NOV 2016
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RIBA STIRLING PRIZE: NEWPORT STREET GALLERY CROWNED BEST BUILDING OF THE YEAR.
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PAUL MORRELL: THE FORMER CHIEF GOVERNMENT CONSTRUCTION ADVISOR TALKS DIGITISATION.
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THE EDUCATION STATE: THERESA MAY DOUBLES DOWN ON FREE SCHOOLS COMMITMENT.
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WELCOME to the latest edition of UK Construction Excellence - celebrating the very best in British building. And so, Theresa May has officially endorsed Heathrow Airport’s longawaited third runway - a controversial decision which brings with it economic benefit and a whole heap of logistical concerns. In-depth analysis can be found in our news section, beginning on page six.
This month’s BIM coverage kicksoff with two exclusive interviews. Adam Matthews, Chairman of the EU BIM Task Group, offers a European perspective on BIM, while Paul Morrell, former Chief Government Construction Advisor, discusses digital innovation in the building industry. Elsewhere, we investigate the Government’s contentious free schools agenda and profile Damien Hirst’s Newport Street Gallery -
30 Fleet Street: Electric motoring and London’s unsafe lorries under the microscope.
recipient of the much-coveted RIBA Stirling Prize. Our fleet focus also makes a return, as Mayor of London Sadiq Khan pledges to safeguard his City’s streets from hazardous vehicles. 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
40 EU BIM Task Group Adam Matthews on BIM and the European perspective.
56 The Innovation Economy: UK investment in ‘intangible assets’ continues to soar.
Publications Editor Robert Atherton
General Manager Ian Parker
Designer James Ormerod
Production Manager Gareth Trevor-Jones
Publications Officer Abigail Burr
Product Development Seamus Norton
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Heathrow expansion approved IN a major boost to the UK economy, the Government has announced its support for a new runway at Heathrow, with the scheme taken forward in the form of a draft ‘National Policy Statement’ (NPS) for consultation. Heathrow’s expansion has remained the majority favourite throughout, though the decision faces a potential year-long consultation before it becomes final. A study last year, led by Sir Howard Davies, recommended a third runway at Heathrow but other options included a new runway at Gatwick or an extension of one of Heathrow’s existing runways. Sir Howard Davies said that the case for expanding Heathrow had “strengthened in recent months” and that the advantages were now “overwhelming”. A new runway at Heathrow will bring economic benefits to passengers and the wider economy, worth up to £61Bn. More than 77,000 additional local jobs are expected to be generated over the next 14 years, and the airport has committed to create 5,000 new apprenticeships over the same period. There are strong divisions within the Government however, with Theresa
May telling the Commons during Prime Minister’s Questions that the subject had been “debated, discussed and speculated on for 40 years”. Transport Secretary Chris Grayling said: “The step that Government is taking today is truly momentous. I am proud that after years of discussion and delay this Government is taking decisive action to secure the UK’s place in the global aviation market - securing jobs and business opportunities for the next decade and beyond. “A new runway at Heathrow will improve connectivity in the UK itself and crucially boost our connections with the rest of the world, supporting exports, trade and job opportunities. This isn’t just a great deal for business, it’s a great deal for passengers who will also benefit from access to more airlines, destinations and flights. “This is an important issue for the whole country. That is why the Government’s preferred scheme will be subject to full and fair public consultation. Of course, it is also hugely important for those living near the airport. That is why we have made clear that expansion will only be allowed to proceed on the basis of a
world-class package of compensation and mitigation worth up to £2.6Bn, including community support, insulation, and respite from noise - balancing the benefits and the impacts of expansion.” Airlines and business groups favour expansion of Heathrow - Britain’s busiest airport - which currently operates at 98%. Heathrow offers more direct connections than Gatwick and handles more freight. Mrs May has given ministers “exceptional and limited” freedom to criticise the Government’s final decision, although they will not be allowed to campaign against it - a move being seen as evidence a third runway at Heathrow will be backed. Recently, Mrs May told ministers at a cabinet meeting that a decision on increasing airport capacity in the South East of England had been “delayed for too long”. Construction is not likely to begin until 2020 or 2021, the Airports Commission has said. Education Secretary Justine Greening and Foreign Secretary Boris Johnson strongly oppose Heathrow’s expansion.
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Construction apprenticeships on the rise FIGURES released by the Government show an increase in the number of people entering apprenticeships. This year alone, 905,000 have begun an apprenticeship course. The figures also show the popularity of apprenticeships increasing amongst young people, with over 130,000 starts from under 19 year olds during the 2015/2016 academic year. The Government is pushing apprenticeship courses as part of a concerted effort to increase the number of skilled workers needed to boost the UK economy.
May’s industrial strategy “must address Brexit skills impact on HS2" BALFOUR Beatty has said that HS2 is at risk of losing foreign workers after Brexit, unless the Government includes the shortage of skilled workers in its industrial strategy. According to Balfour Beatty’s newest briefing paper, 2.2 million EU nationals working in the UK have provided a skilled workforce that the country would not be able to source alone. It argues that uncertainty about free movement of labour could cause recruitment and staffing difficulties, lead to increased costs where demand for labour outstrips supply, and cause delays - especially on HS2 and the nuclear new build programme. Balfour Beatty and the National Audit Office had already warned that HS2 could suffer from a skills and funding shortage following Brexit. The report states: “A plan to both retain the skills of those who have migrated here and to ensure that the UK remains an attractive place for talented people to move to should be a key element of Government’s industrial strategy. “Given the number of major infrastructure projects in the pipeline, uncertainty around the free movement of labour could cause the industry
recruitment and staffing difficulties and may increase costs where demand for labour outstrips supply and the subsequent risk of project delays. “This will be particularly relevant for mega projects such as High Speed 2 and the nuclear new build programme.” Theresa May and Transport Secretary Chris Grayling have insisted HS2 will still go ahead. Balfour Beatty wants to see a full clarification of what will happen to EU construction workers, as it is understood that the cabinet is considering plans to try and limit migration as part of the UK’s exit from the EU. They suggest that May’s Government Industrial Strategy should include an “early and integrated” policy to retain the skills of workers who have migrated to Britain and continue to make the country an attractive place for overseas workers.
Leading companies such as BAE Systems and Fujitsu have thrown their support behind the scheme by offering higher and degree level apprenticeships in careers ranging from engineering to public relations. Skills and Apprenticeships Minister Robert Halfon said: “Apprenticeships work, that’s why they lie at the heart of our commitment to giving everyone the chance they deserve to get the skills and jobs they need for their future. “It is great news that there are more apprentices and trainees than ever before. I am determined that we build on this success so that everyone who wants to can benefit from the ladder of opportunity they offer.” The Government has launched the ‘Get In Go Far’ campaign to encourage more young people to consider an apprenticeship as a career. It provides a platform to share the stories of top apprentices working for leading companies.
A Cabinet Committee on Industrial Strategy has already been formed, and Balfour Beatty said a multidepartmental strategy would be needed, with the Department for Business, Energy and Industrial Strategy working closely with the Departments for International Trade and Exiting the European Union.
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Government to scrap Help to Buy scheme THE Government will not be extending the Help to Buy mortgage guarantee scheme beyond 2016, Chancellor Philip Hammond has confirmed in a letter to the Bank of England.
Digital Built Britain launched THE next phase of the UK’s Building Information Modelling Task Group programme, Digital Built Britain, has been announced at the Institution of Civil Engineers BIM 2016 conference.
British Standards for BIM Level 2; increasing international trade and opportunities for growth for UK companies, and developing the BIM Level 3 programme.
Mark Bew MBE, Chair of the BIM Task Group and the newly formed Digital Built Britain programme, made the announcement.
Cyber security and private sector investment and engagement will also be examined alongside a series of early adopter projects focusing on Level 3A and manufacturing technologies.
This next phase of digitisation in the construction sector will be delivered by a partnership between Innovate UK and the Department of Business Energy and Industrial Strategy. First announced in the 2016 budget, Digital Built Britain will seek to bring about reductions in whole-life costs and carbon emissions, whilst also improving productivity and capacity by using intelligent building information models, sensing technology, and secure data and information infrastructure. Digital Built Britain will take on the role of delivering up to 20% savings on the cost of major projects from the BIM Task Group originally set up five years ago. The programme will focus on a number of key issues including providing departmental support and
The ground-breaking work on data infrastructure within the Digital Built Britain programme will help to deliver other government digital transformation objectives, including building successful UK sectors in smart cities, and cyber and physical security and sensors through the Internet of Things. Mr Bew commented: “Today marks a significant step in the journey to a digital economy for the built environment. The UK has made a significant step in creating a world class position in delivering capability, standards and capacity in the sector to reduce cost and increase value. “The coming together of the BIM and smart city programme into Digital Built Britain will continue this commitment to providing jobs, homes, services and growth to the UK economy.”
The move signals an end to one of former Prime Minister David Cameron’s flagship housing programmes. Help to Buy enabled mortgage lenders to offer properties with a deposit as low as 5% by means of government support. The scheme has been available to buyers since 2014, with a total of 185,000 homes bought under the scheme - 150,000 of which were properties for first time buyers. Mr Hammond said the scheme was “introduced with a specific purpose that has now been successfully achieved.” Alternatives to Help to Buy are now available at similar or, in some places, cheaper rates. Bank of England Governor, Mark Carney, wrote to the Mr Hammond to say that the scheme’s end wouldn’t have a negative impact on the number of mortgages being sold. He wrote: “Given the decreasing usage of the scheme over time, the Committee judges that the closure of the scheme would be unlikely, in current market conditions, to affect significantly the provision of finance to prospective mortgagors, including high loan-to-value borrowers.” There has been criticism of Help to Buy putting extra pressure on the housing market by making cheap mortgages available and pushing up the price of property.
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5 Important Considerations When Selecting Your Washrooms INTERPLAN Panel Systems provide a wide range of washroom solutions and their specialist team are on hand to provide advice and make recommendations based on your requirements. However there are 5 key considerations that you can take into account when starting your project to ensure that the correct washroom is specified. UNDERSTAND YOUR ENVIRONMENT Selecting the right material for the environment of your washroom is crucial for your project; it will determine how long the washroom will last. A medium to high traffic, dry environment such as an office washroom would be suited to High Pressure Laminate (HPL). Interplan’s Minima range in HPL fulfils all practical requirements whilst providing a modern sleek look at a budget friendly cost. A glass cubicle system would be ideal for a leisure centre or spa that requires a water resistant washroom whilst keeping a high end look. Manufactured from toughened safety glass, Interplan’s Coolite range is versatile offering both glass doors and divisions with stainless steel fixtures and fittings. COMFORT & PRIVACY When specifying your washrooms comfort and privacy are important issues to consider. Flush fronted cubicles are an ideal solution to ensure the privacy of users. Interplan’s Urban range is ideal for office and retail environments – with a floating appearance it provides privacy whilst
looking smart and sophisticated. For leisure environments and schools where privacy is required at the same time as a durable, hardwearing system, Interplan’s Splash range is ideal. Specified in Solid Grade Laminate (SGL), these cubicles are suitable for high traffic areas and are both completely vandal and water resistant. Whether there is a requirement for floor to ceiling units (offering complete privacy) or with ceiling level space (to avoid antisocial behaviour and offering emergency access), the durable system will withstand constant use and the test of time. KNOWING YOUR USERS When it comes to creating your washroom, it is vital that you understand whether the washroom is going to be suitable for its users. In schools, for Nursery age and EYFS children, fun, bright, colours and patterns are important to make toilet time less scary. Many children aren’t used to going to the washroom alone, so providing a fun and friendly environment is very important. Interplan’s Playtime and Acorn ranges come in a choice of bright, vibrant patterns and can accommodate differing door heights for supervision and privacy requirements. The allimportant anti-finger trap hinges and emergency release locks bring design and functionality together. CORPORATE GUIDELINES Retail and Corporate washrooms
are often subject to the same brand identity guidelines as a store front or board room. Interplan’s Sylan ColourCoat cubicles can be matched to any standard RAL colour, providing a high end, luxurious look that fits in seamlessly with other areas of the building. Where low impact environmental interiors are required, Sylan can be specified in Real Wood Veneer. All veneers are FSC Certified and sourced from responsible and sustainable forests. Sylan veneer is free from defects that occur in natural wood and ensures that true consistency, pattern and colour can be repeated every time. EQUALITY When designing a washroom you need to consider access for everyone. There are various laws and guidelines in place to ensure that equality and consistency takes place, Document M includes the requirements surrounding colour contrast. Interplan provide the Light Reflectance Value (LRV) for their products; these can be obtained at specification stage to ensure that guidelines are being followed from early on in the project. If you’d like to find out more about Interplan’s products and services you can contact them on Tel: 0141 336 4040, email contact@interplansystems.co.uk or visit www.interplanpanelsystems.com
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Promark Media open office in Media City PROMARK Media has opened a new sales and development office in the heart of Manchester’s Media City. Following BiP Solutions’ acquisition of Promark Media in April 2015, Promark has successfully expanded into the defence sector, as well as building on the Company’s long-standing involvement in the construction sector. Owing to the success of the expansion, Promark Media is delighted to announce the move to Media City in Manchester, which is home to highprofile organisations such as the BBC and ITV. Although the sales team will be moving to Media City, it will be business as usual at Promark’s Chorley office which is home to the production team. In alignment with the exciting move, Promark Media is looking for New
communication companies, whose goal is to assist organisations to promote themselves to and connect directly with key decision makers across a range of high-value and influential market sectors, including construction and defence. Business Development Managers and Telesales Executives to join its team of media professionals; the Company is looking to attract some fresh, driven, talented individuals who have a drive and passion for media sales. General Manager Ian Parker said: “The move is a significant step forward in our plans to expand the business and shows BiP’s intention to be at the forefront of digital media.” Promark Media Ltd is one of the UK’s leading digital marketing and
Promark Media’s communities and portfolio of services offer clients a unique opportunity to fully utilise a range of innovative digital marketing solutions and packages, which can be tailored specifically to meet and exceed client requirements and business development objectives. Contact Details: Stacey Quinn Brand Marketing Manager stacey.quinn@promarkmedia.co.uk See more about Promark Media at: www.promarkmedia.co.uk
£1Bn Trafford Waters development given go-ahead A huge £1Bn development on the banks of the Manchester Ship Canal in Trafford, proposed by Peel Land and Property, has been given the green light by Trafford Council. The Masterplan, which has been 15 years in the making, finally went before councillors in October. The scheme will create 5,000 jobs on the banks of the Manchester Ship Canal. It is set to feature 3,000 new flats, nearly one million square feet of shop and office space, a 300 room hotel, a 150-bed care home, and a new primary school next to the Chill Factor. Four multi-use games and children’s play areas will also feature, alongside shops and food and drink outlets. The
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site will be built on disused land. Trafford Waters will be linked to the intu Trafford Centre by a green bridge, providing residents, employees and visitors with easy access to the bus station and Metrolink stop. James Whittaker, Peel Land and Property’s Group Development Director, said: “Trafford Waters will bring a unique neighbourhood to Greater Manchester, which will not only provide muchneeded residential housing but also office space which will help unlock business and employment opportunities. “The development will be sustainable and feature cycleways, plenty of landscaped, green spaces and
waterways, making it a really attractive place to live, work and play. It will be a high quality development that will feature everything families would expect an established urban community to have and we’re very excited to be bringing this to the people of Trafford.” Cllr Sean Anstee, Leader of Trafford Council, added: “Trafford Waters has all of the characteristics to be a model for urban regeneration and the creation of a high quality place that people choose to live and work. “This sustainable development will bring significant investment into Trafford alongside a further boost for our local economy, already the most resilient in the North West.”
