferences are facing an increasingly limited choice of buildings. Pre-letting opens up a wider set of possibilities for tenants and some are willing to forego immediate occupancy in return for buildings that tick the right boxes in terms of location, fit and finish.” It does make sense. By involving themselves at such an early stage, tenants are able to ensure a space that is tailored to their specific requirements. Pre-letting has the potential to benefit developers and property investors also. According to Dr John McCartney, Director of Research at Savills, wouldbe developers are often required to have tenants on-board before they can access the finance necessary to buildout their schemes. This thriftiness is a direct consequence of tighter controls on bank lending post-downturn. It’s not all good news however, as pre-letting has been shown to dampen rental rate growth. Savills has said

that rental rates for pre-let offices are currently trading at a discount rate in comparison to those on space for immediate occupation. In simple terms, some developers are ready and willing to offer competitive rates to ensure their properties are funded and built in-line with their aspirations. Looking ahead, this trend may be in the reverse as completions on speculatively built office space begin to provide more tangible competition for pre-let properties. It’s a fascinating turn of events however. In recent past, Dublin has emerged as a beacon for foreign direct investment and, increasingly, multinationals are looking for an English speaking interface that enables them to access European markets. Office space is perhaps more vital than ever before then, and pre-letting is offering a viable alternative to tenants and developers both. To read Savills’ report in full, click here

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Cash-flow on demand for suppliers - a beginnerâ&#x20AC;&#x2122;s guide to supply chain finance

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NEARLY a decade on from the financial crisis, the construction industry has seen its fortunes ebb and flow, but one thing has remained constant – supply chains are still only as strong as their weakest link. Official figures show that construction industry output increased by a modest 0.6% in 2016, but the outlook for 2017 is far from assured. As Brexit uncertainty and the rising cost of materials begin to bite, subcontractors that are heavily geared on a few large clients face challenging times as growing numbers of corporates trim spending and consider putting investment decisions on hold. Just as in 2008 and 2009, cash-flow is set to be a major pinch point for smaller suppliers. Interest rates may still be low, but the mainstream banks’ desire – and ability – to lend to such firms has barely improved. This time, however, suppliers aren’t facing the squeeze alone. For all the pain it caused, the financial crisis also provided the catalyst for the creation of an array of alternative finance providers, which sprang up to fill the void left by the banks.

of the finance is determined not by the creditworthiness of the supplier company, but by their client. In a large supply chain, the lead client is likely to be a tier one construction company with a sizeable balance sheet – and thus the ability to access finance more easily and cheaply than its suppliers. As in invoice finance, in supply chain finance suppliers sell their unpaid invoices to the finance provider – securing the money upfront rather than having to wait weeks of even months for the invoice to fall due. But here’s the clever part – the supplier sells the invoice to the finance provider after their client has “pre-approved” the invoice (i.e. certified that it will pay). It’s this shift which effectively turns the invoice into an asset for the supplier, switching the liability to the client at the top of the supply chain.

MARCH OF THE ALTERNATIVE PROVIDERS

The finance provider buys the invoice from the supplier, minus a fee – giving the supplier early access to their money and thus a quick source of working capital. When the invoice falls due, the client company pays the same amount, but to the finance provider rather than the supplier.

In the space of just a few years, alternative finance has grown into a vibrant sector which enables both individuals and companies to access funds in a range of different ways.

The suppliers decide if or when to sell their invoices, so the finance facility is available when they need it – it’s affordable cash-flow on demand for the supply chain.

For businesses, the most commonly used forms of alternative finance include crowdfunded loans from investors, equity crowdfunding – in which investors buy shares in the company – and invoice finance, in which the company sells its outstanding invoices to investors in order to access the funds immediately.

BENEFITS FOR THE CLIENT AT THE TOP OF THE SUPPLY CHAIN

Alternative finance providers are now offering solutions specifically tailored for companies involved in a construction supply chain. ‘Supply chain finance’ makes finance more flexible for construction suppliers and subcontractors across the supply chain, giving them access to finance when they need it.

Despite costing the company nothing, agreeing to “pre-approve” invoices for goods or services it has received buys it considerable goodwill from its supply chain. This goodwill can be harnessed to negotiate better terms with suppliers, or to allow the company to work alongside the finance providers and participate in the early payment facility when their balance sheet permits (a form of dynamic discounting).

Like invoice finance, supply chain finance uses invoices as collateral, but with a subtle evolution – the cost

While the benefits for the small firms are obvious – quick access to affordable finance they could never secure on their own – the perks for the company at the top of the supply chain are more subtle, but no less significant.

The mechanism also offers the buying company the reassurance of knowing that its suppliers can access finance quickly and cheaply if they need it – thus reducing the risk of weaker suppliers going bust. For this reason the technique has proved especially popular in the construction industry, where the lead contractor on a project will quickly benefit from a system that gives its subcontractors such a flexible, inexpensive way to access finance. At the same time, subcontractors are incentivised to have their work certified promptly and approved for payment which will drive them to perform better and give a clearer valuation of their work. Whitehall Finance is a supply chain finance provider that uses a technology platform to provide flexibility both to main contractors and their subcontractors/suppliers. Supply chain companies are notified - and can confirm - through an app on their mobile devices whether or not they wish to receive early settlement of invoices, or valuation certificates to help their cashflow. The supply chain finance model received a further boost last November with the introduction of the Bank Referral Scheme. The scheme’s nine participating banks have pledged to ask business customers who apply for and are refused bank finance whether they would like to be referred to alternative finance providers instead. Research by the banking industry body the BBA has indicated that 40% of businesses would welcome a referral to an alternative finance platform. It’s estimated that as many as 50% of the businesses referred will find an alternative finance provider willing to finance them. With such large numbers of construction sector suppliers now learning about – and receptive to – alternative finance, now is the time for the players at the top of the construction supply chain to seize the opportunity to partner up with their suppliers, in a supply chain finance model that is a win-win for all. By Colin Levins, CEO of Whitehall Finance

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