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Plans unveiled for three new Thames river crossings MAYOR of London, Sadiq Khan, has unveiled plans for three new Thames river crossings in East London. After reviewing predecessor Boris Johnson’s plans, Mr Khan outlined plans for the new river crossings to be constructed in the next five to ten years in East London. Mr Khan claims the move will ease congestion and cut pollution in the capital. The plans include the fast tracking of a new pedestrian and cycle bridge linking Rotherhithe and Canary Wharf. A Docklands Light Railway (DLR) crossing at Gallions Reach is also proposed to support the development of around 17,000 new homes across Newham and the Royal Borough of Greenwich. Further assessment work will be undertaken for a Barking Riverside to Abbey Wood London Overground crossing and a North Greenwich to Isle of Dogs ferry, supporting new development on the Greenwich
Peninsula and the Isle of Dogs. The proposals also include the controversial Silvertown Tunnel, which had been criticised previously for incurring a user charge, with Mr Khan claiming it was “a tax on East and South East Londoners”. Plans for the tunnel have been “enhanced” to encourage people to use public transport and include a low emission bus zone and a cycle bus that will transport cyclists through the tunnel. Mayor of London, Sadiq Khan, said: “It’s no secret that London has long needed more river crossings in the East. With new homes and economic growth across East London, it becomes even more important that we deliver new greener transport links that allow Londoners to cross the river quickly and more easily. “But we don’t want these to have a damaging impact on our environment, and that’s why I’ve reviewed and
improved plans for Silvertown Tunnel and why I’m pushing forward with crossings that encourage public transport, walking and cycling. “As we continue to unlock the massive economic potential of East London, we must secure the very best transport infrastructure that improves the quality of life for everyone living and working in the area.” Alex Williams, Acting Managing Director of Planning at TfL, said London’s expanding population meant it was “vital” to support the plans. He commented: “The Mayor’s new vision for river crossings in East London is firmly rooted in supporting growth and providing better public transport links for all. “We will now work hard to develop the designs for these new crossings, as well as identify potential funding opportunities, to allow them to be constructed more quickly.”
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Commercial Property Conference Opportunities and challenges facing investors, occupiers and developers post Brexit
1 December 2016 Victoria Park Plaza, London The conference will bring together leading experts to explore the short medium-and long term effects of the referendum on the commercial property sector. Discover how investors, buyers, occupiers and owners have responded and how property transactions and commercial property funds have been reacted. The conference will also address the future issues impacting real estate including: minimum energy efficiency standards, the role of PropTech, and the GIG Economy.
Highlights for 2016: • Receive an economic update on current market conditions, results from the latest RICS Commercial Property market survey, and discover where we are in the current cycle. • Hear a thought-provoking debate into the future of the HQ office. Discover how the working day will look in 2040 and how artificial intelligence and technology will play a major role. Understand how to future proof the workplace and remain at the forefront of UK real estate. • An overview of the latest market conditions for the office, retail and leisure sectors. Analyse the levels of take up, supply, demand, and how investors have responded to these asset classes post Brexit.
Book your place online today at: rics.org/commercialconference
Government urged to take action to hit climate targets
THE Committee on Climate Change (CCC) has warned that the UK needs to act decisively to cut greenhouse gas emissions given its commitment to the Paris Agreement, regardless of Brexit. The CCC has also identified a package of measures that it would like the Government to pursue in order to meet
existing UK climate commitments. Analysis from the Committee reveals that by taking steps now to cut emissions the UK will have greater flexibility going forward.
budget legislated by the current Government, to prepare sufficiently for the 2050 target, and ultimately to reach the Paris goal of net zero emissions in the second half of the century.
The Paris Agreement seeks to tackle climate change on a global scale. It is more ambitious in its target to limit climate change than the UK’s existing milestones.
Lord Deben, CCC Chairman, said: “In its speedy acceptance of the fifth carbon budget and its support for the Paris Agreement, the new Government has shown it is committed to tackling climate change. The vote to leave the EU does not alter those commitments - nor does it change the risks that climate change poses.
The CCC argues, however, that the vote to leave the EU does not change the UK’s legal commitments to cut its emissions by 57% by 2030 and at least 80% by 2050 (relative to 1990) under the Climate Change Act. Currently, UK emissions are 38% below 1990 levels but the CCC believe that more reductions will be needed in transport, heat, industry, and agriculture to meet the 2030 carbon
“Action is needed now to ensure the UK can deliver its climate obligations at least cost. For too long, Government policy has neglected the UK’s ageing homes and heating systems. It is time to remedy that failure with policies that are simple, stable, and designed to work for the ordinary household.”
CPA reveals construction industry resilience THE latest State of Trade Survey from the Construction Product Association (CPA) has revealed continued growth in the sale of construction products during Q3 2016. The survey indicates a positive landscape for sales in the third quarter of 2016 - the fourteenth consecutive quarter of growth. In total, 26% of heavy side firms and half of light side firms (up from 38% the previous quarter) said that construction product sales had risen in the third quarter of 2016 in comparison to the second quarter. On an annual basis, 68% of heavy side firms reported that sales had increased in the third quarter, while 60% of light side firms stated that sales were higher than 2015. The growth in light side manufacturing marked a significant improvement on the zero registered during the second quarter. Looking forward to the next quarter and beyond into 2017, the mood amongst manufacturers has improved dramatically in spite of continued economic uncertainty.
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Around 45% of heavy side manufacturers and 67% of those on the light side anticipated an increase in sales in the fourth quarter. Over the next 12 months, 38% of heavy side firms and 33% of light side firms anticipate a rise in sales. These figures were a significant improvement on the results of the State of Trade Survey published in the second quarter of 2016. 42% of heavy side firms and 40% of light side firms predict a surge in exports over the next 12 months. Rebecca Larkin, CPA Senior Economist,
said the increase in sales suggested the construction industry remained “resilient” in the face of the uncertainty both before and after the Brexit vote: “Interestingly, the sharp depreciation in Sterling does not appear to have translated into an increase in export sales in our sector. Instead, the effect of the weak currency has been manifested in rising costs for imported raw materials and higher fuel bills, adding to the existing inflationary pressures on wages created by skills shortages. Nevertheless, manufacturers anticipated a pickup in overseas sales over the next 12 months.”
Alstom unveil plans for £20M plant in North West England FRENCH train firm Alstom has announced a new multi-million pound plant in Widnes, Cheshire, with an initial spend of £20M - delivering a significant boost to the region during a time of uncertainty following Brexit. The new plant will create 600 jobs and modernise the Pendolino trains on the west coast mainline. It will house a training academy, and could eventually manufacture new rolling stock if Alstom wins a contract to produce trains for London Underground or HS2. Nick Crossfield, Managing Director of Alstom for UK and Ireland, said the French firm was “fundamentally committed” to the British market, and that the move represented a “step change” for Alstom’s approach to the UK.
He also described HS2 as an “incredibly important and transformational investment” for the UK.
The 39 acre site is due to open next year, with plans to grow the facility in line with future opportunities.
The announcement also highlights the revival of Britain’s train manufacturing industry, with the UK having only one train manufacturer a decade ago - Bombardier in Derby. Hitachi, the Japanese conglomerate, opened a plant in County Durham last year.
Alstom confirmed it will bid to build the trains for HS2 and unveiled plans for double-decker carriages. It is also bidding for the New Tube for London contract, which is worth up to £2.5Bn and involves designing and building 250 next-generation trains for the Piccadilly, Bakerloo, Central and Waterloo & City lines in London.
“It is a step change in terms of the type and nature of investment that we have made in the UK,” Crossfield said. “It is a fundamental step in a direction that sees us delivering a much broader capability in the UK market. The UK market is one of the most high profile and important for Alstom worldwide.”
Crossfield said that even if the Government did not go ahead with HS2, which is estimated to cost £40Bn, it “would not change the investment perspective for us here in the UK because there is a very significant and healthy domestic rolling stock market”.
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DIRECTORS – TROUBLE AHEAD? WHAT ARE YOUR OPTIONS? They say that behind every successful business man or woman there will be at least one or more failures. I could at this point trot out a list of high profile names, known to us all, who have a list of failed companies behind them but that is not the subject of this paper, so let’s move on. Running a company involved in the construction sector is hard work. There is an infinite number of variables to juggle. Material price rises, labour shortages, highly strung staff, fickle banks, clients that insist on changing their minds but don’t like paying, designers who haven’t a clue what a proper construction detail looks like, unpredictable weather patterns, two-handed lawyers who don’t know their right hand from their left, etc., etc. - the list just goes on and on. Even when you manage, usually by accident, to get "all your ducks in a row” the
modest margin you expected to make can quickly disappear because of something that comes out of “left field”. Don’t be naïve, problems hit the best of businesses in the nether regions. It is what you do about it and how quickly you react that determines whether or not the problem will prove to be fatal. Let’s assume for a minute that you are a director of a company involved in construction that has “issues”. Who do you turn to for advice? What advice do you need? What are your options? Is a “Turn Around” possible or is failure inevitable? What are your responsibilities as a director? What does the future hold? BUST OR NOT? Not an easy question to answer, I know, but the first thing you have to decide is "How bad is
it?" "Is the company insolvent?" Section 123 of the Insolvency Act 1986 sets out a guide to establishing whether or not a limited company is insolvent. A company is insolvent if: • A company’s liabilities exceed its assets – ‘balance sheet test’ and/or • A company is unable to meet its debts as and when they fall due – ‘cash flow test’ and/or • A company has not paid a debt exceeding £750 after being served with a written demand – ‘statutory demand’ and/or • A court judgement remains unsatisfied. As soon as a company fails one or more of these tests, it is in English Law defined as being insolvent and the directors of the company concerned must
Regent House, Folds Point, Folds Road, Bolton BL1 2RZ t. 01204 362888 f. 01204362808 tvp@vinden.co.uk www.vinden.co.uk
recognise this position and are obliged to take appropriate action. In reality it is usually a company’s inability to meet its debts as and when they fall due that defines whether or not it is insolvent. WHY IS THIS SO IMPORTANT? As soon as a company reaches a position where it fails one or more of the tests set out above, its directors are obliged to cease trading and take steps to safeguard the interests of all creditors. In practice this might mean implementing one of the procedures laid down in the Insolvency Act 1986 (Creditors Voluntary Arrangements, Administration, Liquidation etc.) but not always. Provided you act quickly enough, a formal insolvency may well be avoided. But let’s be clear, a director who refuses or wilfully neglects to protect the interest of a company’s creditors may well find himself or herself personally liable for the debts of the company from the date when a reasonable director would have known or ought to have known that the company was insolvent. Burying your head in the sand should not be your first option! SO WHAT ARE YOUR OPTIONS? Even if your company is on the brink of or has become insolvent there will still remain the possibility of saving part or all of the business. Practical options
open to you could include: • Organising alternative funding lines • Negotiating informal “time to pay” agreements with creditors - including HMRC • Transferring contracts to other companies • Accelerating cash collections • Assigning debts to third parties • A sale of the business • Formal insolvency arrangements as part of a re-structure
Let’s be clear, there is no “one size fits all” solution. Every situation needs to be considered carefully, in confidence and a bespoke plan developed. Two final pieces of advice. Firstly, please be careful who you speak to. “Loose lips do sink ships”. Secondly, be sure that your advisers have your interests at heart and are not simply thinking about the huge fees they can earn from a formal insolvency.
One or a combination of these options should form the central plank(s) of the recovery plan. The key to avoiding a formal insolvency and personal disaster is to recognise the issues and to act promptly and decisively after taking appropriate advice. HOW DO YOU KNOW IF YOU HAVE THE RIGHT ADVISER ON BOARD? Whether you navigate your way through troubled waters or not will depend on moving quickly and upon appointing an adviser who knows your industry and can advise you properly and practically.
We are very proud to have clients that we re-structured over 20 years ago that went on to trade out of difficult circumstances and are now in a completely different position. Is this the kind of advice you are looking for? Peter Vinden is Managing Director of The Vinden Partnership, the construction industry’s leading turn-around specialist advisers. He can be contacted in total confidence by email at pvinden@vinden.co.uk. For similar articles please visit www.vinden.co.uk.
If you have appointed the right adviser, that adviser will be concentrating on what can and will be done to ensure that you have a future. If it is all about what happened in the past, chances are you have picked the wrong adviser.
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10 essentials of credit management for construction CONSTRUCTION is used to facing high competition and pressure on prices and margins. At the same time, it is a capital intensive industry so every construction company needs strong cash flow to operate smoothly. Yet, research of 250,000 UK businesses from Euler Hermes highlighted that the construction industry is the worst sector when it comes to payment delays, accounting for over 30% of all payment incidents. It’s time the industry takes charge of its cash flow. To do this, you can’t just look at top-line growth or increasing sales. You also need to increase the speed of receivables monetary and other obligations owed to you by customers or debtors. Accounts receivable is one of the largest and most liquid of corporate assets. Many construction organisations are struggling with effective management of the process and consider it a cost centre. However, with the right credit and collections strategy and smart software you can reduce accounts receivable balances and generate a substantial cash flow. Here are ten ways to plan and execute credit management and increase the cash flow to keep your organisation healthy and competitive. 1. CREDIT MANAGEMENT EQUALS CUSTOMER RELATIONSHIP MANAGEMENT Credit and collections management is a fundamental part of customer relationship management. In this challenging economy some customers will delay payment for as long as they possibly can. In other cases, invoices
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are not paid on time because of issues that must be addressed before payment will be made. Your task is to apply payment pressure without creating undue friction that can negatively impact customer relations. 2. DIVIDE YOUR CUSTOMER PROFILES Are all your customers the same? Probably not! Some customers have been doing business with you for years while others are new and unknown. It is likely that you have customers that purchase large volumes while others only place small orders. Divide your customers up in (similar) groups to get more insight. 3. PROVIDE A FEASIBLE PLAN If your plans are too ambitious you can confront your employees with an excessive number of actions. If there is no overview, you run the risk of demotivating your team. By segmenting your customers well and monitoring which approach yields the desired result, you can make the most of your credit managers. 4. DETERMINE APPROPRIATE MONITORING Verify how you currently deal with your customers. When do you contact them? And at what time? Do you do this by letter, mail, phone or otherwise? By approaching your different customers appropriately (according to their customer profiles) you spend your time efficiently and you achieve the greatest return.
5. PAY SUPPLIERS ON TIME Do not pay your dues early or late. If you pay them early, you’re reducing cash flow. If you pay them late, you could be hit with fees. There is one exception: if you’re offered a steep discount by paying upfront, consider it. This will hit current cash flow, but it will benefit future cash flow. 6. PULL RECEIVABLES IN BEFORE ACCOUNTS PAYABLE If receivables are coming in faster than payables are going out, you’re in a good spot. If this isn’t a possibility, at least reduce the average accounts receivable by several days. Start by focusing on reducing your day’s sales outstanding, even just by a few days, and put major amounts of cash back into your business. 7. INVOLVE SALES Credit and collections should be an integral part of the sales process. This should help establish an initial framework for a long and mutually beneficial relationship between buyer and seller and completing the final step in the sale-to-cash cycle. If viewed from this perspective, credit and collections becomes a sales enhancement function and a profit centre, not an administrative cost centre that inhibits the sales process. 8. GET YOUR ORGANISATION ON BOARD From management to sales, get everyone together to announce that
cash flow is now the top priority and that your focus will be on increasing the speed of receivables. Make sure you're armed with answers to likely questions so the meeting moves fast and little time is lost. When everyone has the same goal, it becomes more attainable. 9. KEEP IN TOUCH WITH YOUR CUSTOMERS Communication is key! Reserve time for personal contact with your customer. Only by actually speaking to each other can you figure out what the motivation is behind a failure to settle. Discuss what you can do to speed up the payment and jointly determine a feasible payment agreement. 10. USE REPORTS FOR INSIGHT Regularly assess the effectiveness of your credit management department. Is the workload realistic? Do your employees manage to follow the planned policy and planning? Are you achieving the desired results with your current policy? Flexibility in your approach keeps the focus on results. THE BOTTOM LINE Making the credit management operation run more efficiently will help improve cash flow for any construction company. There are many ways to plan and execute credit management, and credit management software is the perfect technology to support it. By Michael Facey, Head of Marketing and Product Management, OnGuard
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Unexpected Issues in the Baggage Area A recent case, Beumer Group UK Ltd v Vinci Construction UK Ltd (2016), illustrates the problems that can arise where an adjudicator is appointed in two adjudications involving one common party, and provides guidance as to how these adjudications should be conducted. Vinci was engaged as main contractor to provide a baggage handling system at Gatwick Airport and sub-contracted the whole package, which included a tilt tray sorter, to Beumer. Beumer subsub-contracted the tilt tray sorter works to Logan. There was an adjudication between Beumer and Logan (BL1) and an adjudication between Beumer and Vinci (BV1). Dr Chern was appointed as adjudicator in each case, although the issues in court did not arise from these first two adjudications. Beumer then started a second adjudication against Vinci (BV2), in which the issue was whether certain instructions amounted to compensation events under the parties’ NEC 3 sub-contract. On the same day, Beumer started a second adjudication against Logan (BL2), in which delay was a central issue. Dr Chern was appointed in each case, which was of
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course known to Beumer and to Dr Chern, but Vinci did not know that Dr Chern was appointed in BL2 or that BL2 existed. Vinci succeeded in resisting enforcement of the adjudicator’s decision in BV 2, which was in Beumer’s favour, relying on breaches of natural justice. The judge took the view that the adjudicator should have told Vinci that he was acting on another adjudication involving Beumer. This would apply even if BL2 were not about the same project. In this case of course BL2 was about the same project and it was inevitable that the adjudicator would acquire information about the project in BL2, but Vinci would have no opportunity to consider that material and make submissions about it. The judge considered that the submissions made in BL2 (Referral etc) should have been provided to Vinci, because the disputes in the two adjudications were closely connected; this would not be so in all cases. The judge took a particularly dim view of the fact that Beumer advanced factually inconsistent cases in BV 2
and BL2. In BV2, Beumer’s case was that Airport Operational Readiness (AOR), an important date relevant to completion, was achieved by 16 December 2015; in BL2 Beumer claimed substantial delay damages and a key part of its case was that Logan had not completed its work to permit AOR by 16 December 2015 and had still not reached that stage as at 12 April 2016. Although it was necessary to go into the legal analysis of Beumer’s inconsistent cases, the judge observed that a director of the company could not have signed a statement of truth in support of both cases in a court case. From the natural justice point of view, there was material before the adjudicator in BL2 which was highly relevant in BV2 and if Vinci had had that material, as it should have, it could have used it to support its own case and to submit to Dr Chern that Beumer was advancing two different factual cases concerning the correct date for AOR. The loss of this opportunity impaired Vinci in presenting its case in BV2 and therefore infringed the rules of natural justice. By Peter Sheridan, Partner, Sheridan Gold LLP
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How to deal with rogue and problem customers SOME clients can be very difficult, or become difficult after problems have been discovered. Most people find it quite upsetting when they encounter difficult customers. Last year, Powered Now surveyed 1,000 home owners that had used tradesmen in the previous year. A shocking one in 25 admitted that they were rogue customers! However, the truth is that you will sometimes encounter customers who genuinely feel hard done by, while only a handful are planning to do the dirty on you. The problem is that you have to deal with both types. AVOIDING PROBLEMS BEFORE THEY ARISE Sometimes there are indications of a problem before you take a job. Gerald Trankell, MD of Nevada Construction explains: “I was concerned about one job I was offered. The person was far too gushing about my company and swallowed a high price without comment. When I insisted on an upfront deposit, he bailed out. It was a narrow escape; the company that took the job never saw a penny.” Far too often, complaints arise when the customer expected something that you never promised. Gas Engineer John McLouglin has one way of avoiding this issue: “On my quotes I always say ‘Subject to no significant discoveries that could not have been reasonably anticipated’.” This covers things like unknown damage that
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is only revealed when the work has started. Also always say that “Any work not specifically included in this quote is excluded”. This all helps to avoid misunderstandings. COVER YOURSELF Apps and systems like Powered Now can ensure that there is an easily searchable record of all of your communications with customers held in one place. This is the first thing you need if a dispute arises. Relatively few customers will try to brazen it out once you show them that you had clearly communicated something to them, and they had accepted it. REMEMBER THE AWKWARD CUSTOMER HAS THE WHIP HAND “The customer is always right” can be very irritating because it isn’t true. However, the customer can always refuse to pay and waste a lot of your time, so working hard at keeping them sweet makes business sense. If there is a dispute, it’s usually best to settle it and if you feel you have been wronged, simply never work with them again. Annoying as it can be, this makes good business sense. ACTION TO TAKE WHEN YOU’RE IN THE WRONG Unfortunately, we, or our staff, will occasionally make mistakes. As it’s been said, “to err is human”. Sometimes “problem customers” are simply customers upset by our mistakes or
poor workmanship. This is our advice on how to handle these situations: • Apologise. This helps to diffuse the situation and helps to prevent the problem escalating. • If the customer is angry, stay calm. Fighting fire with fire will make things worse. • Listen hard and try to reflect back what the customer has said, to show that you understand. • Respond quickly in the first place and fix the problem as a matter of priority, not when you have a gap in work. Funnily enough, if you fix problems in a completely professional way research suggests that your customer will be more loyal than if there had never been a problem in the first place. WHEN ALL IS SAID AND DONE It’s important to honestly distinguish between real problem customers and those that are justifiably upset. Hopefully some of the thoughts here will help in some of these difficult situations. Once a problem is resolved, you deserve a reward, so give yourself one! By Benjamin Dyer, CEO and cofounder of Powered Now
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The Skills Shortage: THE skills shortage is a widely acknowledged and major concern for the construction industry, not only now but also in the medium-term. Ever since the qualified workforce started deserting the industry when demand dropped off following the financial crisis of 2008, the industry has struggled to catch up. Demand for more than 200,000 new homes each year can only be satisfied if there is a qualified workforce to help developers and construction firms fulfil demand. Research by Zurich last year showed half of all UK construction businesses citing the skills shortage as their biggest concern, with half of those surveyed also saying they expected the situation to get worse before 2020. With hundreds of thousands of skilled workers nearing retirement age and with recruitment struggling to keep pace, you can see why these companies’ fears may well be justified. But what are the risks to businesses, and
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how can they mitigate against them? Kerry London is an insurance broker whose expertise is grounded in the construction industry. It was our first area of specialism when our founder, Joe Kelliher, started the business more than thirty years ago. We understand therefore that some of the risks posed by the skills shortage are insurable while others, unfortunately, are not. The risks of employing a workforce without the appropriate skills, qualifications and experience are clear. A drop in safety standards, quality of workmanship and speed of delivery can result in the payment of liquidated damages, public and professional liability claims, and bring loss of revenue through reputational damage. The remedy? We recognise that the recruitment and training of qualified workers - especially bricklayers, carpenters and joiners - is extremely challenging but it is important to use reputable and reliable subcontractors
to complete your work. It is vital to use a broker who understands your industry and can access products to find you the most comprehensive yet cost-effective premiums. A major issue to consider here is the limits and levels of protection that subcontractors have alongside main contractors. Cover needs to be adequate to satisfy the conditions of a contract while not being punitive to subcontractors and making already tight profit margins unsustainable. The use of foreign workers is also becoming increasingly common estimates do vary but statistics suggest that one in ten UK construction workers is now born overseas. Migrant workers have been a feature of the construction industry since the pyramids were built in ancient Egypt, and the immigration of Europeans to the UK has undoubtedly helped fill the gap left by the shortage of home-grown supply. However, the employment of foreign workers brings its own risks. By no
Minimising Risk means all, but some overseas workers may bring with them methods which do not conform to UK best practice, and these irregularities may be further exacerbated by language barriers. Given the importance of foreigners to our industry it is therefore vital that all workers are properly trained before projects begin. The most serious and potential severe risk is regarding health and safety, with foreign employees as with all workers. This is an area which often results in major claims and, given an increasingly litigious culture, it is something which construction firms should treat with utmost priority. Ways to mitigate against it include thorough training, with manuals translated and printed in more than one language, to protect firms against the accusation that workers were unaware of the health and safety standards expected of them. Training is time-consuming but an essential method of cutting down risk, while translation is a relatively small cost but
one which could pay dividends. Many, including the Chartered Institute of Building, have previously warned against a clampdown on immigration given the reliance our industry has on migrant workers. And the imminent prospect of Brexit is only likely to exacerbate the shortage as foreign workers leave the UK. Furthermore, many firms are delaying decisions to recruit and train because of the uncertainty. One option for construction firms is to play an active role in recruiting apprentices. The Government’s recent Enterprise Bill, which commits to three million new apprenticeships by 2020, will certainly help here. Again, the short term costs are there alongside the understandable risks but the benefits will be great, as young workers are trained in the standards expected by the companies which recruit them. There are also reputational benefits to consider. Being seen as a company which takes training seriously will
attract the best young talent and will assist in the tendering for contracts with bigger companies. One risk which cannot be insured against is escalating wage costs, as demand remains high even though supply is low. Bricklayers, for example, have never seen it so good with a recent report from the Recruitment & Employment Confederation (REC) suggesting that their wages have risen to ÂŁ25 per hour. Rising wages require an industrywide concerted effort on training and recruitment, and until these are addressed then circumstances will remain the same. But it is distressing to see some of the big developers and housebuilders not pitching for work because of the struggle to find workers, while small companies struggle to survive as their best workers take positions with larger businesses. By Neon Mavromatis, Managing Director of Construction, Kerry London
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RIBA Stirling Prize: Damien Hirst’s Newport Street Gallery crowned best building of the year NEWPORT Street Gallery - the neartotal conversion of an entire street of listed industrial buildings to form a free public gallery for artist Damien Hirst’s private art collection - has won the much-coveted 2016 RIBA Stirling Prize for the UK’s best new building. The award was presented to Caruso St John Architects during a special ceremony held at the Royal Institute of British Architects in central London. Newport Street Gallery required the wholesale transformation of a street in Vauxhall, South London. There, three listed Victorian era buildings - formerly carpentry and scenery painting workshops for West End theatres - have been remodelled and flanked at either end by entirely new structures; one with a striking, spiky saw-toothed roof. The new additions feature a bespoke hard pale red brick finish to closely reference the original buildings, while a huge LED panel has been affixed to an adjacent railway facade to encourage passers-by to visit. The
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ground and upper floors within the five buildings are interconnected and continuous, with spiral staircases on each side to create flexible spaces able to accommodate everything from individual works to larger exhibitions. Collectively, the judging panel concluded: “This highly accomplished and expertly detailed art gallery is a bold and confident contribution to the best of UK architecture. Caruso St John’s approach to conservation is irreverent yet sensitive and achieves a clever solution that expresses a poetic juxtaposition of old and new. “The collection of buildings is beautifully curated, pulled together by the use of brick yet still expressive of their individuality. The playful use of LED technology gives a contemporary addition to the facade. “Internally, the five buildings are connected as a continuous and coherent sequence of light filled gallery spaces. The simple and logical circulation is enlivened by exquisitely
detailed and sensuous staircases. The gallery, which is free of charge, is a generous asset to an evolving community.” RIBA President Jane Duncan had this to say: “With Newport Street Gallery, Damien Hirst has made an exceptional contribution to the UK’s strong history of private patronage of architecture. Not only has Damien opened up his enviable private art collection to the world, but he has commissioned a real work of art to house it in. “Caruso St John have created a stunningly versatile space from a number of linked buildings, with beautifully crafted staircases and superb details including tactile brick facades that blend the street externally and create a succession of wonderful gallery spaces. “This project exemplifies the best of UK architecture - a highly considered and creative project that brings to life a previously-unloved pocket of the city. I am delighted to present architects
Caruso St John with the 2016 RIBA Stirling Prize.” Peter St John - Partner at Caruso St John Architects - added: “It's rare for architects to be given the opportunity to realise a personal vision of the quality of the Newport Street Gallery, and for that vision to have a generous public dimension. We see the building as a palace for direct, intimate and luxurious encounters with contemporary art, and we are very pleased that this award will bring more people to see this extraordinary collection.” In closing, Damien Hirst said: "Newport Street Gallery has realized my ambition to create an unobtrusive and beautiful series of buildings that work perfectly as a space to exhibit great art. I wanted to stay true to the history and roots of the building and Caruso St John understood that from the start. I am immensely proud of what we achieved and the reaction it has received in its first year of opening and hope people will continue to enjoy it.”
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Go Ultra Low initiative secures commitment from 65 companies SIXTY-FIVE UK organisations have been awarded ‘Go Ultra Low Company’ status since the initiative launched in May 2016 - with Transport for London, University of Cambridge, Britvic and POD Point among those signing up to the new ‘green standard’ for business motoring. The Go Ultra Low Companies initiative has been endorsed by Government and the automotive industry, and recognises organisations that are leading the electric motoring revolution by using electric vehicles (EVs), and pledging to buy even more. Transport Minister John Hayes said: “It is fantastic that so many companies are leading by example and adding electric vehicles to their fleets, and we want more to follow suit. These companies will benefit from the fuel and tax savings electric vehicles offer, as well as helping to protect the environment.
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“The Government is determined to make zero-emission vehicles the best choice for everyone, which is why we have pledged £600M to support uptake of greener vehicles and work towards making nearly every new car and van in the UK zero emission by 2050.” Poppy Welch, Head of Go Ultra Low, said: “The response to the Go Ultra Low Companies scheme has been excellent, from both the private and public sectors - ranging from small businesses to an 800-year-old university. This eclectic mix of Go Ultra Low Companies is setting an example for the rest of the UK. With more and more electric vehicles now available, we encourage every organisation and fleet to consider switching to electric.” Public and private sector organisations that already use EVs, or offer them to employees as company cars, are eligible for Go Ultra Low Company
status, providing there’s a commitment for EVs to make up at least 5% of their vehicle fleet by 2020. One such public sector organisation is Transport for London (TfL). In 2018 it will have 120 electric vehicles in its fleet, up from 16 today, which is well in excess of the target required to be a Go Ultra Low Company. Lilli Matson, TfL’s Head of Strategy and Outcome Planning, said: “Our fleet of electric vehicles keeps the capital moving by helping to maintain the street network and keep buses on the roads. It is essential that whilst doing this we minimise the impact on the environment. The granting of Go Ultra Low Company status is a welcome recognition of our efforts to lead by example and address the challenge of cleaning up the Capital’s toxic air. “I would urge as many of the City’s
businesses and institutions as possible to aim for this standard. Increased uptake of environmentally-friendly transport creates a virtuous circle of economies of scale, cheaper vehicles and the creation of a mass market.”
Among the private sector organisations signed up to the Go Ultra Low Companies initiative are Britvic, POD Point, Co-wheels Car Club and Vital Energi.
manufacturer, currently has 20 EVs on its fleet, and plans to increase this number to at least 50 by 2020 - representing a 10% share of its total fleet. • POD Point, a leading provider of electric car charging stations, runs a 100% electric vehicle fleet for its own staff. The Company aims to increase the number of EVs from 20 to 100 before 2020. • Co-wheels, an independently owned national car club, offers 70 EVs to its members, representing 14% of its total fleet. The Club has ambitions to raise this to 40% in the next three years. • Vital Energi, a sustainable and renewable energy company, currently has 32 EVs on its fleet, representing a share of 35%, and the company aims to increase this to at least 40% by 2020.
• Britvic, the soft drinks
The fleet sector’s willingness to
The first 65 Go Ultra Low Companies include a mix of public and private sector fleets, spanning the length and breadth of the UK. The University of Cambridge is one of five British universities signed up to the scheme with its nine EVs currently representing a 9% share of its total fleet. The worldrenowned academic institution aims to increase this share to 20% before the end of the decade.
embrace EV technology was evident in the first half of 2016, with 45% more electric cars registered in the January to June period than in 2015, according to data from the Society of Motor Manufacturers and Traders (SMMT). The rise bolsters the fleet sector’s leadership in the move to electric, with businesses making up 72% of the registrations volume for the year so far. Go Ultra Low exists to help UK organisations and motorists understand the benefits, cost savings and capabilities of the raft of electric vehicles on the market. The collaborative campaign is the first of its kind, bringing together a consortium of vehicle manufacturers, Government and the SMMT. To apply for Go Ultra Low Company status, visit: www.goultralow.com/ fleet
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Sadiq Khan to rid London of dangerous lorries MAYOR of London, Sadiq Khan, is proposing to make London’s streets safer for pedestrians and cyclists by removing the most dangerous lorries from the capital’s roads. Transport for London’s Direct Vision Standard - a world first - will introduce a ‘star rating’ to assess construction and other heavy goods vehicles (HGVs) based on the level of vision the driver has from behind the wheel. Under plans to be consulted on shortly, the most dangerous ‘off-road’ HGVs will be banned from London’s streets entirely by January 2020. These HGVs would be ‘zero star rated’ under the Direct Vision Standard. Only HGVs meeting three stars or above - a ‘good rating’ - will be allowed on London’s roads by 2024.
Recent data shows that HGVs were involved in 22.5% of pedestrian fatalities and 58% of cyclist fatalities on London’s roads in 2014 and 2015, despite making only 4% of miles driven in the capital. A restrictive field of vision, caused by substandard vehicle design, has been linked to many of these incidents. Promoting safer lorries through a Direct Vision Standard was outlined in Mr Khan’s manifesto. Currently, there are around 35,000 zero star-rated ‘off-road’ HGVs operating on London’s roads. They account for around 70% of all cyclist fatalities involving HGVs in the last three years. It is precisely this type of vehicle that the Mayor has pledged to remove from London’s roads by 2020. Transport for London (TfL) and the wider Greater London Authority group will lead by example, adopting the new Direct Vision Standard in all future contracts from the next financial year
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to ensure that no trucks with poor direct vision are used in their supply chains. The Mayor and TfL will also work with developers and councils to encourage them to do the same, and the Mayor has pledged to continue pressing the EU to introduce new EU wide safety standards for HGVs. Sadiq Khan, Mayor of London, said: “I’m not prepared to stand by and let dangerous lorries continue to cause further heartbreak and tragedy on London’s roads. The evidence is clear - HGVs have been directly involved in over half of cycling fatalities over the last two years, and we must take bold action to make our roads safer for both cyclists and pedestrians.
“I’m determined to ensure the most dangerous zero star-rated lorries are removed from our roads completely by 2020. Our ground-breaking Direct Vision Standard will be the first of its kind in the world, directly addressing the issue of lethal driver blind-spots. I’m also proud that TfL will lead by example and will not use any zero-star lorries in its supply chain from the new financial year. “By continuing to work closely with industry - using TfL and public sector procurement and announcing our plans now - I’m confident that many of our lorries will now be upgraded well before the ban comes into place, and the benefits of a new era of modernised and safer HGVs felt by all road users across London.” Leon Daniels, Managing Director of Surface Transport at TfL, added: “Lorries designed in the 1970s and for use in a quarry have no place on the streets of a 21st century city. Our Direct Vision Standard has been developed using extensive technical research and builds on the success of working in partnership with both
vehicle operators and manufacturers through the award-winning CLOCS. It will help bring the whole lorry fleet up to modern safety standards. The right lorry in the right place keeps a city functioning. “By helping everyone ensure they are using, contracting or buying lorries with high levels of driver direct vision, we will increase the demand and supply of such vehicles to the point where these safer trucks are the main lorry of choice in the capital, other cities and around the world." Speaking on behalf of the Freight Transport Association (FTA), Natalie Chapman - FTA Head of Policy London - said: “The Mayor’s proposed plan is a much more targeted approach, which we welcome. Improving direct vision is, in principle, a good idea. FTA has been advising members to purchase vehicles with improved direct vision for several years. But it would be wrong to think of this as some kind of a silver bullet - research suggests that in some incidents involving lorries and cyclists, this may not help.
“Safety is a key priority for FTA members. Many have already made major improvements to their vehicles, and introduced advanced driver training. But it should be remembered that for some operators - particularly small businesses - these proposals will be a significant challenge. Industry needs time to adapt and reassurance that the investments that have already been made - for example, in sensors and camera technology recommended by TfL - will be taken into account. ” The FTA is therefore calling for solutions to be evidence-based to ensure that investment results in outcomes which actually improve road safety. Ms Chapman concluded: “Vehicle design is just one part of the solution. Ultimately all road users have a role to play in improving road safety. Better awareness, training and behaviour is needed on all sides to make our roads as safe as they can be. “FTA will continue to work with TfL and the Mayor's Office on the detail of these proposals to ensure that there is a balanced outcome that works for all.”
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How will the Ultra-Low Emission Zone impact your Construction Company? LONDON’S air quality has been a top priority for the new Mayor, Sadiq Khan, ever since he was elected back in May and plans for an Ultra-Low Emissions Zone (ULEZ) have already been brought forward. Additionally it has also been suggested that the most polluting vehicles within London should incur charges from next year. These are proactive steps towards decreasing air pollution within London, but what does all this new legislation mean for your construction firm? Khan is motivated by reducing the estimated 9,500 Londoners who die annually from long-term exposure to air pollution. Whilst undoubtedly an excellent incentive for the new legislation; the introduction of the ULEZ will have a financial impact on fleets operating in London. According to the Office for National Statistics 22% of the UK’s construction activity is in London, much of which includes small to medium businesses with limited capital and it’s these businesses that will bear the brunt of the costs. So it’s a good idea for all fleet managers to get to grips with the rules now and prevent financial damage in the future. Fleets will see the introduction of an Emission Surcharge from 2017 (known as the ‘Toxicity Charge’) where the
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most polluting vehicles, including all with pre-Euro 4 emissions standards, will pay extra. The fee will be £10 per day on top of the Congestion Charge and any separate charge for breaching the original non Ultra Low Emissions Zones standards, heavily impacting small to medium construction firms that don’t have the available funds to update their fleet. The original, central London ULEZ will be introduced a year early becoming operational in 2019 and therefore leaving less time for fleet managers of busy construction firms to plan for the new rules. Tackling the new ULEZ legislation could be a difficult task, especially considering the rate it’s evolving at. In 2020 plans include extending it to the North and South circular roads for cars, motorcycles and vans and London-wide for lorries, buses and coaches. Key points to consider as a fleet manager within the construction industry are you’ll be facing an extended ULEZ zone for LCVs from 2020, while HGVs will have to be compliant across the whole capital. Pretty much all but the newest diesel vehicles will pay the ULEZ charges, but what will the charges be? Khan hasn’t yet released these details, but the original ULEZ proposals planned
to charge all N2 and N3 HGVs that didn’t meet Euro VI standards or were registered before 1st January 2014 £100 per day. Diesel LCVs that didn’t meet Euro 6 standards would face paying £12.50 per day. If your fleet isn’t currently compliant, it might be a good time to look at renewing it, especially if you own your own vehicles. Another option to save paying ULEZ charges is to switch to a flexible rental model of fleet management. That way, if your vehicles don’t comply with emissions legislation, you can simply swap them without incurring costly penalties.
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LowCVP announce 2016 Low Carbon Champions THE Low Carbon Vehicle Partnership (LowCVP) has announced this year’s Low Carbon Champions at a lively networking dinner, held in association with Cenex LCV2016, in Milton Keynes. The Champions Awards celebrate achievement and innovation in driving the UK towards low carbon road transport.
place at the Double Tree by Hilton, MK Dons Stadium.
H2 Aberdeen - which has developed a strategy for the introduction of cleaner, hydrogen-powered transport to the port city - and Argent Energy which has pioneered a drop-in diesel replacement for cars, buses and trucks - were jointly presented with the event’s highest accolade; the ‘Grand Prix’, or winner of winners, Award.
“There is a lot of work still to be done to achieve the long-term objectives set under the Climate Change Act, but the dynamism and determination shown by so many of those involved today shows how UK industry and operators have the drive and potential to achieve them.”
Sir Peter Hendy was also recognised as the 2016 winner of the Outstanding Individual in Promoting Low Carbon Transport Award. Hosted by Formula E TV presenter and science communicator, Nicki Shields, who was Master of Ceremonies, the event took
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LowCVP Managing Director Andy Eastlake said of the event: “All the entries shortlisted for the Champions Awards deserve recognition for the contribution they are making to cutting carbon emissions from road transport.
The judges said that Toyota - which won the car manufacturer award - had been a global leader in low emission vehicles, selling over nine million petrol hybrids. According to the panel, Toyota has built upon this reputation with the introduction of the zero emission hydrogen fuel cell car, Mirai.
The Aberdeen Hydrogen Bus Project - H2 Aberdeen - has introduced Europe’s largest fleet of hydrogen fuel cell buses. The scheme has also delivered the UK’s largest hydrogen production and bus refuelling station, and fleet operators have reported that the vehicles are proving to be extremely efficient compared to their diesel equivalents. Argent Energy manufacture 60 million litres of biodiesel from waste each year. In 2015, the Business began supplying high bio-blend diesel to two major London bus companies. After a year distributing to these companies, the greenhouse gas emission savings will be equivalent to 150 million miles of carbon-free travel, based on DfT figures. The Champions Awards judging panel was comprised of 22 senior executives from a range of UK organisations, each with a stake in the low carbon road transport agenda.
Richard Bruce - Director of Energy, Technology and Innovation at the Department for Transport and awards judge - said: “It’s fantastic to see another array of groundbreaking companies vying for the Low Carbon Champions Awards this year. It’s precisely because of the synergies between environmental improvement and great commercial opportunity - synergies that the ideas and technologies here demonstrate so well - that the Government remains so committed to this agenda.” Alex Burns, President of Millbrook - the Champions Awards headline sponsors - said: “It’s encouraging to see so many
UK-based organisations committed to cutting carbon emissions and improve air quality. We are pleased to present this award to two fantastic companies, and commend them for their continued good work.” Darran Messem, Chairman of LowCVP and fellow awards judge, said: “The UK vehicle industry continues to push the boundaries of innovation in low carbon technology, production and operation. This is essential to deliver the decarbonisation of transport needed to mitigate the worst effects of climate change and to improve air quality.
“This year’s LowCVP Champions Awards recognise innovation across the transport sector, and all stakeholders in the LowCVP the Board, the Secretariat and our members - hope this provides further stimulus to all the innovators and operators working hard to deliver low carbon transport.” Another of the judges, Professor Neville Jackson - Chief Technology and Innovation Officer at Ricardo UK Ltd - said: “The LowCVP Champions Awards have now been established as a key event in the automotive technology calendar. “Both LowCVP and their awards have played an important part in transforming the low carbon transport sector to provide a dynamic and successful contribution to UK innovation. This has resulted in an expansion of the low carbon agenda, from a few niche vehicles and initiatives to mainstream automotive in recent years.” In closing, Robert Evans - Chief Executive of Cenex, the organiser of LCV2016 - said: “We are pleased to be able to host the LowCVP Low Carbon Champion Awards as part of the Cenex-LCV2016 networking dinner. “The LCV2016 event brings the low carbon vehicle community together for two days of technology showcasing and networking, with the evening dinner extending this valuable networking time. As an awards judge I commend all those nominated for an award and congratulate the winners.”
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Exclusive Interview: Adam Matthews, Chairman of EU BIM Task Group ABIGAIL Burr talks exclusively to Adam Matthews - Chairman of the European Union BIM Task Group - about the UK’s placement within the construction industry, the European Common Network, the drive for BIM, and how other countries are progressing on their BIM journey following Brexit. Adam Matthews is Chairman of the European Union BIM Task Group which is a network of public sector stakeholders from over 20 nations and co-funded by the European Commission. He is also Director of International Development for the UK Government’s BIM Task Group, and has more than 24 years of experience in information technology and change management in various industrial sectors. Adam holds an MBA from Kingston University which focused on sustainability and public policy for the construction sector.
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SINCE THE LEVEL 2 MANDATE IN APRIL, HOW WELL PLACED DO YOU THINK THE UK CONSTRUCTION INDUSTRY IS? ‘Standing aside’ from my UK role and just looking at the evidence from surveys, conferences, institutes and associations would suggest that most of the industry has at least started on the journey towards BIM Level 2. That includes those just beginning to understand what BIM Level 2 is, to those that have immersed their Organisation’s procedures as supporting Level 2 and the collaborative use of data. We can also say that the industry has a much greater awareness and capability in “collaborative BIM” (the original phrase under the Construction Strategy 2011) than five years ago. This is a big step forward for the UK industry and it should be recognised for how enthusiastically it has embraced this change. On a personal note, I think it must rank as one of the greatest national collaborative efforts the construction sector has seen. A building services engineer said to me once that BIM was one of the best things to happen in the sector in his lifetime, and that the UK Government’s BIM programme was the best thing Government had done for the industry (with the notable exception of H&S improvements). I wouldn’t disagree with his assessment. To help the industry equip itself on Level 2, there are guides to explain and adopt the Level 2 approach which will be delivered shortly on: www.bimlevel2.org/guidance There is more to do, but we should also celebrate the progress we have made in a relatively short period of time. The CIC should also be congratulated for their leadership and ownership of the programme since its launch at the end of 2011. HOW IS THE EUROPEAN COMMON NETWORK DEVELOPING? The UK with Norway started the group in late 2013 with 12 other European countries by holding a get-to-knowyou session in Brussels. Since it formed as the EU BIM Task Group, it has grown to over 20 European nations with support and co-funding from the European Commission. The aim of the group is simple - create a common
understanding of BIM in Europe and aim to spread common practice across public clients introducing BIM to public policy or public works. We launched our website in early 2016 www.eubim.eu - and updates on our progress will be issued there. We have just completed a survey of European practices by public stakeholders and now starting to draft a guide for public procurers on BIM. This BIM handbook will make recommendations for good practice based on the current European experience. DO YOU THINK THE EU WOULD EVER HAVE A BIM MANDATE? Mandate is a strong word. Technically the UK BIM ‘mandate’ is policy encouragement to the UK’s public construction client group to require the delivery of BIM information on centrally funded projects. It is not easy to see how a single BIM mandate would be applied across Europe - however, do I see common approaches and requirements for BIM being adopted by European governments and public clients? Yes, absolutely. And looking forward, I see these requirements aligning across Europe. Over the next three to five years it is likely there will be a growing momentum of consistent BIM requirements in public tenders at national and public estate levels. We are beginning to see this already. Clients are recognising it is not enough simply to request “It should be BIM” in public tenders: they want to specify standard digital information datasets at key project milestones. IN TERMS OF THE EU, IS THE DRIVE FOR BIM COMING FROM THE PRIVATE OR PUBLIC SECTOR? Both, but at some stage in a number of countries - the public stakeholders are taking a leadership role to help create the necessary conditions to deliver joint economic and environmental benefits for both the public sector and for industry. What impact will Brexit have on closer collaboration with BIM in Europe? In my view, the collaboration has been a European exercise, not just EU - it actually includes members of the EFTA (European Free Trade Association) such as Norway (a leading partner in the project) and Iceland.
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With a diverse and innovative portfolio of both hardware and software, Trimble MEP division offers end-to-end technology solutions for big or smaller businesses across the sector.
not as reliable and has a much higher risk of being interrupted by other signals and ultimately losing connection. This could be another Robot using wifi, or even a phone or internet signal.
Among its most revolutionary products is the Trimble Robotic Total Station (RTS). Boasting unparalleled accuracy, an RTS will enable you to import model data to a hand-held tablet device in the field. A key component in the ‘BIM-to-field’ equation, an RTS will save you costly man hours and reworking while helping you to win bigger and better contracts.
Direct Reflect and Visual Layout: Trimble MEP provide patented technology to work out any difference between the 3D model Z elevation and the ‘real world’ site Z elevation. The Trimble RTS will identify these discrepancies and make the required correction.
For anyone looking to invest in the precise and cost-effective layout solution an RTS provides, we’ve rounded up some of the unique features that lift the Trimble RTS head and shoulders above the competition. Active Prism: Trimble have patented technology to ensure a consistent connection between the robot and the prism. Without this technology the Robot can become ‘distracted’ by other reflective surfaces such as high visibility jackets. This can be operated on up to 8 channels allowing multiple trades to ‘set out’ at once. Radio Connection: Trimble’s RTS range, connects the equipment using radio frequencies. This again ensures connection, but also speed, range and quality of connection. Competitive products use wifi and technology which is
Green Laser: Upon finding the accurate point (after any corrections) the Trimble RTS 873 unit offers patented technology to project a high powered green laser providing better accuracy and visibility on-site. Tools that only include a red laser will reduce your accuracy, as the laser splashes / spreads across the distance. Trimble Tablet: Windows operated ruggedised device with gorilla glass, water and dust proof, touch screen, 12 hours battery life, 2.4GHZ Radio and wifi capability. This includes Trimble Field Link MEP, which is the dedicated workflow specifically for MEP contractors. Embedded software: Trimble’s ruggedised and waterproof tablet carries its own embedded software licences to the user. This ensures no corruption and no requirement to go back to a ‘cloud server’ for licensing. The product is registered and activated for your
business. Trimble Connect: Free of charge model viewer available online, which also enables you to push models to the field without a requirement for USB sticks and sending files. Offsetting points onsite: Trimble allows the engineer to create points of the fly from the model on the tablet without the requirement for the coordinates. One example of this is offsetting points, which will then be amended and uploaded to the model. Dedicated to MEP: Trimble have products, sales, training and support dedicated the MEP in the UK. This ensures that our team understand the specific requirements for MEP and have a wealth of experience to support you on projects. Trimble MEP equipment is developed, designed and created for the MEP workflow. This is not a surveying tool that is being pushed into a secondary industry. Trimble MEP employee upwards of 700 dedicated professionals. To find out more about BIMto-Field, watch our video – in conjunction with The B1M – at:
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With regards to Brexit, the EU BIM Task Group is a two year project until end of 2017 which would mean the UK will be a full EU member at that time. And the goal of the group is to align the European approach to introduction of BIM. Beyond Europe, there is recognition that BIM is a global language - construction will transform to a global ‘digital construction’ sector over the next five to ten years. The Group is collaborating to place the European sector to compete effectively in this market. I would add that it is a European success - nations sharing approaches and implementation descriptions in order to agree a common performance level to describe what BIM is to encourage trade across borders. It continues to be a positive and collaborative experience. WHERE WOULD YOU SAY THE MAJORITY OF COUNTRIES ARE ON THEIR BIM JOURNEY?
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This will be answered more fully in the report of the survey recently conducted. I wouldn’t want to pre-empt its findings and conclusions. However, the group recognises that there is a full range from those just starting to explore what BIM means to a public stakeholder/client to those like Norway, UK and Netherlands that are implementing their programme with industry.
describe ‘furthest along’. For example, the UK programme has the goal to engage the whole value chain transformation of its construction sector, which employs near three million. Whereas Finland, a country of five million people, has adopted a highly detailed approach to prescribing specific technical operations at the ‘atomic level’. Which is furthest along?
What is remarkable has been the journey since 2013, where we started the group with a just handful of nations with active programmes to now with over 20 nations involved and the European Commission on-board. I think that speaks volumes about the recognition of the value proposition of BIM to the public sector.
What is easier to say is the group agrees that we are all heading in the same direction, along similar journeys but going at different speeds. Another important point is to encourage trading opportunities: no country is so far ahead that they can’t be brought on to a common path with others to support common trading practice across borders. This for me is the real test for the group.
WHAT COUNTRIES WOULD YOU SAY ARE FURTHER ALONG ON THEIR BIM JOURNEYS? There is no hard and fast rule here to
For me, one of the most impressive things about the EU BIM Task Group is that all nations are approaching with
an open mind and prepared to debate different aspects of adoption and there is no sense at this time of protecting national positions to the detriment of harmonisation. After all, BIM is just part of a broader digital transition across governments, across Europe and across the world. WHAT IS BEING DONE TO HELP COUNTRIES THAT ARE NOT AS PROGRESSED? Approximately one third of the group have a BIM programme or are in the process of developing one, so this group is actually aimed to share practice with those nations that have yet to start developing a BIM programme. The survey I mentioned will collate experience from around Europe on the public introduction of BIM and from this with a series of meetings and workshops will help to inform
a general recommendation. This recommendation will be made available publicly as a handbook to inform public estate owners, public procurers and policy makers across Europe. Looking globally, I think it fair to say that outside a few notable exceptions including China, Singapore and Hong Kong many countries are still evolving their response to BIM. So this handbook has a wider audience possibly. WHAT IS BRITAIN'S ROLE IN THIS? The UK is the lead coordinator of the EU BIM Task Group as it was nominated by others to have the funding contract with the European Commission for the project. This contract is administered by the Department for Business, Energy and Industrial Strategy (BEIS). The UK provides a small project office to coordinate the programme and my time is provided to Chair. However,
I do not represent the UK interest in the group, this is done by others from the UK BIM Task Group. My role is to independently represent the group members and the programme to the European Commission and to the lead coordinator. WILL BREXIT AFFECT BRITAIN’S ROLE? No, not in this immediate project. The project has a two year timeframe, and we are already over eight months in – and the UK will remain a full EU member for two years after its exit is formally triggered. I cannot say that Brexit would have no effect on the UK’s involvement in the future, however while I would accept there is naturally some uncertainty - I firmly believe that this project is part of a European agenda. I would very much hope the support received from the UK and towards the UK would continue in support of this vital work.
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Union Square: A simple solution to BIM integration IN AN EXCLUSIVE INTERVIEW, UNION SQUARE DISCUSS BIM INTEGRATION, THEIR WORK WITH THE OPEN BIM ALLIANCE, AND THE INDUSTRY’S MOVEMENT TOWARDS FULL BIM COMPLIANCE. For the uninitiated, could you provide our readers with an introduction to Union Square and the services available?
Union Square are a construction specific software provider delivering a browser and mobile based solution that helps organisations manage business and project information better. It connects directors, project teams and business support people to the information they need to do their job when and where needed. The system helps to create, manage and control all of the structured data (clients, enquiries and project details) and unstructured content (emails, drawings and documents) across departments, and through the processes of winning and delivering project work. Since 2000, we have supported architects, engineers, consultants, contractors and trade contractors to manage their transition from paper to digital, and enhance their day-to-day project working processes. With Building Information Modelling (BIM) high on the industry’s agenda, how is Union Square able to support businesses looking to integrate data between BIM models and other operational systems? Union Square offers a range of productivity tools, which allow the integration of data between BIM
models and other operational systems. This includes Revit but also increasingly features the utilisation of IFC to share and repurpose data. At a practical level, Union Square support our clients by: • Providing a framework to control information approval and flows through Governance gateways. • Delivering a Common Data Environment (CDE) to manage the secure and controlled exchange of model and design data. • Supporting design team productivity by integrating Revit with design management workflows for approval and issue. • Ticking the box on compliance by tracking all project communications in a robust, secure and auditable way. In 2015, Union Square joined the Open BIM Alliance. Could you explain the rationale behind this? How is the Alliance benefitting Union Square’s clients?
Union Square are proud to be part of a collective and a contributing voice driving Open Standard BIM exchange. Since 2000, we have helped to support change in traditional working methods as technologies like email, mobile and more recently file sharing software have changed the means for working. BIM is another game changer for the industry, representing a maturing of project procurement and delivery processes. History tells us that complimentary and competing industry bodies and software
vendors will define their own agendas if left unattended. Being an active part of the OBA is a clear indication that Union Square actively promotes the adoption of open standards and is proud to support any initiative that will increase awareness of the need to adopt BIM strategies, drive efficiency and remove waste from within the construction industry. From Union Square’s perspective, how are companies coping with the transition to BIM Level 2? Are businesses receiving enough support?
The reality of BIM adoption and Level 2 compliance ‘on the ground’ is somewhat different from industry media coverage and government messaging. In summary, it’s a real mixed bag. Tier 1 contractors and consultants are most invested in BIM L2 adoption, and they are starting to educate and support their supply chain get up to speed. Interestingly, some of the best innovation in our client base is being driven in the supply chain through trade contractors (like Caunton and Lakesmere). They have been using modelling technologies and robust data management policies with the structural designers for a decade or more. Within the regional SME market, there are clusters of organisations, and small pockets of BIM brilliance to be found, that are delivering exemplar projects and positive project outcomes. Depressingly though there are still too many businesses with their heads down, underinvested in training and technology that haven’t caught up or don’t want to get aboard the train! More information is available on the Union Square website: www.unionsquaresoftware.com
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Exclusive Interview: Paul Morrell gives his verdict on the construction industry UK Construction Excellence’s Matt Brown talks to Paul Morrell OBE former Chief Government Construction Advisor - about his views on how the 2011 - 2016 Government Construction Strategy was implemented; the BIM Level 2 mandate; the skills shortage and Digital Construction Week. A chartered Quantity Surveyor and formerly a Senior Partner of Davis Langton until his retirement in 2007, Paul is now an independent consultant on the economics of construction and procurement.
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HAS THE 2011 - 2016 GOVERNMENT CONSTRUCTION STRATEGY BEEN DELIVERED IN THE WAY YOU ORIGINALLY ENVISAGED? Well, of course I haven’t been there to see it from the inside since the end of 2012, and you can believe me when I say that the view from outside is at best partial, and sometimes just plain wrong. At that time, however, although things were obviously patchy with some departments acting as genuinely inspiring pathfinders, whilst others remained mired in years of embedded habits or weighed down by departmental baggage, I would say the general trend was encouraging. The key to the Government Construction Strategy was that it had all three components of something that can legitimately claim to be a strategy: a diagnosis of the problem, the identification of a number of changes that would bring about improvement, and (above all) a practical plan for implementing those changes. Diagnosis and prescription had been done to death by 2012, and I would not claim any originality in the thoughts and ideas that formed the background to the strategy. Indeed, I would claim familiarity as one of its strengths. The difference was therefore in Government using its buying power to persuade its suppliers that there needed to be a new bargain, based on the Government improving its practice as a client, and the industry then improving the value it could deliver in meeting public needs. And this was, by the way, at a time when Government’s other instruments of bringing about change - through fiscal measures or regulation - were either unavailable or disfavoured. The guiding principle, though, was that you cannot change an industry by exhortation and waving your arms around. Instead, change comes from changing the drivers of the businesses that make up the industry - and, even in an industry as reactive as construction, one of those drivers has to be the preferences and demands of customers. As I say, I’m not there to see it from the inside anymore, but occasional messages from friends at the front are encouraging (and I am, for example, frankly astonished that all departments got themselves “BIM ready” by this year’s deadline), and I am also encouraged by seeing that the
reissued strategy builds on the previous one, rather than falling into the usual Governmental trap of reinvention and casting around desperately for something new to announce. HISTORICALLY, THE CONSTRUCTION INDUSTRY HAS PROVEN SLOW TO EMBRACE INNOVATION. WHY DO YOU THINK THIS IS? The answer to that question is relevant context for the answer to almost any question about the industry: in short, nobody owns the whole process. Doubtless if anybody did own the whole process, that would bring problems of its own - particularly if they lacked either the right skills, instincts or motivation for the role. But just one consequence of the current fragmentation of roles, and the fragmentation of demand - so that you never know what the next phone call is going to bring, is that there is little incentive to innovate. Who, after all, is going to invest in finding a better solution to a problem that they’ll never be asked to solve again? So the problem is structural. The other factors are the lack of international competition that has forced improvements in practice and productivity in other industries, and the lack of a feedback loop by which lessons can be learned on one project and applied on the next, so that user experience is properly represented at the inception of a project. So the glib answer as to why the industry isn’t better at innovation is therefore because it doesn’t have to be (because of the lack of competition) and because it can’t be (because of a lack of integration and, in a world of “big data” because we don’t capture the lessons - let alone learn them). HOW SUCCESSFUL DO YOU FEEL THE BIM MANDATE HAS BEEN SO FAR? IN RETROSPECT, DO YOU FEEL THE CONSTRUCTION INDUSTRY HAS PROGRESSED AS MUCH AS YOU HAD INITIALLY HOPED? I think the bandwagon effect of BIM is now unstoppable, and as the number of businesses that are exploring its benefits catches up the number of interviews, magazine articles and conferences dedicated to the subject, its impact can only grow. That is fundamentally because of its merits,
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and without the tangible benefits that it is already bringing to businesses and projects it would have been stillborn, notwithstanding the undeniable (and entirely welcome) hype. I think the service performed by the mandate was therefore to get people’s attention, and to change the question away from “whether” or “when” to explore BIM’s potential to “how”. As for the amount of progress made, you would need to be very naïve indeed to believe that everything would change overnight. It’s a cliche to say that it isn’t a silver bullet (although cliches become that for a reason), and you can’t buy everything that BIM can be or do in a box. Structural and behavioural change is inevitably slower - but by comparison with other forces for change that I’ve witnessed over a lifetime in and around the industry, the pace of change is, in relative terms, as close to “overnight” as it could be. It was never the expectation that every client and every company in the industry would immediately see the benefits of BIM to the extent that it would transform their own way of doing business. Instead, the belief was that the gains made by those who did make the greatest use of it would be such that competition would force the rest to follow, so that in time it becomes the normal way of doing
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business. Measured against that reality, I think the amount of progress made is nothing short of spectacular. DO YOU THINK THAT PEOPLE WERE GETTING TOO BOGGED DOWN WITH THE BIM LEVEL 2 MANDATE AND THE DEADLINE? Not really. As the coverage of BIM has exploded, there were bound to be some who would seek to put themselves on a superior plane by claiming that it isn’t all that it’s cracked up to be, or that it’s time to forget Cobie, or Level 2 – or whatever. But there’s always had to be a balance between making sure that the leading edge could carry on innovating and leading, whilst the peloton of the industry had a clear answer to the question “so where do I start?” For that, as for any project, there needed to be a definition of what it meant, and a budget and a timetable to get there. Back in 2011, one of the definitions of Level 2 was “stuff we know how to do now” and it therefore presented the industry with something that was known to be deliverable; and the development of standards and protocols around it also encouraged convergence, and avoided the trap of there being so much choice that
nobody wanted to choose a direction for their own business. Indeed, I think one of the challenges of moving BIM on has been finding an equivalent definition of the next level, as BIM expands from 3D modelling to genuine collaboration; from design and construction into operations; from individual buildings to cities and their systems; and onto wherever digitising the built environment (at last!) may take us. IS BIM AS MUCH ABOUT CHANGING MIND-SETS AS IT IS ABOUT THE TECHNOLOGY? A modified version Lyndon Johnson’s advice about how to move hearts and minds is probably relevant here: first grab them by the profit and loss account. However, yes - I do think it’s now widely understood that technology is the lesser part of BIM, and that the bigger changes are behavioural. Again, that change isn’t going to be bought about by preaching about better ways of behaving. The move beyond sharing data to genuine collaboration, and then on to integration of delivery will only come about if clients can be persuaded that it delivers projects closer to their own criteria for success, and if all of those involved in the supply chain
can see that it enables them to work at their best and to do so profitably. That may require an act of faith by some actors on both the supply and demand sides of the industry, but if the business drivers are right, mind-set will soon follow, and those who see collaboration as something blameworthy that you do with the enemy will soon be marginalised. WHAT’S YOUR TAKE ON THE SKILLS SHORTAGE IN THE INDUSTRY? That it too is a consequence of the structural issue that I’ve already referred to. If anyone owned the whole process, then they would keep looking ahead to the resources they would need to serve the market, rather than never looking beyond the next phone call. But because of fragmentation, and because the industry has become wholly reactive as a consequence, when the phone calls start to come in again, an industry that has previously concentrated on downsizing turns around, wonders where the resources are - and inevitably blames the Government. As it happens, I think the Government could have done better. It was clear back in 2011 that the industry was becoming dangerously hollowed out and that the consequences of any return of demand would be that a bigger share of future investment would go straight into inflation. Given the dependence of so many public services upon effective economic and social infrastructure, Governments should have a vested interest in maintaining capacity in the interest but sadly the Treasury looks no further into the future than the industry does - and we live with the consequences today. Setting that aside, though, I think we’ll know when we have a grown up industry when it regards its own problems as being for it to solve; and there can be few issues more pressing than a strategic look at the people and skills we will need in the future and how to attract and develop them. WHAT ARE THE MAJOR CHALLENGES FACING FURTHER PROGRESS WITH THE GOVERNMENT CONSTRUCTION STRATEGY AND THE IMPLEMENTATION OF BIM? Challenges, like sorrows, don’t come as single spies but in battalions - but I
would just point to two. From the Government point of view, the question is whether it has the will and the wherewithal to stick at it and follow Winston Churchill’s advice to those confronting a challenging task to “keep on buggering on”. One consequence of a smaller civil service is that it needs to become more generalist, so people will move around even more than they do now, specialist knowledge will be lost, and every question will be addressed as if it has never been asked before - compounding the habit of new Governments to want to rebadge everything. This is not helped by the suspicion in the senior civil service of specialists who might make good the lack of sector-specific knowledge. We therefore need civil servants who stay in post long enough to deliver their programmes, reporting to ministers who understand and are supportive of the longer term objectives. From the point of view of the industry, I think the major challenge is who wants to be the integrator? The natural candidates should be tier one contractors, but my fear is that they’ve become so used to grinding their margin out of either their customers (in good times) or their supply chain (in bad times) that managing that margin has now become their core business - and that the challenges of putting together an integrated proposition for a client, for which they might be held accountable, lacks appeal. Fortunately (for the customers) there are some
major players who take the opposite approach, and who are organising themselves to offer a more integrated approach. Unfortunately (for the nation) these tend not to be British owned and the risk is therefore that those who don’t “get with the programme” will either be competed out or bought out. THINKING ABOUT DIGITAL CONSTRUCTION WEEK, HAVE YOU SEEN ANY NEW TECHNOLOGY RECENTLY THAT HAS GOT YOU EXCITED IN TERMS OF HOW IT COULD BE APPLIED TO THE CONSTRUCTION INDUSTRY? You are talking to probably the least tech-savvy person with whom you’ll ever swap thoughts on BIM, and I’m therefore the wrong person to ask. Also, as above, this isn’t principally about technology - and if we get the general direction of travel right, then I’ll have confidence that the software houses will develop the right products for the right jobs. The excitement therefore comes from witnessing the human ingenuity shown in finding new possibilities created by a digital world. Having said that, although I would generally regard upgrades as a curse (given that they usually come along just when I’ve learnt how to use a previous version), I have said before that if anyone comes along with a program that upgrades human behaviour towards a genuine desire to collaborate, then I’ll be its first customer!
The Education State: Theresa May doubles down on free schools commitment 52 
THOUGH the players have changed, the Government’s free schools agenda continues unabated. Last month, Justine Greening - Theresa May’s newly-appointed Secretary of State for Education - announced thousands of free school places, with the intention of giving parents greater choice over where to send their children. Meanwhile, 56 previously approved schools - including a specialist performing arts college, which counts Sir Paul McCartney among its patrons - opened their doors to autumn’s new intake. Under Mrs May’s stewardship, the Department for Education (DfE) looks set to continue the work of her predecessor. It was David Cameron who, during the divisive ConservativeLiberal Democrat coalition, brought the free schools agenda to the fore - last year pledging 500 more by the end of his ill-fated parliament. In recent weeks, Theresa May has made good on that commitment - encouraging new and existing free schools to open and expand, and compelling universities and independent institutions to consider supporting or setting up new schools. “For too long we have tolerated a system that contains an arbitrary rule preventing selective schools from being established - sacrificing children’s potential because of dogma and ideology,” she said. “The truth is that we already have selection in our school system - and its selection by house price, selection by wealth. That is simply unfair. “That is why I am announcing an ambitious package of education reforms to ensure that every child has the chance to go to a good school. As well as allowing new selective schools we will bring forward a new requirement that means universities who want to charge higher fees will be required to establish a new school or sponsor an existing underperforming school.”
schools can be found in areas where there is a clear need for more school places, with around half situated in some of the most deprived communities in the country. According to the Government, free schools are more likely to be rated ‘Good’ or ‘Outstanding’ by Ofsted than state schools, and research has shown that their introduction is helping to raise standards in neighbouring schools by encouraging fresh ideas and competition. Being independently-led, free schools are exempt from teaching the national curriculum - a bone of contention for many - and afforded greater latitude with regard to term times and teacher wages. Free schools still answer to Ofsted however, and - as ‘all-ability’ institutions - they are prohibited from using any form of academic selection. The free schools blueprint is not without its detractors however. Critics claim that the Government’s endorsement will serve only to weaken existing institutions, while local authorities are wary of a system that effectively strips them of power, leaving councils with little or no say as to where new free schools are placed. Moreover, how well governed are they really? Is the system at all vulnerable to extremist agendas? The DfE remains undeterred however. Last month, 77 new free schools were approved to create in total 46,493 new school places. These include: • Cumbria Academy for Autism: A special school, led by the parents of autistic children. • The Saracens High School: A secondary school for Barnet in London - the result of an innovative partnership between rugby Premiership and European Cup winners, Saracens, and Ashmole Academy - an Ofsted rated ‘Outstanding’ secondary school. • The REAch2 Academy Trust: The largest primary-only academy trust in the country is set to open
a further 22 primary schools, providing over 10,000 additional primary places by 2020. • The Harris Federation: The Federation will open three new secondaries and a primary school. These will join the Trust’s 37 existing schools, all of which have been rated ‘Good’ or ‘Outstanding’ by Ofsted. Nigel Wray, Chairman, Saracens Rugby Club had this to say: “What a marvellous opportunity we have been given! At the Saracens High School we will combine our sporting beliefs to create a unique school environment where every individual student matters, academic achievement is important and a real emphasis is placed on teamwork and the creation of great memories. The hard work starts from this point.” Sir Steve Lancashire, Chief Executive Officer of REAch2 Academy Trust, added: “We are delighted to be given the green light for 22 new free schools, which we will open over the next few years. Free schools and academies are making a huge difference to the quality of education right across the country and we very much look forward to establishing these new schools so that we can offer exceptional opportunities for learning to even more children.” Ms Greening also confirmed that 56 new schools opened their doors for the first time in September, including 42 new free schools, 11 new university technical colleges and three studio schools. At full capacity, these will provide around 35,000 more school places. But what of the future? It’s heartening to hear that first-class education provision remains so fundamental to the Government’s aspirations, and the Department for Education continues to work at a fanatical pace. With population growth a concern, fast action is required. But only time will tell as to whether free schools can truly ready the UK for an uncertain future to come.
For the uninitiated, free schools are autonomous Government-funded institutions operating outside the bounds of local authority management. Typically, they are established by parents, teachers, charitable organisations or local businesses - those with a vested interest in the community - in response to public demand. There might be a shortage of places in a given area for instance, or dissatisfaction with the places currently on offer. To date, 74% of mainstream free
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CURRENT APPLICATION PROCESSES ARE A KEY CONTRIBUTOR TO PAYMENT ISSUES IN THE UK CONSTRUCTION INDUSTRY – HOW TO SOLVE THE ISSUE. THE PROBLEM In the UK construction industry, payment administration is the number one issue that leads to formal disputes. Late payment and payment disputes have always been a common and somewhat accepted part of our industry, when a construction project goes into dispute resolving and defending the issues can be extremely costly and far reaching for all concerned. Having mismatched applications, poor supporting information and oversight into project status often drives disputes and mistrust, in some instances this can affect the overall quality and scope of the project itself. Clearly the risks involved in poor practices are significant, and are increased in an industry where legislation surrounding payment practices is becoming increasingly onerous for all involved. Poor processes, islands of information, disparate systems and processes have all contributed to the huge cost of processing, increased disputes and mistrust in the industry. When trying to achieve improvements to the subcontractor payment process, it is all too common for contractors to face inward at their own internal processes. The contractors that make the biggest improvements, achieve significant cost savings and the highest
level of payment legislation compliance are those that dress the process between themselves and their subcontractors. Evidence from contractors show that there is little or no consistency of monthly applications being submitted across its subcontractor community. Hundreds of applications across many projects ranging from verbal requests to complex spreadsheets are received, re-keyed into back office systems, processes/managed, and approved on a monthly basis. It is estimated that to process a single straight forward application can cost a minimum of £600 per application. THE SOLUTION INTRODUCING PROGRESSCLAIM.COM Progressclaim.com has been designed to revolutionise the payment process by allowing you to process applications for payment easily and efficiently. After huge success in Australia and Asia, created for the global construction industry Propgressclaim.com has now entered the UK and European markets. With offices strategically placed in London and Newcastleupon-Tyne, we deliver an online solution that has already started to revolutionise the UK construction industry’s application, certification and notification process.
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The Innovation Economy: UK businesses invest £133Bn in intangible assets A new report, commissioned by the Intellectual Property Office (IPO), has revealed that the UK is spending larger amounts on innovation, know-how and ideas - so called ‘intangible assets’ - rather than traditional ‘bricks and mortar’ investment.
Rights (IPRs) - a 3% increase from 2011. Of those assets:
INTELLECTUAL PROPERTY POST-BREXIT
Research indicates that intangible investment, which includes expenditure on R&D, software development and product design, reached £133Bn in 2014 - 9% higher than straightforward spending on such tangibles as property, machinery, and IT infrastructure.
The Government previously identified innovation as a crucial ingredient in the UK’s drive towards economic growth up and down the country, and IP rights are playing a greater role than ever before.
There’s cause for concern however. The shock outcome of the EU referendum has led to some speculation over the future of many of the UK’s long-standing intellectual property laws. Both the IPO and the industry at large have moved to allay those fears, with the Government publishing ‘IP and Brexit: The Facts’ to help clarify the situation.
It’s an intriguing trend - one that speaks volumes of the UK’s shifting priorities. Since the turn of the century intangible investment has increased by an astounding £45Bn, further highlighting Great Britain’s role in the global ‘knowledge economy’. And while investment in tangible assets has risen by 38% - from £87.9Bn to £121Bn - over the same period, intangibles continue to outstrip more orthodox methods of spending at a quite considerable rate. Why is this? Historically, British businesses have often been accused of underinvestment. Indeed, in recent past, former Chancellor of the Exchequer George Osborne claimed that the UK doesn’t “train enough or build enough or invest enough”. The IPO’s findings seem to fly in the face of conventional thinking however, indicating that UK businesses are perhaps more progressive than in previous years. The report also underscores the significance of both the manufacturing and financial industries to the UK’s burgeoning innovation economy. Bafflingly, these two sectors account for just 20% of total hours worked but are responsible for 58% of all intangible investment. Also of interest, in 2014 more than half of intangible investments (53%) were protected by Intellectual Property
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• 25% were protected by copyright. • 11% were protected by trademarks. • 11% were protected by design rights. • 6% were protected by patents.
Baroness Neville-Rolfe, Minister of State for Energy and Intellectual Property, said: “The UK has an impressive track record when it comes to innovation and creativity. Investment in intangible assets like research and patents helps businesses grow - which is why the UK has a strong system in place to protect their IP rights, and encourage further investment. “Our intellectual property regime has helped create an environment in which innovators and creators can prosper knowing full well that their hard work will be rewarded and rigorously protected.” Tony Rollins, President of the Chartered Institute of Patent Attorneys, added: “Investment in the protection of intellectual property is a vital driver of economic growth: it helps to maximise profits which fund further research and development into new ideas. “CIPA is proud of its excellent relationship with Government and innovative business. The IP system encourages investment and research thanks to high quality practices, insightful policy-making and excellent work such as this report.” To read the report in full, please visit: www.gov.uk/government/ publications/uk-intangibleinvestment-and-growth
In the short-term it’s business as usual. As Jo Joyce, IP and Information Rights Associate for international law firm Taylor Wessing, states: “We know that the decision to leave the EU will be followed by withdrawal negotiations and an adjustment period likely to last several years. The most important thing for IP practitioners and owners to remember is that there is currently no need to panic.” But what exactly is up for debate? According to Jo: “The primary areas of concern will be working out what to do about EU rights currently valid in the UK and how to handle ongoing litigation involving such rights. More broadly, the UK will have to plan its transition to ensure that the decisions of UK courts are respected and enforceable beyond our borders. Whilst this might involve EEA and/or Lugano Convention membership, any number of mechanisms could be employed to achieve the desired ends.” Intellectual property is just one of a myriad of issues that will need to be addressed once Article 50 is triggered. But if the UK economy is to remain in good working order, businesses will need greater assurance of their own intellectual property rights - and they will look to their Government for guidance. For more information, please visit: www.gov.uk/government/news/ipand-brexit-the-facts
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Sustainability - Building for Future Generations IN 1992, the Brundtland Report for the World Commission on Environment and Development defined sustainability as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs".
natural water sources or even sewers (Google uses sewer water to cool its data facility in Douglas County, Georgia). It’s often a simple case of looking at all the possible options, weighing up their cost, financial and environmental, and going with the ones that tick the right boxes.
The water treatment industry, by its very nature, executes the objective of making the most of one of the world’s natural resources; water. Many available underground water sources such as boreholes or deep wells, if treated appropriately, can be utilised for potable or industrial water processes. Often only simple filtration, mineral reduction or conditioning is all that is needed, but sometimes a quite sophisticated treatment process, such as total mineral elimination may be the only option.
Water treatment has more to contribute to the Design and Build concept than water sources, though. By including the right plant in the original construction, water treatment can prolong the life of a multitude of machinery and engineering, including boilers and heating systems.
Depending on the raw water chemistry and process requirements, direct treatment of the water, without the need for other pre-treatment or filtration, could provide the desired quality. This has a direct impact on the local and global environment as it enables the use of water that would not be viable if left untreated, without the addition of chemicals. When designing a new build or renovation, all potential water supplies should be considered; it may even be prudent to use a range of supplies for different applications. For example, the water that can be used in cooling systems can be drawn straight from
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What about grey water? There is no reason for it to be sent to main sewers for utility sewage treatment with discharge costs (black water) when processes such as filtration and reverse osmosis can treat it successfully for reuse in many different scenarios. Depending on the building’s purpose, it can be difficult to estimate the quantity, or indeed quality, of grey water that will be produced, particularly if the building will be a cross-sector, multioccupancy let. This, in turn, leads to difficulties in calculating the costefficiency of installing and maintaining the appropriate plant to treat the grey water. These complications are not insurmountable, and we sometimes need to remind ourselves of the wider picture and remember the Brundtland definition of sustainability before we discount possibilities. More and more,
buildings are being designed to have central services, used by and paid for by all tenants, which allows the volumes of water to be treated be larger and therefore more cost effective and sustainable. We’ve looked at the construction industry’s sustainability from an endproduct perspective, but let’s take a step back in the process and consider the manufacture of materials. The industrial demands on water supplies in the manufacture of steel and concrete, for example, are very high. The use of clean, drinkable water in the manufacture of these and many other materials is often unnecessary and as part of the procurement process responsible purchasers should be asking questions about the sustainability of the products they are buying. It’s a lot to think about, and it really does need the entire construction industry to be taking sustainability seriously, in everything they do. From a water perspective, harnessing intelligent water technology without impacting on the environment and sustainability are about being outward looking, always seeking the best option and then looking deeper for a better one. It is not always the cheapest solution, but what price should we put on the future of our planet, our planet’s resources, and our future generations? By Mark Hadaway, UK Sales Manager for Lubron UK
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National College for High Speed Rail on track for 2017 BIRMINGHAM’S National College for High Speed Rail has this month taken a considerable step forward, following the near-completion of the building’s all-important roof structure. Transport Secretary Chris Grayling took time out of his busy schedule to tour the grounds of the high-tech training facility and witness it’s topping-out first-hand. With this crucial phase of construction now complete, the College remains on track to open to prospective students in September 2017. For many, the National College for High Speed Rail is an absolute imperative. If the Government is to make good on its aspirations for HS2 and railway infrastructure in general, specialist experience and training will be essential. The College will share responsibility for this with its sister site in Doncaster’s Lakeside. Both facilities are set to play a pivotal role in readdressing the muchdiscussed skills shortage and upskilling an industries worth of workers. According to conservative estimates, British businesses will require around 87,000 graduate level engineers each year over the coming decade. Furthermore, 30% of the current workforce will need supplementary training to meet the needs of the booming high speed rail industry. Transport Secretary, Chris Grayling, said: “HS2 will be the backbone of our
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national rail network and help us build an economy that works for all. The significant benefits of the scheme will not just be felt from when the trains start running. Work on the new College sites shows the transformational effect that HS2 is already having, creating jobs and supporting economic growth. Around 25,000 jobs and 2,000 apprenticeships will be generated during construction of HS2, which is due to begin next year.
Beth West, Commercial Director for HS2 Ltd, said: “HS2 provides the opportunity to drive productivity and growth and increase the UK’s international competitiveness in hightech engineering and construction. It demands new higher-level technical skills for jobs not yet in existence in the UK. The College is vital to the delivery of High Speed Rail across Britain and so it’s extremely pleasing to see the great progress being made.
“The UK is highly regarded for its engineering capabilities but we need to do more to attract new talent to the sector as well as improving the skills of the current workforce. That is why the Government launched a transport skills strategy earlier this year committing us to create 30,000 apprenticeships across roads and rail by 2020. The National College for High Speed Rail is a vital part of these plans as it will provide the cutting-edge skills we need to deliver HS2 and other world-beating infrastructure.”
“As the College puts the finishing touches to its curricular programme and steps closer to welcoming its first intake of students, it has also confirmed the appointment of Clair Mowbray as its new CEO to take the project forward.”
Birmingham City Council, Doncaster Council, and Local Enterprise Partnerships in both regions are collaborating with HS2 Ltd to help establish the structure of the College and develop fully its curriculum. Any businesses interested in upskilling their employees, or those considering a career in high speed rail can register their interest at the College’s newly launched website: www.nchsr.ac.uk
Terry Morgan, Chair of the National College for High Speed Rail, said: “I’m extremely pleased to appoint Clair as the new Chief Executive of the National College for High Speed Rail. Her commitment and passion for education and strategic development will be vital as we move closer to opening the College in September 2017. “We are passionate about creating a state-of-the-art, employer-led college which will provide students with the skills they need to enjoy an exciting and well-paid career while providing employers with the highly-skilled workforce they need to deliver High Speed Rail in the UK and other major infrastructure projects.”
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Planning consent for Creag Riabhach Wind Farm ENERGY Minister Paul Wheelhouse has given his consent to the construction of a 22 turbine wind farm in the Highlands. The Creag Riabhach Wind Farm will be located on the Altnaharra Estate, near Lairg, in the North Highlands. Creag Riabhach will have a generating capacity of 72.6MW energy enough to power 36,000 homes, with estimated savings of 66,000 tonnes of CO2 per year. The proposed development is anticipated to provide in excess of £9M in community benefit. The proposal also received widespread support from the public and local community council who emphasised the suitability of the location and highlighted the benefits to the local economy. The Highland Council was consulted on the application and raised no objection. Mr Wheelhouse said: “Renewable energy sources accounted for over 56.7% of gross electricity consumption in Scotland in 2015, and onshore wind is a key driver for the growth in both our renewable electricity supply and wider renewable energy sector and in the delivery of our vision for a greener Scotland and statutory climate change targets by enabling decarbonisation of electricity production. “This proposal for Creag Riabhach received popular support from the local community council and public alike and, once operational, the wind farm will generate enough electricity to power 36,000 homes and generate over £9M in benefits for the local community.”
#edinburgh2050: Council seek feedback for city vision Edinburgh residents, businesses, partners and stakeholders are being called upon to share their vision for the capital’s future.
• What’s great about Edinburgh? • What could be better? • What would you like Edinburgh to be like in 2050?
The ‘2050 Edinburgh City Vision’ will encompass the diverse needs of the city, ensuring it continues to thrive as a great place to live, work and visit over the next thirty years.
The City of Edinburgh Council’s Chief Executive, Andrew Kerr, launched the initiative to a 100 strong audience made up of delegates from all corners and sectors of the city.
A city-wide engagement campaign will run until December, inviting interested parties to share their vision for the future and unlock creative potential for collaboration across all sectors. A draft document will be produced based on the responses received before being refined, agreed and published next summer.
He said: “As Scotland's capital city, we have much to be proud of and positive about but we need to start thinking seriously about what we want Edinburgh to look like in ten, twenty, even thirty years’ time.
Anyone who lives, works or studies in the city can join the conversation by answering the following three questions at the Edinburgh 2050 webpage and on social media (@ edinburgh) using #Edinburgh2050.
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“A City Vision for Edinburgh - based on the true aspirations of people of all ages who live, work and study in the Capital - will provide all of us with a clear, long-term plan to guide strategy and investment for years to come.” For more information and to share your views on Edinburgh’s future, visit edinburgh.org/2050
Queensferry Crossing a record breaking bridge THE Queensferry Crossing’s centre tower deck has been recognised by Guinness World Records as the largest freestanding balanced cantilever in the world. The bridge’s central deck is now complete but still free standing, and the 644 metre cantilever itself won’t last long. Soon, it will be connected to the flanking towers and viaducts to form the final superstructure.
Cabinet Secretary for the Economy Keith Brown said: “We can all agree the Queensferry Crossing is a modern marvel and a world class feat of engineering. It’s only fitting then that the bridge has been awarded a Guinness World Records title.
However, experts at Guinness World Records have inspected and officially ratified the record while the deck is in this world record breaking but still temporary state.
“This world record breaking structure is all the more remarkable when you consider the extreme weather conditions often experienced out in the Firth of Forth, especially working up above the water between 60 metres and 210 metres high. Everyone who has worked so hard and skilfully to build this amazing bridge is a world record beater in their own right.
Until now the balanced cantilever method has never been used to construct a bridge this big. Each 16 metre, 750 tonne section of deck has been added sequentially at alternate ends to avoid placing too much strain on the concrete tower.
“It won’t be long before the balanced cantilever disappears, when the small gaps between the towers are closed. But the record is still there to be beaten and the Queensferry Crossing will still be the tallest bridge in the UK and longest bridge of its type anywhere in
the world.” Iain Cookson, FCBC Manager Centre Tower said: “It’s not every day you get to achieve a Guinness World Records title. The construction of this record breaking cantilevered structure has involved the installation of 36 separate steel and concrete composite deck sections. “These massive sections measure approximately 40 metres wide, 16 metres long, are 5 metres deep, and weigh an average of 750 tonnes. Each one had to be lifted up 60 metres above sea level before being welded and bolted into position. Simultaneously, we had to create and install the steel stay cables which will bear the weight of each deck section for decades to come. “It has been a tremendous team effort ever since we lifted the first deck section in October 2015.”
Transport Minister tours £41M Edinburgh Gateway TRANSPORT Minister Humza Yousaf has visited Edinburgh Gateway to see engineers putting the finishing touches to the new £41M station. Construction staff have been on-site at Gogar since January 2015 working on the new interchange, which will serve passengers from Fife and the north accessing Edinburgh Airport and transferring onto the tram network. With the main building work mere days away from completion, the new station remains on track to open for passengers in December this year. Mr Yousaf said: “I am pleased to visit Edinburgh Gateway station to see this
exciting new rail/tram interchange taking shape. “This £41M development is a great example of how the Scottish Government is investing to make public transport more accessible and attractive by linking up journeys across different modes of travel. “When it opens this new station will offer huge benefits to rail passengers travelling to or from the Gogar area, providing a convenient link between the tram network and Edinburgh Airport.” Phil Verster, Managing Director of the ScotRail Alliance, said: “Our engineers
have worked hard to deliver this project as quickly as possible for passengers. This new station will help to transform the way people travel, opening up new options for those wishing to access the tram network and Edinburgh Airport.” Edinburgh Gateway is part of the Scottish Government-funded Edinburgh Glasgow Improvement Programme (EGIP), which is delivering a rolling programme of electrification across the central belt - reducing journey times and increasing capacity on routes by improving the infrastructure to enable faster, greener trains to run.
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Heritage Lottery funding boost for rural Scotland COMMUNITIES across the Cairngorms and the Isle of Skye are celebrating a £2.85M cash injection, courtesy of the Heritage Lottery Fund (HLF), to restore and preserve many of the region’s much-loved historic and natural landmarks. It is hoped that the amount, awarded in-part to the Tomintoul and Glenlivet Landscape Partnership, will bolster highland tourism and, in doing so, help sustain some of the country’s most delicate fringe communities. On the Isle of Skye, Scotland’s first ever Ecomuseum - a pioneering community-led initiative - is set to be extended and comprehensively enhanced as part of the newlyannounced funding. Cabinet Secretary for the Environment Roseanna Cunningham said: “It’s great to see this investment in and support for Scotland’s landscapes. Our landscapes are iconic and will provide a magnificent backdrop for these projects that will encourage people to explore Scotland’s spectacular outdoors, protect our biodiversity, benefit rural communities and encourage visitors from home and abroad.” To date, HLF has contributed upwards of £100M to the conservation of Scotland’s prized biodiverse ecology - from the Flows of Caithness to the valleys of the Tweed - through schemes such as these. Commenting on the milestone achievement, Lucy Casot - Head of
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HLF Scotland - added: “The National Lottery is ensuring that Scotland’s spectacular landscape remains one of our greatest national assets, attracting visitors and making a vital contribution to Scotland’s tourist economy. “However, it’s not just visitors that benefit. With a bit of clever thinking, we can protect our natural heritage in a way that helps support people and communities. The innovative projects HLF has supported today will give everyone the opportunity to experience the health, learning and social benefits of the great outdoors. I am sure they will also ignite a passion for our natural world and its long-term conservation.” Of the £2.85M sum, £2.34M has been donated to the Glenlivet and Tomintoul Landscape Partnership to commemorate the district’s colourful past. In total, 20 projects are planned over a four year period, including: • A Discovery Centre and Tourist Hub. • Renovation of Blairfindy Castle and Scalan, an 18th-century seminary. • Woodlands restoration along the River Avon. • Creation of wetland habitats for wading birds. • A regional oral history project, to collate stories that bring the landscape to life. Eleanor Mackintosh, CNPA Board Member and local resident, said: “This is a massive boost, not just for Tomintoul and Glenlivet but for the wider National Park. Heritage Lottery
funding will result in investment in new and improved facilities and infrastructure, new job opportunities and other community driven projects – there are exciting times ahead. I would like to thank and congratulate all those involved in helping to secure this funding.” The remainder (£522,100) will go towards Skye Ecomuseum’s continued development, to fund: • A network of new paths, adding 5.84km to the existing trail. • A viewing platform to be installed near the Lealt Gorge waterfall. • Visitor welcome gateways, built at three key points. • A programme of guided walks, health walks, photography courses, wildlife and archaeology workshops. • Production of maps, leaflets, and associated literature. Staffin Community Trust Chairman Donald MacDonald said: “The board of Staffin Trust is delighted to have received this award on behalf of our community. This will allow for further development of what is already a very successful project and allow us to create an identify for our region that is specific to us. As a committee we aspire to our theme of climb the Cuillin, walk Trotternish, and for the whole of Skye this is a significant investment in our tourism and educational infrastructure. The fact that this funding will also create a new three year post is also important in a remote fragile area and will help to give people confidence, pride and a sense of place.”
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Tidal lagoon power is ‘Ours to Own’ Tidal Lagoon Power has released ‘Ours to Own’ - a report detailing the scale of British industrial opportunity as presented by tidal lagoons. In related news, a tender for the design and construction of a new £22M Turbine Manufacturing & Pre-Assembly Plant in Swansea Bay - to be the beating heart of a ‘Made in Britain’ tidal lagoon turbine industry - has also launched.
and that we seize and own what can be a £70Bn sector for this nation.”
Mark Shorrock, Tidal Lagoon Power’s Chief Executive, explains: “This report captures the hard work of today’s industrialists to ensure tidal lagoons are British-engineered, that the manufacturing supply chain is British,
The Turbine Manufacturing & PreAssembly Plant will be sited between the Kings and Queens Dock in Swansea Bay. It will receive major turbine components from manufacturers across the UK, with machining and pre-
The immediate opportunity extends to the UK’s construction, engineering, manufacturing and steel industries, with contacts totalling in excess of £800M at Swansea Bay and over £6Bn for the first project to employ the template full-scale.
assembly of the sixteen 7.2m runner diameter turbines required taking place on-site. Future-proofed for exponential market growth, the facility will initially employ up to 100 skilled workers, with an additional 150 accommodated in an on-site office welfare area. Mr Shorrock concluded: “180 years ago Brunel built the Great Western Railway and we still celebrate that British manufacturing and engineering success today. A roll out of tidal lagoons will be of equally significant scale and will also benefit our country for over a century.”
First class student accommodation for Cardiff The Student Housing Company has successfully launched Cardiff’s latest private halls, providing bespoke accommodation for 281 residents. Built by Midas Construction, part of the Midas Group, Arofan House can now be found on Vere Street - a stones throw from Cardiff University and the University of Wales, and a short bus ride from Cardiff Metropolitan University. Sarah Linton-Walls, Sales & Marketing Director at The Student Housing Company, summarises: “We’ve
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completely transformed this old brownfield site into a state-of-theart residence built around a uniquely landscaped courtyard. Demand has been overwhelming; rooms are completely booked up for the 2016/17 academic year and we’ve been operating a waiting list for over a month, showing that we’re filling a void for high quality purpose-built accommodation in the city. Welcoming students from the various universities and colleges in Cardiff has been great fun, and we hope they all enjoy their stay with us.”
Derek Quinn, Divisional Director at Midas Construction, added: “Midas is delighted to deliver this significant student accommodation project in Cardiff. This is an exciting new building which will provide sector leading modern accommodation for those studying in the city. As a local company, with a base in Newport, we were delighted to employ from the community and engage with local sub-contractors during the delivery of this project.”
Pontypool company awarded Chernobyl contract
Welsh property professionals raise money for homeless MORE than 120 property professionals across Wales took part in the Wales Property Triathlon to raise money for the homeless. Suits were swapped for cycling shorts, swimming goggles and running shoes - with more than 120 property professionals taking part to raise over £6,500. Organised by family firm Jehu Group, the annual triathlon was this year in aid of chosen charity Llamau, which supports and empowers those experiencing homelessness. This event - hosted at Pencoed Pool and Rugby Club - included individual competitors as well as teams of three, with separate members swimming, cycling and running. Staff from Jehu Group and Waterstone Homes - together with many of their clients including Principality Building Society, Berry Smith, Coastal Housing Group and Newydd Housing Association - took part in the sprint triathlon, which involved a 500m swim, 20km bike ride and 5km run through the Bridgend area. Following a number of fundraising activities, such as a property band night and an auction in June, the total figure raised by the Company for the home charity amounts to over £10,000. Elin Evans, Corporate & Community Fundraiser at Llamau said: “Homelessness is sadly a frightening reality for thousands of people across
Wales and an issue that we are working hard to combat. Last year, Llamau supported over 5,000 vulnerable women and young people. This year we have supported over 8,000 people in desperate need of our services. “The demand on our services increases year on year and we are extremely thankful to Jehu Group for selecting Llamau as its charity of the year and raising awareness of a very important issue. It was great to see such a fantastic turnout today and the money raised will make a huge difference to the lives of our service users and will help us to continue to be there for the people who need our help.” Managing Director at Jehu Group, Simon Jehu, said: “Every year our triathlon gets larger in scale and it’s been humbling to see such a great attendance at this year’s triathlon, all in support of such a brilliant charity. “As a family company, and with our personal ties to the history of the triathlon, the annual event is very close to our hearts and we are passionate about raising money for important causes. With an estimated 140,000 people having experienced homelessness in Wales in the last year, this is an issue that can affect anybody. We are pleased to raise such a significant sum for Llamau. It is vital that the charity can continue to improve services, raise awareness and promote understanding of the issues surrounding homelessness and we hope our efforts will help make this happen.”
PONTYPOOL-BASED manufacturer Flamgard Calidair has won a contract with Chernobyl New Safe Confinement following support from the UK Government through UK Export Finance (UKEF), Welsh Government research and development grants, and Lloyds Banking Group. Flamgard will provide fire and shut off dampers to the Chernobyl site - the world’s largest movable structure, designed to facilitate monitoring and demolition of the previous containment building following the 1986 disaster, while also securing any remaining radioactive material. The €1.5Bn multinational engineering project, managed by international contractor Novarka, will be installed in late 2017. To fulfil the contract, Flamgard required additional finance to issue an advance payment bond - a common challenge for exporters. The manufacturer was able to secure this through Lloyds, while a guarantee from UKEF meant there was no requirement for a deposit. Its bespoke fire dampers were developed with the support of Welsh Government R&D grants. The Welsh Government has, via the European Regional Development Fund, provided ongoing support to Flamgard over a number of years to facilitate the research and development of technically advanced products, and enable the Business to meet a growing global demand for its products. The Rt Hon Greg Hands - Minister of State for Trade and Investment - welcomed the announcement, saying: “This success demonstrates that there is a world of opportunity out there for innovative, outwardlooking companies like Flamgard. But when the world needs your expertise, you may find you need additional support, and I am delighted that the UK Government, through UKEF, was able to help ensure this very special export happened.”
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Steadying the Ship: Welsh Government secures £4Bn in funding for local authority use amid economic uncertainty WELSH Cabinet Secretary for Finance and Local Government, Mark Drakeford, has announced £4.107Bn of provisional funding for local authority use in 2017/18. The extraordinary sum - a £3.8M increase on 2016/17’s amount - marks the first rise in local government funding since 2013/14. Capital funding for 2017/18 currently sits at £442M, while general capital funding remains £143M - unchanged from 2016/17. For many local authorities, this is welcome news. Council leaders will now be able to press ahead with new school construction, improvements to local roads, and crucial infrastructure investment.
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vital services, such as school transport and a pilot scheme to support town centre car parking. Funding for Council Tax Reduction Schemes forms another key component of the provisional settlement. Up to £244M will be ringfenced to ensure local authorities have the financial backing necessary to provide much-needed support to 300,000 of the most vulnerable families in Wales.
“The changes we are implementing this year are based on the advice of an expert group comprised of local authorities and independent specialists. “The package also includes additional funding to implement a minus 0.5% funding floor which limits the impact on councils that would have seen the biggest reductions in their core funding.
Mr Drakeford was also on-hand to unveil some of the proposed Welsh Government grant schemes for 2017/18. In total, £650M will be made available to priority schemes, and assist councils as they prepare next year’s budget.
“As a result, this is the first cash increase in the local government settlement since 2013/14. Under the funding floor, no council will have to manage on less than 99.5% of the cash provided to them last year. When added to the other sources of income available to them, many councils will be able to increase their spending next year.
In recognition of the mounting pressures facing social services across the country, £25M has been allocated to improve its provision and better safeguard the long-term delivery of Welsh healthcare nationwide.
Announcing the funding package, Mark Drakeford said: “The aim of this provisional settlement is to give local authorities the stability to manage the difficult decisions that lie ahead.
“Within the overall settlement, councils will also receive £25M in recognition of the importance of strong local social services and the growing pressures felt by this service.
Additionally, a further £25M has been earmarked to fulfil a previous agreement between the Welsh Government and Plaid Cymru. This amount will go towards the upkeep of
“We know that councils are delivering their services against a backdrop of austerity and this settlement provides a platform from which to plan for harder choices which will lie ahead.
“This is a stable settlement in challenging times and will allow local government to set sustainable budgets despite constraints on public finances.”
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Larne public realm a sight for sore eyes COMMUNITIES Minister Paul Givan visited Larne to celebrate the completion of a significant public realm scheme. The £2.2M scheme - jointly funded by the Department for Communities and Mid and East Antrim Borough Council - has seen a number of improvements to the streetscape including new paving, enhanced street lighting, furniture, railings and planting, together with improved drainage. Viewing the works at Broadway, Minister Givan said: “Larne is in a unique position as part of the Causeway Coastal Route and this scheme provides great potential to develop tourism and increase visitor numbers to the town and surrounding area. “Larne now has a more attractive and pedestrian-friendly environment which should encourage more people to visit and stay longer, which will hopefully result in both increased business and employment opportunities in the town’s retail and services sectors.” The Minister congratulated Mid and East Antrim Borough Council for its successful delivery of the scheme, and also paid thanks to AECOM, the design and project management team, and Earney Contracts who carried out the construction works. Concluding his visit, the Minster said: “The work involved in delivering major public realm schemes in busy town centres is extremely challenging for everyone concerned. For it to be successful it requires a partnership approach as any one stakeholder cannot succeed on its own. In Larne the partnership and synergy between statutory bodies, businesses and the wider community has successfully delivered a scheme which we can all be proud of.”
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Innovation Factory opens in Belfast THE pioneering Innovation Factory (IF) has officially opened in Belfast to provide a creative outlet for start-up and expanding businesses - those specialising in innovation, technology, and product development. Renowned designer Wayne Hemingway, who worked on the interior of the building, joined Belfast Lord Mayor Alderman Brian Kingston, Economy Minister Simon Hamilton, and Finance Minister Máirtín Ó Muilleoir to unveil the state-of-the-art facility to the public. The £9.1M project was part-funded by Belfast City Council through its investment programme, Invest Northern Ireland (£2.1M) and the European Regional Development Fund, under the Sustainable Competitiveness Programme for Northern Ireland (£4.15M). It will now be managed by Oxford Innovation Ltd. The Innovation Factory provides Grade A office accommodation, including 382 workstations across 111 units to house over 100 businesses and entrepreneurs. The facility also contains meeting and conference rooms, hot desking, superfast broadband connection, 24/7 access for tenants, on-site catering and car parking. The interior fit-out was designed by Wayne Hemingway of Hemingway Design to reflect the building’s industrial theme.
Lord Mayor Alderman Brian Kingston said: “I’m honoured to open such an inspirational and pioneering building today. We’ve worked closely with our contractors and the local community to create a modern, dynamic space which will particularly appeal to young and up and coming entrepreneurs, while also paying tribute to the site’s industrial heritage. “We’ve also ensured within the management contract for the centre that the operation of Innovation Factory will contribute to local trade and skills development for local suppliers, community, schools and colleges. “Our investment in this key project is symbolic of the Council’s continued commitment to deliver economic growth whilst delivering social value to our local communities and businesses.” Innovation Factory Director Majella Barkley also commented: “IF is a place for entrepreneurs to collaborate, innovate and push their boundaries. Entrepreneurs want to feel part of a thriving local business community and as such, we have created IF as a place where businesses can pool resources, share ideas and work together within a supportive community to innovate, grow and develop their capabilities.”
Funding boost for Irish housing market THE Irish Government has announced an increase in social housing investment of up to 50%, taking the amount to €1.2Bn. The increase will fund the measures announced under Minister for Housing, Simon Coveney, as part of the €5.35Bn Rebuilding Ireland action plan. It is envisaged the investment will meet the housing needs of more than 21,000 households in 2017. The package includes a €105M increase - 220% more than 2016 on the Housing Assistance Payment (HAP) used to accommodate social housing tenants in private rented accommodation. Local authorities will also fund a variety of housing services worth €92M from surplus Local Property Tax receipts, bringing the total housing provision in 2017 to almost €1.3Bn. The Minister for Housing, Planning, Community and Local Government, Mr. Simon Coveney said: “I said at the launch of Rebuilding Ireland in July that meeting the housing challenge is the key priority for this Government. The package of measures I am announcing with
Cabinet colleagues demonstrates the extent of that commitment.” The Budget also includes a tax rebate for first time buyers to help stimulate the supply of new homes. An extension of mortgage interest relief for existing homeowners and changes to Capital Acquisitions tax will also be used to tackle the Irish housing crisis. Furthermore, mortgage interest relief will be improved for landlords to encourage them to remain in the housing sector. The news was welcomed by the Construction Industry Federation (CIF), with Director General Tom Parlon describing the measures as a “significant step” towards solving the issue of a lack of homes being built to satisfy demand. He said: “The CIF’s Irish Home Builders Association welcomes the introduction of this tax rebate scheme aimed at helping first-time buyers to save deposits for starter homes. There is an acute shortage of activity in this sector because first-time buyers cannot secure mortgages. As a result, banks won’t provide finance to homebuilders making the building of new starter homes unviable.”
Trusource Labs to establish International Operations Centre MINISTER for Jobs, Enterprise & Innovation Mary Mitchell O’Connor has announced that technical support services company Trusource Labs is to establish an International Operations Centre in Limerick, creating 134 jobs over a three year period. The project is supported by the Department of Jobs, Enterprise & Innovation through IDA Ireland. Trusource Labs is headquartered in Austin, Texas. The privately held company services technology firms that specialise in the Internet of Things, and provides support to businesses that rely on Apple devices. Minister for Jobs, Enterprise and Innovation Mary Mitchell O’Connor said: “This is another great boost for Limerick and the region. I am delighted to be in Limerick again today to welcome a further 134 jobs to the city and the region. As Minister my priority is to ensure continued jobs creation right across the country. These are exactly the kind of high quality technical jobs that we seek to attract and it is a strong vote of confidence for Ireland and the Irish workforce that Trusource Labs has decided to establish its International Operations Centre here. I wish the Trusource Labs team all the very best for their future in Ireland.” Trusource Labs Co-Founder Alton Martin commented: ‘We are enthusiastic to bring our innovative customer experience model to Ireland. It is our first step in a larger global growth plan, and we are grateful for IDA’s partnership and support.” IDA’s CEO Martin Shanahan added: “This investment by Trusource Labs is great news. Delivering 134 jobs in three years will make a strong regional impact in Limerick and will be a valuable reference case for IDA in attracting similar high growth technology companies to the region. I congratulate the Company and offer the continued support of IDA Ireland in the future.”
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First Step Stimulus: NIE invest in priority infrastructure IN recent weeks, Finance Minister Máirtín Ó Muilleoir has unveiled an ambitious £30M funding package to kick-start the Northern Ireland Executive’s First Step Stimulus initiative. In total, £25M is to be invested in priority infrastructure, with the remainder set aside for the year’s community regeneration projects. This initial First Step Stimulus package - funded through borrowing flexibility made available under the Stormont House Agreement - will enable the Executive to double down on its commitment to Northern Irish infrastructure. Máirtín Ó Muilleoir said: “We need long-term economic stimulus and I envisage this will be delivered by the Executive in the near future. Today, we are sending an early signal of intent to our citizens through the First Step Stimulus package. “The Executive has agreed £15M for roads structural maintenance and a further £10M will be made available for the purchase of new buses. This will provide a welcome boost to our construction and manufacturing sectors whilst delivering improvements in our transport infrastructure.” Minister Ó Muilleoir went on to confirm: “The package also includes £5M for a Community Regeneration Fund. I believe that targeted regeneration will help to build upon the progress our society has made in recent years and act as a lever to stimulate economic growth in the communities where it is most needed.”
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The Minister also detailed resource expenditure allocations to a number of differing departments - £8.9M in total as part of October’s monitoring round. These include: • £4.8M to the Department for Health for Translarna Muscular Dystrophy treatments. • £2.5M to the Department for the Economy to facilitate route development at City of Derry Airport. • £1M to the Department for Education for Irish medium nurture units. • £0.6M to the Public Prosecution Service to accommodate mounting pressures. A further £22.7M has been allocated for capital expenditure, including: • £13M to the Department for Education for minor works and the purchase of furniture for Northern Ireland’s schools. • £8.7M for the Department of Health for essential maintenance and in ambulance defibrillators. • £1M to the Department for Infrastructure for LED street lighting. Infrastructure Minister Chris Hazzard was among the first to welcome the funding allocation, stating: "This £25M is a significant boost for the infrastructure sector and will help secure jobs in the construction and transport industries. "The £15M for roads will see communities across the north benefit from a better and safer roads network. This additional funding will target structural maintenance on the
local road network to help address maintenance backlogs. It will also provide new drainage, reconstruction and resurfacing of around 150 kilometres of road. This announcement is a welcome boost for the public and the construction industry, and will help sustain hundreds of jobs in the sector. This funding also allows me to advance preparatory development on a number of very important projects including Buncrana Road A2, the Enniskillen bypass and Cookstown bypass.” According to Minister Hazzard: "Improving the public transport network is a key outcome in the draft Programme for Government and the £10M allocated demonstrates the Executive’s commitment to achieving this. This funding secures 45 new buses for Ulsterbus, Goldline and Metro which will modernise our fleet, improve reliability and enhance our offer to customers. These will be Euro 6 buses which meet the lowest emission standards and a number of the vehicles will be procured locally, supporting the local economy. "My Department has also been allocated £1M capital funding for investment in LED street lighting. This is especially welcome as we approach the winter months and this investment will be used to deliver an additional 20 street lighting schemes in towns across the north." Monitoring rounds typically take place three times every financial year. They enable the Executive to reallocate unspent funding or address previously unforeseen financial pressures on the fly.
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